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Wisconsin Senate Bill SB759

Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB759 Compare Versions

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1- Date of enactment:  March 21, 2024
2-2023 Senate Bill 759 Date of publication*:  March 22, 2024
3-2023  WISCONSIN  ACT  127
4-AN ACT to repeal 701.0110 (1) (a), (b) and (c), 701.0405 (1) and 701.0418; to renumber 701.0304, 701.0305 (1),
5-701.0305 (2), 701.0305 (3), 701.0602 (3) (b) 1., 701.0602 (3) (b) 2. and 701.0802 (5); to renumber and amend
6-701.0103 (24), 701.0110 (1) (intro.), 701.0302, 711.04 (1) and 766.58 (13) (b); to consolidate, renumber and amend
7-701.0602 (3) (intro.), (a) and (b) (intro.); to amend 30.541 (3) (d) 1. a., 101.9211 (4) (a) 1., 342.17 (4) (a) 1., 700.16
8-(1) (c), 700.27 (1) (d), 701.0103 (4), 701.0103 (9), 701.0103 (18), 701.0103 (21) (intro.), 701.0103 (23), 701.0103
9-(27), 701.0103 (30), 701.0109 (title), 701.0109 (3), 701.0110 (2), 701.0110 (3), 701.0111 (4), 701.0111 (5) (d),
10-701.0111 (6), 701.0203 (1), 701.0302 (title), 701.0303 (4), 701.0303 (5), 701.0303 (6) (intro.), 701.0303 (6) (a),
11-701.0303 (6) (b), 701.0303 (6) (c), 701.0303 (6) (d), 701.0402 (1) (e), 701.0408, 701.0410 (2), 701.0410 (3),
12-701.0411 (1), 701.0411 (2) (a), 701.0411 (2) (b), 701.0411 (7), 701.0414 (4), 701.0415, 701.0416, 701.0505 (1) (a)
13-2., 701.0505 (2) (e) 3., 701.0602 (1), 701.0602 (4), 701.0702 (3), 701.0706 (2) (c), 701.0706 (2) (d), 701.0707 (2),
14-701.0813 (1), (2) (d) and (3) (a) (intro.), 701.0813 (2) (a), 701.0813 (3) (b), 701.0813 (5), 701.0817 (3) (b), 701.1005
15-(1), 701.1005 (2), 701.1009 (2), 701.1105 (1) (b), 701.1136 (1), 711.04 (2), 711.05 (2) (b), 711.06 (2) (intro.), 711.06
16-(2) (b), 711.07 (3) (b), 711.13, 766.01 (9) (a), 766.31 (7) (b), 766.58 (13) (c), 766.59 (1), 766.63 (1), 851.21 (2) (e),
17-854.13 (1) (c), 856.29, 859.02 (3) and 865.08 (6); to repeal and recreate 701.0103 (21) (a) and (b), 701.0508,
18-701.0818 (2) (b) 2. h. and chapter 702; and to create 701.0102 (12m), 701.0103 (1m), 701.0103 (1n), 701.0103 (3)
19-(c), 701.0103 (3m), 701.0103 (3r), 701.0103 (3u), 701.0103 (3x), 701.0103 (5g), 701.0103 (5w), 701.0103 (11p),
20-701.0103 (15m), 701.0103 (17m), 701.0103 (19r), 701.0103 (19v), 701.0103 (21m), 701.0103 (23m), 701.0109 (5),
21-701.0111 (5) (m), 701.0111 (7), 701.0113, 701.0201 (3) (km), 701.0201 (4), 701.0302 (1), 701.0303 (6) (e), 701.0304
22-(2), 701.0306, 701.0307 (title), 701.0308, 701.0401 (5m), 701.0411 (1m), 701.0411 (2) (intro.), 701.0509, 701.0605,
23-701.0704 (1) (g), 701.0802 (5) (b), 701.0802 (9), 701.0813 (3) (c), 701.0813 (6) and (7), 701.0815 (3), 701.0816 (29),
24-701.0816 (30), subchapter XIII of chapter 701 [precedes 701.1301], 711.03 (4m), 711.04 (1) (b), 711.04 (1) (c),
25-711.04 (1) (d), 766.01 (9) (e), 766.01 (9) (f), 766.31 (7) (g), 766.58 (7) (c), 766.58 (13) (b) 2. and 3., 766.625, 766.70
26-(3) (dm), 814.66 (1) (o) and 905.03 (2m) of the statutes; relating to: trust administration, the Uniform Powers of
27-Appointment Act, the Uniform Trust Decanting Act, disclosure of certain digital property, and the classification of
28-certain digital property as individual property for purposes of determining marital property.
29-The people of the state of Wisconsin, represented in
30-senate and assembly, do enact as follows:
31-SECTION 1.  30.541 (3) (d) 1. a. of the statutes is
32-amended to read:
33-30.541 (3) (d) 1. a.  Evidence satisfactory to the
34-department of the appointment of a trustee in bankruptcy,
35-of a certification of trust under s. 701.1013 or the appoint-
36-ment of a trustee, or of the issuance of domiciliary letters
37-*  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
38-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 127  2023 Senate Bill 759
39-testamentary or other letters authorizing the administra-
40-tion of a decedent’s estate, letters of guardianship, con-
41-servatorship, special administration, or letters of trust.
42-SECTION 2.  101.9211 (4) (a) 1. of the statutes is
43-amended to read:
44-101.9211 (4) (a) 1.  Evidence satisfactory to the
45-department of the appointment of a trustee in bankruptcy,
46-of a certification of trust under s. 701.1013 or the appoint-
47-ment of a trustee, or of the issuance of domiciliary letters
48-testamentary or other letters authorizing the administra-
49-tion of a decedent’s estate, letters of guardianship, con-
50-servatorship, special administration, or letters of trust.
51-SECTION 3.  342.17 (4) (a) 1. of the statutes is
52-amended to read:
53-342.17 (4) (a) 1.  Evidence satisfactory to the depart-
54-ment of the issuance of the letters testamentary or other
55-letters authorizing the administration of an estate, letters
56-of guardianship, or letters of trust, appointment of a
57-trustee in bankruptcy, of a certification of trust under s.
58-701.1013 or the appointment of a testamentary trustee, or
59-of the appointment of the trustee in bankruptcy issuance
60-of domiciliary letters or other letters authorizing the
61-administration of a decedent’s estate, guardianship, con-
62-servatorship, special administration, or trust;
63-SECTION 4.  700.16 (1) (c) of the statutes is amended
64-to read:
65-700.16 (1) (c)  If a future interest or trust is created by
66-exercise of a power of appointment, the permissible
67-period is computed from the time the power of appoint-
68-ment is exercised if the power of appointment is a general
69-power of appointment, as defined in s. 702.02 (5)
70-702.102 (7), even if the general power of appointment is
71-exercisable only by will.  In the case of other powers of
72-appointment the permissible period is computed from the
73-time the power of appointment is created but facts at the
74-time the power of appointment is exercised are consid-
75-ered in determining whether the power of alienation is
76-suspended beyond a life or lives in being at the time of
77-creation of the power of appointment plus 30 years.
78-SECTION 5.  700.27 (1) (d) of the statutes is amended
79-to read:
80-700.27 (1) (d)  “Power of appointment” has the mean-
81-ing given in s. 702.02 (6) 702.102 (15).
82-SECTION 6.  701.0102 (12m) of the statutes is created
83-to read:
84-701.0102 (12m)  An account that is part of a qualified
85-ABLE program under section 529A (b) of the Internal
86-Revenue Code.
87-SECTION 7.  701.0103 (1m) of the statutes is created
88-to read:
89-701.0103 (1m)  “Animal protector” means a person
90-appointed in an animal trust to enforce the trust on behalf
91-of the animal or, if no such person is appointed in the
92-trust, a person appointed by the court for that purpose.
93-SECTION 8.  701.0103 (1n) of the statutes is created to
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3+2023 - 2024 LEGISLATURE
4+2023 SENATE BILL 759
5+December 8, 2023 - Introduced by Senators WIMBERGER and KNODL, cosponsored
6+by Representatives TUSLER and O'CONNOR. Referred to Committee on
7+Judiciary and Public Safety.
8+AN ACT to repeal 701.0110 (1) (a), (b) and (c), 701.0405 (1) and 701.0418; to
9+renumber 701.0304, 701.0305 (1), 701.0305 (2), 701.0305 (3), 701.0602 (3) (b)
10+1., 701.0602 (3) (b) 2. and 701.0802 (5); to renumber and amend 701.0103
11+(24), 701.0110 (1) (intro.), 701.0302, 711.04 (1) and 766.58 (13) (b); to
12+consolidate, renumber and amend 701.0602 (3) (intro.), (a) and (b) (intro.);
13+to amend 30.541 (3) (d) 1. a., 101.9211 (4) (a) 1., 342.17 (4) (a) 1., 700.16 (1) (c),
14+700.27 (1) (d), 701.0103 (4), 701.0103 (9), 701.0103 (18), 701.0103 (21) (intro.),
15+701.0103 (23), 701.0103 (27), 701.0103 (30), 701.0109 (title), 701.0109 (3),
16+701.0110 (2), 701.0110 (3), 701.0111 (4), 701.0111 (5) (d), 701.0111 (6), 701.0203
17+(1), 701.0302 (title), 701.0303 (4), 701.0303 (5), 701.0303 (6) (intro.), 701.0303
18+(6) (a), 701.0303 (6) (b), 701.0303 (6) (c), 701.0303 (6) (d), 701.0402 (1) (e),
19+701.0408, 701.0410 (2), 701.0410 (3), 701.0411 (1), 701.0411 (2) (a), 701.0411 (2)
20+(b), 701.0411 (7), 701.0414 (4), 701.0415, 701.0416, 701.0505 (1) (a) 2., 701.0505
21+(2) (e) 3., 701.0602 (1), 701.0602 (4), 701.0702 (3), 701.0706 (2) (c), 701.0706 (2)
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37+ SENATE BILL 759
38+(d), 701.0707 (2), 701.0813 (1), (2) (d) and (3) (a) (intro.), 701.0813 (2) (a),
39+701.0813 (3) (b), 701.0813 (5), 701.0817 (3) (b), 701.1005 (1), 701.1005 (2),
40+701.1009 (2), 701.1105 (1) (b), 701.1136 (1), 711.04 (2), 711.05 (2) (b), 711.06 (2)
41+(intro.), 711.06 (2) (b), 711.07 (3) (b), 711.13, 766.01 (9) (a), 766.31 (7) (b), 766.58
42+(13) (c), 766.59 (1), 766.63 (1), 851.21 (2) (e), 854.13 (1) (c), 856.29, 859.02 (3) and
43+865.08 (6); to repeal and recreate 701.0103 (21) (a) and (b), 701.0508,
44+701.0818 (2) (b) 2. h. and chapter 702; and to create 701.0102 (12m), 701.0103
45+(1m), 701.0103 (1n), 701.0103 (3) (c), 701.0103 (3m), 701.0103 (3r), 701.0103
46+(3u), 701.0103 (3x), 701.0103 (5g), 701.0103 (5w), 701.0103 (11p), 701.0103
47+(15m), 701.0103 (19m), 701.0103 (19r), 701.0103 (19v), 701.0103 (21m),
48+701.0103 (23m), 701.0109 (5), 701.0111 (5) (m), 701.0111 (7), 701.0113, 701.0201
49+(3) (km), 701.0201 (4), 701.0302 (1), 701.0303 (6) (e), 701.0304 (2), 701.0306,
50+701.0307 (title), 701.0308, 701.0401 (5m), 701.0411 (1m), 701.0411 (2) (intro.),
51+701.0509, 701.0605, 701.0704 (1) (g), 701.0802 (5) (b), 701.0802 (9), 701.0813 (3)
52+(c), 701.0813 (6) and (7), 701.0815 (3), 701.0816 (29), 701.0816 (30), subchapter
53+XIII of chapter 701 [precedes 701.1301], 711.03 (4m), 711.04 (1) (b), 711.04 (1)
54+(c), 711.04 (1) (d), 766.01 (9) (e), 766.01 (9) (f), 766.31 (7) (g), 766.58 (7) (c), 766.58
55+(13) (b) 2. and 3., 766.625, 766.70 (3) (dm), 814.66 (1) (o) and 905.03 (2m) of the
56+statutes; relating to: trust administration, the Uniform Powers of
57+Appointment Act, the Uniform Trust Decanting Act, disclosure of certain
58+digital property, and the classification of certain digital property as individual
59+property for purposes of determining marital property.
60+Analysis by the Legislative Reference Bureau
61+This bill makes several changes to the administration of trusts, the power to
62+decant trusts, the creation and exercise of powers of appointment, the disclosure of
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87+ SENATE BILL 759
88+certain digital property, and the classification of digital property as individual
89+property for purposes of determining marital property. Important provisions of the
90+bill are summarized as follows:
91+Administration of trusts
92+The bill makes several technical changes to the administration and regulation
93+of trusts in the state, including the following:
94+1. The bill provides that notice given to any trustee when more than one person
95+is serving as trustee is considered to be given to all persons serving as trustee, except
96+that notice must be given to all corporations and attorneys that are serving as
97+trustee.
98+2. The bill expands the concept of representation in a trust proceeding. Under
99+the bill, a person holding a general power of appointment or a broad limited power
100+of appointment may represent and bind the interests of all persons whose interests
101+may be eliminated, regardless of whether there is a conflict of interest. A person
102+holding a nongeneral power of appointment may represent and bind the interests of
103+any person whose interest may be limited by the exercise of the power, provided there
104+is no conflict of interest. A presumptive remainder beneficiary may represent and
105+bind the interests of a contingent successor remainder beneficiary or a more remote
106+contingent successor beneficiary, regardless of whether the beneficiary lacks
107+capacity and provided there is no conflict of interest. If a presumptive remainder
108+beneficiary does not represent a more remote contingent successor remainder
109+beneficiary, a contingent successor remainder beneficiary may represent and bind a
110+more remote contingent successor remainder beneficiary. The bill also confirms that
111+a settlor can nominate in the trust instrument a designated representative to
112+represent and bind any beneficiary.
113+3. The bill allows for the creation of a trust without initially funding the trust.
114+To create such a trust, the bill requires a person to declare the intention to create a
115+trust with the intention that the trust will be funded by assets of the person who
116+created the trust or by another person with legal authority to fund the trust. Under
117+the bill, the person making the declaration is considered to have created the trust
118+regardless of whether the person funds the trust with the person's own assets.
119+4. The bill provides for the resolution of debts against a deceased settlor of a
120+trust that was revocable until the settlor's death. First, the bill provides that a
121+claimant must assert a claim for payment of a debt of a deceased settlor within any
122+applicable deadline established by law. A trustee of a trust that was revocable at the
123+settlor's death may shorten the time period and set a deadline for filing claims with
124+the trustee by publishing a legal notice or giving notice to a potential claimant. A
125+claim that was barred by a statute of limitations at the time of the deceased settlor's
126+death is barred and the claimant may not pursue a claim against the trustee, the
127+trust property, or recipients with respect to trust property. However, a claim not
128+barred by a statute of limitations at the time of the settlor's death is not barred
129+thereafter by a statute of limitations if the claim is filed by the deadline for filing a
130+claim after the death of the settlor. The deadlines established for filing a claim after
131+the death of the settlor do not extend the time for commencement of a claim beyond
132+the time provided by any statute of limitations applicable to that claim. Failure of - 4 -2023 - 2024 Legislature LRB-5206/1
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135+a claimant to file a claim within applicable deadlines does not bar the claimant from
136+satisfying the claim, if not otherwise barred, from property other than trust property.
137+5. The bill further provides for the form and verification of claims against a
138+deceased settlor, the trustee response to claims against a deceased settlor, contest
139+and enforcement of claims against a deceased settlor, compromise of claims against
140+a deceased settlor, payment of claims against a deceased settlor, and the priority of
141+claims against a deceased settlor.
142+6. The bill provides that a trustee of a trust has an insurable interest in the life
143+of an insured under a life insurance policy that is owned by the trustee of the trust
144+acting in a fiduciary capacity or that designates the trust itself as the owner if, on
145+the date the policy is issued, the insured is a settlor of the trust or is an individual
146+in whom a settlor of the trust has, or would have if living at the time the life insurance
147+policy was issued, an insurable interest in the life of the insured and the life
148+insurance proceeds are primarily for the benefit of one or more trust beneficiaries
149+who either have an insurable interest in the life of the insured or have a substantial
150+interest engendered by love or affection in the continuation of the life of the insured
151+and, if the beneficiary does not have an insurable interest in the life of the insured,
152+are related to the insured as provided in the bill.
153+Uniform Trust Decanting Act
154+Current law allows a trustee to transfer the assets of a trust to a second trust
155+subject to certain requirements. The bill adopts the Uniform Trust Decanting Act
156+(UTDA). The UTDA, as adopted, replaces the current language governing the
157+transfer of assets to a second trust and makes several substantive changes to current
158+law.
159+The bill defines “decanting power” as the power to 1) modify the terms of a trust
160+or 2) distribute the property of a trust to a second trust. Under the bill, an authorized
161+fiduciary may exercise the decanting power. An “authorized fiduciary” is defined as
162+1) a trustee or another fiduciary, other than the settlor, that has discretion to
163+distribute or direct a trustee to distribute principal from a trust to a beneficiary; 2)
164+a special fiduciary appointed by a court to exercise the decanting power; 3) a trustee
165+or fiduciary that has the discretion or obligation to distribute property to
166+beneficiaries of a trust that has a beneficiary with a disability; or 4) a trust protector
167+who has been granted the decanting power.
168+The decanting power under this bill applies only to a trust that 1) is irrevocable
169+or revocable by the settlor only with the consent of the trustee or a person that has
170+an adverse interest in the revocation of the trust and 2) is not held solely for
171+charitable purposes. The bill specifies that a first-trust instrument is deemed to
172+include the decanting power unless the first-trust instrument explicitly prohibits or
173+restricts exercise of the decanting power. The UTDA provisions of the bill apply to
174+any trust created before, on, or after the effective date of the bill if the trust is
175+governed or administered under the law of this state.
176+Under current law, a trustee may only transfer assets to a second trust with
177+court approval or through a notice procedure. The current notice procedure requires
178+giving notice to the settlor, beneficiaries, and certain powerholders of a trust 30 days
179+prior to transferring assets from that first trust to a second trust. The bill requires - 5 -2023 - 2024 Legislature
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183+a similar 30-day notice for exercise of the decanting power, but requires notice to be
184+provided to additional powerholders and fiduciaries of the first trust as well as
185+powerholders and fiduciaries of the second trust and, for certain trusts with a
186+charitable interest, the attorney general. Under the bill, an exercise of the decanting
187+power is effective if the authorized fiduciary acted with reasonable care to comply
188+with the notice requirement, even if the fiduciary failed to provide notice to every
189+person entitled to notice.
190+In addition, under current law, a trustee may not appoint assets to a second
191+trust if a contribution to the first trust qualified for a marital or charitable deduction
192+for federal income, gift, or estate tax purposes and the second trust would prevent
193+the asset from qualifying for the deduction or reduce the amount of the deduction.
194+The bill retains this prohibition and expands it to other tax benefits, including
195+deductions for state income, gift, estate, and inheritance taxes and any tax benefit
196+for which a first trust is clearly designed to qualify. The bill also prohibits the use
197+of the decanting power to 1) increase an authorized fiduciary's compensation, 2)
198+relieve an authorized fiduciary from liability for breach of trust in a second-trust
199+instrument to a greater extent than in the first-trust instrument, or 3) reduce the
200+aggregate fiduciary liability of all fiduciaries of a second trust without court approval
201+or the consent of all of the qualified beneficiaries of a second trust.
202+The bill includes additional provisions about the decanting power for certain
203+types of trusts. Specifically, in a trust that has a beneficiary with a disability, an
204+authorized fiduciary may exercise the decanting power if the second trust is a special
205+needs trust that benefits the beneficiary with a disability and the authorized
206+fiduciary determines that exercise of the decanting power will further the purposes
207+of the first trust. Under the bill, a “special needs trust” means a trust that the trustee
208+believes would not be considered a resource for purposes of determining whether a
209+beneficiary with a disability is eligible for governmental benefits based on disability.
210+Also, if a first trust contains a charitable interest, a second trust may not diminish
211+the charitable interest, diminish the interest of an identified charitable organization
212+that holds the charitable interest, alter any charitable purpose stated in the
213+first-trust instrument, or alter any condition or restriction related to the charitable
214+interest. In addition, the bill specifies that the decanting power may be exercised
215+over an animal trust. An “animal trust” is defined under the bill as a trust created
216+to provide for the care of an animal that has a person appointed to enforce the trust
217+on behalf of the animal. If a first trust is an animal trust, a second trust must provide
218+that trust property may be applied only to its intended purpose for the period the first
219+trust benefitted the animal.
220+If the trust instrument for a second trust does not comply with all of the
221+requirements of the UTDA but the exercise of the decanting power would otherwise
222+be effective, then 1) any provision that is included in the second-trust instrument
223+in violation of the UTDA is void and 2) any provision omitted from the second-trust
224+instrument in violation of the UTDA is deemed to be included in the second-trust
225+instrument. - 6 -2023 - 2024 Legislature LRB-5206/1
226+KMS&JPC:cdc
227+ SENATE BILL 759
228+Uniform Powers of Appointment Act
229+The bill adopts the Uniform Powers of Appointment Act. Under the bill, a
230+“power of appointment” means a power that enables a powerholder acting in a
231+nonfiduciary capacity to designate a recipient of an ownership interest in or another
232+power of appointment over the appointive property. A power of appointment is
233+created only if the instrument creating the power governs the disposition of the
234+appointive property and the terms of the instrument manifest the donor's intention
235+to create in a powerholder a power of appointment over the appointive property
236+exercisable in favor of a permissible appointee. Under the bill, unless the terms of
237+the instrument creating the power of appointment state otherwise, a power of
238+appointment is presumed to be a presently exercisable power of appointment, an
239+exclusionary power of appointment, and a general power of appointment. An
240+“exclusionary power of appointment” means a power of appointment exercisable in
241+favor of one or more permissible appointees to the exclusion of the other permissible
242+appointees. A “general power of appointment” means a power of appointment
243+exercisable in favor of the powerholder, the powerholder's estate, a creditor of the
244+powerholder, or a creditor of the powerholder's estate. The bill provides, however,
245+that a power of appointment is presumed to be a nongeneral power of appointment
246+if the power is exercisable only at the powerholder's death and the permissible
247+appointees of the power are a defined and limited class that does not include the
248+powerholder's estate, the powerholder's creditors, or the creditors of the
249+powerholder's estate.
250+Under the bill, a power of appointment is exercised only if the instrument
251+exercising the power is valid under law, the terms of the instrument manifest the
252+powerholder's intent to exercise the power, and the instrument satisfies any
253+requirements of exercise imposed by the donor, if any. If a power of appointment is
254+vested in two or more persons, then the powerholders may only exercise the power
255+of appointment unanimously. Under the bill, a powerholder may exercise their
256+power of appointment by including a residuary clause in the powerholder's will, or
257+a comparable clause in the powerholder's revocable trust, if the will or trust
258+instrument manifests intent to do so, the power of appointment is a general power
259+of appointment, there is no gift-in-default clause in the instrument creating the
260+power of appointment, and the powerholder did not previously release the power of
261+appointment.
262+If the powerholder releases or fails to exercise a general power of appointment,
263+the bill provides that the gift-in-default clause controls the unappointed property
264+or, if there is no gift-in-default clause, the bill provides default rules for how the
265+unappointed property is disposed. A personal representative, trustee, or other
266+fiduciary who holds property subject to a power of appointment may administer the
267+appointive property as if the power of appointment was not exercised if the personal
268+representative, trustee, or other fiduciary has no notice of the existence of any
269+documentation of the powerholder purporting to exercise the power of appointment
270+by will or otherwise within six months after the death of the powerholder. - 7 -2023 - 2024 Legislature
271+LRB-5206/1
272+KMS&JPC:cdc
273+ SENATE BILL 759
274+Classification of digital property as individual property
275+The bill establishes an exception to Wisconsin's general marital property law,
276+allowing digital property to be classified as individual property if the property meets
277+certain criteria. Under the bill, an account and the digital property held in an
278+account, including the content of electronic communications such as personal email,
279+that is created and maintained for personal use is classified as individual property,
280+unless either the account or the digital property in the account was not originally
281+created, purchased, or otherwise acquired exclusively for the personal, noneconomic
282+purposes of the account holder, or the account or the digital property in the account
283+has at any time been used for purposes other than the personal, noneconomic
284+purposes of the spouse holding the account. Under the bill, in the event of a sale,
285+exchange, or other disposition, all property received in exchange for that account, or
286+the digital property in the account, is classified as marital property; and, further,
287+income during marriage and after the determination date attributable to the
288+account, or the digital property in the account, is classified as marital property.
289+Disclosure of digital property
290+Under current law, a user may use an online tool to direct a custodian of digital
291+property to disclose or not to disclose to a designated recipient some or all of the user's
292+digital property in certain circumstances. If an online tool allows the user to modify
293+or delete a direction at all times, a direction regarding disclosure using an online tool
294+overrides a contrary direction by the user in a will, trust, power of attorney, or any
295+other governing instrument. If a user has not used an online tool or if the custodian
296+has not provided an online tool, the user may allow or prohibit disclosure to a
297+fiduciary of some or all of the user's digital property, including the content of
298+electronic communications sent or received by the user, in a will, trust, power of
299+attorney, or any other governing instrument.
300+The bill provides that a user may allow or prohibit the disclosure to a fiduciary
301+of some or all of the user's digital property in a consent instrument. A consent
302+instrument is defined as a written notarized document in physical or electronic form
303+evidencing the user's consent to the disclosure of the contents of electronic
304+communications to a then acting fiduciary. However, a direction regarding
305+disclosure using an online tool overrides a contrary direction by the user in a consent
306+instrument in the same way that an online tool overrides a will, trust, power of
307+attorney, or other governing instrument under current law.
308+For further information see the state fiscal estimate, which will be printed as
309+an appendix to this bill.
310+The people of the state of Wisconsin, represented in senate and assembly, do
311+enact as follows:
312+SECTION 1. 30.541 (3) (d) 1. a. of the statutes is amended to read:1 - 8 -2023 - 2024 Legislature LRB-5206/1
313+KMS&JPC:cdc
314+SECTION 1 SENATE BILL 759
315+30.541 (3) (d) 1. a. Evidence satisfactory to the department of the appointment
316+of a trustee in bankruptcy, of a certification of trust under s. 701.1013 or the
317+appointment of a trustee, or of the issuance of domiciliary letters testamentary or
318+other letters authorizing the administration of a decedent's estate, letters of
319+guardianship, conservatorship, special administration, or letters of trust.
320+SECTION 2. 101.9211 (4) (a) 1. of the statutes is amended to read:
321+101.9211 (4) (a) 1. Evidence satisfactory to the department of the appointment
322+of a trustee in bankruptcy, of a certification of trust under s. 701.1013 or the
323+appointment of a trustee, or of the issuance of domiciliary letters testamentary or
324+other letters authorizing the administration of a decedent's estate, letters of
325+guardianship, conservatorship, special administration, or letters of trust.
326+SECTION 3. 342.17 (4) (a) 1. of the statutes is amended to read:
327+342.17 (4) (a) 1. Evidence satisfactory to the department of the issuance of the
328+letters testamentary or other letters authorizing the administration of an estate,
329+letters of guardianship, or letters of trust, appointment of a trustee in bankruptcy,
330+of a certification of trust under s. 701.1013 or the appointment of a testamentary
331+trustee, or of the appointment of the trustee in bankruptcy issuance of domiciliary
332+letters or other letters authorizing the administration of a decedent's estate,
333+guardianship, conservatorship, special administration, or trust;
334+SECTION 4. 700.16 (1) (c) of the statutes is amended to read:
335+700.16 (1) (c) If a future interest or trust is created by exercise of a power of
336+appointment, the permissible period is computed from the time the power of
337+appointment is exercised if the power of appointment is a general power of
338+appointment, as defined in s. 702.02 (5) 702.102 (7), even if the general power of
339+appointment is exercisable only by will. In the case of other powers of appointment
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365+LRB-5206/1
366+KMS&JPC:cdc
367+SECTION 4
368+ SENATE BILL 759
369+the permissible period is computed from the time the power of appointment is created
370+but facts at the time the power of appointment is exercised are considered in
371+determining whether the power of alienation is suspended beyond a life or lives in
372+being at the time of creation of the power of appointment plus 30 years.
373+SECTION 5. 700.27 (1) (d) of the statutes is amended to read:
374+700.27 (1) (d) “Power of appointment" has the meaning given in s. 702.02 (6)
375+702.102 (14).
376+SECTION 6. 701.0102 (12m) of the statutes is created to read:
377+701.0102 (12m) An account that is part of a qualified ABLE program under
378+section 529A (b) of the Internal Revenue Code.
379+SECTION 7. 701.0103 (1m) of the statutes is created to read:
380+701.0103 (1m) “Animal protector” means a person appointed in an animal trust
381+to enforce the trust on behalf of the animal or, if no such person is appointed in the
382+trust, a person appointed by the court for that purpose.
383+SECTION 8. 701.0103 (1n) of the statutes is created to read:
384+701.0103 (1n) “Animal trust” means a trust or an interest in a trust created to
385+provide for the care of one or more animals.
386+SECTION 9. 701.0103 (3) (c) of the statutes is created to read:
387+701.0103 (3) (c) Is an identified charitable organization that will or may receive
388+distributions under the terms of the trust.
389+SECTION 10. 701.0103 (3m) of the statutes is created to read:
390+701.0103 (3m) “Broad limited power of appointment” has the meaning given
391+in s. 702.102 (4).
392+SECTION 11. 701.0103 (3r) of the statutes is created to read:
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417+KMS&JPC:cdc
418+SECTION 11 SENATE BILL 759
419+701.0103 (3r) “Charitable interest” means an interest in a trust that satisfies
420+any of the following:
421+(a) It is held by an identified charitable organization and makes the
422+organization a qualified beneficiary.
423+(b) It benefits only charitable organizations and, if the interest were held by an
424+identified charitable organization, would make the organization a qualified
425+beneficiary.
426+(c) It is held solely for charitable purposes and, if the interest were held by an
427+identified charitable organization, would make the organization a qualified
428+beneficiary.
429+SECTION 12. 701.0103 (3u) of the statutes is created to read:
430+701.0103 (3u) “Charitable organization” means any of the following:
431+(a) A person, other than an individual, organized and operated exclusively for
432+charitable purposes.
433+(b) A government or governmental subdivision, agency, or instrumentality, to
434+the extent it holds funds exclusively for a charitable purpose.
435+SECTION 13. 701.0103 (3x) of the statutes is created to read:
436+701.0103 (3x) “Charitable purpose” means the relief of poverty, the
437+advancement of education or religion, the promotion of health, a municipal or other
438+governmental purpose, or another purpose the achievement of which is beneficial to
439+the community.
440+SECTION 14. 701.0103 (4) of the statutes is amended to read:
441+701.0103 (4) “Charitable trust" means a trust, or portion of a trust, created for
442+a charitable purpose described in s. 701.0405 (1). This subsection does not apply in
443+s. 701.1201.
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469+LRB-5206/1
470+KMS&JPC:cdc
471+SECTION 15
472+ SENATE BILL 759
473+SECTION 15. 701.0103 (5g) of the statutes is created to read:
474+701.0103 (5g) “Court” means the court that is identified in s. 701.0203 (1).
475+SECTION 16. 701.0103 (5w) of the statutes is created to read:
476+701.0103 (5w) “Current beneficiary” means a beneficiary that on the date the
477+beneficiary's qualification is determined is a distributee or permissible distributee
478+of trust income or principal or is the holder of a presently exercisable general power
479+of appointment.
