Date of enactment:
2023 Senate Bill 667 Date of publication*:
2023 WISCONSIN ACT
AN ACT to create subchapter XIII of chapter 701 [precedes 701.1301] of the statutes; relating to: domestic asset
preservation trusts.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. Subchapter XIII of chapter 701 [precedes
701.1301] of the statutes is created to read:
CHAPTER 701
SUBCHAPTER XIII
DOMESTIC ASSET
PRESERVATION TRUSTS
701.1301 Definitions. In this subchapter:
(1) “Advisor” means a person who, under the terms
of a domestic asset preservation trust, is granted the
power to do any of the following:
(a) Remove or appoint a trustee of the domestic asset
preservation trust.
(b) Direct, consent to, or disapprove a trustee’s actual
or proposed investment, distribution, or any other action
related to assets of the domestic asset preservation trust.
(2) “Asset” means property of a transferor but does
not include any of the following:
(a) Property to the extent it is encumbered by a valid
lien.
(b) Property to the extent it is generally exempt under
nonbankruptcy law at the time of a qualified disposition.
(c) Property held as marital property with rights of
survivorship to the extent that under the law governing
the marital property at the time of a qualified disposition
the property is not subject to process by a creditor holding
a claim against only one spouse.
(d) Property transferred from a nondomestic asset
preservation trust to a domestic asset preservation trust to
the extent that the property would not be subject to attach-
ment under applicable nonbankruptcy law that governs
the nondomestic asset preservation trust.
(3) “Claim” means a right to payment, whether or not
the right is reduced to judgment, liquidated, unliquidated,
fixed, contingent, matured, unmatured, disputed, undis-
puted, legal, equitable, secured, or unsecured.
(4) “Creditor” means a person who has a claim
against a transferor and includes any transferee of,
assignee of, or successor to the claim.
(5) “Debt” means liability on a claim.
(6) “Disposition” means a transfer, conveyance, or
assignment of a property interest, including a partial,
contingent, undivided, or co−ownership property inter-
est. “Disposition” includes an exercise of a general
power of appointment that results in a transfer of property
to a trustee but does not include any of the following:
(a) The release or relinquishment of a property inter-
est that is subject to a qualified disposition until the
release or relinquishment.
(b) The exercise of a special power of appointment
that results in a transfer of property to a trustee.
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 2023 Senate Bill 667
(c) A disclaimer under s. 700.27 or 854.13.
(6m) “Domestic asset preservation trust” means a
trust created by a written instrument, the terms of which
do all of the following:
(a) Appoint at least one qualified trustee to accept
property that is the subject of a disposition, regardless of
whether the terms of the trust also appoint a nonqualified
trustee.
(b) Expressly designate the laws of this state to gov-
ern the meaning and effect of the terms of the trust, in
whole or in part.
(c) Expressly provide that the trust is irrevocable.
(d) Include a spendthrift provision that applies to an
interest of a beneficiary in trust property, including an
interest of a transferor who is a beneficiary.
(7) “Investment decision” means a decision regard-
ing the retention, purchase, sale, exchange, tender, or
other action affecting the ownership of or rights in an
investment.
(9) “Lien” has the meaning given in s. 242.01 (8).
(10) “Nondomestic asset preservation trust” means
a trust that is not a domestic asset preservation trust.
(11) “Nonqualified trustee” means a trustee who is
not a qualified trustee.
(11m) “Qualified affidavit” means an affidavit that
meets all of the requirements of s. 701.1312 (2).
(12) “Qualified disposition” means a disposition by
a transferor to any trustee of a domestic asset preserva-
tion trust.
(13) “Qualified trustee” means a trustee who is not
a transferor and to whom one of the following applies:
(a) If the trustee is an individual, the individual
resides and is domiciled in this state.
(b) If the trustee is a trust company or a bank, the trust
company or bank is organized under federal law, state
law, or the laws of another state, the trust company or
bank is subject to supervision by the department of finan-
cial institutions, the federal deposit insurance corpora-
tion, the U.S. comptroller of the currency, or a successor
of any of them, and the trust company or bank maintains
an office in this state.