480+SECTION 17. 701.0103 (9) of the statutes is amended to read:
481+701.0103 (9) “General power of appointment" has the meaning given in s.
482+702.02 (5) 702.102 (7).
483+SECTION 18. 701.0103 (11p) of the statutes is created to read:
484+701.0103 (11p) “Identified charitable organization” means a charitable
485+organization that is expressly designated to receive distributions under the terms of
486+a charitable trust and that is not subject to a right of substitution by the settlor or
487+by any other party prior to the charitable organization becoming a current
488+beneficiary.
489+SECTION 19. 701.0103 (15m) of the statutes is created to read:
490+701.0103 (15m) “Issue” has the meaning given in s. 851.13.
491+SECTION 20. 701.0103 (18) of the statutes is amended to read:
492+701.0103 (18) “Power of appointment" has the meaning given in s. 702.02 (6)
493+702.102 (14).
494+SECTION 21. 701.0103 (19m) of the statutes is created to read:
495+701.0103 (19m) “Powerholder” has the meaning given in s. 702.102 (15).
496+SECTION 22. 701.0103 (19r) of the statutes is created to read:
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520+24 - 12 -2023 - 2024 Legislature LRB-5206/1
521+KMS&JPC:cdc
522+SECTION 22 SENATE BILL 759
523+701.0103 (19r) “Presently exercisable power of appointment” has the meaning
524+given in s. 702.102 (16).
525+SECTION 23. 701.0103 (19v) of the statutes is created to read:
526+701.0103 (19v) “Presumptive remainder beneficiary” means, without
527+considering the existence or exercise of a power of appointment, other than a power
528+of appointment that has been irrevocably exercised and notice of the exercise has
529+been given to the trustee, a beneficiary that on the date the beneficiary's qualification
530+is determined, would be any of the following:
531+(a) A distributee or permissible distributee of trust income or principal if the
532+interests of any current beneficiary terminated on that date without causing the
533+trust to terminate.
534+(b) A distributee or permissible distributee of trust income or principal if the
535+trust terminated on that date.
536+(c) If the terms of the trust do not provide for its termination, a distributee or
537+permissible distributee of income or principal of the trust if all the current
538+beneficiaries of the trust were deceased or no longer exist.
539+SECTION 24. 701.0103 (21) (intro.) of the statutes is amended to read:
540+701.0103 (21) (intro.) “Qualified beneficiary" means a beneficiary who that, on
541+the date on which the beneficiary's qualification is determined, satisfies is any of the
542+following:
543+SECTION 25. 701.0103 (21) (a) and (b) of the statutes are repealed and recreated
544+to read:
545+701.0103 (21) (a) A current beneficiary.
546+(b) A presumptive remainder beneficiary.
547+SECTION 26. 701.0103 (21m) of the statutes is created to read:
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573+LRB-5206/1
574+KMS&JPC:cdc
575+SECTION 26
576+ SENATE BILL 759
577+701.0103 (21m) “Record” means information that is inscribed on a tangible
578+medium or that is stored in an electronic or other medium and is retrievable in
579+perceivable form.
580+SECTION 27. 701.0103 (23) of the statutes is amended to read:
581+701.0103 (23) “Settlor" Except as otherwise provided in ss. 701.0113 and
582+701.1325, “settlor” means a person, including a testator, who creates or contributes
583+property to a trust. If more than one person creates or contributes property to a trust,
584+each person is a settlor of the portion of the trust property attributable to that
585+person's contribution except to the extent another person has the power to revoke the
586+trust or withdraw that portion.
587+SECTION 28. 701.0103 (23m) of the statutes is created to read:
588+701.0103 (23m) “Sign” means, with present intent to authenticate or adopt a
589+record, to do any of the following:
590+(a) Execute or adopt a tangible symbol.
591+(b) Attach to or logically associate with the record an electronic symbol, sound,
592+or process.
593+SECTION 29. 701.0103 (24) of the statutes is renumbered 701.0103 (16m) and
594+amended to read:
595+701.0103 (16m) “Special “Nongeneral power of appointment" has the meaning
596+given in s. 702.02 (7) 702.102 (11).
597+SECTION 30. 701.0103 (27) of the statutes is amended to read:
598+701.0103 (27) “Terms of a trust" means the manifestation of the settlor's intent
599+regarding a trust's provisions as expressed in the trust instrument or, as may be
600+established by other evidence that would be admissible in a judicial proceeding, or
601+as may be established by court order or nonjudicial settlement agreement.
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627+KMS&JPC:cdc
628+SECTION 31 SENATE BILL 759
629+SECTION 31. 701.0103 (30) of the statutes is amended to read:
630+701.0103 (30) “Trust instrument" means an instrument, including any
631+amendments or modifications to the instrument under s. 701.0111 or subch. IV, that
632+is executed a record signed by the settlor that contains terms of to create a trust or
633+is created under a statute, judgment, or decree that orders property to be transferred
634+to a trustee to be administered for the benefit of a beneficiary, or by any person to
635+create a 2nd trust as provided under subch. XIII, that contains some or all of the
636+terms of the trust, and includes any amendments or modifications.
637+SECTION 32. 701.0109 (title) of the statutes is amended to read:
638+701.0109 (title) Methods and waiver of notice; waiver.
639+SECTION 33. 701.0109 (3) of the statutes is amended to read:
640+701.0109 (3) Notice under this chapter or, the sending of a document, or the
641+right to object granted under this chapter may be waived by the person to be notified
642+or, sent the document, or who has the right to object.
643+SECTION 34. 701.0109 (5) of the statutes is created to read:
644+701.0109 (5) If notice is given to a trustee and more than one person is serving
645+as trustee, notice given to any trustee is considered to be given to all persons serving
646+as trustee, except that if a corporate trustee or an attorney licensed to practice in this
647+state is serving as a trustee, notice must be given to all such corporate trustees and
648+attorney trustees.
649+SECTION 35. 701.0110 (1) (intro.) of the statutes is renumbered 701.0110 (1) and
650+amended to read:
651+701.0110 (1) A An identified charitable organization that is expressly
652+designated to receive distributions under the terms of a charitable trust and that is
653+not subject to a right of substitution by the settlor or by any other party prior to the
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679+LRB-5206/1
680+KMS&JPC:cdc
681+SECTION 35
682+ SENATE BILL 759
683+charitable organization becoming a distributee or permissible distributee of trust
684+income or principal has the rights of a qualified beneficiary under this chapter if the
685+identified charitable organization, on the date on which the identified charitable
686+organization's qualification is being determined, satisfies one of the following: is a
687+current beneficiary or a presumptive remainder beneficiary.
688+SECTION 36. 701.0110 (1) (a), (b) and (c) of the statutes are repealed.
689+SECTION 37. 701.0110 (2) of the statutes is amended to read:
690+701.0110 (2) A An animal protector or a person appointed to enforce a trust
691+created for the care of an animal or another a noncharitable purpose without an
692+ascertainable beneficiary as provided in either s. 701.0408 or 701.0409 has the rights
693+of a qualified beneficiary under this chapter.
694+SECTION 38. 701.0110 (3) of the statutes is amended to read:
695+701.0110 (3) The attorney general of this state has the rights of a qualified
696+beneficiary under this chapter with respect to a charitable trust having its principal
697+place of administration in this state only when the charitable interest to be
698+represented would qualify under sub. (1) but there is no identified charitable
699+organization has been expressly designated to receive distribution under the terms
700+of a charitable trust that would qualify under sub. (1).
701+SECTION 39. 701.0111 (4) of the statutes is amended to read:
702+701.0111 (4) A nonjudicial settlement agreement is valid only to the extent it
703+includes terms and conditions that could be properly approved, ordered, directed, or
704+otherwise determined by a court under this chapter or other applicable law.
705+SECTION 40. 701.0111 (5) (d) of the statutes is amended to read:
706+701.0111 (5) (d) The resignation or appointment of a trustee or the removal of
707+a trustee and replacement with a suitable successor trustee.
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733+KMS&JPC:cdc
734+SECTION 41 SENATE BILL 759
735+SECTION 41. 701.0111 (5) (m) of the statutes is created to read:
736+701.0111 (5) (m) The modification or termination of a trust.
737+SECTION 42. 701.0111 (6) of the statutes is amended to read:
738+701.0111 (6) Any interested person or other person affected may request a court
739+to approve a nonjudicial settlement agreement, to determine whether the
740+representation as provided in subch. III was adequate, or to determine whether the
741+agreement contains terms and conditions the court could have properly approved,
742+ordered, directed, or otherwise determined.
743+SECTION 43. 701.0111 (7) of the statutes is created to read:
744+701.0111 (7) Notice of any nonjudicial settlement agreement shall be given to
745+the settlor, if living, the trustee, each trust protector, and each directing party at least
746+30 days before the proposed effective date of the nonjudicial settlement agreement.
747+Notice is considered to be waived by any person who is a party to the agreement.
748+SECTION 44. 701.0113 of the statutes is created to read:
749+701.0113 Insurable interest of trustee. (1) In this section:
750+(a) “Relative” means a spouse or individual related within the 1st, 2nd, or 3rd
751+degree of kinship under s. 990.001 (16).
752+(b) “Settlor” means a person that executes a trust instrument and includes a
753+person for whom a fiduciary or agent is acting.
754+(2) A trustee of a trust has an insurable interest in the life of an individual
755+insured under a life insurance policy that is owned by the trustee of the trust acting
756+in a fiduciary capacity or that designates the trust itself as the owner if, on the date
757+the policy is issued, all of the following apply:
758+(a) The insured is any of the following:
759+1. A settlor of the trust.
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785+LRB-5206/1
786+KMS&JPC:cdc
787+SECTION 44
788+ SENATE BILL 759
789+2. An individual in whom a settlor of the trust has, or would have had if living
790+at the time the policy was issued, an insurable interest.
791+(b) The life insurance proceeds are primarily for the benefit of one or more trust
792+beneficiaries who have any of the following:
793+1. An insurable interest in the life of the insured.
794+2. A substantial interest engendered by love or affection in the continuation of
795+the life of the insured and, if not included under subd. 1., the beneficiary is a relative
796+or stepchild of the insured.
797+SECTION 45. 701.0201 (3) (km) of the statutes is created to read:
798+701.0201 (3) (km) Releasing a trustee, directing party, trust protector, or other
799+person acting in a fiduciary capacity from liability for an action relating to the trust.
800+SECTION 46. 701.0201 (4) of the statutes is created to read:
801+701.0201 (4) Except as otherwise provided in this chapter, and as applicable,
802+the probate procedure described in ch. 879 applies to a proceeding brought by a
803+trustee, trust protector, directing party, or beneficiary concerning the administration
804+of a trust.
805+SECTION 47. 701.0203 (1) of the statutes is amended to read:
806+701.0203 (1) The circuit court assigned to exercise probate jurisdiction has
807+exclusive jurisdiction of proceedings in this state brought by a trustee, trust
808+protector, directing party, or beneficiary concerning the administration of a trust.
809+Except as otherwise provided in this chapter, and as applicable, the probate
810+procedure described in ch. 879 applies to a proceeding brought by a trustee, trust
811+protector, directing party, or beneficiary concerning the administration of a trust.
812+SECTION 48. 701.0302 (title) of the statutes is amended to read:
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837+KMS&JPC:cdc
838+SECTION 48 SENATE BILL 759
839+701.0302 (title) Representation by holder of general power of
840+appointment powerholder of certain powers of appointment .
841+SECTION 49. 701.0302 of the statutes is renumbered 701.0302 (2) and amended
842+to read:
843+701.0302 (2) To the extent there is no conflict of interest between a holder of
844+a general power of appointment powerholder and a person the persons represented
845+with respect to the particular question or dispute, the holder powerholder of a
846+nongeneral power of appointment other than a broad limited power of appointment
847+may represent and bind the person all persons or all members of a class of persons,
848+including permissible appointees and takers in default, whose interests, as a
849+permissible appointee, a taker in default, or otherwise, are subject to may be limited
850+by the exercise or nonexercise of the power.
851+SECTION 50. 701.0302 (1) of the statutes is created to read:
852+701.0302 (1) The powerholder of a general power of appointment exercisable
853+in favor of the powerholder or the powerholder's estate or the powerholder of a broad
854+limited power of appointment may represent and bind all persons, including
855+permissible appointees and takers in default, whose interests may be eliminated by
856+the exercise or nonexercise of the power. For purposes of this subsection, a general
857+power of appointment does not include powers of appointment exercisable only in
858+favor of the creditors of the powerholder, the creditors of the powerholder's estate,
859+or both.
860+SECTION 51. 701.0303 (4) of the statutes is amended to read:
861+701.0303 (4) A trustee may represent and bind the beneficiaries of the trust,
862+except as to matters relating to the administration or distribution of the trust.
863+SECTION 52. 701.0303 (5) of the statutes is amended to read:
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889+LRB-5206/1
890+KMS&JPC:cdc
891+SECTION 52
892+ SENATE BILL 759
893+701.0303 (5) A personal representative of a decedent's estate may represent
894+and bind a person interested in the estate, except as to matters relating to the
895+administration or distribution of the estate.
896+SECTION 53. 701.0303 (6) (intro.) of the statutes is amended to read:
897+701.0303 (6) (intro.) A parent may represent and bind the parent's minor or
898+unborn child, such child's minor and unborn issue, and the minor and unborn issue
899+of a then deceased child. If a disagreement arises between parents seeking to
900+represent the same minor child or unborn child individual, representation is
901+determined as follows:
902+SECTION 54. 701.0303 (6) (a) of the statutes is amended to read:
903+701.0303 (6) (a) If only one parent is a beneficiary of the trust that is the subject
904+of the representation, that parent may represent and bind the minor child or unborn
905+child, such child's minor and unborn issue, and the minor and unborn issue of a then
906+deceased child.
907+SECTION 55. 701.0303 (6) (b) of the statutes is amended to read:
908+701.0303 (6) (b) If both parents are beneficiaries of the trust that is the subject
909+of the representation, the parent who is related to the settlor, other than by reason
910+of being married to the other parent, may represent and bind the minor child or
911+unborn child, such child's minor and unborn issue, and the minor and unborn issue
912+of a then deceased child.
913+SECTION 56. 701.0303 (6) (c) of the statutes is amended to read:
914+701.0303 (6) (c) Subject to s. 701.0301 (4), if neither parent is a beneficiary of
915+the trust that is the subject of the representation, the parent who is the settlor of the
916+trust that is the subject of the representation may represent and bind the minor child
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941+KMS&JPC:cdc
942+SECTION 56 SENATE BILL 759
943+or unborn child, such child's minor and unborn issue, and the minor and unborn issue
944+of a then deceased child.
945+SECTION 57. 701.0303 (6) (d) of the statutes is amended to read:
946+701.0303 (6) (d) If neither parent is a beneficiary or settlor of the trust that is
947+the subject of the representation, the parent who is related to the settlor, other than
948+by reason of being married to the other parent, may represent and bind the minor
949+child or unborn child, such child's minor and unborn issue, and the minor and unborn
950+issue of a then deceased child.
951+SECTION 58. 701.0303 (6) (e) of the statutes is created to read:
952+701.0303 (6) (e) If an individual that is the subject of the representation is
953+eligible to be represented by more than one ancestor under this subsection, the
954+individual's nearest ancestor may represent and bind such individual.
955+SECTION 59. 701.0304 of the statutes is renumbered 701.0304 (1).
956+SECTION 60. 701.0304 (2) of the statutes is created to read:
957+701.0304 (2) (a) In this subsection:
958+1. “Contingent successor remainder beneficiary” means a beneficiary who
959+would succeed to the interest of a presumptive remainder beneficiary if the
960+presumptive remainder beneficiary and all of the current beneficiaries failed to take
961+such interest.
962+2. “More remote contingent successor remainder beneficiary” means any
963+contingent successor remainder beneficiary whose interest arises only upon the
964+failure of the interest of another contingent successor remainder beneficiary.
965+(b) A presumptive remainder beneficiary or a person authorized to represent
966+the presumptive remainder beneficiary under sub. (1) may represent and bind a
967+contingent successor remainder beneficiary or a more remote contingent successor
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993+LRB-5206/1
994+KMS&JPC:cdc
995+SECTION 60
996+ SENATE BILL 759
997+remainder beneficiary for the same purposes, in the same circumstances, and to the
998+same extent as an ascertainable beneficiary may represent and bind a minor or
999+person who is incapacitated, unborn, or not reasonably ascertainable.
1000+(c) If a presumptive remainder beneficiary does not represent a more remote
1001+contingent successor remainder beneficiary, a contingent successor remainder
1002+beneficiary may represent and bind a more remote contingent successor remainder
1003+beneficiary for the same purposes, in the same circumstances, and to the same extent
1004+as an ascertainable beneficiary may represent and bind a minor or person who is
1005+incapacitated, unborn, or not reasonably ascertainable.
1006+(d) A contingent successor remainder beneficiary or a more remote contingent
1007+successor remainder beneficiary may be represented under pars. (b) and (c) whether
1008+or not the contingent successor remainder beneficiary or more remote contingent
1009+successor remainder beneficiary lacks capacity.
1010+(e) Under pars. (b) and (c), the difference between a beneficiary's interest as a
1011+presumptive remainder beneficiary or contingent successor remainder beneficiary
1012+does not constitute a conflict of interest as to any more remote contingent successor
1013+remainder beneficiary.
1014+SECTION 61. 701.0305 (1) of the statutes is renumbered 701.0305.
1015+SECTION 62. 701.0305 (2) of the statutes is renumbered 701.0307 (1).
1016+SECTION 63. 701.0305 (3) of the statutes is renumbered 701.0307 (2).
1017+SECTION 64. 701.0306 of the statutes is created to read:
1018+701.0306 Designated representative. (1) If specifically nominated in the
1019+trust instrument, one or more persons may be designated to represent and bind a
1020+beneficiary and receive any notice, information, accounting, or report. The trust
1021+instrument may also authorize any one or more persons to designate one or more
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1047+KMS&JPC:cdc
1048+SECTION 64 SENATE BILL 759
1049+persons to represent and bind a beneficiary and receive any notice, information,
1050+accounting, or report.
1051+(2) Except as otherwise provided in this chapter, a person designated in sub.
1052+(1) may not represent and bind a beneficiary while that person is serving as trustee.
1053+(3) Except as otherwise provided in this chapter, a person designated in sub.
1054+(1) may not represent and bind another beneficiary if the person designated also is
1055+a beneficiary, unless one of the following applies:
1056+(a) That person was named by the settlor.
1057+(b) That person is one of the following:
1058+1. The beneficiary's spouse.
1059+2. A grandparent or descendant of a grandparent of the beneficiary.
1060+3. A grandparent or descendant of a grandparent of the beneficiary's spouse.
1061+SECTION 65. 701.0307 (title) of the statutes is created to read:
1062+701.0307 (title) Role of a representative or guardian ad litem.
1063+SECTION 66. 701.0308 of the statutes is created to read:
1064+701.0308 Liability of representative. No representative or guardian ad
1065+litem is liable to the beneficiary whose interests are represented, or to anyone
1066+claiming through that beneficiary, for any actions or omissions to act made in good
1067+faith.
1068+SECTION 67. 701.0401 (5m) of the statutes is created to read:
1069+701.0401 (5m) A declaration of an intent to create a trust with the intention
1070+that the trust will later be funded by assets of the person who created the trust or
1071+by another person with legal authority to fund the trust. The person making the
1072+declaration is considered to have created the trust, regardless of whether the person
1073+funds the trust with the person's own assets.
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1099+LRB-5206/1
1100+KMS&JPC:cdc
1101+SECTION 68
1102+ SENATE BILL 759
1103+SECTION 68. 701.0402 (1) (e) of the statutes is amended to read:
1104+701.0402 (1) (e) The same person is not the sole trustee and sole beneficiary,
1105+and there are no remainder beneficiaries other than the person's estate.
1106+SECTION 69. 701.0405 (1) of the statutes is repealed.
1107+SECTION 70. 701.0408 of the statutes is amended to read:
1108+701.0408 Trust for care of animal. (1) A An animal trust may be created
1109+to provide for the care of an animal alive during the settlor's lifetime. The animal
1110+trust terminates upon the death of the animal or, if the animal trust was created to
1111+provide for the care of more than one animal alive during the settlor's lifetime, upon
1112+the death of the last surviving animal.
1113+(2) A An animal trust authorized by this section may be enforced by a person
1114+appointed in the terms of the trust or, if no person is so appointed, by a person
1115+appointed by the court an animal protector. A person having an interest in the
1116+welfare of the animal may request the court to appoint a person to enforce the trust
1117+or to remove a person appointed under this subsection an animal protector.
1118+(3) Property of a an animal trust authorized by this section may be applied
1119+only to its intended use, except to the extent the court determines that the value of
1120+the animal trust property exceeds the amount required for the intended use.
1121+Property not required for the intended use must be distributed to the settlor, if then
1122+living, otherwise to the settlor's successors in interest.
1123+SECTION 71. 701.0410 (2) of the statutes is amended to read:
1124+701.0410 (2) A proceeding to approve or disapprove a proposed modification or
1125+termination under ss. 701.0411 to 701.0416, or a proposed trust combination or
1126+division under s. 701.0417, may be commenced by a trustee or beneficiary, and a
1127+proceeding to approve or disapprove a proposed modification or termination under
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1153+KMS&JPC:cdc
1154+SECTION 71 SENATE BILL 759
1155+s. 701.0411 may be commenced by the settlor. The settlor of a charitable trust may
1156+maintain a proceeding to modify the trust under s. 701.0413. A Except as provided
1157+in s. 701.0411 (1m), a trustee does not have standing to oppose a proposed
1158+modification or termination commenced under s. 701.0411 (1).
1159+SECTION 72. 701.0410 (3) of the statutes is amended to read:
1160+701.0410 (3) A trustee may not be compelled by a modification or termination
1161+under this section or under ss. 701.0411 to 701.0416 to make distributions to or for
1162+any beneficiary of a trust for an individual with a disability or to terminate the trust,
1163+during the lifetime of the individual with a disability. A court may modify the terms
1164+of a trust for that has an individual with a disability as a beneficiary with retroactive
1165+effect or reform the terms of such trust to achieve the settlor's objective or, if because
1166+of circumstances not anticipated by the settlor, to otherwise further the purposes of
1167+the trust so that it does not result in trust property being countable as resources or
1168+income of the individual with a disability for purposes of public assistance.
1169+SECTION 73. 701.0411 (1) of the statutes is amended to read:
1170+701.0411 (1) A Except as provided in sub. (1m), a noncharitable irrevocable
1171+trust may be modified or terminated, with or without court approval, upon consent
1172+of the settlor and all beneficiaries, even if the modification or termination is
1173+inconsistent with a material purpose of the trust. A settlor's power to consent to a
1174+trust's modification or termination may be exercised by a representative under s.
1175+701.0303 only if the representative is specifically authorized to consent to a trust's
1176+modification or termination under a power of attorney, the terms of the trust, or by
1177+a court under a guardianship or conservatorship.
1178+SECTION 74. 701.0411 (1m) of the statutes is created to read:
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1203+LRB-5206/1
1204+KMS&JPC:cdc
1205+SECTION 74
1206+ SENATE BILL 759
1207+701.0411 (1m) A trust described in 42 USC 1396p (d) (4) may be terminated
1208+or modified under sub. (1) only with consent of the trustee, and is not considered
1209+revocable because it lacks ascertainable remainder beneficiaries.
1210+SECTION 75. 701.0411 (2) (intro.) of the statutes is created to read:
1211+701.0411 (2) (intro.) With the approval of the court, any of the following may
1212+occur:
1213+SECTION 76. 701.0411 (2) (a) of the statutes is amended to read:
1214+701.0411 (2) (a) A noncharitable irrevocable trust may be terminated upon
1215+consent of all of the beneficiaries if the court concludes that continuance of the trust
1216+is not necessary to achieve any material purpose of the trust.
1217+SECTION 77. 701.0411 (2) (b) of the statutes is amended to read:
1218+701.0411 (2) (b) A noncharitable irrevocable trust may be modified upon
1219+consent of all of the beneficiaries if the court concludes that modification is not
1220+inconsistent with a material purpose of the trust.
1221+SECTION 78. 701.0411 (7) of the statutes is amended to read:
1222+701.0411 (7) A party proposing to modify or terminate a trust under sub. (1)
1223+or, (2), or (6) shall give notice of the proposed modification or termination to the
1224+settlor, if living, the trustee, each trust protector, each directing party, and each
1225+beneficiary at least 30 days before the proposed effective date of the modification or
1226+termination.
1227+SECTION 79. 701.0414 (4) of the statutes is amended to read:
1228+701.0414 (4) The court may modify or terminate a trust or remove the trustee
1229+and appoint a different trustee if it determines that the value of the trust property
1230+is insufficient to justify the cost of administration even if the trust property has a
1231+total value in excess of the amount described in sub. (2).
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1257+KMS&JPC:cdc
1258+SECTION 80 SENATE BILL 759
1259+SECTION 80. 701.0415 of the statutes is amended to read:
1260+701.0415 Reformation to correct mistakes. The court may reform the
1261+terms of a trust, even if unambiguous, to conform the terms to the settlor's intent
1262+intention if it is proved by clear and convincing evidence that both what the settlor's
1263+intent intention was and that the terms of the trust were affected by a mistake of fact
1264+or law, whether in expression or inducement. A party petitioning the court for action
1265+under this section shall give notice of the proceeding to the settlor, if living, the
1266+trustee, each trust protector, each directing party, and the qualified beneficiaries.
1267+SECTION 81. 701.0416 of the statutes is amended to read:
1268+701.0416 Modification or termination to achieve settlor's tax
1269+objectives. To achieve the settlor's tax objectives, the court may modify the terms
1270+of a trust or terminate a trust in a manner that is not contrary to the settlor's
1271+probable intent. The court may provide that the modification or termination has
1272+retroactive effect. A party petitioning the court for action under this section shall
1273+give notice of the proceeding to the settlor, if living, the trustee, each trust protector,
1274+each directing party, and the qualified beneficiaries.
1275+SECTION 82. 701.0418 of the statutes is repealed.
1276+SECTION 83. 701.0505 (1) (a) 2. of the statutes is amended to read:
1277+701.0505 (1) (a) 2. With respect to an irrevocable trust that is not a trust for
1278+an individual with a disability, upon application of a judgment creditor of the settlor,
1279+the court may, if the trust instrument requires or authorizes the trustee to make
1280+payments of income or principal to or for the settlor, order the trustee to satisfy part
1281+or all of the judgment out of part or all of the payments of income or principal as they
1282+are due, presently or in the future, or which are payable in the trustee's discretion.
1283+A settlor's right to receive reimbursement for income taxation arising from grantor
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1309+LRB-5206/1
1310+KMS&JPC:cdc
1311+SECTION 83
1312+ SENATE BILL 759
1313+trust treatment of the trust pursuant to sections 671 to 679 of the Internal Revenue
1314+Code is not considered a right to income or principal for purposes of this section. If
1315+a trust has more than one settlor, the amount the judgment creditor of a particular
1316+settlor may reach may not exceed the settlor's interest in the trust.
1317+SECTION 84. 701.0505 (2) (e) 3. of the statutes is amended to read:
1318+701.0505 (2) (e) 3. For purposes of this paragraph, notwithstanding s. 701.0103
1319+(3), “beneficiary" means a person who satisfies s. 701.0103 (3) (a) or (b) and who is
1320+designated in a trust instrument or through the exercise of a special nongeneral or
1321+general power of appointment.
1322+SECTION 85. 701.0508 of the statutes is repealed and recreated to read:
1323+701.0508 Debts of deceased settlor. (1) DEADLINE ON CLAIMS. A claimant
1324+must assert a claim for payment of a debt of a deceased settlor within the time for
1325+such claims under applicable law. For purposes of this section, a debt incurred by
1326+a trustee of a revocable trust before the death of a settlor of the revocable trust shall
1327+be treated in the same manner as a debt of the settlor. A trustee of a trust that was
1328+revocable at the settlor's death may shorten the time period and set a deadline for
1329+filing claims with the trustee by doing any of the following:
1330+(a) Publishing a legal notice as a class 3 notice under ch. 985 in the county in
1331+which the deceased settlor resided. The legal notice shall identify the name, address,
1332+and any other contact information of the trustee or other person with whom claims
1333+must be filed. The deadline for a claim by any claimant who is not known by the
1334+trustee shall be the earlier of the date that is 4 months after the date of the first
1335+insertion of the legal notice or, if sub. (6) is applicable, the deadline prescribed under
1336+s. 859.01.
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1361+KMS&JPC:cdc
1362+SECTION 85 SENATE BILL 759
1363+(b) Giving notice to a potential claimant. The notice shall include a copy of the
1364+legal notice, if published, and shall identify the name, address, and any other contact
1365+information of the trustee or other person with whom claims must be filed and shall
1366+state that any claim by the potential claimant must be filed not later than the date
1367+that is 30 days from the date notice is given to the potential claimant or the deadline
1368+specified in the legal notice. If a legal notice has not been published, the deadline
1369+shall be 4 months from the date the trustee provides notice to the potential claimant.
1370+(c) Publishing a legal notice and not giving a separate notice to a potential
1371+claimant who is known to the trustee. The deadline for a claim when a legal notice
1372+has been published but notice is not given to a known potential claimant is the later
1373+of the date that is one year from the date of the settlor's death or the deadline
1374+specified in the legal notice.
1375+(2) EXCEPTIONS TO DEADLINES ON CLAIMS. A claim that is not filed on or before
1376+an applicable deadline specified under sub. (1) is not barred if the claim is a claim
1377+based on tort, a marital property agreement that is subject to the time limitations
1378+under s. 766.58 (13) (b) or (c), Wisconsin income, franchise, sales, withholding, gift,
1379+or death taxes, unemployment compensation contributions due or benefits overpaid,
1380+funeral or administrative expenses, a claim of this state under s. 46.27 (7g), 2017
1381+stats., or s. 49.496, 49.682, or 49.849, or a claim of the United States.
1382+(3) FILING OF CLAIMS. (a) A claim is considered filed if the claimant provides
1383+notice of the claim to the trustee or other person with whom claims must be filed as
1384+prescribed under s. 701.0508 (1) (a) or (b).
1385+(b) A claim is considered filed if the deceased settlor is subject to a probate
1386+proceeding in this state and a claim is filed with the court under ch. 859.
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1411+LRB-5206/1
1412+KMS&JPC:cdc
1413+SECTION 85
1414+ SENATE BILL 759
1415+(c) If an action is pending against a deceased settlor at the time of the settlor's
1416+death and the action survives, the plaintiff in that action may serve a notice of
1417+substitution of party defendant on the trustee and file proof of service of notice in the
1418+court. Filing of proof of service on or before the deadline for filing a claim under sub.
1419+(1) gives the plaintiff the same rights against the trust as the filing of a claim.
1420+(4) EFFECT OF STATUTE OF LIMITATIONS. (a) A claim that was barred by a statute
1421+of limitations at the time of the deceased settlor's death is barred and the claimant
1422+may not pursue a claim against the trustee, the trust property, or recipients with
1423+respect to trust property.
1424+(b) A claim not barred by a statute of limitations at the time of the settlor's
1425+death shall not be barred thereafter by a statute of limitations if the claim is filed on
1426+or before the deadline for filing a claim under sub. (1).
1427+(c) A claim that is not filed or is filed after the deadline for filing a claim under
1428+sub. (1) is barred and the claimant may not pursue a claim against the trustee, the
1429+trust property, or recipients with respect to trust property.
1430+(d) The deadlines established under sub. (1) do not extend the time for
1431+commencement of a claim beyond the time provided by any statute of limitations
1432+applicable to that claim.
1433+(5) SATISFACTION OF CLAIM FROM OTHER PROPERTY. Failure of a claimant timely
1434+to file a claim as provided in this section does not bar the claimant from satisfying
1435+the claim, if not otherwise barred, from property other than trust property.
1436+(6) COORDINATION WITH PROBATE. If a legal notice has been published with
1437+respect to the estate of a deceased settlor who died domiciled in this state, property
1438+of a trust that was revocable at the settlor's death shall be treated as property of the
1439+estate solely for purposes of administering claims under ch. 859. The trustee shall
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1465+KMS&JPC:cdc
1466+SECTION 85 SENATE BILL 759
1467+be subject to the jurisdiction of the court in which the estate administration is
1468+pending. A personal representative, as defined in s. 851.23, shall provide notice to
1469+the trustee regarding claims filed against the estate. A claim barred under ch. 859
1470+may not be satisfied from property of a trust that was revocable at the settlor's death.
1471+The trustee and qualified beneficiaries shall have standing to file an objection, offset,
1472+or counterclaim with respect to claims filed against the estate. Nothing in this
1473+subsection causes property of the trust that otherwise would be exempt from claims
1474+to be subject to claims filed against the settlor's estate. If the trust is not referenced
1475+in a deceased settlor's will, the trustee of a trust that was revocable at the settlor's
1476+death shall provide notice to a personal representative of the settlor's estate, if any,
1477+of the existence of such trust.
1478+SECTION 86. 701.0509 of the statutes is created to read:
1479+701.0509 Procedures for claims for debts of a deceased settlor;
1480+revocable trusts. (1) SCOPE OF APPLICABILITY. The procedures under this section
1481+apply only to claims against a trust that was revocable by the settlor until the
1482+settlor's death.
1483+(2) FORM AND VERIFICATION OF CLAIMS; TRUSTEE RESPONSE TO CLAIMS. (a) General
1484+requirements. A claim shall be in writing, shall describe the nature and amount of
1485+the claim, if ascertainable, shall identify the name, address, and any other contact
1486+information of the claimant, and shall be sworn to by the claimant or a person on the
1487+claimant's behalf that the amount is justly due, or if not yet due, when it will or may
1488+become due, that no payments have been made on the claim that are not credited,
1489+and that there are no offsets to the knowledge of the affiant, except as stated in the
1490+claim.
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1515+LRB-5206/1
1516+KMS&JPC:cdc
1517+SECTION 86
1518+ SENATE BILL 759
1519+(b) Requirements when claim founded on written instrument. If a claim is
1520+founded on a written instrument that is available, the original instrument or a copy
1521+of the original instrument shall be attached to the claim.
1522+(c) Trustee response to a claim. A trustee does not need to respond to a claim
1523+until after the expiration of the deadline for filing a claim against the trust under s.
1524+701.0508. Within 30 days after the later of the receipt of the claim or 30 days after
1525+the expiration of the deadline, the trustee shall make a good faith determination of
1526+whether the claim is valid, absolute, contingent, or invalid, or whether the trustee
1527+will object to the claim, and the trustee shall inform the claimant of the
1528+determination. If the trustee decides to object to the claim, the claim may be
1529+compromised as provided in sub. (10) or contested as provided under sub. (11). If the
1530+trustee determines the claim is invalid, the claimant may object to that
1531+determination under sub. (11). If the trustee fails to respond within the applicable
1532+period, the claim shall be presumed valid and the claimant may seek enforcement
1533+under sub. (11).
1534+(3) CLAIMS NOT DUE. If a claim will become due at some future time, the trustee
1535+may, or the court with respect to a contested claim may order the trustee to, do any
1536+of the following:
1537+(a) Pay the claim in full.
1538+(b) Pay the claim at the present value and in the same manner as in the case
1539+of an absolute claim that has been allowed.
1540+(c) Retain sufficient funds to satisfy the claim upon maturity.
1541+(d) Obtain a bond to be given by the distributees for payment in satisfaction of
1542+the claim and order the trust to be administered as if the claim had not been filed.
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1566+24 - 32 -2023 - 2024 Legislature LRB-5206/1
1567+KMS&JPC:cdc
1568+SECTION 86 SENATE BILL 759
1569+(4) SECURED CLAIMS. (a) When a claimant holds any security for a claim, the
1570+security shall be described in the written claim given to the trustee. The security is
1571+sufficiently described if the security document is described by date and by the
1572+recording or filing data.
1573+(b) Payment of the claim shall be made on the basis of one of the following:
1574+1. If the creditor surrenders the security, the full amount of the claim.
1575+2. If the creditor realizes on the security before receiving payment, upon the
1576+full amount of the claim allowed less the fair value of the security.
1577+(5) CONTINGENT CLAIMS. If the amount or validity of a claim cannot be
1578+determined until some time in the future, the claim is a contingent claim regardless
1579+of whether the claim is based on an event that occurred in the past or on an event that
1580+may occur in the future. Except for claims of the type not required to be filed under
1581+s. 701.0508 (2), contingent claims must be filed with the trustee as provided under
1582+sub. (2). If the trustee determines the claim to be valid subject to the contingency,
1583+the determination shall state the nature of the contingency. If the trustee determines
1584+the claim to be valid and absolute before distribution of the trust, the claim shall be
1585+paid in the same manner as absolute claims of the same class. In all other cases the
1586+trustee, or the court in the case of a contested claim, may provide for the payment
1587+of contingent claims in any of the following methods:
1588+(a) The claimant and trustee may determine, by agreement, arbitration, or
1589+compromise, the value of the claim, according to its probable present worth, and it
1590+shall be paid in the same manner as a valid and absolute claim.
1591+(b) The trustee may, or the court may order the trustee to, in the case of a
1592+contested claim, make distribution of the trust but retain sufficient funds to pay the
1593+claim if and when the same becomes absolute. For this purpose, the trust may not
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1619+LRB-5206/1
1620+KMS&JPC:cdc
1621+SECTION 86
1622+ SENATE BILL 759
1623+be required to remain intact longer than 2 years after distribution of the remainder
1624+of the trust has been made, and if the claim has not become absolute within that time,
1625+distribution shall be made to the distributees of the retained funds, after paying any
1626+costs and expenses accruing during such period, but the distributees shall be liable
1627+to the claimant to the extent provided in sub. (6), if the contingent claim thereafter
1628+becomes absolute. When distribution is so made to distributees, the trustee or the
1629+court may require the distributees to give bond for the satisfaction of their liability
1630+to the contingent claimant.
1631+(c) The trustee may require, or the court, in the case of a contested claim, may
1632+order, distribution of the trust as though the contingent claim did not exist, but the
1633+distributees shall be liable to the claimant as limited by sub. (7), if the contingent
1634+claim thereafter becomes absolute. The trustee or the court may require the
1635+distributees to give bond for the satisfaction of their liability to the contingent
1636+claimant.
1637+(d) Any other method the trustee determines or the court, in the case of a
1638+contested claim, orders.
1639+(6) PAYMENT OF CONTINGENT CLAIMS BY DISTRIBUTEES. If a contingent claim is filed
1640+and the trustee determines the claim to be valid subject to the contingency and all
1641+of the assets of the trust, including the fund set apart for the payment of the claim,
1642+have been distributed, the claimant may recover on the claim against those
1643+distributees, or the persons who furnish bond for the distributees, whose distributive
1644+shares have been increased by reason of the fact that the amount of the claim as
1645+finally determined was not paid prior to final distribution, if a proceeding for the
1646+claim is commenced in court within 6 months after the claim becomes absolute. A
1647+distributee or the person who furnishes bond for the distributee shall not be liable
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1673+KMS&JPC:cdc
1674+SECTION 86 SENATE BILL 759
1675+for an amount exceeding that person's proportionate share of the trust subject to the
1676+claim, nor for an amount greater than the value of the property that that person
1677+received from the trust, the value to be determined as of the time of distribution to
1678+the distributee.
1679+(7) PRIORITY OF PAYMENT OF CLAIMS AND ALLOWANCES. (a) Classes and priority.
1680+At the time a claim is determined to be valid, the claim shall be classified in one of
1681+the categories under subds. 1. to 8. The trustee shall pay an absolute claim if the
1682+trustee reasonably believes the assets of the trust are sufficient to pay the claim. If
1683+the applicable assets of the trust are insufficient to pay the claim in full, the trustee
1684+shall make payment in the following order:
1685+1. Costs and expenses of administration.
1686+2. Reasonable funeral and burial expenses.
1687+3. Provisions for the family of the deceased settlor under ss. 861.31, 861.33, and
1688+861.35, which sections are incorporated by reference and applied as if the trust is an
1689+estate.
1690+4. Reasonable and necessary expenses of the last illness of the deceased settlor,
1691+including compensation of persons attending the deceased settlor.
1692+5. All debts, charges, or taxes owing to the United States, this state, or a
1693+governmental subdivision or municipality of this state.
1694+6. Wages, including pension, welfare, and vacation benefits, due to employees
1695+that have been earned within 3 months before the date of the death of the deceased
1696+settlor, not to exceed $300 in value to each employee.
1697+7. Property assigned to the surviving spouse or surviving domestic partner
1698+under s. 861.41, which section is incorporated by reference and applied as if the trust
1699+is an estate.
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1725+LRB-5206/1
1726+KMS&JPC:cdc
1727+SECTION 86
1728+ SENATE BILL 759
1729+8. All other claims allowed.
1730+(b) No preference within classes. Preference shall not be given in the payment
1731+of any claim over any other claim of the same class, nor shall a claim due and payable
1732+be entitled to a preference over a claim not due.
1733+(8) EXECUTION AND LEVIES PROHIBITED. Garnishment, attachment, or execution
1734+shall not issue against, nor shall any levy be made against, any property of the trust
1735+under any judgment or cause of action against a deceased settlor or the trustee, but
1736+this subsection shall not be construed to prevent the enforcement of mortgages,
1737+pledges, liens, or other security agreements upon real or personal property in an
1738+appropriate proceeding.
1739+(9) QUALIFIED BENEFICIARIES AND CLAIMANTS MAY BE INFORMED OF CLAIMS. After
1740+the deadline for filing a claim against the trust under s. 701.0508, any qualified
1741+beneficiary or claimant may make a written request to the trustee for a statement
1742+listing all claims that have been filed against the trust. The statement provided by
1743+the trustee shall show each claim, the name of the claimant, a brief description of the
1744+basis of the claim, the amount claimed, and the trustee's determination of whether
1745+the claim is valid, absolute, contingent, or invalid, or whether the trustee will object
1746+to the claim in whole or in part. The trustee shall provide notice of the statement to
1747+the requester, including any representative under subch. III within 5 business days
1748+of the receipt of the request. The requester shall, within 5 business days of receiving
1749+notice of the statement from the trustee, inform the trustee whether the requester
1750+agrees or objects to the trustee's determination on whether to allow the claim in
1751+whole or in part or whether to object to the claim. Failure on the part of any party
1752+to comply with this subsection does not affect the jurisdiction of the court to intervene
1753+in the administration of the claim.
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1778+25 - 36 -2023 - 2024 Legislature LRB-5206/1
1779+KMS&JPC:cdc
1780+SECTION 86 SENATE BILL 759
1781+(10) COMPROMISE OF CLAIMS. When a claim against a trust has been filed and
1782+payment of the claim is pending, the claimant and trustee may, if it appears to be in
1783+the best interest of the trust, compromise the claim, whether due or not due, absolute
1784+or contingent, or liquidated or unliquidated. If an objection to the claim has been
1785+filed by a qualified beneficiary or another claimant, no compromise of the claim may
1786+be made without the consent of the objector.
1787+(11) CONTEST AND ENFORCEMENT OF CLAIMS; COURT PROCEDURE. (a) Initiation.
1788+Any person may initiate a court proceeding to contest or enforce a claim, object to
1789+denial of a claim, or assert an offset or counterclaim, including the trustee, a qualified
1790+beneficiary or representative under subch. III on behalf of a qualified beneficiary, or
1791+a claimant. Such persons may initiate the court proceeding by petitioning the court
1792+to exercise jurisdiction over the claim and any objection, offset, or counterclaim. The
1793+petition shall be served upon or mailed to each person who has standing to object to
1794+the claim and filed with the court within 60 days after the trustee's response or
1795+failure to respond to the claim under sub. (2) (c), or, in the case of an objection by a
1796+qualified beneficiary or representative of the qualified beneficiary or another
1797+potential claimant, within 30 days after the copy of the claim was mailed to or served
1798+upon the objector. The trustee shall not be obligated to assert any offset or
1799+counterclaim in court and may, if the trustee deems it to be in the best interest of the
1800+trust, assert the offset or counterclaim in any separate action otherwise authorized
1801+by law outside the court proceedings. Any offset or counterclaim so asserted shall
1802+be deemed denied by the original claimant.
1803+(b) Procedure. If any claim, offset, or counterclaim is contested, the court may
1804+require the issues to be made definite, fix a date for pretrial conference, and direct
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1829+LRB-5206/1
1830+KMS&JPC:cdc
1831+SECTION 86
1832+ SENATE BILL 759
1833+the manner in which pleadings, if any, shall be exchanged. The court shall set a time
1834+for trial upon its own motion or upon the motion of any party.
1835+(12) PROMPT JUDGMENT. The hearing on any contested claim, offset, or
1836+counterclaim may be adjourned from time to time, but the hearing shall be concluded
1837+as soon as practicable.
1838+(13) JUDGMENT ON CLAIMS. The court shall enter a judgment on contested claims
1839+and any offsets and counterclaims asserted, stating how much was allowed for or
1840+against the trust in each case. The judgment shall set a date by which payment shall
1841+be made. If the balance as to any claimant is in favor of the trust, the payment of the
1842+claim may be enforced as with any other judgment.
1843+(14) DELAY OF PAYMENT OF CLAIMS WHEN FUNDS ARE INSUFFICIENT. If it appears at
1844+any time that the trust is or may be insolvent, that there are insufficient funds on
1845+hand for payment of claims in full, or that there is other good cause for delaying
1846+payment, the trustee shall provide notice of the delay to the claimants and any other
1847+person with standing to object and may petition the court for any order that the
1848+trustee deems necessary.
1849+(15) CLAIMANT'S ACTION FOR PROPERTY FRAUDULENTLY TRANSFERRED BY DECEASED
1850+SETTLOR. Whenever there is reason to believe that the assets of the trust may be
1851+insufficient to pay the deceased settlor's debts, and the deceased settlor transferred
1852+any property with intent to defraud the deceased settlor's creditors or to avoid any
1853+duty, or executed conveyances void as against creditors, any claimant whose claim
1854+has been allowed may, on behalf of all, bring an action to reach any property and
1855+subject it to sale. The claimant's action shall not be brought to trial until the
1856+insufficiency of the assets of the trust is ascertained. If it is found likely that the
1857+assets may be insufficient, the action shall be brought to trial. If the action is tried,
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1882+25 - 38 -2023 - 2024 Legislature LRB-5206/1
1883+KMS&JPC:cdc
1884+SECTION 86 SENATE BILL 759
1885+any property that ought to be subjected to the payment of the debts of the deceased
1886+settlor shall be sold in the action and the net proceeds used to pay such debts and to
1887+reimburse the claimant for the reasonable expenses and attorney fees incurred by
1888+the claimant in such action, as approved by the court.
1889+(16) ENCUMBERED ASSETS; PAYMENT OF DEBT. (a) Rights of secured claimants not
1890+affected. Nothing in this subchapter shall affect or prevent any action or proceeding
1891+to enforce any mortgage, pledge, lien, or other security agreement against property
1892+of the trust.
1893+(b) Payment. When any property in the trust is encumbered by mortgage,
1894+pledge, lien, or other security agreement, the trustee may pay the encumbrance or
1895+any part of the encumbrance, renew or extend any obligation secured by the
1896+encumbrance, or may convey or transfer the encumbered assets to the creditor in
1897+satisfaction of the claimant's lien, in whole or in part, whether or not the holder of
1898+the encumbrance has filed a claim.
1899+(17) TORT CLAIMS. (a) Filed within time limited. If a claim based on a cause
1900+of action in tort or for contribution resulting from a cause of action in tort is filed on
1901+or before the deadline for filing a claim under s. 701.0508, the claimant will receive
1902+the same protection in regard to payment as a claimant who has filed a required
1903+claim.
1904+(b) Not filed within time limited. A cause of action against a deceased settlor
1905+in tort or for contribution resulting from a cause of action in tort is not defeated by
1906+failure to file the claim or commence or continue an action against the trustee on or
1907+before the deadline for filing a claim under s. 701.0508 against a trust, but the failure
1908+to file the claim with the trustee relieves the trustee of all responsibility to protect
1909+the rights of the claimant, and the claimant shall not be granted any of the
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1935+LRB-5206/1
1936+KMS&JPC:cdc
1937+SECTION 86
1938+ SENATE BILL 759
1939+protections under sub. (5). If the claim is determined to be valid and absolute
1940+through court-approved settlement or adjudication and a certified copy of the
1941+settlement or judgment is filed with the trustee and there are sufficient funds in the
1942+trust to pay the claim, the claim shall be paid prior to the distribution of the trust.
1943+After the trust has been distributed or if there are not sufficient funds in the trust,
1944+a claimant whose claim has been determined to be valid and absolute through
1945+court-approved settlement or through adjudication may proceed against the
1946+distributees, but no distributee may be liable for an amount greater than that
1947+allowed under sub. (6).
1948+(18) PAYMENT OF UNFILED CLAIMS. A trustee may pay a debt of a deceased settlor
1949+prior to the expiration of the deadline for filing claims under s. 701.0508 whether or
1950+not a claim is filed if the trustee reasonably believes that the debt is owed and that
1951+the assets of the trust are sufficient to satisfy all of the deceased settlor's debts.
1952+(19) LAST ILLNESS AND FUNERAL EXPENSE OF DECEASED SPOUSE. The reasonable
1953+expense of the last illness and funeral may, if properly presented, be paid by the
1954+trustee of a deceased settlor's trust and, if so paid, shall be recognized as valid
1955+expenditures even though the surviving spouse of the deceased settlor could have
1956+been held liable for the expense.
1957+SECTION 87. 701.0602 (1) of the statutes is amended to read:
1958+701.0602 (1) Unless the terms of a trust expressly provide that the trust is
1959+irrevocable, there is a rebuttable presumption that the settlor may revoke or amend
1960+the trust. This subsection does not apply to a trust created under an instrument
1961+executed before July 1, 2014.
1962+SECTION 88. 701.0602 (3) (intro.), (a) and (b) (intro.) of the statutes are
1963+consolidated, renumbered 701.0602 (3) (intro.) and amended to read:
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1988+25 - 40 -2023 - 2024 Legislature LRB-5206/1
1989+KMS&JPC:cdc
1990+SECTION 88 SENATE BILL 759
1991+701.0602 (3) (intro.) A settlor may revoke or amend a revocable trust by any
1992+of the following means: (a) By substantial compliance with a method provided in the
1993+terms of the trust. (b) (intro.) If, or, if the terms of the trust do not provide a method,
1994+by any of the following means:
1995+SECTION 89. 701.0602 (3) (b) 1. of the statutes is renumbered 701.0602 (3) (am).
1996+SECTION 90. 701.0602 (3) (b) 2. of the statutes is renumbered 701.0602 (3) (bm).
1997+SECTION 91. 701.0602 (4) of the statutes is amended to read:
1998+701.0602 (4) Upon revocation of a revocable trust, the trustee shall transfer the
1999+trust property to the settlor or as the settlor directs. However, with respect to marital
2000+or community property, the trustee shall transfer the property to both spouses as
2001+marital or community property or as both spouses direct.
2002+SECTION 92. 701.0605 of the statutes is created to read:
2003+701.0605 Future interests in trust. Subject to s. 701.1204, unless a contrary
2004+intention is found, if a person has a future interest in property under a revocable
2005+trust and, under the terms of the trust, the person has the right to possession and
2006+enjoyment of the property at the settlor's death, the right to possession and
2007+enjoyment is contingent on the person surviving the settlor. Extrinsic evidence may
2008+be used to show contrary intent.
2009+SECTION 93. 701.0702 (3) of the statutes is amended to read:
2010+701.0702 (3) A court may not require a bond from a trust company bank, state
2011+bank, or national bank that is authorized to exercise trust powers and that has
2012+complied with s. 220.09 or 223.02 nor shall a bond be required of a religious,
2013+charitable, or educational corporation or society.
2014+SECTION 94. 701.0704 (1) (g) of the statutes is created to read:
2015+701.0704 (1) (g) Any other event occurs resulting in no person acting as trustee.
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2041+LRB-5206/1
2042+KMS&JPC:cdc
2043+SECTION 95
2044+ SENATE BILL 759
2045+SECTION 95. 701.0706 (2) (c) of the statutes is amended to read:
2046+701.0706 (2) (c) The court determines that removal Removal of the trustee best
2047+serves the interests of the beneficiaries is appropriate because of unfitness,
2048+unwillingness, or persistent failure of the trustee to administer the trust effectively.
2049+SECTION 96. 701.0706 (2) (d) of the statutes is amended to read:
2050+701.0706 (2) (d) There has been a substantial change of circumstances or
2051+removal is requested by all of the qualified beneficiaries, the court finds that the
2052+removal of the trustee best serves the interests of all of the beneficiaries and is not
2053+inconsistent with a material purpose of the trust, and a suitable cotrustee or
2054+successor trustee is available.
2055+SECTION 97. 701.0707 (2) of the statutes is amended to read:
2056+701.0707 (2) A trustee who has resigned or been removed shall proceed
2057+expeditiously within a reasonable time to deliver the trust property within the
2058+trustee's possession to the cotrustee, successor trustee, or other person entitled to it,
2059+subject to the right of the trustee to retain a reasonable reserve for the payment of
2060+debts, expenses, and taxes.
2061+SECTION 98. 701.0802 (5) of the statutes is renumbered 701.0802 (5) (a).
2062+SECTION 99. 701.0802 (5) (b) of the statutes is created to read:
2063+701.0802 (5) (b) A trust company acting in any fiduciary capacity with respect
2064+to a trust may purchase any service or product, including insurance or securities
2065+underwritten or otherwise distributed by the trust company or by an affiliate,
2066+through or directly from the trust company or an affiliate of a syndicate or selling
2067+group that includes the trust company of an affiliate, provided the purchase
2068+otherwise complies with the prudent investor rule in s. 881.01 and with s. 881.015.
2069+Compensation for the service or product must be reasonable and not prohibited by
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2095+KMS&JPC:cdc
2096+SECTION 99 SENATE BILL 759
2097+the instrument governing the fiduciary relationship. The compensation for the
2098+service or product may be in addition to the compensation that the trust company is
2099+otherwise entitled to receive.
2100+SECTION 100. 701.0802 (9) of the statutes is created to read:
2101+701.0802 (9) A trustee is not liable for releasing information, including a copy
2102+of all or any portion of the trust instrument, to any deceased settlor's heir-at-law or
2103+other person indicating that the person is not a beneficiary of the trust if the trustee
2104+reasonably believes that doing so will not harm the beneficiaries of the trust and that
2105+doing so will reduce the likelihood of litigation involving the trust.
2106+SECTION 101. 701.0813 (1), (2) (d) and (3) (a) (intro.) of the statutes are amended
2107+to read:
2108+701.0813 (1) A trustee shall keep the distributees or permissible distributees
2109+of trust income or principal, current beneficiaries and other qualified presumptive
2110+remainder beneficiaries who so request, reasonably informed about the
2111+administration of the trust. Unless unreasonable under the circumstances, a trustee
2112+shall promptly respond to a qualified beneficiary's request for information related to
2113+the administration of the trust.
2114+(2) (d) Notify the distributees or permissible distributees of trust income or
2115+principal, current beneficiaries and other qualified presumptive remainder
2116+beneficiaries who so request, of any change in the method or rate of the trustee's
2117+compensation.
2118+(3) (a) (intro.) At Subject to par. (c), at least annually and upon the termination
2119+of a trust, a trustee shall send to the distributees or permissible distributees of trust
2120+income or principal, current beneficiaries and to other qualified presumptive
2121+remainder beneficiaries who request it, all of the following:
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2147+LRB-5206/1
2148+KMS&JPC:cdc
2149+SECTION 102
2150+ SENATE BILL 759
2151+SECTION 102. 701.0813 (2) (a) of the statutes is amended to read:
2152+701.0813 (2) (a) Upon the request of a qualified beneficiary for a copy of the
2153+trust instrument, promptly furnish to the qualified beneficiary either a copy of the
2154+portions of the trust instrument relating to the interest of the qualified beneficiary
2155+or a copy of the trust instrument or, upon the request of a settlor for a copy of the trust
2156+instrument, promptly furnish to the settlor a copy of the trust instrument.
2157+SECTION 103. 701.0813 (3) (b) of the statutes is amended to read:
2158+701.0813 (3) (b) Upon Subject to par. (c), upon a vacancy in a trusteeship, unless
2159+a cotrustee remains in office, the former trustee shall send a report containing the
2160+information described under par. (a) 1. to the qualified beneficiaries. A personal
2161+representative or guardian may send the qualified beneficiaries a report containing
2162+the information described in par. (a) 1. on behalf of a deceased or incapacitated
2163+trustee.
2164+SECTION 104. 701.0813 (3) (c) of the statutes is created to read:
2165+701.0813 (3) (c) A trustee may limit the report to a qualified beneficiary of a
2166+specific dollar amount or specific property to information that relates to the specific
2167+dollar amount or specific property.
2168+SECTION 105. 701.0813 (5) of the statutes is amended to read:
2169+701.0813 (5) Subsections (2) (b) and, (c), and (d) and (3) do not apply to a trustee
2170+who accepts a trusteeship before July 1, 2014, to an irrevocable trust created before
2171+July 1, 2014, or to a revocable trust that becomes irrevocable before July 1, 2014.
2172+SECTION 106. 701.0813 (6) and (7) of the statutes are created to read:
2173+701.0813 (6) The trustee has no duty to provide information about the
2174+administration of the trust to the settlor, but the trustee may provide such
2175+information if the trustee chooses to do so.
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2201+KMS&JPC:cdc
2202+SECTION 106 SENATE BILL 759
2203+(7) The trust instrument may expand, restrict, eliminate, or otherwise vary the
2204+right of a beneficiary or class of beneficiaries to be informed of the beneficiary's
2205+interest in a trust or to receive any or all information concerning the trust, and may
2206+do so for any period of time, including for the lifetime of a beneficiary or a class of
2207+beneficiaries. If there is no current acting representative of such a beneficiary or
2208+class of beneficiaries in accordance with the trust instrument, and a provision to
2209+appoint such a representative is not provided for in the trust instrument, the trustee
2210+may appoint a representative for a beneficiary or class of beneficiaries whose rights
2211+to information have been restricted or eliminated by the trust instrument.
2212+SECTION 107. 701.0815 (3) of the statutes is created to read:
2213+701.0815 (3) A trustee has no power to give warranties in a sale, mortgage, or
2214+lease that are binding on the trustee personally.
2215+SECTION 108. 701.0816 (29) of the statutes is created to read:
2216+701.0816 (29) Fund a trust or account that meets the requirements under 42
2217+USC 1396p (d) (4) (A) or (C) for the benefit of an individual with a disability.
2218+SECTION 109. 701.0816 (30) of the statutes is created to read:
2219+701.0816 (30) Fund an account that is part of an ABLE program under section
2220+529A of the Internal Revenue Code for a beneficiary's benefit.
2221+SECTION 110. 701.0817 (3) (b) of the statutes is amended to read:
2222+701.0817 (3) (b) The beneficiary, at the time of the release, did not know of the
2223+beneficiary's rights or have a reasonable opportunity to know of the material facts
2224+relating to the breach.
2225+SECTION 111. 701.0818 (2) (b) 2. h. of the statutes is repealed and recreated to
942226 read:
95-701.0103 (1n)  “Animal trust” means a trust or an
96-interest in a trust created to provide for the care of one or
97-more animals.
98-SECTION 9.  701.0103 (3) (c) of the statutes is created
99-to read:
100-701.0103 (3) (c)  Is an identified charitable organiza-
101-tion that will or may receive distributions under the terms
102-of the trust.
103-SECTION 10.  701.0103 (3m) of the statutes is created
104-to read:
105-701.0103 (3m)  “Broad limited power of appoint-
106-ment” has the meaning given in s. 702.102 (4).
107-SECTION 11.  701.0103 (3r) of the statutes is created
108-to read:
109-701.0103 (3r)  “Charitable interest” means an interest
110-in a trust that satisfies any of the following:
111-(a)  It is held by an identified charitable organization
112-and makes the organization a qualified beneficiary.
113-(b)  It benefits only charitable organizations and, if
114-the interest were held by an identified charitable organi-
115-zation, would make the organization a qualified benefi-
116-ciary.
117-(c)  It is held solely for charitable purposes and, if the
118-interest were held by an identified charitable organiza-
119-tion, would make the organization a qualified benefi-
120-ciary.
121-SECTION 12.  701.0103 (3u) of the statutes is created
122-to read:
123-701.0103 (3u)  “Charitable organization” means any
124-of the following:
125-(a)  A person, other than an individual, organized and
126-operated exclusively for charitable purposes.
127-(b)  A government or governmental subdivision,
128-agency, or instrumentality, to the extent it holds funds
129-exclusively for a charitable purpose.
130-SECTION 13.  701.0103 (3x) of the statutes is created
131-to read:
132-701.0103 (3x)  “Charitable purpose” means the relief
133-of poverty, the advancement of education or religion, the
134-promotion of health, a municipal or other governmental
135-purpose, or another purpose the achievement of which is
136-beneficial to the community.
137-SECTION 14.  701.0103 (4) of the statutes is amended
138-to read:
139-701.0103 (4)  “Charitable trust” means a trust, or por-
140-tion of a trust, created for a charitable purpose described
141-in s. 701.0405 (1).  This subsection does not apply in s.
142-701.1201.
143-SECTION 15.  701.0103 (5g) of the statutes is created
144-to read:
145-701.0103 (5g)  “Court” means the court that is identi-
146-fied in s. 701.0203 (1).
147-SECTION 16.  701.0103 (5w) of the statutes is created
148-to read:
149-701.0103 (5w)  “Current beneficiary” means a bene-
150-ficiary that on the date the beneficiary’s qualification is  − 3 − 2023 Wisconsin Act 127 2023 Senate Bill 759
151-determined is a distributee or permissible distributee of
152-trust income or principal or is the holder of a presently
153-exercisable general power of appointment.
154-SECTION 17.  701.0103 (9) of the statutes is amended
155-to read:
156-701.0103 (9)  “General power of appointment” has
157-the meaning given in s. 702.02 (5) 702.102 (7).
158-SECTION 18.  701.0103 (11p) of the statutes is created
159-to read:
160-701.0103 (11p)  “Identified charitable organization”
161-means a charitable organization that is expressly desig-
162-nated to receive distributions under the terms of a charita-
163-ble trust and that is not subject to a right of substitution
164-by the settlor or by any other party prior to the charitable
165-organization becoming a current beneficiary.
166-SECTION 19.  701.0103 (15m) of the statutes is cre-
167-ated to read:
168-701.0103 (15m)  “Issue” has the meaning given in s.
169-851.13.
170-SECTION 20.  701.0103 (17m) of the statutes is cre-
171-ated to read:
172-701.0103 (17m)  “Powerholder” has the meaning
173-given in s. 702.102 (14).
174-SECTION 21.  701.0103 (18) of the statutes is amended
175-to read:
176-701.0103 (18)  “Power of appointment” has the
177-meaning given in s. 702.02 (6) 702.102 (15).
178-SECTION 22.  701.0103 (19r) of the statutes is created
179-to read:
180-701.0103 (19r)  “Presently exercisable power of
181-appointment” has the meaning given in s. 702.102 (16).