(14) “Transferor” means a person who directly or
indirectly makes a disposition to a domestic asset preser-
vation trust, including a settlor, as defined in s. 701.0103
(23).
(15) “Valid lien” has the meaning given in s. 242.01
(13).
701.1302 Applicability. (1) Unless the terms of a
domestic asset preservation trust provide otherwise, this
subchapter governs the construction, operation, and
enforcement in this state of a domestic asset preservation
trust, whether created in this state or any other state, if any
of the following applies:
(a) Any of the land, rents, issues, or profits that are
the subject of a qualified disposition are located in this
state.
(b) Any portion of personal property, interest of
money, or dividends of stock that is the subject of a quali-
fied disposition is located in this state.
(c) The transferor’s legal residence is in this state.
(d) A qualified trustee of the domestic asset preserva-
tion trust has the power to maintain records for the trust
on an exclusive or nonexclusive basis, prepare or arrange
for the preparation of fiduciary income tax returns for the
trust, and maintain or arrange for custody in this state of
some or all of the property that is the subject of a qualified
disposition, and a material portion of the administration
of the trust is performed in this state.
(2) (a) If the transferor is married at the time of a qual-
ified disposition, this subchapter applies to the following:
1. Any of the transferor’s individual property that is
the subject of the qualified disposition.
2. Any marital property that is the subject of the qual-
ified disposition if the transferor’s spouse at the time of
the disposition was provided with notice of the qualified
disposition as provided in par. (b) or executed a written
consent to the qualified disposition after being provided
the information set forth in the notice.
(b) All of the following apply to a notice of a qualified
disposition under this subchapter:
1. The notice shall contain the following language, in
capital letters, at or near the top of the notice:
YOUR SPOUSE OR FORMER SPOUSE IS CRE-
ATING A PERMANENT TRUST INT O WHICH
PROPERTY IS BEING TRANSFERRED.
YOUR RIGHTS TO THIS PROPERTY MAY BE
AFFECTED DURING YOUR MARRIAGE, UPON
DIVORCE (INCLUDING THE PAYMENT OF CHILD
SUPPORT OR ALIMONY OR A DIVISION OR DIS-
TRIBUTION OF PROPERTY IN A DIVORCE), OR AT
THE DEATH OF YOUR SPOUSE OR FORMER
SPOUSE.
YOU HAVE A VERY LIMITED PERIOD OF TIME
TO OBJECT TO THE TRANSFER OF PROPER TY
INTO THIS TRUST.
YOU MAY, UPON REQUEST TO THE TRUSTEE
AT THE ADDRESS BELOW , BE FURNISHED A
COPY OF THE TRUST DOCUMENT.
IF YOU HAVE ANY QUESTIONS, YOU SHOULD
IMMEDIATELY SEEK INDEPENDENT LEGAL
ADVICE.
IF YOU FAIL TO OBJECT WITHIN 30 DAYS,
YOU WILL HAVE CONSENTED TO THE TRANS-
FER OF PROPERTY INTO THIS TRUST.
.... (address)
2. The notice shall contain a description of the prop-
erty that is the subject of the qualified disposition.
3. The notice may require that any person who is eli-
gible to receive information under this subsection be
bound by the duty of confidentiality that binds the trustee
before receiving such information from the trustee. − 3 − 2023 Wisconsin Act 2023 Senate Bill 667
4. The notice shall be provided by the transferor, the
transferor’s agent, the trustee, or another fiduciary of the
domestic asset preservation trust.
5. The notice is considered provided to a spouse if
one of the following requirements is met:
a. The notice is delivered to the spouse via certified
mail, with a return receipt requested.
b. The notice is given to the spouse in−person and the
spouse acknowledges the receipt of the notice in a signed
and notarized document.
(c) If a notice is provided under this subsection before
the qualified disposition, the period to commence an
action under s. 701.1306 (3) begins to run on the date the
notice is provided. The period to commence an action to
challenge a qualified disposition under this subsection
and s. 701.1306 (3) may not exceed the period set forth
in s. 893.425.