182-SECTION 23.  701.0103 (19v) of the statutes is created
183-to read:
184-701.0103 (19v)  “Presumptive remainder benefi-
185-ciary” means, without considering the existence or exer-
186-cise of a power of appointment, other than a power of
187-appointment that has been irrevocably exercised and
188-notice of the exercise has been given to the trustee, a ben-
189-eficiary that on the date the beneficiary’s qualification is
190-determined, would be any of the following:
191-(a)  A distributee or permissible distributee of trust
192-income or principal if the interests of any current benefi-
193-ciary terminated on that date without causing the trust to
194-terminate.
195-(b)  A distributee or permissible distributee of trust
196-income or principal if the trust terminated on that date.
197-(c)  If the terms of the trust do not provide for its termi-
198-nation, a distributee or permissible distributee of income
199-or principal of the trust if all the current beneficiaries of
200-the trust were deceased or no longer exist.
201-SECTION 24.  701.0103 (21) (intro.) of the statutes is
202-amended to read:
203-701.0103 (21) (intro.)  “Qualified beneficiary” means
204-a beneficiary who that, on the date on which the benefi-
205-ciary’s qualification is determined, satisfies is any of the
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2251+LRB-5206/1
2252+KMS&JPC:cdc
2253+SECTION 111
2254+ SENATE BILL 759
2255+701.0818 (2) (b) 2. h. Exercise a decanting power under subch. XIII or direct
2256+an authorized fiduciary, as defined in s. 701.1302 (1), to exercise a decanting power
2257+under subch. XIII.
2258+SECTION 112. 701.1005 (1) of the statutes is amended to read:
2259+701.1005 (1) A beneficiary may not commence a proceeding against a trustee
2260+for breach of trust more than one year after the earlier of either the date on which
2261+the beneficiary or a representative of the beneficiary waived the right to a report
2262+under s. 701.0813 (4) or the date on which the beneficiary or a representative of the
2263+beneficiary was sent a report or other record that adequately disclosed the existence
2264+of a potential claim for breach of trust.
2265+SECTION 113. 701.1005 (2) of the statutes is amended to read:
2266+701.1005 (2) A report or other record adequately discloses the existence of a
2267+potential claim for breach of trust if it provides sufficient information so that the
2268+beneficiary or representative knows of the potential claim or should have inquired
2269+into its existence.
2270+SECTION 114. 701.1009 (2) of the statutes is amended to read:
2271+701.1009 (2) At the time of the consent, release, or ratification, the beneficiary
2272+did not have knowledge or a reasonable opportunity to obtain knowledge of the
2273+beneficiary's rights or of the material facts relating to the breach.
2274+SECTION 115. 701.1105 (1) (b) of the statutes is amended to read:
2275+701.1105 (1) (b) Is given in the manner provided in ch. 879, except that notice
2276+by publication is not required s. 701.0109.
2277+SECTION 116. 701.1136 (1) of the statutes is amended to read:
2278+701.1136 (1) DISTRIBUTION OF INCOME. Except as otherwise determined by the
2279+trustee or a court under s. 701.1106 with respect to unitrust distributions, if a
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2305+KMS&JPC:cdc
2306+SECTION 116 SENATE BILL 759
2307+beneficiary is entitled to receive income from a trust, but the trust instrument fails
2308+to specify how frequently it is to be paid a current beneficiary is to receive income
2309+from the trust, the trustee shall distribute at least annually the income to which such
2310+the current beneficiary is entitled at least annually.
2311+SECTION 117. Subchapter XIII of chapter 701 [precedes 701.1301] of the
2312+statutes is created to read:
2313+CHAPTER 701
2314+SUBCHAPTER XIII
2315+UNIFORM TRUST DECANTING ACT
2316+701.1301 Short title. This subchapter may be cited as the Uniform Trust
2317+Decanting Act.
2318+701.1302 Definitions. In this subchapter:
2319+(1) “Authorized fiduciary” means any of the following:
2320+(a) A trustee, a directing party, or another fiduciary, other than a settlor, that
2321+has discretion to distribute or direct a trustee to distribute part or all of the principal
2322+of the first trust to one or more current beneficiaries.
2323+(b) A special fiduciary appointed under s. 701.1309.
2324+(c) A special-needs fiduciary under s. 701.1313.
2325+(d) A trust protector who has been granted a decanting power, which may be
2326+exercised in a fiduciary or nonfiduciary capacity, under s. 701.0818 (2) (b) 2. h.
2327+(2) “Decanting power” means the power of an authorized fiduciary under this
2328+subchapter to distribute property of a first trust to one or more 2nd trusts or to modify
2329+the terms of the first trust.
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2353+LRB-5206/1
2354+KMS&JPC:cdc
2355+SECTION 117
2356+ SENATE BILL 759
2357+(3) “Expanded distributive discretion” means a discretionary power of
2358+distribution that is not limited to an ascertainable standard or a reasonably definite
2359+standard.
2360+(4) “First trust” means a trust over which an authorized fiduciary may exercise
2361+the decanting power.
2362+(5) “First-trust instrument” means the trust instrument for a first trust.
2363+(6) “Reasonably definite standard” means a clearly measurable standard
2364+under which a holder of a power of distribution is legally accountable within the
2365+meaning of section 674 (b) (5) (A) of the Internal Revenue Code and any applicable
2366+regulations.
2367+(7) “Second trust” means any of the following:
2368+(a) A first trust after modification under this subchapter.
2369+(b) A trust to which a distribution of property from a first trust is or may be
2370+made under this subchapter.
2371+(8) “Second-trust instrument” means the trust instrument for a 2nd trust.
2372+701.1303 Scope. (1) Except as otherwise provided in subs. (2) and (3), this
2373+subchapter applies to an express trust that is irrevocable or revocable by the settlor
2374+only with the consent of the trustee or a person holding an adverse interest.
2375+(2) This subchapter does not apply to a trust held solely for charitable purposes.
2376+(3) Subject to s. 701.1315, a trust instrument may restrict or prohibit exercise
2377+of the decanting power.
2378+(4) This subchapter does not limit the power of an authorized fiduciary or other
2379+person to distribute or appoint property in further trust or to modify a trust under
2380+the trust instrument, law of this state other than this subchapter, common law, a
2381+court order, or a nonjudicial settlement agreement.
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2407+KMS&JPC:cdc
2408+SECTION 117 SENATE BILL 759
2409+(5) This subchapter does not affect the ability of a settlor to provide in a trust
2410+instrument for the distribution of the trust property or appointment in further trust
2411+of the trust property or for modification of the trust instrument.
2412+701.1304 Fiduciary duty. (1) In exercising the decanting power, an
2413+authorized fiduciary shall act in accordance with its fiduciary duties, including the
2414+duty to act in accordance with the purposes of the first trust. If a trustee or other
2415+authorized fiduciary is directed by another authorized fiduciary to exercise the
2416+decanting power, the trustee or other directed authorized fiduciary shall act to
2417+comply with the exercise of the decanting power and the trustee or other directed
2418+authorized fiduciary shall not be liable for the action regardless of any fiduciary duty
2419+that the trustee or other directed authorized fiduciary might otherwise have.
2420+(2) This subchapter does not create or imply a duty to exercise the decanting
2421+power or to inform beneficiaries about the applicability of this subchapter.
2422+(3) Except as otherwise provided in a first-trust instrument, for purposes of
2423+this subchapter and ss. 701.0801 and 701.0802 (2), the terms of the first trust are
2424+deemed to include the decanting power.
2425+701.1305 Application; governing law. This subchapter applies to a trust
2426+created before, on, or after the effective date of this section .... [LRB inserts date], if
2427+any of the following applies:
2428+(1) The trust has its principal place of administration in this state, including
2429+a trust whose principal place of administration has been changed to this state.
2430+(2) The trust provides by its trust instrument that it is governed by the law of
2431+this state or is governed by the law of this state for the purpose of any of the following:
2432+(a) Administration, including administration of a trust whose governing law
2433+for purposes of administration has been changed to the law of this state.
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2459+LRB-5206/1
2460+KMS&JPC:cdc
2461+SECTION 117
2462+ SENATE BILL 759
2463+(b) Construction of terms of the trust.
2464+(c) Determining the meaning or effect of terms of the trust.
2465+701.1306 Reasonable reliance. A trustee or other person that reasonably
2466+relies on the validity of a distribution of part or all of the property of a trust to another
2467+trust, or a modification of a trust, under this subchapter, law of this state other than
2468+this subchapter, or the law of another jurisdiction is not liable to any person for any
2469+action or failure to act as a result of the reliance.
2470+701.1307 Notice; exercise of decanting power. (1) In this section, a notice
2471+period begins on the day notice is given under sub. (3) and ends 30 days after the day
2472+notice is given.
2473+(2) Except as otherwise provided in this subchapter, an authorized fiduciary
2474+may exercise the decanting power without the consent of any person and without
2475+court approval.
2476+(3) Except as otherwise provided in sub. (6), an authorized fiduciary shall give
2477+notice of the intended exercise of the decanting power not later than 30 days before
2478+the exercise to all of the following:
2479+(a) Each settlor of the first trust, if living or then in existence.
2480+(b) Each qualified beneficiary of the first trust.
2481+(c) Each holder of a presently exercisable power of appointment over any part
2482+or all of the first trust.
2483+(d) Each person that currently has the right to remove or replace the authorized
2484+fiduciary.
2485+(e) Each directing party, trust protector, or other fiduciary of the first trust.
2486+(f) Each directing party, trust protector, or other fiduciary of the 2nd trust.
2487+(g) If s. 701.1314 (2) applies, the attorney general.
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2513+KMS&JPC:cdc
2514+SECTION 117 SENATE BILL 759
2515+(4) An authorized fiduciary is not required to give notice under sub. (3) to a
2516+person that is not known to the fiduciary or is known to the fiduciary but cannot be
2517+located by the fiduciary after reasonable diligence.
2518+(5) A notice under sub. (3) must do all of the following:
2519+(a) Specify the manner in which the authorized fiduciary intends to exercise
2520+the decanting power.
2521+(b) Specify the proposed effective date for exercise of the power.
2522+(c) Include a copy of the first-trust instrument.
2523+(d) Include a copy of all 2nd-trust instruments.
2524+(6) The decanting power may be exercised before expiration of the notice period
2525+under sub. (1) if all persons entitled to receive notice waive the period in a signed
2526+record.
2527+(7) The receipt of notice, waiver of the notice period, or expiration of the notice
2528+period does not affect the right of a person to file an application under s. 701.1309
2529+asserting any of the following:
2530+(a) That an attempted exercise of the decanting power is ineffective because it
2531+did not comply with this subchapter or was an abuse of discretion or breach of
2532+fiduciary duty.
2533+(b) That s. 701.1322 applies to the exercise of the decanting power.
2534+(8) An exercise of the decanting power is not ineffective because of the failure
2535+to give notice to one or more persons under sub. (3) if the authorized fiduciary acted
2536+with reasonable care to comply with sub. (3).
2537+701.1309 Court involvement. (1) On application of an authorized fiduciary,
2538+a person entitled to notice under s. 701.1307 (3), a beneficiary, or with respect to a
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2563+LRB-5206/1
2564+KMS&JPC:cdc
2565+SECTION 117
2566+ SENATE BILL 759
2567+charitable interest the attorney general or other person that has standing to enforce
2568+the charitable interest, the court may do any of the following:
2569+(a) Provide instructions to the authorized fiduciary regarding whether a
2570+proposed exercise of the decanting power is permitted under this subchapter and
2571+consistent with the fiduciary duties of the authorized fiduciary.
2572+(b) Appoint a special fiduciary and authorize the special fiduciary to determine
2573+whether the decanting power should be exercised under this subchapter and to
2574+exercise the decanting power.
2575+(c) Approve an exercise of the decanting power.
2576+(d) Determine that a proposed or attempted exercise of the decanting power is
2577+ineffective for any of the following reasons:
2578+1. After applying s. 701.1322, the proposed or attempted exercise does not or
2579+did not comply with this subchapter.
2580+2. The proposed or attempted exercise would be or was an abuse of the
2581+fiduciary's discretion or a breach of fiduciary duty.
2582+3. The proposed or attempted exercise is expressly prohibited under the terms
2583+of the first trust.
2584+(e) Determine the extent to which s. 701.1322 applies to a prior exercise of the
2585+decanting power.
2586+(f) Provide instructions to the trustee regarding the application of s. 701.1322
2587+to a prior exercise of the decanting power.
2588+(g) Order other relief to carry out the purposes of this subchapter.
2589+(2) On application of an authorized fiduciary, the court may approve any of the
2062590 following:
207-SECTION 25.  701.0103 (21) (a) and (b) of the statutes
208-are repealed and recreated to read:
209-701.0103 (21) (a)  A current beneficiary.
210-(b)  A presumptive remainder beneficiary.
211-SECTION 26.  701.0103 (21m) of the statutes is cre-
212-ated to read:
213-701.0103 (21m)  “Record” means information that is
214-inscribed on a tangible medium or that is stored in an
215-electronic or other medium and is retrievable in perceiv-
216-able form.
217-SECTION 27.  701.0103 (23) of the statutes is amended
218-to read:
219-701.0103 (23)  “Settlor” Except as otherwise pro-
220-vided in ss. 701.0113 and 701.1325, “settlor” means a
221-person, including a testator, who creates or contributes
222-property to a trust.  If more than one person creates or
223-contributes property to a trust, each person is a settlor of
224-the portion of the trust property attributable to that per-
225-son’s contribution except to the extent another person has
226-the power to revoke the trust or withdraw that portion.
227-SECTION 28.  701.0103 (23m) of the statutes is cre-
228-ated to read:
229-701.0103 (23m)  “Sign” means, with present intent to
230-authenticate or adopt a record, to do any of the following:
231-(a)  Execute or adopt a tangible symbol.
232-(b)  Attach to or logically associate with the record an
233-electronic symbol, sound, or process.
234-SECTION 29.  701.0103 (24) of the statutes is renum-
235-bered 701.0103 (16m) and amended to read:
236-701.0103 (16m)  “Special “Nongeneral power of
237-appointment” has the meaning given in s. 702.02 (7)
238-702.102 (11).
239-SECTION 30.  701.0103 (27) of the statutes is amended
240-to read:
241-701.0103 (27)  “Terms of a trust” means the manifes-
242-tation of the settlor’s intent regarding a trust’s provisions
243-as expressed in the trust instrument or, as may be estab-
244-lished by other evidence that would be admissible in a
245-judicial proceeding, or as may be established by court
246-order or nonjudicial settlement agreement.
247-SECTION 31.  701.0103 (30) of the statutes is amended
248-to read:
249-701.0103 (30)  “Trust instrument” means an instru-
250-ment, including any amendments or modifications to the
251-instrument under s. 701.0111 or subch. IV, that is exe-
252-cuted a record signed by the settlor that contains terms of
253-to create a trust or is created under a statute, judgment, or
254-decree that orders property to be transferred to a trustee
255-to be administered for the benefit of a beneficiary, or by
256-any person to create a 2nd trust as provided under subch.
257-XIII, that contains some or all of the terms of the trust, and
258-includes any amendments or modifications.
259-SECTION 32.  701.0109 (title) of the statutes is
260-amended to read:
261-701.0109  (title)  Methods and waiver of notice;
262-waiver.  − 4 −2023 Wisconsin Act 127  2023 Senate Bill 759
263-SECTION 33.  701.0109 (3) of the statutes is amended
264-to read:
265-701.0109 (3)  Notice under this chapter or, the send-
266-ing of a document, or the right to object granted under this
267-chapter may be waived by the person to be notified or,
268-sent the document, or who has the right to object.
269-SECTION 34.  701.0109 (5) of the statutes is created to
270-read:
271-701.0109 (5)  If notice is given to a trustee and more
272-than one person is serving as trustee, notice given to any
273-trustee is considered to be given to all persons serving as
274-trustee, except that if a corporate trustee or an attorney
275-licensed to practice in this state is serving as a trustee,
276-notice must be given to all such corporate trustees and
277-attorney trustees.
278-SECTION 35.  701.0110 (1) (intro.) of the statutes is
279-renumbered 701.0110 (1) and amended to read:
280-701.0110 (1)   A  An identified charitable organiza-
281-tion that is expressly designated to receive distributions
282-under the terms of a charitable trust and that is not subject
283-to a right of substitution by the settlor or by any other
284-party prior to the charitable organization becoming a dis-
285-tributee or permissible distributee of trust income or prin-
286-cipal has the rights of a qualified beneficiary under this
287-chapter if the identified charitable organization, on the
288-date on which the identified charitable organization’s
289-qualification is being determined, satisfies one of the fol-
290-lowing: is a current beneficiary or a presumptive remain-
291-der beneficiary.
292-SECTION 36.  701.0110 (1) (a), (b) and (c) of the
293-statutes are repealed.
294-SECTION 37.  701.0110 (2) of the statutes is amended
295-to read:
296-701.0110 (2)   A  An animal protector or a person
297-appointed to enforce a trust created for the care of an ani-
298-mal or another a noncharitable purpose without an ascer-
299-tainable beneficiary as provided in either s. 701.0408 or
300-701.0409 has the rights of a qualified beneficiary under
301-this chapter.
302-SECTION 38.  701.0110 (3) of the statutes is amended
303-to read:
304-701.0110 (3)  The attorney general of this state has the
305-rights of a qualified beneficiary under this chapter with
306-respect to a charitable trust having its principal place of
307-administration in this state only when the charitable inter-
308-est to be represented would qualify under sub. (1) but
309-there is no identified charitable organization has been
310-expressly designated to receive distribution under the
311-terms of a charitable trust that would qualify under sub.
2591+(a) An increase in the fiduciary's compensation under s. 701.1316.
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2616+25 - 52 -2023 - 2024 Legislature LRB-5206/1
2617+KMS&JPC:cdc
2618+SECTION 117 SENATE BILL 759
2619+(b) A modification under s. 701.1318 of a provision granting a person the right
2620+to remove or replace the fiduciary.
2621+701.1310 Formalities. An exercise of the decanting power must be made in
2622+a record signed by an authorized fiduciary. The signed record must, directly or by
2623+reference to the notice required by s. 701.1307, identify the first trust and the 2nd
2624+trust or trusts and state the property of the first trust being distributed to each 2nd
2625+trust and the property, if any, that remains in the first trust.
2626+701.1311 Decanting power under expanded distributive discretion. (1)
2627+In this section:
2628+(a) “Noncontingent right” means a right that is not subject to the exercise of
2629+discretion or the occurrence of a specified event that is not certain to occur. The term
2630+does not include a right held by a beneficiary if any person has discretion to distribute
2631+property subject to the right to any person other than the beneficiary or the
2632+beneficiary's estate.
2633+(b) “Successor beneficiary” means a beneficiary that is not a qualified
2634+beneficiary on the date the beneficiary's qualification is determined. The term does
2635+not include a person that is a beneficiary only because the person holds a nongeneral
2636+power of appointment.
2637+(c) “Vested interest” means any of the following:
2638+1. A right to a mandatory distribution that is a noncontingent right as of the
2639+date of the exercise of the decanting power.
2640+2. A current and noncontingent right, annually or more frequently, to a
2641+mandatory distribution of income, a specified dollar amount, or a percentage of value
2642+of some or all of the trust property.
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2667+LRB-5206/1
2668+KMS&JPC:cdc
2669+SECTION 117
2670+ SENATE BILL 759
2671+3. A current and noncontingent right, annually or more frequently, to withdraw
2672+income, a specified dollar amount, or a percentage of value of some or all of the trust
2673+property.
2674+4. A presently exercisable general power of appointment.
2675+5. A right to receive an ascertainable part of the trust property on the trust's
2676+termination that is not subject to the exercise of discretion or to the occurrence of a
2677+specified event that is not certain to occur.
2678+(2) Subject to sub. (3) and s. 701.1314, an authorized fiduciary that has
2679+expanded distributive discretion over the principal of a first trust for the benefit of
2680+one or more current beneficiaries may exercise the decanting power over the
2681+principal of the first trust.
2682+(3) Subject to s. 701.1313, in an exercise of the decanting power under this
2683+section, a 2nd trust may not do any of the following:
2684+(a) Include as a current beneficiary a person that is not a current beneficiary
2685+of the first trust, except as otherwise provided in sub. (4).
2686+(b) Include as a presumptive remainder beneficiary or successor beneficiary a
2687+person that is not a current beneficiary, presumptive remainder beneficiary, or
2688+successor beneficiary of the first trust, except as otherwise provided in sub. (4).
2689+(c) Reduce or eliminate a vested interest.
2690+(d) Fail to be a trust described in 42 USC 1396p (d) (4) (A) or (C) if the first trust
2691+is a trust described in 42 USC 1396p (d) (4) (A) or (C).
2692+(4) Subject to sub. (3) (c) and s. 701.1314, in an exercise of the decanting power
2693+under this section, a 2nd trust may be a trust created or administered under the law
2694+of any jurisdiction and may do any of the following:
2695+(a) Retain a power of appointment granted in the first trust.
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2721+KMS&JPC:cdc
2722+SECTION 117 SENATE BILL 759
2723+(b) Omit a power of appointment granted in the first trust, other than a
2724+presently exercisable general power of appointment.
2725+(c) Create or modify a power of appointment if the powerholder is a current
2726+beneficiary of the first trust and the authorized fiduciary has expanded distributive
2727+discretion to distribute principal to the beneficiary.
2728+(d) Create or modify a power of appointment if the powerholder is a
2729+presumptive remainder beneficiary or successor beneficiary of the first trust, but the
2730+exercise of the power may take effect only after the powerholder becomes, or would
2731+have become if then living, a current beneficiary.
2732+(5) A power of appointment described in sub. (4) (a) to (d) may be general or
2733+nongeneral. The class of permissible appointees in favor of which the power may be
2734+exercised may be broader than or different from the beneficiaries of the first trust.
2735+(6) If an authorized fiduciary has expanded distributive discretion over part
2736+but not all of the principal of a first trust, the fiduciary may exercise the decanting
2737+power under this section over that part of the principal over which the authorized
2738+fiduciary has expanded distributive discretion.
2739+701.1312 Decanting power under limited distributive discretion. (1)
2740+In this section, “limited distributive discretion” means a discretionary power of
2741+distribution that is limited to an ascertainable standard or a reasonably definite
2742+standard.
2743+(2) An authorized fiduciary that has limited distributive discretion over the
2744+principal of the first trust for the benefit of one or more current beneficiaries may
2745+exercise the decanting power over the principal of the first trust.
2746+(3) Under this section and subject to s. 701.1314, a 2nd trust may be created
2747+or administered under the law of any jurisdiction. Under this section, the 2nd trusts,
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2773+LRB-5206/1
2774+KMS&JPC:cdc
2775+SECTION 117
2776+ SENATE BILL 759
2777+in the aggregate, must grant each beneficiary of the first trust beneficial interests
2778+that are substantially similar to the beneficial interests of the beneficiary in the first
2779+trust.
2780+(3m) Notwithstanding sub. (3), an authorized fiduciary exercising the
2781+decanting power under this section may grant to a beneficiary of the 2nd trust a
2782+testamentary power of appointment exercisable in favor of the creditors of the
2783+beneficiary's estate, but only if the authorized fiduciary concludes the granting of
2784+such power will be unlikely to adversely affect the beneficial interest of the
2785+presumptive remainder beneficiaries of the first trust.
2786+(4) A power to make a distribution under a 2nd trust for the benefit of a
2787+beneficiary who is an individual is substantially similar to a power under the first
2788+trust to make a distribution directly to the beneficiary. A distribution is for the
2789+benefit of a beneficiary if any of the following applies:
2790+(a) The distribution is applied for the benefit of the beneficiary.
2791+(b) The beneficiary is under a legal disability or the trustee reasonably believes
2792+the beneficiary is incapacitated, and the distribution is made as permitted under this
2793+chapter.
2794+(c) The distribution is made as permitted under the terms of the first-trust
2795+instrument and the 2nd-trust instrument for the benefit of the beneficiary.
2796+(5) If an authorized fiduciary has limited distributive discretion over part but
2797+not all of the principal of a first trust, the fiduciary may exercise the decanting power
2798+under this section over that part of the principal over which the authorized fiduciary
2799+has limited distributive discretion.
2800+701.1313 Trust for beneficiary with disability. (1) In this section:
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2825+KMS&JPC:cdc
2826+SECTION 117 SENATE BILL 759
2827+(a) “Beneficiary with a disability” means a beneficiary of a first trust who the
2828+special-needs fiduciary believes in good faith is an individual with a disability.
2829+(b) “Special-needs fiduciary” means, with respect to a trust that has a
2830+beneficiary with a disability, any of the following:
2831+1. A trustee or other fiduciary, other than a settlor, that has discretion to
2832+distribute part or all of the principal of a first trust to one or more current
2833+beneficiaries.
2834+2. If no trustee or fiduciary has discretion under subd. 1., a trustee or other
2835+fiduciary, other than a settlor, that has discretion to distribute part or all of the
2836+income of the first trust to one or more current beneficiaries.
2837+3. If no trustee or fiduciary has discretion under subds. 1. and 2., a trustee or
2838+other fiduciary, other than a settlor, that is required to distribute part or all of the
2839+income or principal of the first trust to one or more current beneficiaries.
2840+(c) “Special-needs trust” means a trust the trustee believes would not be
2841+considered a resource for purposes of determining whether an individual with a
2842+disability is eligible for the supplemental security income program or the medical
2843+assistance program.
2844+(2) A special-needs fiduciary may exercise the decanting power under s.
2845+701.1311 over the principal of a first trust as if the fiduciary had authority to
2846+distribute principal to a beneficiary with a disability subject to expanded distributive
2847+discretion if all of the following apply:
2848+(a) A 2nd trust is a special-needs trust that benefits the beneficiary with a
2849+disability.
2850+(b) The special-needs fiduciary determines that exercise of the decanting
2851+power will further the purposes of the first trust.
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2877+LRB-5206/1
2878+KMS&JPC:cdc
2879+SECTION 117
2880+ SENATE BILL 759
2881+(3) In an exercise of the decanting power under this section, the following rules
2882+apply:
2883+(a) Notwithstanding s. 701.1311 (3) (b), the interest in the 2nd trust of a
2884+beneficiary with a disability may do any of the following:
2885+1. Be an account in a pooled trust for the benefit of the beneficiary with a
2886+disability described in 42 USC 1396p (d) (4) (C) that includes the trust retention
2887+provisions permitted by 42 USC 1396p (d) (4) (C) (iv).
2888+2. Contain payback provisions complying with reimbursement requirements
2889+of Medicaid law under 42 USC 1396p (d) (4) (A) or (C).
2890+(b) Section 701.1311 (3) (c) does not apply to the interests of the beneficiary with
2891+a disability.
2892+(c) Except as affected by any change to the interests of the beneficiary with a
2893+disability or by the effects on remainder beneficiaries of a transfer to a 2nd trust
2894+under par. (a), if the special needs fiduciary has limited distributive discretion over
2895+the principal of the 2nd trust, or if there are 2 or more 2nd trusts, the 2nd trusts in
2896+the aggregate must grant each other beneficiary of the first trust beneficial interests
2897+in the 2nd trusts that are substantially similar to the beneficiary's beneficial
2898+interests in the first trust.
2899+701.1314 Protection of charitable interest. (1) In this section:
2900+(a) “Determinable charitable interest” means an interest that is all of the
2901+following:
2902+1. A charitable interest.
2903+2. Entitled to receive a mandatory distribution currently, periodically, on the
2904+occurrence of a specified event, or after the passage of a specified time.
2905+3. Unconditional or held solely for charitable purposes.
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2930+25 - 58 -2023 - 2024 Legislature LRB-5206/1
2931+KMS&JPC:cdc
2932+SECTION 117 SENATE BILL 759
2933+(b) “Unconditional” means not subject to the occurrence of a specified event that
2934+is not certain to occur, other than a requirement in a trust instrument that a
2935+charitable organization be in existence or qualify under a particular provision of the
2936+Internal Revenue Code, on the date of the distribution, if the charitable organization
2937+meets the requirement on the date of determination.
2938+(2) The attorney general may represent and bind a charitable interest only
2939+when the attorney general has the rights of a qualified beneficiary as provided in s.
2940+701.0110 (3).
2941+(3) If a first trust contains a charitable interest, the 2nd trust or trusts may not
2942+do any of the following:
2943+(a) Diminish the charitable interest.
2944+(b) Diminish the interest of an identified charitable organization that holds the
2945+charitable interest.
2946+(c) Alter any charitable purpose stated in the first-trust instrument.
2947+(d) Alter any condition or restriction related to the charitable interest.
2948+(3m) Notwithstanding subs. (3) and (5), if the first trust is an account in a
2949+pooled trust described in 42 USC 1396p (d) (4) (C), the 2nd trust may be an account
2950+in another pooled trust described in 42 USC 1396p (d) (4) (C) or a trust described in
2951+42 USC 1396p (d) (4) (A) regardless of any of the following:
2952+(a) Any effect on a charitable interest in property that is permitted to be
2953+retained in the first trust under 42 USC 1396p (d) (4) (C) (iv).
2954+(b) Any effect the trust retention and Medicaid reimbursement provisions of
2955+the 2nd trust may have on a charitable interest in the first trust.
2956+(c) Any change in the identified charitable organization.
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2980+24 - 59 -2023 - 2024 Legislature
2981+LRB-5206/1
2982+KMS&JPC:cdc
2983+SECTION 117
2984+ SENATE BILL 759
2985+(d) Any change in the governing law or principal place of administration of the
2986+trust.
2987+(4) If there are 2 or more 2nd trusts, the 2nd trusts shall be treated as one trust
2988+for purposes of determining whether the exercise of the decanting power diminishes
2989+the charitable interest or diminishes the interest of an identified charitable
2990+organization for purposes of sub. (3).
2991+(5) If a first trust contains a determinable charitable interest, the 2nd trust or
2992+trusts that include a charitable interest pursuant to sub. (3) must be administered
2993+under the law of this state unless any of the following applies:
2994+(a) The attorney general, after receiving notice under s. 701.1307, fails to object
2995+in a signed record delivered to the authorized fiduciary within the notice period.
2996+(b) The attorney general consents in a signed record to the 2nd trust or trusts
2997+being administered under the law of another jurisdiction.
2998+(c) The court approves the exercise of the decanting power.
2999+(d) The identified charitable organization consents in a signed record delivered
3000+to the authorized fiduciary.
3001+(6) This subchapter does not limit the powers and duties of the attorney general
3002+under the laws of this state other than this subchapter.
3003+701.1315 Trust limitation on decanting. (1) An authorized fiduciary may
3004+not exercise the decanting power to the extent the first-trust instrument expressly
3005+prohibits exercise of any of the following:
3006+(a) The decanting power.
3007+(b) A power granted by state law to the fiduciary to distribute part or all of the
3008+principal of the trust to another trust or to modify the trust.
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3032+24 - 60 -2023 - 2024 Legislature LRB-5206/1
3033+KMS&JPC:cdc
3034+SECTION 117 SENATE BILL 759
3035+(2) Exercise of the decanting power is subject to any restriction in the
3036+first-trust instrument that expressly applies to exercise of any of the following:
3037+(a) The decanting power.
3038+(b) A power granted by state law to a fiduciary to distribute part or all of the
3039+principal of the trust to another trust or to modify the trust.
3040+(3) A general prohibition of the amendment or revocation of a first trust, a
3041+spendthrift clause, or a clause restraining the voluntary or involuntary transfer of
3042+a beneficiary's interest does not preclude exercise of the decanting power.
3043+(4) Subject to subs. (1) and (2), an authorized fiduciary may exercise the
3044+decanting power under this subchapter even if the first-trust instrument permits
3045+the authorized fiduciary or another person to modify the first-trust instrument or
3046+to distribute part or all of the principal of the first trust to another trust.
3047+(5) If a first-trust instrument contains an express restriction described in sub.
3048+(2), the provision must be included in the 2nd-trust instrument.
3049+701.1316 Change in compensation. (1) If a first-trust instrument specifies
3050+an authorized fiduciary's compensation, the fiduciary may not exercise the decanting
3051+power to increase the fiduciary's compensation above the specified compensation
3052+unless any of the following applies:
3053+(a) All qualified beneficiaries of the 2nd trust consent to the increase in a signed
3054+record.
3055+(b) The increase is approved by the court.
3056+(2) If a first-trust instrument does not specify an authorized fiduciary's
3057+compensation, the fiduciary may not exercise the decanting power to increase the
3058+fiduciary's compensation above the compensation permitted by this chapter unless
3059+any of the following applies:
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3061+2
3062+3
3063+4
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3084+25 - 61 -2023 - 2024 Legislature
3085+LRB-5206/1
3086+KMS&JPC:cdc
3087+SECTION 117
3088+ SENATE BILL 759
3089+(a) All qualified beneficiaries of the 2nd trust consent to the increase in a signed
3090+record.
3091+(b) The increase is approved by the court.
3092+(3) A change in an authorized fiduciary's compensation that is incidental to
3093+other changes made by the exercise of the decanting power is not an increase in the
3094+fiduciary's compensation for purposes of subs. (1) and (2).
3095+(4) This section does not apply to a decanting from a first trust that is a pooled
3096+trust described in 42 USC 1396p (d) (4) (C), or to a decanting to a 2nd trust that is
3097+a pooled trust described in 42 USC 1396p (d) (4) (C).
3098+701.1317 Relief from liability and indemnification. (1) Except as
3099+otherwise provided in this section, a 2nd-trust instrument may not relieve an
3100+authorized fiduciary from liability for breach of trust to a greater extent than the
3101+first-trust instrument unless any of the following applies:
3102+(a) All the qualified beneficiaries of the 2nd trust consent to the relief from
3103+liability in a signed record.
3104+(b) The relief from liability is approved by the court.
3105+(2) A 2nd-trust instrument may provide for indemnification of an authorized
3106+fiduciary of the first trust or another person acting in a fiduciary capacity under the
3107+first trust for any liability or claim that would have been payable from the first trust
3108+if the decanting power had not been exercised.
3109+(3) Absent consent of all qualified beneficiaries or the approval of the court, the
3110+2nd-trust instrument may not reduce the aggregate fiduciary liability of all
3111+fiduciaries of the 2nd trust.
3112+(4) Subject to sub. (3), a 2nd-trust instrument may divide and reallocate
3113+fiduciary powers among fiduciaries, including one or more trustees, directing
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3138+25 - 62 -2023 - 2024 Legislature LRB-5206/1
3139+KMS&JPC:cdc
3140+SECTION 117 SENATE BILL 759
3141+parties, trust protectors, or other persons, and relieve a fiduciary from liability for
3142+an act or failure to act of another fiduciary as permitted by law of this state other than
3143+this subchapter.
3144+701.1318 Removal or replacement of authorized fiduciary. (1) An
3145+authorized fiduciary may not exercise the decanting power to modify a provision in
3146+a first-trust instrument granting another person power to remove or replace the
3147+fiduciary unless any of the following applies:
3148+(a) The person holding the power consents to the modification in a signed record
3149+and the modification applies only to the person.
3150+(b) The person holding the power and the qualified beneficiaries of the 2nd trust
3151+consent to the modification in a signed record and the modification grants a
3152+substantially similar power to another person.
3153+(c) The court approves the modification and the modification grants a
3154+substantially similar power to another person.
3155+(2) This section does not apply to a decanting from a first trust that is a pooled
3156+trust described in 42 USC 1396p (d) (4) (C), or to a decanting to a 2nd trust that is
3157+a pooled trust described in 42 USC 1396p (d) (4) (C).
3158+701.1319 Tax-related limitations. (1) In this section:
3159+(a) “Grantor trust” means a trust as to which a settlor of a first trust is
3160+considered the owner under sections 671 to 677 of the Internal Revenue Code or
3161+section 679 of the Internal Revenue Code.
3162+(b) “Nongrantor trust” means a trust that is not a grantor trust.
3163+(c) “Qualified benefits property” means property subject to the minimum
3164+distribution requirements of section 401 (a) (9) of the Internal Revenue Code, and
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3188+24 - 63 -2023 - 2024 Legislature
3189+LRB-5206/1
3190+KMS&JPC:cdc
3191+SECTION 117
3192+ SENATE BILL 759
3193+any applicable regulations, or to any similar requirements that refer to section 401
3194+(a) (9) of the Internal Revenue Code or the regulations.
3195+(2) An exercise of the decanting power is subject to the following limitations:
3196+(a) If a first trust contains property that qualified, or would have qualified but
3197+for provisions of this subchapter other than this section, for a marital deduction for
3198+purposes of the gift or estate tax under the Internal Revenue Code or a state gift,
3199+estate, or inheritance tax, the 2nd-trust instrument must not include or omit any
3200+term that, if included in or omitted from the trust instrument for the trust to which
3201+the property was transferred, would have prevented the transfer from qualifying for
3202+the deduction, or would have reduced the amount of the deduction, under the same
3203+provisions of the Internal Revenue Code or state law under which the transfer
3204+qualified.
3205+(b) If the first trust contains property that qualified, or would have qualified
3206+but for provisions of this subchapter other than this section, for a charitable
3207+deduction for purposes of the income, gift, or estate tax under the Internal Revenue
3208+Code or a state income, gift, estate, or inheritance tax, the 2nd-trust instrument
3209+must not include or omit any term that, if included in or omitted from the trust
3210+instrument for the trust to which the property was transferred, would have
3211+prevented the transfer from qualifying for the deduction, or would have reduced the
3212+amount of the deduction, under the same provisions of the Internal Revenue Code
3213+or state law under which the transfer qualified.
3214+(c) If the first trust contains property that qualified, or would have qualified
3215+but for provisions of this subchapter other than this section, for the exclusion from
3216+the gift tax described in section 2503 (b) of the Internal Revenue Code, the 2nd-trust
3217+instrument must not include or omit a term that, if included in or omitted from the
3218+1
3219+2
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3242+25 - 64 -2023 - 2024 Legislature LRB-5206/1
3243+KMS&JPC:cdc
3244+SECTION 117 SENATE BILL 759
3245+trust instrument for the trust to which the property was transferred, would have
3246+prevented the transfer from qualifying under section 2503 (b) of the Internal
3247+Revenue Code. If the first trust contains property that qualified, or would have
3248+qualified but for provisions of this subchapter other than this section, for the
3249+exclusion from the gift tax described in the Internal Revenue Code section 2503 (b)
3250+by application of section 2503 (c) of the Internal Revenue Code, the 2nd-trust
3251+instrument must not include or omit a term that, if included or omitted from the trust
3252+instrument for the trust to which the property was transferred, would have
3253+prevented the transfer from qualifying under section 2503 (c) of the Internal
3254+Revenue Code.
3255+(d) If the property of the first trust includes shares of stock in an S corporation,
3256+as defined in section 1361 of the Internal Revenue Code, and the first trust is, or but
3257+for provisions of this subchapter other than this section would be, a permitted
3258+shareholder under any provision of section 1361 of the Internal Revenue Code, an
3259+authorized fiduciary may exercise the power with respect to part or all of the
3260+S-corporation stock only if any 2nd trust receiving the stock is a permitted
3261+shareholder under section 1361 (c) (2) of the Internal Revenue Code. If the property
3262+of the first trust includes shares of stock in an S corporation and the first trust is, or
3263+but for provisions of this subchapter other than this section would be, a qualified
3264+subchapter S trust within the meaning of section 1361 (d) of the Internal Revenue
3265+Code, the 2nd-trust instrument must not include or omit a term that prevents the
3266+2nd trust from qualifying as a qualified subchapter S trust.
3267+(e) If the first trust contains property that qualified, or would have qualified but
3268+for provisions of this subchapter other than this section, for a zero inclusion ratio for
3269+purposes of the generation-skipping transfer tax under section 2642 (c) of the
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3294+25 - 65 -2023 - 2024 Legislature
3295+LRB-5206/1
3296+KMS&JPC:cdc
3297+SECTION 117
3298+ SENATE BILL 759
3299+Internal Revenue Code, the 2nd-trust instrument must not include or omit a term
3300+that, if included in or omitted from the first-trust instrument, would have prevented
3301+the transfer to the first trust from qualifying for a zero inclusion ratio under section
3302+2642 (c) of the Internal Revenue Code.
3303+(f) If the first trust is directly or indirectly the beneficiary of qualified benefits
3304+property, the 2nd-trust instrument may not include or omit any term that, if
3305+included in or omitted from the first-trust instrument, would have increased the
3306+minimum distributions required with respect to the qualified benefits property
3307+under section 401 (a) (9) of the Internal Revenue Code and any applicable
3308+regulations, or any similar requirements that refer to section 401 (a) (9) of the
3309+Internal Revenue Code or the regulations. If an attempted exercise of the decanting
3310+power violates this paragraph, the trustee is deemed to have held the qualified
3311+benefits property and any reinvested distributions of the property as a separate
3312+share from the date of the exercise of the power and s. 701.1322 applies to the
3313+separate share.
3314+(g) If the first trust qualifies as a grantor trust because of the application of
3315+section 672 (f) (2) (A) of the Internal Revenue Code, the 2nd trust may not include
3316+or omit a term that, if included in or omitted from the first-trust instrument, would
3317+have prevented the first trust from qualifying under section 672 (f) (2) (A) of the
3318+Internal Revenue Code.
3319+(h) In this paragraph, “tax benefit” means a federal or state tax deduction,
3320+exemption, exclusion, or other benefit not otherwise listed in this section, except for
3321+a benefit arising from being a grantor trust. Subject to par. (i), a 2nd-trust
3322+instrument may not include or omit a term that, if included in or omitted from the
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3346+24 - 66 -2023 - 2024 Legislature LRB-5206/1
3347+KMS&JPC:cdc
3348+SECTION 117 SENATE BILL 759
3349+first-trust instrument, would have prevented qualification for a tax benefit if all of
3350+the following apply:
3351+1. The first-trust instrument expressly indicates an intent to qualify for the
3352+benefit or the first-trust instrument clearly is designed to enable the first trust to
3353+qualify for the benefit.
3354+2. The transfer of property held by the first trust or the first trust qualified, or
3355+but for provisions of this subchapter other than this section, would have qualified for
3356+the tax benefit.
3357+(i) Subject to par. (d), all of the following apply:
3358+1. Except as otherwise provided in par. (g), the 2nd trust may be a nongrantor
3359+trust, even if the first trust is a grantor trust.
3360+2. Except as otherwise provided in par. (j), the 2nd trust may be a grantor trust,
3361+even if the first trust is a nongrantor trust.
3362+(j) An authorized fiduciary may not exercise the decanting power if a settlor
3363+objects in a signed record delivered to the fiduciary within the notice period and any
3364+of the following applies:
3365+1. The first trust and a 2nd trust are both grantor trusts, in whole or in part,
3366+the first trust grants the settlor or another person the power to cause the first trust
3367+to cease to be a grantor trust, and the 2nd trust does not grant an equivalent power
3368+to the settlor or other person.
3369+2. The first trust is a nongrantor trust and a 2nd trust is a grantor trust, in
3370+whole or in part, with respect to the settlor, unless any of the following applies:
3371+a. The settlor has the power at all times to cause the 2nd trust to cease to be
3372+a grantor trust.
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3396+24 - 67 -2023 - 2024 Legislature
3397+LRB-5206/1
3398+KMS&JPC:cdc
3399+SECTION 117
3400+ SENATE BILL 759
3401+b. The first-trust instrument contains a provision granting the settlor or
3402+another person a power that would cause the first trust to cease to be a grantor trust
3403+and the 2nd-trust instrument contains the same provision.
3404+701.1320 Duration of 2nd trust. (1) Subject to sub. (2), a 2nd trust may have
3405+a duration that is the same as or different from the duration of the first trust.
3406+(2) To the extent that property of a 2nd trust is attributable to property of the
3407+first trust, the property of the 2nd trust is subject to any rules governing maximum
3408+perpetuity, accumulation, or suspension of the power of alienation that apply to
3409+property of the first trust.
3410+701.1321 Need to distribute not required. An authorized fiduciary may
3411+exercise the decanting power whether or not under the first trust's discretionary
3412+distribution standard the fiduciary would have made or could have been compelled
3413+to make a discretionary distribution of principal at the time of the exercise.
3414+701.1322 Saving provision. (1) If exercise of the decanting power would be
3415+effective under this subchapter except that the 2nd-trust instrument in part does not
3416+comply with this subchapter, the exercise of the power is effective and the following
3417+rules apply with respect to the principal of the 2nd trust attributable to the exercise
3418+of the power:
3419+(a) A provision in the 2nd-trust instrument that is not permitted under this
3420+subchapter is void to the extent necessary to comply with this subchapter.
3421+(b) A provision required by this subchapter to be in the 2nd-trust instrument
3422+that is not contained in the instrument is deemed to be included in the instrument
3423+to the extent necessary to comply with this subchapter.
3424+1
3425+2
3426+3
3427+4
3428+5
3429+6
3430+7
3431+8
3432+9
3433+10
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3446+23 - 68 -2023 - 2024 Legislature LRB-5206/1
3447+KMS&JPC:cdc
3448+SECTION 117 SENATE BILL 759
3449+(2) If a trustee or other fiduciary of a 2nd trust determines that sub. (1) applies
3450+to a prior exercise of the decanting power, the fiduciary shall take corrective action
3451+consistent with the fiduciary's duties.
3452+701.1323 Trust for care of animal. (1) The decanting power may be
3453+exercised over an animal trust that has an animal protector to the extent the trust
3454+could be decanted under this subchapter if each animal that benefits from the trust
3455+were an individual, if the animal protector consents in a signed record to the exercise
3456+of the power.
3457+(2) An animal protector has the rights under this subchapter of a qualified
3458+beneficiary.
3459+(3) Notwithstanding any other provision of this subchapter, if a first trust is
3460+an animal trust, in an exercise of the decanting power, the 2nd trust must provide
3461+that trust property may be applied only to its intended purpose for the period the first
3462+trust benefitted the animal.
3463+701.1324 Terms of 2nd trust. A reference in this chapter to a trust
3464+instrument or terms of the trust includes a 2nd-trust instrument and the terms of
3465+the 2nd trust.
3466+701.1325 Settlor. (1) For purposes of law of this state other than this
3467+subchapter and subject to sub. (2), a settlor of a first trust is deemed to be the settlor
3468+of the 2nd trust with respect to the portion of the principal of the first trust subject
3469+to the exercise of the decanting power.
3470+(2) In determining settlor intent with respect to a 2nd trust, the intent of a
3471+settlor of the first trust, a settlor of the 2nd trust, and the authorized fiduciary may
3472+be considered.
3473+1
3474+2
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3496+24 - 69 -2023 - 2024 Legislature
3497+LRB-5206/1
3498+KMS&JPC:cdc
3499+SECTION 117
3500+ SENATE BILL 759
3501+701.1326 Later-discovered property. (1) Except as otherwise provided in
3502+sub. (3), if exercise of the decanting power was intended to distribute all the principal
3503+of the first trust to one or more 2nd trusts, later-discovered property belonging to the
3504+first trust and property paid to or acquired by the first trust after the exercise of the
3505+power is part of the trust estate of the 2nd trust or trusts.
3506+(2) Except as otherwise provided in sub. (3), if exercise of the decanting power
3507+was intended to distribute less than all the principal of the first trust to one or more
3508+2nd trusts, later-discovered property belonging to the first trust or property paid to
3509+or acquired by the first trust after exercise of the power remains part of the trust
3510+estate of the first trust.
3511+(3) An authorized fiduciary may provide in an exercise of the decanting power
3512+or by the terms of a 2nd trust for disposition of later-discovered property belonging
3513+to the first trust or property paid to or acquired by the first trust after exercise of the
3514+power.
3515+701.1327 Obligations. A debt, liability, or other obligation enforceable
3516+against property of a first trust is enforceable to the same extent against the property
3517+when held by the 2nd trust after exercise of the decanting power.
3518+SECTION 118. Chapter 702 of the statutes is repealed and recreated to read:
3519+CHAPTER 702
3520+UNIFORM POWERS OF APPOINTMENT ACT
3521+SUBCHAPTER I
3522+GENERAL PROVISIONS
3523+702.101 Short title. This act may be cited as the Uniform Powers of
3524+Appointment Act.
3525+702.102 Definitions. In this chapter:
3526+1
3527+2
3528+3
3529+4
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3533+8
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3550+25 - 70 -2023 - 2024 Legislature LRB-5206/1
3551+KMS&JPC:cdc
3552+SECTION 118 SENATE BILL 759
3553+(1) “Appointee” means a person to which a powerholder makes an appointment
3554+of appointive property.
3555+(2) “Appointive property” means the property or property interest subject to a
3556+power of appointment.
3557+(3) “Blanket-exercise clause” means a clause in an instrument that exercises
3558+a power of appointment and is not a specific-exercise clause. “Blanket-exercise
3559+clause” includes a clause that does any of the following:
3560+(a) Expressly uses the words “any power” in exercising a power of appointment
3561+the powerholder has.
3562+(b) Expressly uses the words “any property” in appointing any property over
3563+which a powerholder has a power of appointment.
3564+(c) Disposes of all property subject to disposition by the powerholder.
3565+(4) “Broad limited power of appointment” means a power of appointment
3566+exercisable in favor of anyone other than the powerholder, the powerholder's estate,
3567+the powerholder's creditors, or the creditors of the powerholder's estate.
3568+(5) “Donor” means a person that creates a power of appointment.
3569+(6) “Exclusionary power of appointment” means a power of appointment
3570+exercisable in favor of one or more permissible appointees to the exclusion of the
3571+other permissible appointees.
3572+(7) “General power of appointment” means a power of appointment exercisable
3573+in favor of the powerholder, the powerholder's estate, a creditor of the powerholder,
3574+or a creditor of the powerholder's estate.
3575+(8) “Gift-in-default clause” means a clause that identifies a taker in default
3576+of appointment.
3577+1
3578+2
3579+3
3580+4
3581+5
3582+6
3583+7
3584+8
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3600+24 - 71 -2023 - 2024 Legislature
3601+LRB-5206/1
3602+KMS&JPC:cdc
3603+SECTION 118
3604+ SENATE BILL 759
3605+(9) “Impermissible appointee” means a person that is not a permissible
3606+appointee.
3607+(10) “Instrument” means a writing.
3608+(11) “Nongeneral power of appointment” means a power of appointment that
3609+is not a general power of appointment.
3610+(12) “Permissible appointee” means a person in whose favor a powerholder may
3611+exercise a power of appointment.
3612+(13) “Person” means an individual, estate, trust, business or nonprofit entity,
3613+public corporation, government or governmental subdivision, agency , or
3614+instrumentality, or other legal entity.
3615+(14) “Power of appointment” means a power that enables a powerholder acting
3616+in a nonfiduciary capacity to designate a recipient of an ownership interest in or
3617+another power of appointment over the appointive property. “Power of appointment”
3618+does not include a power of attorney.
3619+(15) “Powerholder” means a person in which a donor creates a power of
3620+appointment.
3621+(16) “Presently exercisable power of appointment” means a power of
3622+appointment exercisable by the powerholder at the relevant time. “Presently
3623+exercisable power of appointment” includes a power of appointment that is not
3624+exercisable until the occurrence of a specified event, the satisfaction of an
3625+ascertainable standard, or the passage of a specified time, and only after the
3626+occurrence of the specified event, the satisfaction of the ascertainable standard, or
3627+the passage of the specified time, but does not include a power exercisable only at the
3628+powerholder's death.
3629+1
3630+2
3631+3
3632+4
3633+5
3634+6
3635+7
3636+8
3637+9
3638+10
3639+11
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3652+24 - 72 -2023 - 2024 Legislature LRB-5206/1
3653+KMS&JPC:cdc
3654+SECTION 118 SENATE BILL 759
3655+(17) “Specific-exercise clause” means a clause in an instrument that
3656+specifically refers to and exercises a particular power of appointment.
3657+(18) “Taker in default of appointment” means a person that takes all or part
3658+of the appointive property to the extent the powerholder does not effectively exercise
3659+the power of appointment.
3660+(19) “Terms of the instrument” means the manifestation of the intent of the
3661+maker of the instrument regarding the instrument's provisions as expressed in the
3662+instrument or as may be established by other evidence that would be admissible in
3663+a legal proceeding.
3664+702.103 Governing law. Unless the terms of the instrument creating a power
3665+of appointment manifest a contrary intent, the creation, revocation, or amendment
3666+of a power of appointment is governed by the law of the donor's domicile at the
3667+relevant time. The exercise, release, or disclaimer of a power of appointment, or the
3668+revocation or amendment of an exercise, release, or disclaimer of a power of
3669+appointment is governed by the law of the powerholder's domicile at the relevant
3670+time.
3671+702.104 Common law and principles of equity . The common law and
3672+principles of equity supplement this chapter, except to the extent modified by this
3673+chapter or any other state law.
3674+702.105 Default rules. The terms of a governing instrument prevail over any
3675+provision of this subchapter.
3676+SUBCHAPTER II
3677+CREATION, REVOCATION, AND AMENDMENT
3678+OF POWER OF APPOINTMENT
3679+1
3680+2
3681+3
3682+4
3683+5
3684+6
3685+7
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3687+9
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3703+LRB-5206/1
3704+KMS&JPC:cdc
3705+SECTION 118
3706+ SENATE BILL 759
3707+702.201 Creation of power of appointment. (1) A power of appointment
3708+is created only if the instrument creating the power satisfies all of the following:
3709+(a) The instrument is valid under applicable law.
3710+(b) Except as provided in sub. (2), the instrument governs the disposition of the
3711+appointive property.
3712+(c) The terms of the instrument manifest the donor's intent to create in a
3713+powerholder a power of appointment over the appointive property exercisable in
3714+favor of a permissible appointee.
3715+(2) Subsection (1) (b) does not apply to a power of appointment that is created
3716+by the exercise of a power of appointment.
3717+(3) A power of appointment may not be created in a deceased individual.
3718+(4) A power of appointment may be created in an unborn or unascertained
3719+powerholder.
3720+702.202 Nontransferability. A powerholder may not transfer a power of
3721+appointment. If a powerholder dies without exercising or releasing a power of
3722+appointment, the power lapses.
3723+702.203 Presumption of unlimited authority. Subject to ss. 702.204 and
3724+702.205, and unless the terms of the instrument creating a power of appointment
3725+manifest a contrary intent, a power of appointment is all of the following:
3726+(1) A presently exercisable power of appointment.
3727+(2) An exclusionary power of appointment.
3728+(3) A general power of appointment.
3729+702.204 Exception to presumption of unlimited authority. Unless the
3730+terms of the instrument creating a power of appointment manifest a contrary intent,
3731+the power is a nongeneral power of appointment if all of the following apply:
3732+1
3733+2
3734+3
3735+4
3736+5
3737+6
3738+7
3739+8
3740+9
3741+10
3742+11
3743+12
3744+13
3745+14
3746+15
3747+16
3748+17
3749+18
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3756+25 - 74 -2023 - 2024 Legislature LRB-5206/1
3757+KMS&JPC:cdc
3758+SECTION 118 SENATE BILL 759
3759+(1) The power is exercisable only at the powerholder's death.
3760+(2) The permissible appointees of the power are a defined and limited class that
3761+does not include the powerholder's estate, the powerholder's creditors, or the
3762+creditors of the powerholder's estate.
3763+702.205 Rules of classification. (1) In this section, “adverse party” means
3764+a person with a substantial beneficial interest in appointive property that would be
3765+affected adversely by a powerholder's exercise or nonexercise of a power of
3766+appointment in favor of the powerholder, the powerholder's estate, a creditor of the
3767+powerholder, or a creditor of the powerholder's estate.
3768+(2) If a powerholder may exercise a power of appointment only with the consent
3769+or joinder of an adverse party, the power is a nongeneral power of appointment.
3770+(3) If the permissible appointees of a power of appointment are not defined and
3771+limited, the power is an exclusionary power of appointment.
3772+702.206 Power to revoke or amend. A donor may revoke or amend a power
3773+of appointment only to the extent that any of the following applies:
3774+(1) The instrument creating the power is revocable by the donor.
3775+(2) The donor reserves a power of revocation or amendment over the power of
3776+appointment in the instrument.
3777+SUBCHAPTER III
3778+EXERCISE OF POWER OF APPOINTMENT
3779+702.301 Requisites for exercise of power of appointment. (1) (a) A power
3780+of appointment is exercised only if all of the following apply:
3781+1. The instrument exercising the power is valid under applicable law.
3782+2. The terms of the instrument exercising the power do all of the following:
3783+a. Manifest the powerholder's intent to exercise the power.
3784+1
3785+2
3786+3
3787+4
3788+5
3789+6
3790+7
3791+8
3792+9
3793+10
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3795+12
3796+13
3797+14
3798+15
3799+16
3800+17
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3808+25 - 75 -2023 - 2024 Legislature
3809+LRB-5206/1
3810+KMS&JPC:cdc
3811+SECTION 118
3812+ SENATE BILL 759
3813+b. Subject to s. 702.304, satisfy the requirements of exercise, if any, imposed by
3814+the donor.
3815+(b) A power of appointment is exercised under par. (a) only to the extent the
3816+appointment is a permissible exercise of the power.
3817+(2)  If the donor requires the consent of the donor or any other person for the
3818+exercise of a power of appointment, the consent must be expressed in the instrument
3819+exercising the power of appointment or in a separate written instrument, signed in
3820+either case by the persons whose consent is required. If any person whose consent
3821+is required dies or becomes legally incapable of consenting, the power of appointment
3822+may be exercised by the powerholder without the consent of that person unless the
3823+terms of the instrument creating the power of appointment manifest a contrary
3824+intent.
3825+(3) (a) Except as provided in par. (b) and unless the terms of the instrument
3826+creating a power of appointment manifest a contrary intent, if a power of
3827+appointment is vested in 2 or more persons, the joint powerholders may only exercise
3828+the power of appointment unanimously.
3829+(b) If a power of appointment is vested in 2 or more persons and one or more
3830+of the joint powerholders die, become incapable of exercising the power of
3831+appointment, or renounce, release, or disclaim the power of appointment, the power
3832+of appointment may be exercised unanimously by the other powerholders.
3833+702.302 Intent to exercise: determining intent from residuary clause.
3834+(1) In this section:
3835+(a) “Residuary clause” does not include a residuary clause containing a
3836+blanket-exercise clause or a specific-exercise clause.
3837+1
3838+2
3839+3
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3841+5
3842+6
3843+7
3844+8
3845+9
3846+10
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3848+12
3849+13
3850+14
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3860+24 - 76 -2023 - 2024 Legislature LRB-5206/1
3861+KMS&JPC:cdc
3862+SECTION 118 SENATE BILL 759
3863+(b) “Will” includes a codicil and a testamentary instrument that revises another
3864+will.
3865+(2) A residuary clause in a powerholder's will, or a comparable clause in the
3866+powerholder's revocable trust, manifests the powerholder's intent to exercise a
3867+power of appointment only if all of the following apply:
3868+(a) The terms of the instrument containing the residuary clause do not manifest
3869+a contrary intent.
3870+(b) The power of appointment is a general power of appointment exercisable in
3871+favor of the powerholder's estate.
3872+(c) There is no gift-in-default clause in the instrument creating the power of
3873+appointment or the gift-in-default clause in the instrument creating the power of
3874+appointment is ineffective.
3875+(d) The powerholder did not release the power of appointment.
3876+702.303 Intent to exercise: after-acquired power. Unless the terms of the
3877+instrument exercising a power of appointment manifest a contrary intent, all of the
3878+following apply:
3879+(1) Except as otherwise provided in sub. (2), a blanket-exercise clause extends
3880+to a power of appointment acquired by the powerholder after executing the
3881+instrument containing the clause.
3882+(2) If the powerholder is also the donor of the power of appointment, a
3883+blanket-exercise clause does not extend to the power of appointment unless there is
3884+not a gift-in-default clause or the gift-in-default clause is ineffective.
3885+702.304 Substantial compliance with donor-imposed formal
3886+requirement. A powerholder's substantial compliance with a formal requirement
3887+of appointment imposed by the donor, including a requirement that the instrument
3888+1
3889+2
3890+3
3891+4
3892+5
3893+6
3894+7
3895+8
3896+9
3897+10
3898+11
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3904+17
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3912+25 - 77 -2023 - 2024 Legislature
3913+LRB-5206/1
3914+KMS&JPC:cdc
3915+SECTION 118
3916+ SENATE BILL 759
3917+exercising the power of appointment make reference or specific reference to the
3918+power, is sufficient if all of the following apply:
3919+(1) The powerholder knows of and intends to exercise the power of
3920+appointment.
3921+(2) The powerholder's manner of attempted exercise of the power of
3922+appointment does not impair a material purpose of the donor in imposing the
3923+requirement.
3924+702.305 Permissible appointment. (1) A powerholder of a general power
3925+of appointment that permits appointment to the powerholder or the powerholder's
3926+estate may make any appointment, including an appointment in trust or creating a
3927+new power of appointment, that the powerholder could make in disposing of the
3928+powerholder's own property.
3929+(2) A powerholder of a general power of appointment that permits appointment
3930+only to the creditors of the powerholder or the creditors of the powerholder's estate
3931+may appoint only to those creditors.
3932+(3) Unless the terms of the instrument creating a power of appointment
3933+manifest a contrary intent, the powerholder of a nongeneral power of appointment
3934+may do any of the following:
3935+(a) Make an appointment in any form, including an appointment in trust, in
3936+favor of a permissible appointee.
3937+(b) Create a general or nongeneral power of appointment in a permissible
3938+appointee that may be exercisable in favor of persons other than permissible
3939+appointees of the original nongeneral power of appointment.
3940+1
3941+2
3942+3
3943+4
3944+5
3945+6
3946+7
3947+8
3948+9
3949+10
3950+11
3951+12
3952+13
3953+14
3954+15
3955+16
3956+17
3957+18
3958+19
3959+20
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3962+23 - 78 -2023 - 2024 Legislature LRB-5206/1
3963+KMS&JPC:cdc
3964+SECTION 118 SENATE BILL 759
3965+(c) Create a nongeneral power of appointment in any person to appoint to one
3966+or more of the permissible appointees of the original nongeneral power of
3967+appointment.
3968+702.306 Appointment to a deceased appointee. Subject to s. 854.06, an
3969+exercise of a power of appointment is ineffective to the extent it is in favor of a
3970+deceased appointee.
3971+702.307 Impermissible appointment. (1) Except as otherwise provided in
3972+s. 702.306, an exercise of a power of appointment is ineffective to the extent it is in
3973+favor of an impermissible appointee.
3974+(2) An exercise of a power of appointment in favor of a permissible appointee
3975+is ineffective to the extent the appointment is a fraud on the power.
3976+702.308 Selective allocation doctrine. If a powerholder exercises a power
3977+of appointment in a disposition that also disposes of property the powerholder owns,
3978+the owned property and the appointive property must be allocated in the permissible
3979+manner that best carries out the powerholder's intent.
3980+702.309 Capture doctrine: disposition of ineffectively appointed
3981+property under general power. To the extent a powerholder of a general power
3982+of appointment, other than a power to withdraw property from, revoke, or amend a
3983+trust, makes an ineffective appointment, all of the following apply:
3984+(1) The gift-in-default clause controls the disposition of the ineffectively
3985+appointed property.
3986+(2) (a) If there is no gift-in-default clause or to the extent the gift-in-default
3987+clause is ineffective, the ineffectively appointed property passes to one of the
3988+following:
3989+1. If the powerholder is a permissible appointee and living, the powerholder.