701.1303 Spendthrift provision; domestic asset
preservation trust. (1) Notwithstanding s. 701.0502
(1), a spendthrift provision of a domestic asset preserva-
tion trust is not invalid because a transferor or a person
who is treated as a settlor under s. 701.0505 (2) is also a
beneficiary of the domestic asset preservation trust.
(2) Except as otherwise provided in this section, a
spendthrift provision in a domestic asset preservation
trust restrains both voluntary and involuntary transfers of
a transferor’s interest in the domestic asset preservation
trust. A spendthrift provision in a domestic asset preser-
vation trust is enforceable under any applicable nonbank-
ruptcy law within the meaning of 11 USC 541 (c) (2)
regardless of whether the domestic asset preservation
trust instrument makes any reference to that enforceabil-
ity. The terms of a domestic asset preservation trust,
including in a spendthrift provision, may provide for any
other restraint of alienation that are permitted under the
laws of this state.
(3) Section 701.0503 (2) does not apply to a spend-
thrift provision in a domestic asset preservation trust.
(4) Section 701.0505 (1) (a) 2. does not apply to a
domestic asset preservation trust.
(5) Nothing in this section may deprive a beneficiary
of any exemption right that the beneficiary has under any
applicable law after the trust property is received by the
beneficiary.
701.1304 Implied power to revoke or to transfer
an interest in a domestic asset preservation trust.
None of the following is considered to be, including in
combination, a power to revoke a domestic asset preser-
vation trust or to voluntarily or involuntarily transfer an
interest in the domestic asset preservation trust:
(1) A transferor’s power to veto a distribution of
income or principal from the domestic asset preservation
trust.
(2) A special power of appointment, as defined in s.
702.02 (7), exercisable by a transferor by will or another
written document that is effective during the lifetime of
the transferor or upon the death of the transferor.
(3) The right of a transferor to receive income from
the domestic asset preservation trust in accordance with
the terms of the domestic asset preservation trust.
(4) That a transferor is a beneficiary of the domestic
asset preservation trust regardless of whether the trust
qualifies as a charitable remainder annuity trust under 26
USC 664 (d) (1) or as a charitable remainder unitrust
under 26 USC 664 (d) (2), even if the transferor has the
right to release the transferor’s retained interest, in whole
or in part, in the charitable remainder annuity trust or
charitable remainder unitrust at any time in favor of one
or more of the remainder beneficiaries of the domestic
asset preservation trust.
(5) A transferor’s annual receipt of a percentage of
the value of the domestic asset preservation trust assets,
as determined in accordance with the terms of the trust,
as long as the amount the transferor receives in a year is
not more than the amount defined as the income of the
domestic asset preservation trust under 26 USC 643 (b)
or, for any qualified retirement plan or eligible deferred
compensation plan that is an asset of the domestic asset
preservation trust, the minimum required distribution, as
defined in 26 USC 4974 (b).
(6) A transferor’s potential or actual receipt or use of
principal or income of the domestic asset preservation
trust if the potential or actual receipt or use is the result
of any of the following:
(a) A qualified trustee’s discretion. For purposes of
this paragraph, a qualified trustee has discretion with
respect to the distribution and use of the principal and
income of a domestic asset preservation trust unless the
terms of the domestic asset preservation trust expressly
provide otherwise.
(b) A qualified trustee applying a standard that gov-
erns the distribution or use of principal or income of the
domestic asset preservation trust.
(c) A qualified trustee acting at the direction of an
advisor if the advisor’s direction is discretionary or pur-
suant to a standard that governs the distribution or use of
principal or income under the terms of the domestic asset
preservation trust. For purposes of this paragraph, an
advisor’s direction is discretionary unless the terms of the
domestic asset preservation trust expressly provide oth-
erwise.
(7) A transferor’s potential or actual right to use real
or tangible personal property owned by the domestic
asset preservation trust.
(8) A transferor’s right to possess and enjoy a quali-
fied interest, as defined in 26 USC 2702 (b), or property
held under a qualified personal residence trust, as
described in 26 USC 2702 (c).
(9) A qualified trustee’s mandatory or discretionary
power to use the income or principal of the domestic asset − 4 −2023 Wisconsin Act 2023 Senate Bill 667
preservation trust to pay, in whole or in part, income taxes
due on the income of the domestic asset preservation
trust.
(10) That a qualified trustee, whether pursuant to the
qualified trustee’s discretion, the terms of the domestic
asset preservation trust, or the direction of an advisor
pays any of the following:
(a) A transferor’s debt that is outstanding at the time
of the transferor’s death.
(b) The expenses of administering the transferor’s
estate.
(c) Any estate, gift, generation−skipping transfer, or
inheritance tax on behalf of the transferor or the transfer-
or’s estate.
(11) A provision in the domestic asset preservation
trust that transfers all or part of the trust assets to the trans-
feror’s estate or revocable trust.
(12) A transferor is a beneficiary of the domestic
asset preservation trust and is authorized to receive a pay-
ment of income or principal from a qualified annuity
interest, as defined in 26 CFR 25.2702−3 (b), or a quali-
fied unitrust interest, as defined in 26 CFR 25.2702−3 (c).
701.1305 Transferor’s powers. (1) A transferor of
a domestic asset preservation trust has only the powers
and rights that are granted to the transferor by the trust
instrument. An agreement or understanding, express or
implied, between the transferor and a trustee that
attempts to grant or permit the retention of greater rights
or authority than is stated in the trust instrument is void.
(2) Notwithstanding s. 701.1304, the terms of a
domestic asset preservation trust may grant a transferor,
whether or not the transferor is a trustee, the power to do
any of the following:
(a) Remove and replace a trustee.
(b) Remove and replace an advisor.
(c) Direct trust investments.
(d) Execute any other managerial duties.
701.1306 Limitations on actions, remedies, and
claims. (1) In this section:
(a) “Cash” means the coins or currency of the United
States or any other nation.
(b) “Cash equivalent” means a monetary instrument
or device that is commonly or routinely accepted instead
of cash, including a certified or uncertified check; money
order; bank draft; electronic transfer of funds; negotiable
instrument or an instrument endorsed in blank or in
bearer form; securities issued or guaranteed by the
United States, a state, or a state or federal agency; funds
on deposit in a savings or checking account or any similar
account; funds on deposit in a money market account or
similar account; or demand deposit account, time deposit
account, or savings deposit account at any bank, savings
and loan association, brokerage house, or similar institu-
tion.
(c) “Fungible asset” means an asset other than money
that is interchangeable for commercial purposes and the
properties of which are essentially identical.
(d) “Money” means cash or a cash equivalent.
(2) Subject to sub. (3) and s. 701.1311 (4), a creditor
may not bring an action of any kind, including an action
to enforce a judgment, an action at law or in equity, or an
action for an attachment or other final or provisional rem-
edy, against a person who made or received a qualified
disposition, against a trustee of a domestic asset preserva-
tion trust, or against or involving any property that is the
subject of a qualified disposition or is otherwise held by
a domestic asset preservation trust, except that, subject to
s. 701.1307, a creditor may bring an action against a qual-
ified disposition of an asset if the transferor made the
qualified disposition with the intent to hinder, delay, or
defraud the creditor.
(3) A creditor may bring an action against a qualified
disposition under sub. (2) only if the creditor satisfies one
of the following:
(a) The creditor was a creditor of the transferor when
the qualified disposition was made and the creditor com-
mences the action within the later of the following:
1. Eighteen months after the qualified disposition.
2. Six months after the creditor discovers or reason-
ably should have discovered the qualified disposition.
For purposes of this subdivision, a creditor is considered
to have discovered a transfer at the time a public record
is made of the transfer.
(b) The creditor becomes a creditor after the qualified
disposition is made, and the creditor commences the
action no later than 18 months after the qualified disposi-
tion.
(4) In an action against a qualified disposition under
sub. (2), each creditor has the burden of proving by clear
and convincing evidence that the transferor made the
qualified disposition with the intent to hinder, delay, or
defraud the creditor. Proof by one creditor that a trans-
feror made a qualified disposition with the intent to hin-
der, delay, or defraud that creditor is not proof that the
transferor made a qualified disposition with the intent to
hinder, delay, or defraud any other creditor and does not
invalidate any other transfer of property to the domestic
asset preservation trust.