3990+1
3991+2
3992+3
3993+4
3994+5
3995+6
3996+7
3997+8
3998+9
3999+10
4000+11
4001+12
4002+13
4003+14
4004+15
4005+16
4006+17
4007+18
4008+19
4009+20
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4014+25 - 79 -2023 - 2024 Legislature
4015+LRB-5206/1
4016+KMS&JPC:cdc
4017+SECTION 118
4018+ SENATE BILL 759
4019+2. If the powerholder is an impermissible appointee or deceased, the
4020+powerholder's estate if the estate is a permissible appointee.
4021+(b) If there is no taker under par. (a), the ineffectively appointed property
4022+passes under a reversionary interest to the donor or the donor's transferee or
4023+successor in interest.
4024+702.310 Disposition of unappointed property under released or
4025+unexercised general power. To the extent a powerholder releases or fails to
4026+exercise a general power of appointment other than a power to withdraw property
4027+from, revoke, or amend a trust, all of the following apply:
4028+(1) The gift-in-default clause controls the disposition of the unappointed
4029+property.
4030+(2) (a) If there is no gift-in-default clause or to the extent the gift-in-default
4031+clause is ineffective, except as otherwise provided in par. (b), the unappointed
4032+property passes to any of the following:
4033+1. If the powerholder is a permissible appointee and living, the powerholder.
4034+2. If the powerholder is an impermissible appointee or deceased, the
4035+powerholder's estate if the estate is a permissible appointee.
4036+(b) To the extent the powerholder released the power, or if there is no taker
4037+under par. (a), the unappointed property passes under a reversionary interest to the
4038+donor or the donor's transferee or successor in interest.
4039+702.311 Disposition of unappointed property under released or
4040+unexercised nongeneral power of appointment. To the extent a powerholder
4041+releases, ineffectively exercises, or fails to exercise a nongeneral power of
4042+appointment, all of the following apply:
4043+1
4044+2
4045+3
4046+4
4047+5
4048+6
4049+7
4050+8
4051+9
4052+10
4053+11
4054+12
4055+13
4056+14
4057+15
4058+16
4059+17
4060+18
4061+19
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4063+21
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4066+24 - 80 -2023 - 2024 Legislature LRB-5206/1
4067+KMS&JPC:cdc
4068+SECTION 118 SENATE BILL 759
4069+(1) The gift-in-default clause controls the disposition of the unappointed
4070+property.
4071+(2) (a) If there is no gift-in-default clause or to the extent the gift-in-default
4072+clause is ineffective, the unappointed property passes to the permissible appointees
4073+if all of the following apply:
4074+1. The permissible appointees are defined and limited.
4075+2. The terms of the instrument creating the power do not manifest a contrary
4076+intent.
4077+(b) If there is no taker under par. (a), the unappointed property passes under
4078+a reversionary interest to the donor or the donor's transferee or successor in interest.
4079+702.312 Disposition of unappointed property if partial appointment to
4080+taker in default. Unless the terms of an instrument creating or exercising a power
4081+of appointment manifest a contrary intent, if the powerholder makes a valid partial
4082+appointment to a taker in default of appointment, the taker in default of
4083+appointment may share fully in unappointed property.
4084+702.313 Appointment to taker in default. If a powerholder makes an
4085+appointment to a taker in default of appointment and the appointee would have
4086+taken the property under a gift-in-default clause had the property not been
4087+appointed, the power of appointment is considered not to have been exercised and the
4088+appointee takes under the gift-in-default clause.
4089+702.314 Powerholder's authority to revoke or amend exercise. A
4090+powerholder may revoke or amend an exercise of a power of appointment only to the
4091+extent that any of the following applies:
4092+(1) The powerholder reserves a power of revocation or amendment in the
4093+instrument exercising the power of appointment and, if the power is a nongeneral
4094+1
4095+2
4096+3
4097+4
4098+5
4099+6
4100+7
4101+8
4102+9
4103+10
4104+11
4105+12
4106+13
4107+14
4108+15
4109+16
4110+17
4111+18
4112+19
4113+20
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4115+22
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4118+25 - 81 -2023 - 2024 Legislature
4119+LRB-5206/1
4120+KMS&JPC:cdc
4121+SECTION 118
4122+ SENATE BILL 759
4123+power of appointment, the terms of the instrument creating the power of
4124+appointment do not prohibit the reservation.
4125+(2) The terms of the instrument creating the power of appointment provide that
4126+the exercise of the power of appointment is revocable or amendable.
4127+702.315 Presumption of nonexercise of a power of appointment. (1)
4128+A personal representative, trustee, or other fiduciary who holds property subject to
4129+a power of appointment may administer that property as if the power of appointment
4130+was not exercised if the personal representative, trustee, or other fiduciary has no
4131+notice of the existence of any of the following within 6 months after the death of the
4132+powerholder:
4133+(a) A document purporting to be a will of the powerholder if the power of
4134+appointment is exercised by the will.
4135+(b) Other documentation of the powerholder purporting to exercise the power
4136+of appointment if the power of appointment is exercisable other than by a will.
4137+(2) A personal representative, trustee, or other fiduciary who acts in good faith
4138+is not liable to any person for administering property as if a power of appointment
4139+was not exercised as provided in sub. (1).
4140+SUBCHAPTER IV
4141+DISCLAIMER OR RELEASE; CONTRACT
4142+TO APPOINT OR NOT TO APPOINT
4143+702.401 Disclaimer. (1) A powerholder may disclaim all or part of a power
4144+of appointment as provided under ss. 700.27 and 854.13.
4145+(2) A permissible appointee, appointee, or taker in default of appointment may
4146+disclaim all or part of an interest in appointive property, as provided under ss. 700.27
4147+and 854.13.
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4172+25 - 82 -2023 - 2024 Legislature LRB-5206/1
4173+KMS&JPC:cdc
4174+SECTION 118 SENATE BILL 759
4175+702.402 Authority to release. A powerholder may release a power of
4176+appointment, in whole or in part, except to the extent the terms of the instrument
4177+creating the power prevent the release.
4178+702.403 Method of release. A powerholder of a releasable power of
4179+appointment may release the power in whole or in part by any of the following
4180+methods:
4181+(1) Substantial compliance with a method provided in the terms of the
4182+instrument creating the power.
4183+(2) If the terms of the instrument creating the power do not provide a method,
4184+a writing that manifests the powerholder's intent by clear and convincing evidence.
4185+702.404 Revocation of amendment of release. A powerholder may revoke
4186+or amend a release of a power of appointment only to the extent that any of the
4187+following applies:
4188+(1) The instrument of release is revocable by the powerholder.
4189+(2) The powerholder reserves a power of revocation or amendment in the
4190+instrument of release.
4191+702.405 Power to contract: presently exercisable power of
4192+appointment. A powerholder of a presently exercisable power of appointment may
4193+contract to do any of the following:
4194+(1) Not to exercise the power.
4195+(2) To exercise the power if the contract when made does not confer a benefit
4196+on an impermissible appointee.
4197+702.406 Power to contract: power of appointment not presently
4198+exercisable. A powerholder of a power of appointment that is not presently
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4222+24 - 83 -2023 - 2024 Legislature
4223+LRB-5206/1
4224+KMS&JPC:cdc
4225+SECTION 118
4226+ SENATE BILL 759
4227+exercisable may contract to exercise or not to exercise the power only if all of the
4228+following apply:
4229+(1) The powerholder is also the donor of the power.
4230+(2) The powerholder reserved the power in a revocable trust.
4231+702.407 Remedy for breach of contract to appoint or not to appoint.
4232+The remedy for a powerholder's breach of a contract to appoint or not to appoint
4233+appointive property is limited to damages payable out of the appointive property or,
4234+if appropriate, specific performance of the contract.
4235+SUBCHAPTER V
4236+RIGHTS OF POWERHOLDER'S CREDITORS
4237+IN APPOINTIVE PROPERTY
4238+702.501 Creditor claim: general power created by powerholder. (1) In
4239+this section, “power of appointment created by the powerholder” includes a power of
4240+appointment created in a transfer by another person to the extent the powerholder
4241+contributed value to the transfer.
4242+(2) Appointive property subject to a general power of appointment created by
4243+a powerholder is subject to a claim of a creditor of the powerholder or of the
4244+powerholder's estate to the extent provided in ch. 242 and any other applicable law
4245+relating to fraudulent conveyances.
4246+(3) Subject to sub. (2), appointive property subject to a general power of
4247+appointment created by a powerholder is not subject to a claim of a creditor of the
4248+powerholder or the powerholder's estate to the extent the powerholder irrevocably
4249+appointed the property in favor of a person other than the powerholder or the
4250+powerholder's estate.
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4274+24 - 84 -2023 - 2024 Legislature LRB-5206/1
4275+KMS&JPC:cdc
4276+SECTION 118 SENATE BILL 759
4277+(4) Subject to subs. (2) and (3), and notwithstanding the presence of a
4278+spendthrift provision or whether the claim arose before or after the creation of the
4279+power of appointment, appointive property subject to a general power of
4280+appointment created by a powerholder is subject to a claim of a creditor of any of the
4281+following:
4282+(a) If the power of appointment is a presently exercisable power of
4283+appointment, the powerholder, to the same extent as if the powerholder owned the
4284+appointive property.
4285+(b) If the power of appointment is exercisable at the powerholder's death, the
4286+powerholder's estate, to the extent the estate is insufficient to satisfy the claim and
4287+subject to the right of a decedent to direct the source from which liabilities are paid.
4288+702.502 Creditor claim: general power not created by powerholder. (1)
4289+Except as otherwise provided in sub. (2), appointive property subject to a general
4290+power of appointment created by a person other than the powerholder is subject to
4291+a claim of a creditor of any of the following:
4292+(a) If the power of appointment is a presently exercisable power of
4293+appointment, the powerholder to the extent the powerholder 's property is
4294+insufficient.
4295+(b) If the power of appointment is exercisable at the powerholder's death, the
4296+powerholder's estate or revocable trust, subject to the right of a decedent to direct the
4297+source from which liabilities are paid, but only to the extent of the powerholder's
4298+exercise of that general power of appointment and only to the extent that the claim
4299+of the creditor has been filed and allowed in the powerholder's estate or filed with and
4300+approved by the trustee of a revocable trust but not paid because the assets of the
4301+estate or revocable trust are insufficient. For purposes of this paragraph, a revocable
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4326+25 - 85 -2023 - 2024 Legislature
4327+LRB-5206/1
4328+KMS&JPC:cdc
4329+SECTION 118
4330+ SENATE BILL 759
4331+trust is a trust that is revocable, as defined in s. 701.0103 (22), by the powerholder
4332+or jointly by the powerholder and the powerholder's spouse.
4333+(2) Subject to s. 702.504 (3), a power of appointment created by a person other
4334+than the powerholder that is subject to an ascertainable standard relating to an
4335+individual's health, education, support, or maintenance within the meaning of 26
4336+USC 2041 (b) (1) (A) or 2514 (c) (1), is considered for purposes of this subchapter as
4337+a nongeneral power of appointment.
4338+(3) If during the powerholder's lifetime, the powerholder exercises a general
4339+power of appointment created by a person other than the powerholder, a creditor of
4340+the powerholder can reach the appointed interests to the same extent that under the
4341+law relating to fraudulent conveyances the creditor could reach property that the
4342+powerholder has owned and transferred during the powerholder's lifetime.
4343+702.503 Power to withdraw. (1) For purposes of this subchapter, and except
4344+as otherwise provided in sub. (2), a power to withdraw property from a trust is
4345+considered, during the time the power may be exercised, as a presently exercisable
4346+general power of appointment to the extent of the property subject to the power to
4347+withdraw.
4348+(2) On the lapse, release, or waiver of a power to withdraw property from a
4349+trust, the power is treated as a presently exercisable general power of appointment
4350+only to the extent the value of the property affected by the lapse, release, or waiver
4351+exceeds the greater of the following:
4352+(a) The amount referenced in section 2041 (b) (2) or 2514 (e) of the Internal
4353+Revenue Code.
4354+(b) The amount referenced in section 2503 (b) of the Internal Revenue Code for
4355+each individual other than the beneficiary who makes a transfer to the trust or who
4356+1
4357+2
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4380+25 - 86 -2023 - 2024 Legislature LRB-5206/1
4381+KMS&JPC:cdc
4382+SECTION 118 SENATE BILL 759
4383+is considered to make a transfer to the trust pursuant to an election to split gifts
4384+under section 2513 (a) of the Internal Revenue Code.
4385+702.504 Creditor claim: nongeneral power of appointment. (1) Except
4386+as otherwise provided in subs. (2) and (3), appointive property subject to a
4387+nongeneral power of appointment is exempt from a claim of a creditor of the
4388+powerholder or the powerholder's estate.
4389+(2) Appointive property subject to a nongeneral power of appointment is
4390+subject to a claim of a creditor of the powerholder or the powerholder's estate to the
4391+extent that the powerholder owned the property and, reserving the nongeneral
4392+power, transferred the property in violation of the law relating to fraudulent
4393+conveyances.
4394+(3) For purposes of this subchapter, if the initial gift in default of appointment
4395+is to the powerholder or the powerholder's estate, a nongeneral power of appointment
4396+is treated as a general power of appointment.
4397+702.505. Third parties in good faith protected. Any person acting without
4398+actual notice of claims of creditors under this subchapter incurs no liability to those
4399+creditors for transferring property that is subject to a power of appointment or that
4400+has been appointed. A purchaser without actual notice and for a valuable
4401+consideration takes an interest in property, legal or equitable, and takes the interest
4402+free of any rights that a powerholder's creditor may have under this subchapter.
4403+SUBCHAPTER VI
4404+MISCELLANEOUS PROVISIONS
4405+702.601 Recording instruments relating to a power of appointment. (1)
4406+Each of the following instruments relating to a power of appointment is entitled to
4407+be recorded as a conveyance upon compliance with s. 706.05 (1):
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4432+25 - 87 -2023 - 2024 Legislature
4433+LRB-5206/1
4434+KMS&JPC:cdc
4435+SECTION 118
4436+ SENATE BILL 759
4437+(a) An instrument, other than a will, exercising a power of appointment.
4438+(b) An instrument expressing consent to exercise a power of appointment.
4439+(c) A disclaimer.
4440+(d) A release.
4441+(2) If a power of appointment is exercised by a will, a certified copy of the will
4442+and of the certificate of probate thereof may be recorded.
4443+702.602 Uniformity of application and construction. In applying and
4444+construing this section, consideration shall be given to the need to promote
4445+uniformity of the law with respect to its subject matter among states that enact it.
4446+702.603 Relation to electronic signatures in global and national
4447+commerce act. (1) Except as provided in sub. (2), this chapter modifies, limits, and
4448+supersedes the federal Electronic Signatures in Global and National Commerce Act,
4449+15 USC 7001, et seq.
4450+(2) This chapter does not modify, limit, or supersede 15 USC 7001 (c) or
4451+authorize electronic delivery of any of the notices described in 15 USC 7003 (b).
4452+702.604 Applicability. (1) (a) This chapter applies to a power of appointment
4453+created before, on, or after the effective date of this paragraph .... [LRB inserts date].
4454+(b) This chapter applies to a judicial proceeding concerning a power of
4455+appointment commenced on or after the effective date of this paragraph .... [LRB
4456+inserts date].
4457+(c) This chapter applies to a judicial proceeding concerning a power of
4458+appointment commenced before the effective date of this paragraph .... [LRB inserts
4459+date], unless the court finds that application of a particular provision of this chapter
4460+would interfere substantially with the effective conduct of the judicial proceeding or
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4484+24 - 88 -2023 - 2024 Legislature LRB-5206/1
4485+KMS&JPC:cdc
4486+SECTION 118 SENATE BILL 759
4487+prejudice a right of a party, in which case the particular provision of this chapter does
4488+not apply and the superseded law applies.
4489+(d) A rule of construction or presumption in this chapter applies to an
4490+instrument executed before the effective date of this paragraph .... [LRB inserts
4491+date], unless there is a clear indication of a contrary intent in the terms of the
4492+instrument.
4493+(e) Except as otherwise provided in pars. (a) to (d), this chapter does not apply
4494+to an action taken before the effective date of this paragraph .... [LRB inserts date].
4495+(2) If a right is acquired, extinguished, or barred on the expiration of a
4496+prescribed period that commenced under a law of this state other than this chapter
4497+before the effective date of this subsection .... [LRB inserts date], the law continues
4498+to apply to the right.
4499+SECTION 119. 711.03 (4m) of the statutes is created to read:
4500+711.03 (4m) “Consent instrument” means a written notarized document in
4501+physical or electronic form evidencing the user's consent to the disclosure of the
4502+contents of electronic communications to a then acting fiduciary.
4503+SECTION 120. 711.04 (1) of the statutes is renumbered 711.04 (1) (intro.) and
4504+amended to read:
4505+711.04 (1) (intro.) A user may use an online tool to direct the custodian to
4506+disclose or not disclose to a designated recipient or not to disclose some or all of the
4507+user's digital property, including the content of electronic communications. If the
4508+online tool allows the user to modify or delete a direction at all times, a direction
4509+regarding disclosure using an online tool overrides a contrary direction by the user
4510+in a any of the following:
4511+(a) A will, trust, power of attorney, or any other governing instrument.
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4536+25 - 89 -2023 - 2024 Legislature
4537+LRB-5206/1
4538+KMS&JPC:cdc
4539+SECTION 121
4540+ SENATE BILL 759
4541+SECTION 121. 711.04 (1) (b) of the statutes is created to read:
4542+711.04 (1) (b) A power of attorney.
4543+SECTION 122. 711.04 (1) (c) of the statutes is created to read:
4544+711.04 (1) (c) A consent instrument.
4545+SECTION 123. 711.04 (1) (d) of the statutes is created to read:
4546+711.04 (1) (d) Any other record.
4547+SECTION 124. 711.04 (2) of the statutes is amended to read:
4548+711.04 (2) If a user has not used an online tool to give direction under sub. (1),
4549+or if the custodian has not provided an online tool, the user may allow or prohibit
4550+disclosure to a fiduciary of some or all of the user's digital property, including the
4551+content of electronic communications sent or received by the user, in a will, trust, any
4552+other governing instrument, power of attorney, or any other governing consent
4553+instrument.
4554+SECTION 125. 711.05 (2) (b) of the statutes is amended to read:
4555+711.05 (2) (b) Unless the user provided direction using an online tool, a copy
4556+of the user's will, certification of trust under s. 701.1013, or other governing
4557+instrument, or consent instrument evidencing the deceased user's consent to
4558+disclosure of the content of electronic communications.
4559+SECTION 126. 711.06 (2) (intro.) of the statutes is amended to read:
4560+711.06 (2) DISCLOSURE OF CONTENT OF ELECTRONIC COMMUNICATIONS; PRINCIPAL.
4561+(intro.) To the extent a power of attorney expressly grants an agent authority over
4562+the content of electronic communications sent or received by the principal, or to the
4563+extent a consent instrument expressly consents to the disclosure to the agent the
4564+content of electronic communications sent or received by the principal, and unless
4565+directed otherwise by the principal or the court, a custodian shall grant an agent
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4590+25 - 90 -2023 - 2024 Legislature LRB-5206/1
4591+KMS&JPC:cdc
4592+SECTION 126 SENATE BILL 759
4593+authority over the content of electronic communications or disclose to the agent the
4594+content of electronic communications if the agent gives the custodian all of the
4595+following:
4596+SECTION 127. 711.06 (2) (b) of the statutes is amended to read:
4597+711.06 (2) (b) An original or a copy of the power of attorney that expressly
4598+grants the agent authority over the content of electronic communications of the
4599+principal or the consent instrument that expressly grants consent to disclosure to the
4600+agent of the content of electronic communications of the principal.
4601+SECTION 128. 711.07 (3) (b) of the statutes is amended to read:
4602+711.07 (3) (b) A consent instrument or certification of the trust under s.
4603+701.1013 that includes an original or successor user's consent to disclosure of the
4604+content of electronic communications to the trustee.
4605+SECTION 129. 711.13 of the statutes is amended to read:
4606+711.13 Marital property classification of digital property. Chapter 766
4607+Section 766.625 governs the classification of digital property of a user who is married
4608+person.
4609+SECTION 130. 766.01 (9) (a) of the statutes is amended to read:
4610+766.01 (9) (a) Except as provided in pars. (b) to (d) (f), property is “held" by a
4611+person only if a document of title to the property is registered, recorded, or filed in
4612+a public office in the name of the person or a writing that customarily operates as a
4613+document of title to the type of property is issued for the property in the person's
4614+name.
4615+SECTION 131. 766.01 (9) (e) of the statutes is created to read:
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4617+2
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4638+23 - 91 -2023 - 2024 Legislature
4639+LRB-5206/1
4640+KMS&JPC:cdc
4641+SECTION 131
4642+ SENATE BILL 759
4643+766.01 (9) (e) 1. An account, as defined in s. 711.03 (1), and the digital property
4644+in the account, including the content of an electronic communication, as defined in
4645+s. 711.03 (6), are “held” by a person who is the user, as defined in s. 711.03 (28).
4646+2. The catalogue of electronic communications, as defined in s. 711.03 (4), or
4647+similar identifying information for digital property in an account, is “held” by a
4648+person who holds such digital property, including the content of such electronic
4649+communications, under subd. 1.
4650+3. For purposes of subds. 1. and 2., “person” has the meaning given under s.
4651+711.03 (19).
4652+SECTION 132. 766.01 (9) (f) of the statutes is created to read:
4653+766.01 (9) (f) A right or interest in digital property, not titled in the name of
4654+either spouse, that has been identified as having been originally created, purchased,
4655+or otherwise acquired by a spouse is “held” by that spouse.
4656+SECTION 133. 766.31 (7) (b) of the statutes is amended to read:
4657+766.31 (7) (b) In Except as provided in s. 766.625 (2) (b) 1., in exchange for or
4658+with the proceeds of other individual property of the spouse.
4659+SECTION 134. 766.31 (7) (g) of the statutes is created to read:
4660+766.31 (7) (g) By classification under s. 766.625 (2), designating an account and
4661+the digital property in an account, including the content of electronic
4662+communications, as defined in s. 711.03 (6), as the individual property of the holding
4663+spouse.
4664+SECTION 135. 766.58 (7) (c) of the statutes is created to read:
4665+766.58 (7) (c) Unless the marital property agreement expressly provides
4666+otherwise, a marital property agreement that classifies digital property as marital
4667+property does not affect the operation of s. 766.625 (2).
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4692+25 - 92 -2023 - 2024 Legislature LRB-5206/1
4693+KMS&JPC:cdc
4694+SECTION 136 SENATE BILL 759
4695+SECTION 136. 766.58 (13) (b) of the statutes is renumbered 766.58 (13) (b) 1. and
4696+amended to read:
4697+766.58 (13) (b) 1. After the death of a spouse, if an estate administration
4698+proceeding is filed, no action concerning a marital property agreement may be
4699+brought later than 6 months after the inventory is filed under s. 858.01. If an
4700+amended inventory is filed, the action may be brought within 6 months after the
4701+filing of the amended inventory if the action relates to information contained in the
4702+amended inventory that was not contained in a previous inventory.
4703+SECTION 137. 766.58 (13) (b) 2. and 3. of the statutes are created to read:
4704+766.58 (13) (b) 2. After the death of a spouse, if no estate administration
4705+proceeding is filed, no action concerning a marital property agreement may be
4706+brought later than 8 months after the death of the spouse.
4707+3. If an action concerning a marital property agreement is barred under subd.
4708+2. and an estate administration proceeding is thereafter commenced, any judgment
4709+in an action concerning a marital property agreement not barred under subd. 1. may
4710+be recovered only from the estate of the deceased spouse.
4711+SECTION 138. 766.58 (13) (c) of the statutes is amended to read:
4712+766.58 (13) (c) The court may extend the 6-month period under par. (b) 1. for
4713+cause if a motion for extension is made within the applicable 6-month period.
4714+SECTION 139. 766.59 (1) of the statutes is amended to read:
4715+766.59 (1) A Except as provided in s. 766.625 (2) (b) 2., a spouse may
4716+unilaterally execute a written statement which classifies the income attributable to
4717+all or certain of that spouse's property other than marital property as individual
4718+property.
4719+SECTION 140. 766.625 of the statutes is created to read:
4720+1
4721+2
4722+3
4723+4
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4726+7
4727+8
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4746+KMS&JPC:cdc
4747+SECTION 140
4748+ SENATE BILL 759
4749+766.625 Classification of digital property, including the content of
4750+electronic communications. (1) GENERAL. Except as otherwise determined
4751+under sub. (2), classification of digital property, including the content of electronic
4752+communications, is determined under s. 766.31.
4753+(2) EXCEPTIONS. (a) Digital property in an account. An account and the digital
4754+property held in an account, as defined in s. 766.01 (9) (e), including the content of
4755+electronic communications, as defined in s. 711.03 (6), not otherwise classified as
4756+individual property under s. 766.31 (6) and (7) (a) to (d), is classified as the individual
4757+property of the holding spouse, regardless of the classification of property used to
4758+create, purchase, or otherwise acquire the account and digital property held in the
4759+account, unless the nonholding spouse can prove that any of the following apply:
4760+1. `Creation.' The account or the digital property in the account was not
4761+originally created, purchased, or otherwise acquired exclusively for the personal,
4762+noneconomic purposes of the holding spouse.
4763+2. `Use.' The account or the digital property in the account has at any time been
4764+used for purposes other than the personal, noneconomic purposes of the holding
4765+spouse.
4766+(b) Exchanges; income. Notwithstanding par. (a), with respect to an account
4767+and the digital property held in the account, as defined in s. 766.01 (9) (e), including
4768+the content of electronic communications, as defined in s. 711.03 (6), classified as
4769+individual property solely by reason of par. (a), all of the following apply:
4770+1. `Exchanges; Proceeds.' Section 766.31 (7) (b) does not apply, and in the event
4771+of a sale, exchange, or other disposition, property received in exchange for such
4772+account, or the digital property in the account, is classified as marital property.
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4796+24 - 94 -2023 - 2024 Legislature LRB-5206/1
4797+KMS&JPC:cdc
4798+SECTION 140 SENATE BILL 759
4799+2. `Income.' Section 766.59 does not apply, and income during marriage and
4800+after the determination date attributable to the account, or the digital property in
4801+the account, is classified as marital property.
4802+SECTION 141. 766.63 (1) of the statutes is amended to read:
4803+766.63 (1) Except as provided otherwise in ss. 766.61 and, 766.62, and 766.625
4804+(2), mixing marital property with property other than marital property reclassifies
4805+the other property to marital property unless the component of the mixed property
4806+which is not marital property can be traced.
4807+SECTION 142. 766.70 (3) (dm) of the statutes is created to read:
4808+766.70 (3) (dm) An interest in a digital property account, as defined in s. 711.03
3124809 (1).
313-SECTION 39.  701.0111 (4) of the statutes is amended
314-to read:
315-701.0111 (4)  A nonjudicial settlement agreement is
316-valid only to the extent it includes terms and conditions
317-that could be properly approved, ordered, directed, or
318-otherwise determined by a court under this chapter or
319-other applicable law.
320-SECTION 40.  701.0111 (5) (d) of the statutes is
321-amended to read:
322-701.0111 (5) (d)  The resignation or appointment of
323-a trustee or the removal of a trustee and replacement with
324-a suitable successor trustee.
325-SECTION 41.  701.0111 (5) (m) of the statutes is cre-
326-ated to read:
327-701.0111 (5) (m)  The modification or termination of
328-a trust.
329-SECTION 42.  701.0111 (6) of the statutes is amended
330-to read:
331-701.0111 (6)  Any interested person or other person
332-affected may request a court to approve a nonjudicial set-
333-tlement agreement, to determine whether the representa-
334-tion as provided in subch. III was adequate, or to deter-
335-mine whether the agreement contains terms and
336-conditions the court could have properly approved,
337-ordered, directed, or otherwise determined.
338-SECTION 43.  701.0111 (7) of the statutes is created to
339-read:
340-701.0111 (7)  Notice of any nonjudicial settlement
341-agreement shall be given to the settlor, if living, the
342-trustee, each trust protector, and each directing party at
343-least 30 days before the proposed effective date of the
344-nonjudicial settlement agreement.  Notice is considered
345-to be waived by any person who is a party to the agree-
346-ment.
347-SECTION 44.  701.0113 of the statutes is created to
348-read:
349-701.0113  Insurable interest of trustee.  (1)  In this
350-section:
351-(a)  “Relative” means a spouse or individual related
352-within the 1st, 2nd, or 3rd degree of kinship under s.
353-990.001 (16).
354-(b)  “Settlor” means a person that executes a trust
355-instrument and includes a person for whom a fiduciary or
356-agent is acting.
357-(2)  A trustee of a trust has an insurable interest in the
358-life of an individual insured under a life insurance policy
359-that is owned by the trustee of the trust acting in a fidu-
360-ciary capacity or that designates the trust itself as the
361-owner if, on the date the policy is issued, all of the follow-
362-ing apply:
363-(a)  The insured is any of the following:
364-1.  A settlor of the trust.
365-2.  An individual in whom a settlor of the trust has, or
366-would have had if living at the time the policy was issued,
367-an insurable interest.
368-(b)  The life insurance proceeds are primarily for the
369-benefit of one or more trust beneficiaries who have any
370-of the following:
371-1.  An insurable interest in the life of the insured.  − 5 − 2023 Wisconsin Act 127 2023 Senate Bill 759
372-2.  A substantial interest engendered by love or affec-
373-tion in the continuation of the life of the insured and, if
374-not included under subd. 1., the beneficiary is a relative
375-or stepchild of the insured.
376-SECTION 45.  701.0201 (3) (km) of the statutes is cre-
377-ated to read:
378-701.0201 (3) (km)  Releasing a trustee, directing
379-party, trust protector, or other person acting in a fiduciary
380-capacity from liability for an action relating to the trust.
381-SECTION 46.  701.0201 (4) of the statutes is created to
382-read:
383-701.0201 (4)  Except as otherwise provided in this
384-chapter, and as applicable, the probate procedure
385-described in ch. 879 applies to a proceeding brought by
386-a trustee, trust protector, directing party, or beneficiary
387-concerning the administration of a trust.
388-SECTION 47.  701.0203 (1) of the statutes is amended
389-to read:
390-701.0203 (1)  The circuit court assigned to exercise
391-probate jurisdiction has exclusive jurisdiction of pro-
392-ceedings in this state brought by a trustee, trust protector,
393-directing party, or beneficiary concerning the administra-
394-tion of a trust.  Except as otherwise provided in this chap-
395-ter, and as applicable, the probate procedure described in
396-ch. 879 applies to a proceeding brought by a trustee, trust
397-protector, directing party, or beneficiary concerning the
398-administration of a trust.
399-SECTION 48.  701.0302 (title) of the statutes is
400-amended to read:
401-701.0302  (title)  Representation by holder of gen-
402-eral power of appointment powerholder of certain
403-powers of appointment.
404-SECTION 49.  701.0302 of the statutes is renumbered
405-701.0302 (2) and amended to read:
406-701.0302 (2)  To the extent there is no conflict of
407-interest between a holder of a general power of appoint-
408-ment powerholder and  a person the persons represented
409-with respect to the particular question or dispute, the
410-holder powerholder of a nongeneral power of appoint-
411-ment other than a broad limited power of appointment
412-may represent and bind the person all persons or all mem-
413-bers of a class of persons, including permissible appoin-
414-tees and takers in default, whose interests, as a permissi-
415-ble appointee, a taker in default, or otherwise, are subject
416-to may be limited by the exercise or nonexercise of the
417-power.