(5) Subject to s. 701.1311 (4), with respect to a quali-
fied disposition, a creditor has only the rights and reme-
dies that are provided in this section and s. 701.1307.
(6) Subject to sub. (8), an advisor may not be found
liable for damages a person suffers in connection with a
domestic asset preservation trust unless the person
demonstrates by clear and convincing evidence that the
advisor’s actions violated the laws of this state, that the
advisor acted knowingly and in bad faith, and that the − 5 − 2023 Wisconsin Act 2023 Senate Bill 667
advisor’s actions directly caused the damages suffered by
the person.
(7) Subject to sub. (8), a trustee of a domestic asset
preservation trust may not be found liable to a person who
is not a beneficiary or a transferor of the domestic asset
preservation trust unless the person demonstrates by
clear and convincing evidence that the trustee’s actions
violated the laws of this state, that the trustee acted know-
ingly and in bad faith, and that the trustee’s actions
directly caused the damages suffered by the person.
(8) (a) Subject to s. 701.1311 (4), no person may
bring an action of any kind related to a qualified disposi-
tion if the period under sub. (3) in which a creditor may
bring an action against the qualified disposition that is the
basis of the action has expired.
(b) An action barred under par. (a) includes an action
to enforce a judgment entered by a court or other autho-
rized adjudicative body, in law or equity, against a trustee
or advisor of a domestic asset preservation trust or
against any person involved in the counseling in connec-
tion with, or the drafting, preparation, execution, admin-
istration, or funding of a domestic asset preservation
trust. For purposes of this paragraph, “counseling in con-
nection with, or the drafting, preparation, execution,
administration, or funding of a domestic asset preserva-
tion trust” includes any of those actions related to any
limited partnership, limited liability company, corpora-
tion, or similar entity if the limited partnership interests,
limited liability company interests, stock, or other similar
ownership interests in the relevant entity are subse-
quently the subject of a qualified disposition.
(9) If more than one qualified disposition is made to
a domestic asset preservation trust, all of the following
apply:
(a) For purposes of determining whether a creditor’s
claim against a qualified disposition is barred under sub.
(3), each qualified disposition shall be evaluated individ-
ually without regard to any subsequent qualified disposi-
tion.
(b) For purposes of determining the order in which
property is paid, applied, or distributed from a domestic
asset preservation trust, all of the following apply:
1. A payment, application, or distribution of money
is considered to be made from or with the money most
recently received or acquired by any trustee of a domestic
asset preservation trust except to the extent that it is
proven otherwise beyond a reasonable doubt.
2. A payment, application, or distribution of a fung-
ible asset is considered to be made from or with the fung-
ible asset most recently received or acquired by any
trustee of a domestic asset preservation trust except to the
extent that it is proven otherwise by clear and convincing
evidence.
(c) A distribution to a beneficiary is considered to
have been made from the most recent transfer to the
domestic asset preservation trust.
701.1307 Creditor claims against qualified dispo-
sitions. (1) If a creditor’s claim against a qualified dispo-
sition under s. 701.1306 is successful, in whole or in part,
all of the following apply:
(a) The creditor may recover damages from trust
assets only to the extent necessary to satisfy a transferor’s
debt to the creditor and any part of the qualified disposi-
tion that is not used to satisfy the debt remains subject to
the domestic asset preservation trust.
(b) Any other qualified disposition to a trustee of the
domestic asset preservation trust and the domestic asset
preservation trust remain valid, including a qualified dis-
position of a partial, co−ownership, or undivided interest
in property by a transferor whose transfer was the subject
of a creditor claim under s. 701.1306.
(c) If a court is satisfied that the trustee did not act in
bad faith in accepting or administering the property that
was the subject of the claim under s. 701.1306, all of the
following apply:
1. The trustee has a first lien against the property that
was the subject of the claim under s. 701.1306 in an
amount equal to the entire cost, including attorney fees,
properly incurred by the trustee in defense of the action
or proceedings against the qualified disposition.