418-SECTION 50.  701.0302 (1) of the statutes is created to
419-read:
420-701.0302 (1)  The powerholder of a general power of
421-appointment exercisable in favor of the powerholder or
422-the powerholder’s estate or the powerholder of a broad
423-limited power of appointment may represent and bind all
424-persons, including permissible appointees and takers in
425-default, whose interests may be eliminated by the exer-
426-cise or nonexercise of the power.  For purposes of this
427-subsection, a general power of appointment does not
428-include powers of appointment exercisable only in favor
429-of the creditors of the powerholder, the creditors of the
430-powerholder’s estate, or both.
431-SECTION 51.  701.0303 (4) of the statutes is amended
432-to read:
433-701.0303 (4)  A trustee may represent and bind the
434-beneficiaries of the trust, except as to matters relating to
435-the administration or distribution of the trust.
436-SECTION 52.  701.0303 (5) of the statutes is amended
437-to read:
438-701.0303 (5)  A personal representative of a dece-
439-dent’s estate may represent and bind a person interested
440-in the estate, except as to matters relating to the adminis-
441-tration or distribution of the estate.
442-SECTION 53.  701.0303 (6) (intro.) of the statutes is
443-amended to read:
444-701.0303 (6) (intro.)  A parent may represent and
445-bind the parent’s minor or unborn child, such child’s
446-minor and unborn issue, and the minor and unborn issue
447-of a then deceased child.  If a disagreement arises
448-between parents seeking to represent the same minor
449-child or unborn child individual, representation is deter-
450-mined as follows:
451-SECTION 54.  701.0303 (6) (a) of the statutes is
452-amended to read:
453-701.0303 (6) (a)  If only one parent is a beneficiary of
454-the trust that is the subject of the representation, that par-
455-ent may represent and bind the minor child or unborn
456-child, such child’s minor and unborn issue, and the minor
457-and unborn issue of a then deceased child.
458-SECTION 55.  701.0303 (6) (b) of the statutes is
459-amended to read:
460-701.0303 (6) (b)  If both parents are beneficiaries of
461-the trust that is the subject of the representation, the par-
462-ent who is related to the settlor, other than by reason of
463-being married to the other parent, may represent and bind
464-the minor child or unborn child, such child’s minor and
465-unborn issue, and the minor and unborn issue of a then
466-deceased child.
467-SECTION 56.  701.0303 (6) (c) of the statutes is
468-amended to read:
469-701.0303 (6) (c)  Subject to s. 701.0301 (4), if neither
470-parent is a beneficiary of the trust that is the subject of the
471-representation, the parent who is the settlor of the trust
472-that is the subject of the representation may represent and
473-bind the minor child or unborn child, such child’s minor
474-and unborn issue, and the minor and unborn issue of a
475-then deceased child.
476-SECTION 57.  701.0303 (6) (d) of the statutes is
477-amended to read:
478-701.0303 (6) (d)  If neither parent is a beneficiary or
479-settlor of the trust that is the subject of the representation,
480-the parent who is related to the settlor, other than by rea-
481-son of being married to the other parent, may represent
482-and bind the minor child or unborn child, such child’s  − 6 −2023 Wisconsin Act 127  2023 Senate Bill 759
483-minor and unborn issue, and the minor and unborn issue
484-of a then deceased child.
485-SECTION 58.  701.0303 (6) (e) of the statutes is created
486-to read:
487-701.0303 (6) (e)  If an individual that is the subject of
488-the representation is eligible to be represented by more
489-than one ancestor under this subsection, the individual’s
490-nearest ancestor may represent and bind such individual.
491-SECTION 59.  701.0304 of the statutes is renumbered
492-701.0304 (1).
493-SECTION 60.  701.0304 (2) of the statutes is created to
494-read:
495-701.0304 (2) (a)  In this subsection:
496-1.  “Contingent successor remainder beneficiary”
497-means a beneficiary who would succeed to the interest of
498-a presumptive remainder beneficiary if the presumptive
499-remainder beneficiary and all of the current beneficiaries
500-failed to take such interest.
501-2.  “More remote contingent successor remainder
502-beneficiary” means any contingent successor remainder
503-beneficiary whose interest arises only upon the failure of
504-the interest of another contingent successor remainder
505-beneficiary.
506-(b)  A presumptive remainder beneficiary or a person
507-authorized to represent the presumptive remainder bene-
508-ficiary under sub. (1) may represent and bind a contingent
509-successor remainder beneficiary or a more remote con-
510-tingent successor remainder beneficiary for the same
511-purposes, in the same circumstances, and to the same
512-extent as an ascertainable beneficiary may represent and
513-bind a minor or person who is incapacitated, unborn, or
514-not reasonably ascertainable.
515-(c)  If a presumptive remainder beneficiary does not
516-represent a more remote contingent successor remainder
517-beneficiary, a contingent successor remainder benefi-
518-ciary may represent and bind a more remote contingent
519-successor remainder beneficiary for the same purposes,
520-in the same circumstances, and to the same extent as an
521-ascertainable beneficiary may represent and bind a minor
522-or person who is incapacitated, unborn, or not reasonably
523-ascertainable.
524-(d)  A contingent successor remainder beneficiary or
525-a more remote contingent successor remainder benefi-
526-ciary may be represented under pars. (b) and (c) whether
527-or not the contingent successor remainder beneficiary or
528-more remote contingent successor remainder beneficiary
529-lacks capacity.
530-(e)  Under pars. (b) and (c), the difference between a
531-beneficiary’s interest as a presumptive remainder benefi-
532-ciary or contingent successor remainder beneficiary does
533-not constitute a conflict of interest as to any more remote
534-contingent successor remainder beneficiary.
535-SECTION 61.  701.0305 (1) of the statutes is renum-
536-bered 701.0305.
537-SECTION 62.  701.0305 (2) of the statutes is renum-
538-bered 701.0307 (1).
539-SECTION 63.  701.0305 (3) of the statutes is renum-
540-bered 701.0307 (2).
541-SECTION 64.  701.0306 of the statutes is created to
542-read:
543-701.0306  Designated representative.  (1)  If specifi-
544-cally nominated in the trust instrument, one or more per-
545-sons may be designated to represent and bind a benefi-
546-ciary and receive any notice, information, accounting, or
547-report.  The trust instrument may also authorize any one
548-or more persons to designate one or more persons to rep-
549-resent and bind a beneficiary and receive any notice,
550-information, accounting, or report.
551-(2)  Except as otherwise provided in this chapter, a
552-person designated in sub. (1) may not represent and bind
553-a beneficiary while that person is serving as trustee.
554-(3)  Except as otherwise provided in this chapter, a
555-person designated in sub. (1) may not represent and bind
556-another beneficiary if the person designated also is a ben-
557-eficiary, unless one of the following applies:
558-(a)  That person was named by the settlor.
559-(b)  That person is one of the following:
560-1.  The beneficiary’s spouse.
561-2.  A grandparent or descendant of a grandparent of
562-the beneficiary.
563-3.  A grandparent or descendant of a grandparent of
564-the beneficiary’s spouse.
565-SECTION 65.  701.0307 (title) of the statutes is created
566-to read:
567-701.0307 (title)  Role of a representative or
568-guardian ad litem.
569-SECTION 66.  701.0308 of the statutes is created to
570-read:
571-701.0308  Liability of representative.  No represen-
572-tative or guardian ad litem is liable to the beneficiary
573-whose interests are represented, or to anyone claiming
574-through that beneficiary, for any actions or omissions to
575-act made in good faith.
576-SECTION 67.  701.0401 (5m) of the statutes is created
577-to read:
578-701.0401 (5m)  A declaration of an intent to create a
579-trust with the intention that the trust will later be funded
580-by assets of the person who created the trust or by another
581-person with legal authority to fund the trust.  The person
582-making the declaration is considered to have created the
583-trust, regardless of whether the person funds the trust
584-with the person’s own assets.
585-SECTION 68.  701.0402 (1) (e) of the statutes is
586-amended to read:
587-701.0402 (1) (e)  The same person is not the sole
588-trustee and sole beneficiary, and there are no remainder
589-beneficiaries other than the person’s estate.
590-SECTION 69.  701.0405 (1) of the statutes is repealed.
591-SECTION 70.  701.0408 of the statutes is amended to
592-read:
593-701.0408  Trust for care of animal.  (1)   A  An ani-
594-mal trust may be created to provide for the care of an ani-  − 7 − 2023 Wisconsin Act 127 2023 Senate Bill 759
595-mal alive during the settlor’s lifetime.  The animal trust
596-terminates upon the death of the animal or, if the animal
597-trust was created to provide for the care of more than one
598-animal alive during the settlor’s lifetime, upon the death
599-of the last surviving animal.
600-(2)   A  An animal trust authorized by this section may
601-be enforced by a person appointed in the terms of the trust
602-or, if no person is so appointed, by a person appointed by
603-the court an animal protector.  A person having an interest
604-in the welfare of the animal may request the court to
605-appoint  a person to enforce the trust or to remove a per-
606-son appointed under this subsection an animal protector.
607-(3)  Property of  a  an animal trust authorized by this
608-section may be applied only to its intended use, except to
609-the extent the court determines that the value of the ani-
610-mal trust property exceeds the amount required for the
611-intended use.  Property not required for the intended use
612-must be distributed to the settlor, if then living, otherwise
613-to the settlor’s successors in interest.
614-SECTION 71.  701.0410 (2) of the statutes is amended
615-to read:
616-701.0410 (2)  A proceeding to approve or disapprove
617-a proposed modification or termination under ss.
618-701.0411 to 701.0416, or a proposed trust combination or
619-division under s. 701.0417, may be commenced by a
620-trustee or beneficiary, and a proceeding to approve or dis-
621-approve a proposed modification or termination under s.
622-701.0411 may be commenced by the settlor.  The settlor
623-of a charitable trust may maintain a proceeding to modify
624-the trust under s. 701.0413.   A  Except as provided in s.
625-701.0411 (1m), a trustee does not have standing to
626-oppose a proposed modification or termination com-
627-menced under s. 701.0411 (1).
628-SECTION 72.  701.0410 (3) of the statutes is amended
629-to read:
630-701.0410 (3)  A trustee may not be compelled by a
631-modification or termination under this section or under
632-ss. 701.0411 to 701.0416 to make distributions to or for
633-any beneficiary of a trust for an individual with a disabil-
634-ity or to terminate the trust, during the lifetime of the indi-
635-vidual with a disability.  A court may modify the terms of
636-a trust for that has an individual with a disability as a ben-
637-eficiary with retroactive effect or reform the terms of
638-such trust to achieve the settlor’s objective or, if because
639-of circumstances not anticipated by the settlor, to other-
640-wise further the purposes of the trust so that it does not
641-result in trust property being countable as resources or
642-income of the individual with a disability for purposes of
643-public assistance.
644-SECTION 73.  701.0411 (1) of the statutes is amended
645-to read:
646-701.0411 (1)  A  Except as provided in sub. (1m), a
647-noncharitable irrevocable trust may be modified or ter-
648-minated, with or without court approval, upon consent of
649-the settlor and all beneficiaries, even if the modification
650-or termination is inconsistent with a material purpose of
651-the trust.  A settlor’s power to consent to a trust’s modifi-
652-cation or termination may be exercised by a representa-
653-tive under s. 701.0303 only if the representative is specif-
654-ically authorized to consent to a trust’s modification or
655-termination under a power of attorney, the terms of the
656-trust, or by a court under a guardianship or conservator-
657-ship.
658-SECTION 74.  701.0411 (1m) of the statutes is created
659-to read:
660-701.0411 (1m)  A trust described in 42 USC 1396p
661-(d) (4) may be terminated or modified under sub. (1) only
662-with consent of the trustee, and is not considered revoca-
663-ble because it lacks ascertainable remainder beneficia-
664-ries.
665-SECTION 75.  701.0411 (2) (intro.) of the statutes is
666-created to read:
667-701.0411 (2) (intro.)  With the approval of the court,
668-any of the following may occur:
669-SECTION 76.  701.0411 (2) (a) of the statutes is
670-amended to read:
671-701.0411 (2) (a)  A noncharitable irrevocable trust
672-may be terminated upon consent of all of the beneficia-
673-ries if the court concludes that  continuance of the trust is
674-not necessary to achieve any material purpose of the trust.
675-SECTION 77.  701.0411 (2) (b) of the statutes is
676-amended to read:
677-701.0411 (2) (b)  A noncharitable irrevocable trust
678-may be modified upon consent of all of the beneficiaries
679-if the court concludes that modification is not inconsis-
680-tent with a material purpose of the trust.
681-SECTION 78.  701.0411 (7) of the statutes is amended
682-to read:
683-701.0411 (7)  A party proposing to modify or termi-
684-nate a trust under sub. (1) or, (2), or (6) shall give notice
685-of the proposed modification or termination to the settlor,
686-if living, the trustee, each trust protector, each directing
687-party, and each beneficiary at least 30 days before the pro-
688-posed effective date of the modification or termination.
689-SECTION 79.  701.0414 (4) of the statutes is amended
690-to read:
691-701.0414 (4)  The court may modify or terminate a
692-trust or remove the trustee and appoint a different trustee
693-if it determines that the value of the trust property is insuf-
694-ficient to justify the cost of administration even if the trust
695-property has a total value in excess of the amount
696-described in sub. (2).
697-SECTION 80.  701.0415 of the statutes is amended to
698-read:
699-701.0415  Reformation to correct mistakes.  The
700-court may reform the terms of a trust, even if unambigu-
701-ous, to conform the terms to the settlor’s intent intention
702-if it is proved by clear and convincing evidence that both
703-what the settlor’s intent intention was and that the terms
704-of the trust were affected by a mistake of fact or law,
705-whether in expression or inducement.  A party petition-
706-ing the court for action under this section shall give notice  − 8 −2023 Wisconsin Act 127  2023 Senate Bill 759
707-of the proceeding to the settlor, if living, the trustee, each
708-trust protector, each directing party, and the qualified
709-beneficiaries.
710-SECTION 81.  701.0416 of the statutes is amended to
711-read:
712-701.0416  Modification or termination to achieve
713-settlor’s tax objectives.  To achieve the settlor’s tax
714-objectives, the court may modify the terms of a trust or
715-terminate a trust in a manner that is not contrary to the set-
716-tlor’s probable intent.  The court may provide that the
717-modification or termination has retroactive effect.  A
718-party petitioning the court for action under this section
719-shall give notice of the proceeding to the settlor, if living,
720-the trustee, each trust protector, each directing party, and
721-the qualified beneficiaries.
722-SECTION 82.  701.0418 of the statutes is repealed.
723-SECTION 83.  701.0505 (1) (a) 2. of the statutes is
724-amended to read:
725-701.0505 (1) (a) 2.  With respect to an irrevocable
726-trust that is not a trust for an individual with a disability,
727-upon application of a judgment creditor of the settlor, the
728-court may, if the trust instrument requires or authorizes
729-the trustee to make payments of income or principal to or
730-for the settlor, order the trustee to satisfy part or all of the
731-judgment out of part or all of the payments of income or
732-principal as they are due, presently or in the future, or
733-which are payable in the trustee’s discretion.  A settlor’s
734-right to receive reimbursement for income taxation aris-
735-ing from grantor trust treatment of the trust pursuant to
736-sections 671 to 679 of the Internal Revenue Code is not
737-considered a right to income or principal for purposes of
738-this section.  If a trust has more than one settlor, the
739-amount the judgment creditor of a particular settlor may
740-reach may not exceed the settlor’s interest in the trust.
741-SECTION 84.  701.0505 (2) (e) 3. of the statutes is
742-amended to read:
743-701.0505 (2) (e) 3.  For purposes of this paragraph,
744-notwithstanding s. 701.0103 (3), “beneficiary” means a
745-person who satisfies s. 701.0103 (3) (a) or (b) and who is
746-designated in a trust instrument or through the exercise of
747-a special nongeneral or general power of appointment.
748-SECTION 85.  701.0508 of the statutes is repealed and
749-recreated to read:
750-701.0508  Debts of deceased settlor.  (1)  DEADLINE
751-ON CLAIMS.  A claimant must assert a claim for payment
752-of a debt of a deceased settlor within the time for such
753-claims under applicable law.  For purposes of this section,
754-a debt incurred by a trustee of a revocable trust before the
755-death of a settlor of the revocable trust shall be treated in
756-the same manner as a debt of the settlor.  A trustee of a
757-trust that was revocable at the settlor’s death may shorten
758-the time period and set a deadline for filing claims with
759-the trustee by doing any of the following:
760-(a)  Publishing a legal notice as a class 3 notice under
761-ch. 985 in the county in which the deceased settlor
762-resided.  The legal notice shall identify the name, address,
763-and any other contact information of the trustee or other
764-person with whom claims must be filed.  The deadline for
765-a claim by any claimant who is not known by the trustee
766-shall be the earlier of the date that is 4 months after the
767-date of the first insertion of the legal notice or, if sub. (6)
768-is applicable, the deadline prescribed under s. 859.01.
769-(b)  Giving notice to a potential claimant.  The notice
770-shall include a copy of the legal notice, if published, and
771-shall identify the name, address, and any other contact
772-information of the trustee or other person with whom
773-claims must be filed and shall state that any claim by the
774-potential claimant must be filed not later than the date that
775-is 30 days from the date notice is given to the potential
776-claimant or the deadline specified in the legal notice.  If
777-a legal notice has not been published, the deadline shall
778-be 4 months from the date the trustee provides notice to
779-the potential claimant.
780-(c)  Publishing a legal notice and not giving a separate
781-notice to a potential claimant who is known to the trustee.
782-The deadline for a claim when a legal notice has been
783-published but notice is not given to a known potential
784-claimant is the later of the date that is one year from the
785-date of the settlor’s death or the deadline specified in the
786-legal notice.
787-(2)  EXCEPTIONS TO DEADLINES ON CLAIMS.  A claim
788-that is not filed on or before an applicable deadline speci-
789-fied under sub. (1) is not barred if the claim is a claim
790-based on tort, a marital property agreement that is subject
791-to the time limitations under s. 766.58 (13) (b) or (c), Wis-
792-consin income, franchise, sales, withholding, gift, or
793-death taxes, unemployment compensation contributions
794-due or benefits overpaid, funeral or administrative
795-expenses, a claim of this state under s. 46.27 (7g), 2017
796-stats., or s. 49.496, 49.682, or 49.849, or a claim of the
797-United States.
798-(3)  FILING OF CLAIMS.  (a)  A claim is considered filed
799-if the claimant provides notice of the claim to the trustee
800-or other person with whom claims must be filed as pre-
801-scribed under sub. (1) (a) or (b).
802-(b)  A claim is considered filed if the deceased settlor
803-is subject to a probate proceeding in this state and a claim
804-is filed with the court under ch. 859.
805-(c)  If an action is pending against a deceased settlor
806-at the time of the settlor’s death and the action survives,
807-the plaintiff in that action may serve a notice of substitu-
808-tion of party defendant on the trustee and file proof of ser-
809-vice of notice in the court.  Filing of proof of service on
810-or before the deadline for filing a claim under sub. (1)
811-gives the plaintiff the same rights against the trust as the
812-filing of a claim.
813-(4)  EFFECT OF STATUTE OF LIMITATIONS.  (a)  A claim
814-that was barred by a statute of limitations at the time of
815-the deceased settlor’s death is barred and the claimant
816-may not pursue a claim against the trustee, the trust prop-
817-erty, or recipients with respect to trust property.  − 9 − 2023 Wisconsin Act 127 2023 Senate Bill 759
818-(b)  A claim not barred by a statute of limitations at
819-the time of the settlor’s death shall not be barred there-
820-after by a statute of limitations if the claim is filed on or
821-before the deadline for filing a claim under sub. (1).
822-(c)  A claim that is not filed or is filed after the dead-
823-line for filing a claim under sub. (1) is barred and the
824-claimant may not pursue a claim against the trustee, the
825-trust property, or recipients with respect to trust property.
826-(d)  The deadlines established under sub. (1) do not
827-extend the time for commencement of a claim beyond the
828-time provided by any statute of limitations applicable to
829-that claim.
830-(5)  SATISFACTION OF CLAIM FROM OTHER PROPERTY.
831-Failure of a claimant timely to file a claim as provided in
832-this section does not bar the claimant from satisfying the
833-claim, if not otherwise barred, from property other than
834-trust property.
835-(6)  COORDINATION WITH PROBATE.  If a legal notice has
836-been published with respect to the estate of a deceased
837-settlor who died domiciled in this state, property of a trust
838-that was revocable at the settlor’s death shall be treated
839-as property of the estate solely for purposes of adminis-
840-tering claims under ch. 859.  The trustee shall be subject
841-to the jurisdiction of the court in which the estate admin-
842-istration is pending.  A personal representative, as
843-defined in s. 851.23, shall provide notice to the trustee
844-regarding claims filed against the estate.  A claim barred
845-under ch. 859 may not be satisfied from property of a trust
846-that was revocable at the settlor’s death.  The trustee and
847-qualified beneficiaries shall have standing to file an
848-objection, offset, or counterclaim with respect to claims
849-filed against the estate.  Nothing in this subsection causes
850-property of the trust that otherwise would be exempt from
851-claims to be subject to claims filed against the settlor’s
852-estate.  If the trust is not referenced in a deceased settlor’s
853-will, the trustee of a trust that was revocable at the sett-
854-lor’s death shall provide notice to a personal representa-
855-tive of the settlor’s estate, if any, of the existence of such
856-trust.
857-SECTION 86.  701.0509 of the statutes is created to
858-read:
859-701.0509  Procedures for claims for debts of a
860-deceased settlor; revocable trusts.  (1)  SCOPE OF APPLI-
861-CABILITY.  The procedures under this section apply only
862-to claims against a trust that was revocable by the settlor
863-until the settlor’s death.
864-(2)  FORM AND VERIFICATION OF CLAIMS; TRUSTEE
865-RESPONSE TO CLAIMS.  (a)  General requirements.  A claim
866-shall be in writing, shall describe the nature and amount
867-of the claim, if ascertainable, shall identify the name,
868-address, and any other contact information of the
869-claimant, and shall be sworn to by the claimant or a per-
870-son on the claimant’s behalf that the amount is justly due,
871-or if not yet due, when it will or may become due, that no
872-payments have been made on the claim that are not cred-
873-ited, and that there are no offsets to the knowledge of the
874-affiant, except as stated in the claim.
875-(b)  Requirements when claim founded on written
876-instrument.  If a claim is founded on a written instrument
877-that is available, the original instrument or a copy of the
878-original instrument shall be attached to the claim.
879-(c)  Trustee response to a claim.  A trustee does not
880-need to respond to a claim until after the expiration of the
881-deadline for filing a claim against the trust under s.
882-701.0508.  Within 30 days after the later of the receipt of
883-the claim or 30 days after the expiration of the deadline,
884-the trustee shall make a good faith determination of
885-whether the claim is valid, absolute, contingent, or
886-invalid, or whether the trustee will object to the claim,
887-and the trustee shall inform the claimant of the determi-
888-nation.  If the trustee decides to object to the claim, the
889-claim may be compromised as provided in sub. (10) or
890-contested as provided under sub. (11).  If the trustee deter-
891-mines the claim is invalid, the claimant may object to that
892-determination under sub. (11).  If the trustee fails to
893-respond within the applicable period, the claim shall be
894-presumed valid and the claimant may seek enforcement
895-under sub. (11).
896-(3)  CLAIMS NOT DUE.  If a claim will become due at
897-some future time, the trustee may, or the court with
898-respect to a contested claim may order the trustee to, do
899-any of the following:
900-(a)  Pay the claim in full.
901-(b)  Pay the claim at the present value and in the same
902-manner as in the case of an absolute claim that has been
903-allowed.
904-(c)  Retain sufficient funds to satisfy the claim upon
905-maturity.
906-(d)  Obtain a bond to be given by the distributees for
907-payment in satisfaction of the claim and order the trust to
908-be administered as if the claim had not been filed.
909-(4)  SECURED CLAIMS.  (a)  When a claimant holds any
910-security for a claim, the security shall be described in the
911-written claim given to the trustee.  The security is suffi-
912-ciently described if the security document is described by
913-date and by the recording or filing data.
914-(b)  Payment of the claim shall be made on the basis
915-of one of the following:
916-1.  If the creditor surrenders the security, the full
917-amount of the claim.
918-2.  If the creditor realizes on the security before
919-receiving payment, upon the full amount of the claim
920-allowed less the fair value of the security.
921-(5)  CONTINGENT CLAIMS.  If the amount or validity of
922-a claim cannot be determined until some time in the
923-future, the claim is a contingent claim regardless of
924-whether the claim is based on an event that occurred in
925-the past or on an event that may occur in the future.
926-Except for claims of the type not required to be filed
927-under s. 701.0508 (2), contingent claims must be filed  − 10 −2023 Wisconsin Act 127  2023 Senate Bill 759
928-with the trustee as provided under sub. (2).  If the trustee
929-determines the claim to be valid subject to the contin-
930-gency, the determination shall state the nature of the con-
931-tingency.  If the trustee determines the claim to be valid
932-and absolute before distribution of the trust, the claim
933-shall be paid in the same manner as absolute claims of the
934-same class.  In all other cases the trustee, or the court in
935-the case of a contested claim, may provide for the pay-
936-ment of contingent claims in any of the following meth-
937-ods:
938-(a)  The claimant and trustee may determine, by
939-agreement, arbitration, or compromise, the value of the
940-claim, according to its probable present worth, and it
941-shall be paid in the same manner as a valid and absolute
942-claim.
943-(b)  The trustee may, or the court may order the trustee
944-to, in the case of a contested claim, make distribution of
945-the trust but retain sufficient funds to pay the claim if and
946-when the same becomes absolute.  For this purpose, the
947-trust may not be required to remain intact longer than 2
948-years after distribution of the remainder of the trust has
949-been made, and if the claim has not become absolute
950-within that time, distribution shall be made to the dis-
951-tributees of the retained funds, after paying any costs and
952-expenses accruing during such period, but the distribu-
953-tees shall be liable to the claimant to the extent provided
954-in sub. (6), if the contingent claim thereafter becomes
955-absolute.  When distribution is so made to distributees,
956-the trustee or the court may require the distributees to
957-give bond for the satisfaction of their liability to the con-
958-tingent claimant.
959-(c)  The trustee may require, or the court, in the case
960-of a contested claim, may order, distribution of the trust
961-as though the contingent claim did not exist, but the dis-
962-tributees shall be liable to the claimant as limited by sub.
963-(7), if the contingent claim thereafter becomes absolute.
964-The trustee or the court may require the distributees to
965-give bond for the satisfaction of their liability to the con-
966-tingent claimant.
967-(d)  Any other method the trustee determines or the
968-court, in the case of a contested claim, orders.
969-(6)  PAYMENT OF CONTINGENT CLAIMS BY DISTRIBU-
970-TEES.  If a contingent claim is filed and the trustee deter-
971-mines the claim to be valid subject to the contingency and
972-all of the assets of the trust, including the fund set apart
973-for the payment of the claim, have been distributed, the
974-claimant may recover on the claim against those distribu-
975-tees, or the persons who furnish bond for the distributees,
976-whose distributive shares have been increased by reason
977-of the fact that the amount of the claim as finally deter-
978-mined was not paid prior to final distribution, if a pro-
979-ceeding for the claim is commenced in court within 6
980-months after the claim becomes absolute.  A distributee
981-or the person who furnishes bond for the distributee shall
982-not be liable for an amount exceeding that person’s pro-
983-portionate share of the trust subject to the claim, nor for
984-an amount greater than the value of the property that that
985-person received from the trust, the value to be determined
986-as of the time of distribution to the distributee.
987-(7)  PRIORITY OF PAYMENT OF CLAIMS AND
988-ALLOWANCES.  (a)  Classes and priority.  At the time a
989-claim is determined to be valid, the claim shall be classi-
990-fied in one of the categories under subds. 1. to 8.  The
991-trustee shall pay an absolute claim if the trustee reason-
992-ably believes the assets of the trust are sufficient to pay
993-the claim.  If the applicable assets of the trust are insuffi-
994-cient to pay the claim in full, the trustee shall make pay-
995-ment in the following order:
996-1.  Costs and expenses of administration.
997-2.  Reasonable funeral and burial expenses.
998-3.  Provisions for the family of the deceased settlor
999-under ss. 861.31, 861.33, and 861.35, which sections are
1000-incorporated by reference and applied as if the trust is an
1001-estate.
1002-4.  Reasonable and necessary expenses of the last ill-
1003-ness of the deceased settlor, including compensation of
1004-persons attending the deceased settlor.
1005-5.  All debts, charges, or taxes owing to the United
1006-States, this state, or a governmental subdivision or
1007-municipality of this state.
1008-6.  Wages, including pension, welfare, and vacation
1009-benefits, due to employees that have been earned within
1010-3 months before the date of the death of the deceased sett-
1011-lor, not to exceed $300 in value to each employee.
1012-7.  Property assigned to the surviving spouse or sur-
1013-viving domestic partner under s. 861.41, which section is
1014-incorporated by reference and applied as if the trust is an
1015-estate.
1016-8.  All other claims allowed.
1017-(b)  No preference within classes.  Preference shall not
1018-be given in the payment of any claim over any other claim
1019-of the same class, nor shall a claim due and payable be
1020-entitled to a preference over a claim not due.
1021-(8)  EXECUTION AND LEVIES PROHIBITED.  Garnish-
1022-ment, attachment, or execution shall not issue against,
1023-nor shall any levy be made against, any property of the
1024-trust under any judgment or cause of action against a
1025-deceased settlor or the trustee, but this subsection shall
1026-not be construed to prevent the enforcement of mort-
1027-gages, pledges, liens, or other security agreements upon
1028-real or personal property in an appropriate proceeding.
1029-(9)  QUALIFIED BENEFICIARIES AND CLAIMANTS MAY BE
1030-INFORMED OF CLAIMS.  After the deadline for filing a claim
1031-against the trust under s. 701.0508, any qualified benefi-
1032-ciary or claimant may make a written request to the
1033-trustee for a statement listing all claims that have been
1034-filed against the trust.  The statement provided by the
1035-trustee shall show each claim, the name of the claimant,
1036-a brief description of the basis of the claim, the amount
1037-claimed, and the trustee’s determination of whether the
1038-claim is valid, absolute, contingent, or invalid, or whether
1039-the trustee will object to the claim in whole or in part.  The  − 11 − 2023 Wisconsin Act 127 2023 Senate Bill 759
1040-trustee shall provide notice of the statement to the
1041-requester, including any representative under subch. III
1042-within 5 business days of the receipt of the request.  The
1043-requester shall, within 5 business days of receiving notice
1044-of the statement from the trustee, inform the trustee
1045-whether the requester agrees or objects to the trustee’s
1046-determination on whether to allow the claim in whole or
1047-in part or whether to object to the claim.  Failure on the
1048-part of any party to comply with this subsection does not
1049-affect the jurisdiction of the court to intervene in the
1050-administration of the claim.
1051-(10)  COMPROMISE OF CLAIMS.  When a claim against
1052-a trust has been filed and payment of the claim is pending,
1053-the claimant and trustee may, if it appears to be in the best
1054-interest of the trust, compromise the claim, whether due
1055-or not due, absolute or contingent, or liquidated or unliq-
1056-uidated.  If an objection to the claim has been filed by a
1057-qualified beneficiary or another claimant, no compro-
1058-mise of the claim may be made without the consent of the
1059-objector.