2. Any recovery for damages under par. (a) is subject
to the fees, costs, and preexisting rights, claims, and
interests of the trustee and of any predecessor trustee that
has not acted in bad faith.
(d) If a court is satisfied that a beneficiary of the
domestic asset preservation trust did not act in bad faith
in receiving a distribution from the domestic asset preser-
vation trust, the creditor’s recovery of the qualified dis-
position is subject to the right of the beneficiary to retain
that distribution if the distribution was the result of an
exercise of a trust power or of discretion vested in a
trustee or advisor and that power or discretion was exer-
cised before the creditor commenced the action against
the qualified disposition.
(e) 1. For purposes of par. (c), a trustee is not consid-
ered to have acted in bad faith solely because the trustee
accepted the property that is the subject of the recover-
able qualified disposition.
2. For purposes of par. (d), a beneficiary, including
a beneficiary who is a transferor, is not considered to have
acted in bad faith solely because the beneficiary accepted
a distribution made in accordance with the terms of the
domestic asset preservation trust.
3. For purposes of pars. (c) and (d), a creditor has the
burden of proving by clear and convincing evidence that
a trustee or a beneficiary acted in bad faith.
(2) A court shall award costs and reasonable attorney
fees to a prevailing party in a final judgment in an action
that is wholly or partially brought under this section or s.
701.1306.
701.1308 Trust advisors; eligibility; default fidu-
ciary status. (1) Except as provided in sub. (2), any per- − 6 −2023 Wisconsin Act 2023 Senate Bill 667
son is eligible to serve as an advisor of a domestic asset
preservation trust.
(2) A transferor of a domestic asset preservation trust
may serve as an advisor only in connection with invest-
ment decisions related to trust assets.
(3) Notwithstanding s. 701.0818 (2), an advisor is a
fiduciary unless the terms of a domestic asset preserva-
tion trust expressly provide otherwise.
701.1309 Rules regarding discretion. Except as
otherwise provided under the terms of a domestic asset
preservation trust, each trustee and each advisor of the
domestic asset preservation trust has the greatest discre-
tion permitted by law in connection with all matters of
trust administration, trust distributions, and any other
trustee or advisor decision.
701.1310 Discretionary interest not property of a
beneficiary. No person, including a beneficiary, has a
property interest in property of a domestic asset preserva-
tion trust to the extent that the distribution of that property
is subject to the discretion of a qualified trustee or advi-
sor, whether acting alone or in conjunction with another
person, including a person authorized to veto a distribu-
tion from the domestic asset preservation trust.
701.1311 Miscellaneous provisions. (1) If there is
a conflict between a provision of this subchapter and s.
242.07, the provision of this subchapter shall control.
(2) A statement in a trust instrument that the trust is
governed by “the laws of this state” or a statement to sim-
ilar effect is considered to expressly designate the laws of
this state to govern the validity, construction, and admin-
istration of the trust and satisfies s. 701.1301 (6m) (b).
(3) A disposition by a nonqualified trustee to a quali-
fied trustee of a domestic asset preservation trust is not
disqualified from being a qualified disposition on the sole
basis that the nonqualified trustee is a trustee of a trust
that is a nondomestic asset preservation trust.
(4) A valid lien that is attached to property before the
property is the subject of a qualified disposition survives
the disposition, and the trustee of the domestic asset
preservation trust takes the property subject to the lien
and subject to any agreements that created or perfected
the lien. Nothing in this subchapter may be construed to
authorize any disposition that is prohibited by the terms
of an agreement, note, guaranty, mortgage, indenture,
instrument, undertaking, or other document.
(5) A trust administered under the laws of another
state or a foreign jurisdiction is considered to be a domes-
tic asset preservation trust if all of the following apply:
(a) The trustee of the trust complies with the require-
ments in the trust instrument and any applicable require-
ments under the laws of the state or foreign jurisdiction
in which the trust is being administered.
(b) 1. The trustee or other person having the power
to transfer the domicile of the trust declares in writing that
the trustee or other person intends to transfer the domicile
of the trust to this state.
2. If the person making the declaration under subd.
1. is a person other than the trustee, the declaration is
delivered to the trustee.
(c) At the time of or immediately following the trans-
fer of the trustee to this state, the trust satisfies the defini-
tion of a domestic asset preservation trust under this sub-
chapter.
(6) Subsection (1) and ss. 701.1302, 701.1306,
701.1307, and 701.1310 do not apply to the collection of
taxes and debts owed to or being collected by the depart-
ment of revenue.
701.1312 Transferor’s affidavit required. (1)
Except as provided in sub. (4), a transferor shall sign a
qualified affidavit before or substantially contemporane-
ously with making a qualified disposition.
(2) A qualified affidavit shall be notarized and shall
contain all of the following statements under oath:
(a) The property being transferred to the domestic
asset preservation trust was not derived from unlawful
activities.
(b) The transferor has full right, title, and authority
to transfer the property to the domestic asset preservation
trust.
(c) The transferor will not be rendered insolvent
immediately after the transfer of the property to the
domestic asset preservation trust.
(d) The transferor does not intend to defraud any
creditor by transferring the property to the domestic asset
preservation trust.
(e) There are no pending or threatened court actions
against the transferor, except for any court action identi-
fied by the affidavit or an attachment to the affidavit.
(f) The transferor is not involved in any administra-
tive proceeding, except for any proceeding identified by
the affidavit or an attachment to the affidavit.
(g) The transferor does not contemplate at the time
of the transfer the filing for relief under the federal bank-
ruptcy code.
(3) A qualified affidavit is considered defective if it
materially fails to meet the requirements set forth in sub.
(2), but a qualified affidavit is not considered defective
due to any of the following:
(a) Any nonsubstantive variances from the language
set forth in sub. (2).
(b) Any statements or representations in addition to
those set forth in sub. (2) if the statements or representa-
tions do not materially contradict the statements or repre-
sentations required by that subsection.
(c) Any technical errors in the form, substance, or
method of administering an oath if those errors were not
the fault of the affiant, and the affiant reasonably relied
upon another person to prepare or administer the oath.
(4) (a) A qualified affidavit is not required from a
transferor who is not a beneficiary of the domestic asset
preservation trust that receives the disposition. − 7 − 2023 Wisconsin Act 2023 Senate Bill 667
(b) A subsequent qualified affidavit is not required in
connection with any qualified disposition made after the
execution of an earlier qualified affidavit if that disposi-
tion is a part of, is required by, or is the direct result of a
prior qualified disposition that was made in connection
with that earlier qualified affidavit.
(5) If a qualified affidavit is required under this sec-
tion and a transferor fails to timely sign a qualified affida-
vit or signs a defective qualified affidavit, then, subject
to the normal rules of evidence, that failure or defect may
be considered as evidence in any proceeding commenced
pursuant to s. 701.1306, but the domestic asset preserva-
tion trust or the validity of any attempted qualified dispo-
sition shall not be affected in any other way due to that
failure or defect.
SECTION 1m.0Nonstatutory provisions.
(1) RECONCILIATION PROVISIONS.
(a) If 2023 Senate Bill 759 is enacted into law and
creates s. 702.102 (11), the language “special power of
appointment” in ss. 701.1301 (6) (b) and 701.1304 (2) of
this act is changed to “nongeneral power of appoint-
ment.” If 2023 Senate Bill 759 is not enacted into law, the
language “special power of appointment” in ss. 701.1301
(6) (b) and 701.1304 (2) of this act is unchanged.
(b) If 2023 Senate Bill 759 is enacted into law and
creates s. 702.102 (11), the language “, as defined in s.
702.02 (7),” in s. 701.1304 (2) of this act is void and is
deleted. If 2023 Senate Bill 759 is not enacted into law,
the language “, as defined in s. 702.02 (7),” in s. 701.1304
(2) of this act is not void and is retained.
SECTION 2.0Initial applicability.
(1) This act first applies to qualified dispositions
made on the effective date of this subsection.
SECTION 3.0Effective date.
(1) This act takes effect on July 1, 2025.