1060-(11)  CONTEST AND ENFORCEMENT OF CLAIMS; COURT
1061-PROCEDURE.  (a)  Initiation.  Any person may initiate a
1062-court proceeding to contest or enforce a claim, object to
1063-denial of a claim, or assert an offset or counterclaim,
1064-including the trustee, a qualified beneficiary or represen-
1065-tative under subch. III on behalf of a qualified benefi-
1066-ciary, or a claimant.  Such persons may initiate the court
1067-proceeding by petitioning the court to exercise jurisdic-
1068-tion over the claim and any objection, offset, or counter-
1069-claim.  The petition shall be served upon or mailed to each
1070-person who has standing to object to the claim and filed
1071-with the court within 60 days after the trustee’s response
1072-or failure to respond to the claim under sub. (2) (c), or, in
1073-the case of an objection by a qualified beneficiary or rep-
1074-resentative of the qualified beneficiary or another poten-
1075-tial claimant, within 30 days after the copy of the claim
1076-was mailed to or served upon the objector.  The trustee
1077-shall not be obligated to assert any offset or counterclaim
1078-in court and may, if the trustee deems it to be in the best
1079-interest of the trust, assert the offset or counterclaim in
1080-any separate action otherwise authorized by law outside
1081-the court proceedings.  Any offset or counterclaim so
1082-asserted shall be deemed denied by the original claimant.
1083-(b)  Procedure.  If any claim, offset, or counterclaim
1084-is contested, the court may require the issues to be made
1085-definite, fix a date for pretrial conference, and direct the
1086-manner in which pleadings, if any, shall be exchanged.
1087-The court shall set a time for trial upon its own motion or
1088-upon the motion of any party.
1089-(12)  PROMPT JUDGMENT.  The hearing on any con-
1090-tested claim, offset, or counterclaim may be adjourned
1091-from time to time, but the hearing shall be concluded as
1092-soon as practicable.
1093-(13)  JUDGMENT ON CLAIMS.  The court shall enter a
1094-judgment on contested claims and any offsets and coun-
1095-terclaims asserted, stating how much was allowed for or
1096-against the trust in each case.  The judgment shall set a
1097-date by which payment shall be made.  If the balance as
1098-to any claimant is in favor of the trust, the payment of the
1099-claim may be enforced as with any other judgment.
1100-(14)  DELAY OF PAYMENT OF CLAIMS WHEN FUNDS ARE
1101-INSUFFICIENT.  If it appears at any time that the trust is or
1102-may be insolvent, that there are insufficient funds on
1103-hand for payment of claims in full, or that there is other
1104-good cause for delaying payment, the trustee shall pro-
1105-vide notice of the delay to the claimants and any other
1106-person with standing to object and may petition the court
1107-for any order that the trustee deems necessary.
1108-(15)  CLAIMANT’S ACTION FOR PROPERTY FRAUDU-
1109-LENTLY TRANSFERRED BY DECEASED SETTLOR.  Whenever
1110-there is reason to believe that the assets of the trust may
1111-be insufficient to pay the deceased settlor’s debts, and the
1112-deceased settlor transferred any property with intent to
1113-defraud the deceased settlor’s creditors or to avoid any
1114-duty, or executed conveyances void as against creditors,
1115-any claimant whose claim has been allowed may, on
1116-behalf of all, bring an action to reach any property and
1117-subject it to sale.  The claimant’s action shall not be
1118-brought to trial until the insufficiency of the assets of the
1119-trust is ascertained.  If it is found likely that the assets may
1120-be insufficient, the action shall be brought to trial.  If the
1121-action is tried, any property that ought to be subjected to
1122-the payment of the debts of the deceased settlor shall be
1123-sold in the action and the net proceeds used to pay such
1124-debts and to reimburse the claimant for the reasonable
1125-expenses and attorney fees incurred by the claimant in
1126-such action, as approved by the court.
1127-(16)  ENCUMBERED ASSETS; PAYMENT OF DEBT.  (a)
1128-Rights of secured claimants not affected.  Nothing in this
1129-subchapter shall affect or prevent any action or proceed-
1130-ing to enforce any mortgage, pledge, lien, or other secu-
1131-rity agreement against property of the trust.
1132-(b)  Payment.  When any property in the trust is
1133-encumbered by mortgage, pledge, lien, or other security
1134-agreement, the trustee may pay the encumbrance or any
1135-part of the encumbrance, renew or extend any obligation
1136-secured by the encumbrance, or may convey or transfer
1137-the encumbered assets to the creditor in satisfaction of the
1138-claimant’s lien, in whole or in part, whether or not the
1139-holder of the encumbrance has filed a claim.
1140-(17)  TORT CLAIMS.  (a)  Filed within time limited.  If
1141-a claim based on a cause of action in tort or for contribu-
1142-tion resulting from a cause of action in tort is filed on or
1143-before the deadline for filing a claim under s. 701.0508,
1144-the claimant will receive the same protection in regard to
1145-payment as a claimant who has filed a required claim.
1146-(b)  Not filed within time limited.  A cause of action
1147-against a deceased settlor in tort or for contribution
1148-resulting from a cause of action in tort is not defeated by
1149-failure to file the claim or commence or continue an
1150-action against the trustee on or before the deadline for fil-
1151-ing a claim under s. 701.0508 against a trust, but the fail-  − 12 −2023 Wisconsin Act 127  2023 Senate Bill 759
1152-ure to file the claim with the trustee relieves the trustee of
1153-all responsibility to protect the rights of the claimant, and
1154-the claimant shall not be granted any of the protections
1155-under sub. (5).  If the claim is determined to be valid and
1156-absolute through court−approved settlement or adjudica-
1157-tion and a certified copy of the settlement or judgment is
1158-filed with the trustee and there are sufficient funds in the
1159-trust to pay the claim, the claim shall be paid prior to the
1160-distribution of the trust.  After the trust has been distrib-
1161-uted or if there are not sufficient funds in the trust, a
1162-claimant whose claim has been determined to be valid
1163-and absolute through court−approved settlement or
1164-through adjudication may proceed against the distribu-
1165-tees, but no distributee may be liable for an amount
1166-greater than that allowed under sub. (6).
1167-(18)  PAYMENT OF UNFILED CLAIMS.  A trustee may pay
1168-a debt of a deceased settlor prior to the expiration of the
1169-deadline for filing claims under s. 701.0508 whether or
1170-not a claim is filed if the trustee reasonably believes that
1171-the debt is owed and that the assets of the trust are suffi-
1172-cient to satisfy all of the deceased settlor’s debts.
1173-(19)  LAST ILLNESS AND FUNERAL EXPENSE OF
1174-DECEASED SPOUSE.  The reasonable expense of the last ill-
1175-ness and funeral may, if properly presented, be paid by
1176-the trustee of a deceased settlor’s trust and, if so paid,
1177-shall be recognized as valid expenditures even though the
1178-surviving spouse of the deceased settlor could have been
1179-held liable for the expense.
1180-SECTION 87.  701.0602 (1) of the statutes is amended
1181-to read:
1182-701.0602 (1)  Unless the terms of a trust expressly
1183-provide that the trust is irrevocable, there is a rebuttable
1184-presumption that the settlor may revoke or amend the
1185-trust.  This subsection does not apply to a trust created
1186-under an instrument executed before July 1, 2014.
1187-SECTION 88.  701.0602 (3) (intro.), (a) and (b) (intro.)
1188-of the statutes are consolidated, renumbered 701.0602
1189-(3) (intro.) and amended to read:
1190-701.0602 (3) (intro.)  A settlor may revoke or amend
1191-a revocable trust by any of the following means: (a)  By
1192-substantial compliance with a method provided in the
1193-terms of the trust. (b) (intro.)  If, or, if the terms of the trust
1194-do not provide a method, by any of the following means:
1195-SECTION 89.  701.0602 (3) (b) 1. of the statutes is
1196-renumbered 701.0602 (3) (am).
1197-SECTION 90.  701.0602 (3) (b) 2. of the statutes is
1198-renumbered 701.0602 (3) (bm).
1199-SECTION 91.  701.0602 (4) of the statutes is amended
1200-to read:
1201-701.0602 (4)  Upon revocation of a revocable trust,
1202-the trustee shall transfer the trust property to the settlor or
1203-as the settlor directs.  However, with respect to marital or
1204-community property, the trustee shall transfer the prop-
1205-erty to both spouses as marital or community property or
1206-as both spouses direct.
1207-SECTION 92.  701.0605 of the statutes is created to
1208-read:
1209-701.0605  Future interests in trust.  Subject to s.
1210-701.1204, unless a contrary intention is found, if a person
1211-has a future interest in property under a revocable trust
1212-and, under the terms of the trust, the person has the right
1213-to possession and enjoyment of the property at the sett-
1214-lor’s death, the right to possession and enjoyment is con-
1215-tingent on the person surviving the settlor.  Extrinsic evi-
1216-dence may be used to show contrary intent.
1217-SECTION 93.  701.0702 (3) of the statutes is amended
1218-to read:
1219-701.0702 (3)  A court may not require a bond from a
1220-trust company bank, state bank, or national bank that is
1221-authorized to exercise trust powers and that has complied
1222-with s. 220.09 or 223.02 nor shall a bond be required of
1223-a religious, charitable, or educational corporation or soci-
1224-ety.
1225-SECTION 94.  701.0704 (1) (g) of the statutes is cre-
1226-ated to read:
1227-701.0704 (1) (g)  Any other event occurs resulting in
1228-no person acting as trustee.
1229-SECTION 95.  701.0706 (2) (c) of the statutes is
1230-amended to read:
1231-701.0706 (2) (c)  The court determines that removal
1232-Removal of the trustee best serves the interests of the ben-
1233-eficiaries is appropriate because of unfitness, unwilling-
1234-ness, or persistent failure of the trustee to administer the
1235-trust effectively.
1236-SECTION 96.  701.0706 (2) (d) of the statutes is
1237-amended to read:
1238-701.0706 (2) (d)  There has been a substantial change
1239-of circumstances or removal is requested by all of the
1240-qualified beneficiaries, the court finds that the removal of
1241-the trustee best serves the interests of all of the beneficia-
1242-ries and is not inconsistent with a material purpose of the
1243-trust, and a suitable cotrustee or successor trustee is avail-
1244-able.
1245-SECTION 97.  701.0707 (2) of the statutes is amended
1246-to read:
1247-701.0707 (2)  A trustee who has resigned or been
1248-removed shall proceed expeditiously within a reasonable
1249-time to deliver the trust property within the trustee’s pos-
1250-session to the cotrustee, successor trustee, or other person
1251-entitled to it, subject to the right of the trustee to retain a
1252-reasonable reserve for the payment of debts, expenses,
1253-and taxes.
1254-SECTION 98.  701.0802 (5) of the statutes is renum-
1255-bered 701.0802 (5) (a).
1256-SECTION 99.  701.0802 (5) (b) of the statutes is cre-
1257-ated to read:
1258-701.0802 (5) (b)  A trust company acting in any fidu-
1259-ciary capacity with respect to a trust may purchase any
1260-service or product, including insurance or securities
1261-underwritten or otherwise distributed by the trust com-  − 13 − 2023 Wisconsin Act 127 2023 Senate Bill 759
1262-pany or by an affiliate, through or directly from the trust
1263-company or an affiliate of a syndicate or selling group
1264-that includes the trust company of an affiliate, provided
1265-the purchase otherwise complies with the prudent inves-
1266-tor rule in s. 881.01 and with s. 881.015.  Compensation
1267-for the service or product must be reasonable and not pro-
1268-hibited by the instrument governing the fiduciary rela-
1269-tionship.  The compensation for the service or product
1270-may be in addition to the compensation that the trust com-
1271-pany is otherwise entitled to receive.
1272-SECTION 100.  701.0802 (9) of the statutes is created
1273-to read:
1274-701.0802 (9)  A trustee is not liable for releasing
1275-information, including a copy of all or any portion of the
1276-trust instrument, to any deceased settlor’s heir−at−law or
1277-other person indicating that the person is not a benefi-
1278-ciary of the trust if the trustee reasonably believes that
1279-doing so will not harm the beneficiaries of the trust and
1280-that doing so will reduce the likelihood of litigation
1281-involving the trust.
1282-SECTION 101.  701.0813 (1), (2) (d) and (3) (a) (intro.)
1283-of the statutes are amended to read:
1284-701.0813 (1)  A trustee shall keep the distributees or
1285-permissible distributees of trust income or principal, cur-
1286-rent beneficiaries and other qualified presumptive
1287-remainder beneficiaries who so request, reasonably
1288-informed about the administration of the trust.  Unless
1289-unreasonable under the circumstances, a trustee shall
1290-promptly respond to a qualified beneficiary’s request for
1291-information related to the administration of the trust.
1292-(2) (d)  Notify the distributees or permissible distribu-
1293-tees of trust income or principal, current beneficiaries
1294-and other qualified presumptive remainder beneficiaries
1295-who so request, of any change in the method or rate of the
1296-trustee’s compensation.
1297-(3) (a) (intro.)  At Subject to par. (c), at least annually
1298-and upon the termination of a trust, a trustee shall send to
1299-the distributees or permissible distributees of trust
1300-income or principal, current beneficiaries and to other
1301-qualified presumptive remainder beneficiaries who
1302-request it, all of the following:
1303-SECTION 102.  701.0813 (2) (a) of the statutes is
1304-amended to read:
1305-701.0813 (2) (a)  Upon the request of a qualified ben-
1306-eficiary for a copy of the trust instrument, promptly fur-
1307-nish to the qualified beneficiary either a copy of the por-
1308-tions of the trust instrument relating to the interest of the
1309-qualified beneficiary or a copy of the trust instrument or,
1310-upon the request of a settlor for a copy of the trust instru-
1311-ment, promptly furnish to the settlor a copy of the trust
1312-instrument.
1313-SECTION 103.  701.0813 (3) (b) of the statutes is
1314-amended to read:
1315-701.0813 (3) (b)  Upon Subject to par. (c), upon a
1316-vacancy in a trusteeship, unless a cotrustee remains in
1317-office, the former trustee shall send a report containing
1318-the information described under par. (a) 1. to the qualified
1319-beneficiaries.  A personal representative or guardian may
1320-send the qualified beneficiaries a report containing the
1321-information described in par. (a) 1. on behalf of a
1322-deceased or incapacitated trustee.
1323-SECTION 104.  701.0813 (3) (c) of the statutes is cre-
1324-ated to read:
1325-701.0813 (3) (c)  A trustee may limit the report to a
1326-qualified beneficiary of a specific dollar amount or spe-
1327-cific property to information that relates to the specific
1328-dollar amount or specific property.
1329-SECTION 105.  701.0813 (5) of the statutes is amended
1330-to read:
1331-701.0813 (5)  Subsections (2) (b) and, (c), and (d) and
1332-(3) do not apply to a trustee who accepts a trusteeship
1333-before July 1, 2014, to an irrevocable trust created before
1334-July 1, 2014, or to a revocable trust that becomes irrevo-
1335-cable before July 1, 2014.
1336-SECTION 106.  701.0813 (6) and (7) of the statutes are
1337-created to read:
1338-701.0813 (6)  The trustee has no duty to provide infor-
1339-mation about the administration of the trust to the settlor,
1340-but the trustee may provide such information if the
1341-trustee chooses to do so.
1342-(7)  The trust instrument may expand, restrict, elimi-
1343-nate, or otherwise vary the right of a beneficiary or class
1344-of beneficiaries to be informed of the beneficiary’s inter-
1345-est in a trust or to receive any or all information concern-
1346-ing the trust, and may do so for any period of time, includ-
1347-ing for the lifetime of a beneficiary or a class of
1348-beneficiaries.  If there is no current acting representative
1349-of such a beneficiary or class of beneficiaries in accord-
1350-ance with the trust instrument, and a provision to appoint
1351-such a representative is not provided for in the trust
1352-instrument, the trustee may appoint a representative for
1353-a beneficiary or class of beneficiaries whose rights to
1354-information have been restricted or eliminated by the
1355-trust instrument.
1356-SECTION 107.  701.0815 (3) of the statutes is created
1357-to read:
1358-701.0815 (3)  A trustee has no power to give war-
1359-ranties in a sale, mortgage, or lease that are binding on the
1360-trustee personally.
1361-SECTION 108.  701.0816 (29) of the statutes is created
1362-to read:
1363-701.0816 (29)  Fund a trust or account that meets the
1364-requirements under 42 USC 1396p (d) (4) (A) or (C) for
1365-the benefit of an individual with a disability.
1366-SECTION 109.  701.0816 (30) of the statutes is created
1367-to read:
1368-701.0816 (30)  Fund an account that is part of an
1369-ABLE program under section 529A of the Internal Rev-
1370-enue Code for a beneficiary’s benefit.
1371-SECTION 110.  701.0817 (3) (b) of the statutes is
1372-amended to read:  − 14 −2023 Wisconsin Act 127  2023 Senate Bill 759
1373-701.0817 (3) (b)  The beneficiary, at the time of the
1374-release, did not know of the beneficiary’s rights or have
1375-a reasonable opportunity to know of the material facts
1376-relating to the breach.
1377-SECTION 111.  701.0818 (2) (b) 2. h. of the statutes is
1378-repealed and recreated to read:
1379-701.0818 (2) (b) 2. h.  Exercise a decanting power
1380-under subch. XIII or direct an authorized fiduciary, as
1381-defined in s. 701.1302 (1), to exercise a decanting power
1382-under subch. XIII.
1383-SECTION 112.  701.1005 (1) of the statutes is amended
1384-to read:
1385-701.1005 (1)  A beneficiary may not commence a
1386-proceeding against a trustee for breach of trust more than
1387-one year after the earlier of either the date on which the
1388-beneficiary or a representative of the beneficiary waived
1389-the right to a report under s. 701.0813 (4) or the date on
1390-which the beneficiary or a representative of the benefi-
1391-ciary was sent a report or other record that adequately dis-
1392-closed the existence of a potential claim for breach of
1393-trust.
1394-SECTION 113.  701.1005 (2) of the statutes is amended
1395-to read:
1396-701.1005 (2)  A report or other record adequately dis-
1397-closes the existence of a potential claim for breach of trust
1398-if it provides sufficient information so that the benefi-
1399-ciary or representative knows of the potential claim or
1400-should have inquired into its existence.
1401-SECTION 114.  701.1009 (2) of the statutes is amended
1402-to read:
1403-701.1009 (2)  At the time of the consent, release, or
1404-ratification, the beneficiary did not have knowledge or a
1405-reasonable opportunity to obtain knowledge of the bene-
1406-ficiary’s rights or of the material facts relating to the
1407-breach.
1408-SECTION 115.  701.1105 (1) (b) of the statutes is
1409-amended to read:
1410-701.1105 (1) (b)  Is given in the manner provided in
1411-ch. 879, except that notice by publication is not required
1412-s. 701.0109.
1413-SECTION 116.  701.1136 (1) of the statutes is amended
1414-to read:
1415-701.1136 (1)  DISTRIBUTION OF INCOME.  Except as
1416-otherwise determined by the trustee or a court under s.
1417-701.1106 with respect to unitrust distributions, if a bene-
1418-ficiary is entitled to receive income from a trust, but the
1419-trust instrument fails to specify how frequently it is to be
1420-paid a current beneficiary is to receive income from the
1421-trust, the trustee shall distribute at least annually the
1422-income to which such the current beneficiary is entitled
1423-at least annually.
1424-SECTION 117.  Subchapter XIII of chapter 701 [pre-
1425-cedes 701.1301] of the statutes is created to read:
1426-CHAPTER 701
1427-SUBCHAPTER XIII
1428-UNIFORM TRUST DECANTING ACT
1429-701.1301  Short title.  This subchapter may be cited
1430-as the Uniform Trust Decanting Act.
1431-701.1302  Definitions.  In this subchapter:
1432-(1) “Authorized fiduciary” means any of the follow-
1433-ing:
1434-(a)  A trustee, a directing party, or another fiduciary,
1435-other than a settlor, that has discretion to distribute or
1436-direct a trustee to distribute part or all of the principal of
1437-the first trust to one or more current beneficiaries.
1438-(b)  A special fiduciary appointed under s. 701.1309.
1439-(c)  A special−needs fiduciary under s. 701.1313.
1440-(d)  A trust protector who has been granted a decant-
1441-ing power, which may be exercised in a fiduciary or non-
1442-fiduciary capacity, under s. 701.0818 (2) (b) 2. h.
1443-(2)  “Decanting power” means the power of an autho-
1444-rized fiduciary under this subchapter to distribute prop-
1445-erty of a first trust to one or more 2nd trusts or to modify
1446-the terms of the first trust.
1447-(3)  “Expanded distributive discretion” means a dis-
1448-cretionary power of distribution that is not limited to an
1449-ascertainable standard or a reasonably definite standard.
1450-(4)  “First trust” means a trust over which an autho-
1451-rized fiduciary may exercise the decanting power.
1452-(5)  “First−trust instrument” means the trust instru-
1453-ment for a first trust.
1454-(6)  “Reasonably definite standard” means a clearly
1455-measurable standard under which a holder of a power of
1456-distribution is legally accountable within the meaning of
1457-section 674 (b) (5) (A) of the Internal Revenue Code and
1458-any applicable regulations.
1459-(7)  “Second trust” means any of the following:
1460-(a)  A first trust after modification under this sub-
1461-chapter.
1462-(b)  A trust to which a distribution of property from
1463-a first trust is or may be made under this subchapter.
1464-(8)  “Second−trust instrument” means the trust instru-
1465-ment for a 2nd trust.
1466-701.1303  Scope.  (1)  Except as otherwise provided
1467-in subs. (2) and (3), this subchapter applies to an express
1468-trust that is irrevocable or revocable by the settlor only
1469-with the consent of the trustee or a person holding an
1470-adverse interest.
1471-(2)  This subchapter does not apply to a trust held
1472-solely for charitable purposes.
1473-(3)  Subject to s. 701.1315, a trust instrument may
1474-restrict or prohibit exercise of the decanting power.
1475-(4)  This subchapter does not limit the power of an
1476-authorized fiduciary or other person to distribute or
1477-appoint property in further trust or to modify a trust under
1478-the trust instrument, law of this state other than this sub-
1479-chapter, common law, a court order, or a nonjudicial set-
1480-tlement agreement.
1481-(5)  This subchapter does not affect the ability of a set-
1482-tlor to provide in a trust instrument for the distribution of
1483-the trust property or appointment in further trust of the
1484-trust property or for modification of the trust instrument.  − 15 − 2023 Wisconsin Act 127 2023 Senate Bill 759
1485-701.1304  Fiduciary duty.  (1)  In exercising the
1486-decanting power, an authorized fiduciary shall act in
1487-accordance with its fiduciary duties, including the duty to
1488-act in accordance with the purposes of the first trust.  If
1489-a trustee or other authorized fiduciary is directed by
1490-another authorized fiduciary to exercise the decanting
1491-power, the trustee or other directed authorized fiduciary
1492-shall act to comply with the exercise of the decanting
1493-power and the trustee or other directed authorized fidu-
1494-ciary shall not be liable for the action regardless of any
1495-fiduciary duty that the trustee or other directed authorized
1496-fiduciary might otherwise have.
1497-(2)  This subchapter does not create or imply a duty
1498-to exercise the decanting power or to inform beneficiaries
1499-about the applicability of this subchapter.
1500-(3)  Except as otherwise provided in a first−trust
1501-instrument, for purposes of this subchapter and ss.
1502-701.0801 and 701.0802 (2), the terms of the first trust are
1503-deemed to include the decanting power.
1504-701.1305  Application; governing law.  This sub-
1505-chapter applies to a trust created before, on, or after the
1506-effective date of this section .... [LRB inserts date], if any
1507-of the following applies:
1508-(1)  The trust has its principal place of administration
1509-in this state, including a trust whose principal place of
1510-administration has been changed to this state.
1511-(2)  The trust provides by its trust instrument that it is
1512-governed by the law of this state or is governed by the law
1513-of this state for the purpose of any of the following:
1514-(a)  Administration, including administration of a
1515-trust whose governing law for purposes of administration
1516-has been changed to the law of this state.
1517-(b)  Construction of terms of the trust.
1518-(c)  Determining the meaning or effect of terms of the
1519-trust.
1520-701.1306  Reasonable reliance.  A trustee or other
1521-person that reasonably relies on the validity of a distribu-
1522-tion of part or all of the property of a trust to another trust,
1523-or a modification of a trust, under this subchapter, law of
1524-this state other than this subchapter, or the law of another
1525-jurisdiction is not liable to any person for any action or
1526-failure to act as a result of the reliance.
1527-701.1307  Notice; exercise of decanting power.  (1)
1528-In this section, a notice period begins on the day notice
1529-is given under sub. (3) and ends 30 days after the day
1530-notice is given.
1531-(2)  Except as otherwise provided in this subchapter,
1532-an authorized fiduciary may exercise the decanting
1533-power without the consent of any person and without
1534-court approval.
1535-(3)  Except as otherwise provided in sub. (6), an
1536-authorized fiduciary shall give notice of the intended
1537-exercise of the decanting power not later than 30 days
1538-before the exercise to all of the following:
1539-(a)  Each settlor of the first trust, if living or then in
1540-existence.
1541-(b)  Each qualified beneficiary of the first trust.
1542-(c)  Each holder of a presently exercisable power of
1543-appointment over any part or all of the first trust.
1544-(d)  Each person that currently has the right to remove
1545-or replace the authorized fiduciary.
1546-(e)  Each directing party, trust protector, or other fidu-
1547-ciary of the first trust.
1548-(f)  Each directing party, trust protector, or other fidu-
1549-ciary of the 2nd trust.
1550-(g)  If s. 701.1314 (2) applies, the attorney general.
1551-(4)  An authorized fiduciary is not required to give
1552-notice under sub. (3) to a person that is not known to the
1553-fiduciary or is known to the fiduciary but cannot be
1554-located by the fiduciary after reasonable diligence.
1555-(5)  A notice under sub. (3) must do all of the follow-
1556-ing:
1557-(a)  Specify the manner in which the authorized fidu-
1558-ciary intends to exercise the decanting power.
1559-(b)  Specify the proposed effective date for exercise
1560-of the power.
1561-(c)  Include a copy of the first−trust instrument.
1562-(d)  Include a copy of all 2nd−trust instruments.
1563-(6)  The decanting power may be exercised before
1564-expiration of the notice period under sub. (1) if all per-
1565-sons entitled to receive notice waive the period in a
1566-signed record.
1567-(7)  The receipt of notice, waiver of the notice period,
1568-or expiration of the notice period does not affect the right
1569-of a person to file an application under s. 701.1309 assert-
1570-ing any of the following:
1571-(a)  That an attempted exercise of the decanting
1572-power is ineffective because it did not comply with this
1573-subchapter or was an abuse of discretion or breach of
1574-fiduciary duty.
1575-(b)  That s. 701.1322 applies to the exercise of the
1576-decanting power.
1577-(8)  An exercise of the decanting power is not ineffec-
1578-tive because of the failure to give notice to one or more
1579-persons under sub. (3) if the authorized fiduciary acted
1580-with reasonable care to comply with sub. (3).
1581-701.1309  Court involvement.  (1)  On application
1582-of an authorized fiduciary, a person entitled to notice
1583-under s. 701.1307 (3), a beneficiary, or with respect to a
1584-charitable interest the attorney general or other person
1585-that has standing to enforce the charitable interest, the
1586-court may do any of the following:
1587-(a)  Provide instructions to the authorized fiduciary
1588-regarding whether a proposed exercise of the decanting
1589-power is permitted under this subchapter and consistent
1590-with the fiduciary duties of the authorized fiduciary.
1591-(b)  Appoint a special fiduciary and authorize the spe-
1592-cial fiduciary to determine whether the decanting power
1593-should be exercised under this subchapter and to exercise
1594-the decanting power.
1595-(c)  Approve an exercise of the decanting power.  − 16 −2023 Wisconsin Act 127  2023 Senate Bill 759
1596-(d)  Determine that a proposed or attempted exercise
1597-of the decanting power is ineffective for any of the fol-
1598-lowing reasons:
1599-1.  After applying s. 701.1322, the proposed or
1600-attempted exercise does not or did not comply with this
1601-subchapter.
1602-2.  The proposed or attempted exercise would be or
1603-was an abuse of the fiduciary’s discretion or a breach of
1604-fiduciary duty.
1605-3.  The proposed or attempted exercise is expressly
1606-prohibited under the terms of the first trust.
1607-(e)  Determine the extent to which s. 701.1322 applies
1608-to a prior exercise of the decanting power.
1609-(f)  Provide instructions to the trustee regarding the
1610-application of s. 701.1322 to a prior exercise of the
1611-decanting power.
1612-(g)  Order other relief to carry out the purposes of this
1613-subchapter.
1614-(2)  On application of an authorized fiduciary, the
1615-court may approve any of the following:
1616-(a)  An increase in the fiduciary’s compensation
1617-under s. 701.1316.
1618-(b)  A modification under s. 701.1318 of a provision
1619-granting a person the right to remove or replace the fidu-
1620-ciary.
1621-701.1310  Formalities.  An exercise of the decanting
1622-power must be made in a record signed by an authorized
1623-fiduciary.  The signed record must, directly or by refer-
1624-ence to the notice required by s. 701.1307, identify the
1625-first trust and the 2nd trust or trusts and state the property
1626-of the first trust being distributed to each 2nd trust and the
1627-property, if any, that remains in the first trust.
1628-701.1311  Decanting power under expanded dis-
1629-tributive discretion.  (1)  In this section:
1630-(a)  “Noncontingent right” means a right that is not
1631-subject to the exercise of discretion or the occurrence of
1632-a specified event that is not certain to occur.  The term
1633-does not include a right held by a beneficiary if any per-
1634-son has discretion to distribute property subject to the
1635-right to any person other than the beneficiary or the bene-
1636-ficiary’s estate.
1637-(b)  “Successor beneficiary” means a beneficiary that
1638-is not a qualified beneficiary on the date the beneficiary’s
1639-qualification is determined.  The term does not include a
1640-person that is a beneficiary only because the person holds
1641-a nongeneral power of appointment.
1642-(c)  “Vested interest” means any of the following:
1643-1.  A right to a mandatory distribution that is a non-
1644-contingent right as of the date of the exercise of the
1645-decanting power.
1646-2.  A current and noncontingent right, annually or
1647-more frequently, to a mandatory distribution of income,
1648-a specified dollar amount, or a percentage of value of
1649-some or all of the trust property.
1650-3.  A current and noncontingent right, annually or
1651-more frequently, to withdraw income, a specified dollar
1652-amount, or a percentage of value of some or all of the trust
1653-property.
1654-4.  A presently exercisable general power of appoint-
1655-ment.
1656-5.  A right to receive an ascertainable part of the trust
1657-property on the trust’s termination that is not subject to
1658-the exercise of discretion or to the occurrence of a speci-
1659-fied event that is not certain to occur.
1660-(2)  Subject to sub. (3) and s. 701.1314, an authorized
1661-fiduciary that has expanded distributive discretion over
1662-the principal of a first trust for the benefit of one or more
1663-current beneficiaries may exercise the decanting power
1664-over the principal of the first trust.
1665-(3)  Subject to s. 701.1313, in an exercise of the
1666-decanting power under this section, a 2nd trust may not
1667-do any of the following:
1668-(a)  Include as a current beneficiary a person that is
1669-not a current beneficiary of the first trust, except as other-
1670-wise provided in sub. (4).
1671-(b)  Include as a presumptive remainder beneficiary
1672-or successor beneficiary a person that is not a current ben-
1673-eficiary, presumptive remainder beneficiary, or succes-
1674-sor beneficiary of the first trust, except as otherwise pro-
1675-vided in sub. (4).
1676-(c)  Reduce or eliminate a vested interest.
1677-(d)  Fail to be a trust described in 42 USC 1396p (d)
1678-(4) (A) or (C) if the first trust is a trust described in 42
1679-USC 1396p (d) (4) (A) or (C).
1680-(4)  Subject to sub. (3) (c) and s. 701.1314, in an exer-
1681-cise of the decanting power under this section, a 2nd trust
1682-may be a trust created or administered under the law of
1683-any jurisdiction and may do any of the following:
1684-(a)  Retain a power of appointment granted in the first
1685-trust.
1686-(b)  Omit a power of appointment granted in the first
1687-trust, other than a presently exercisable general power of
1688-appointment.
1689-(c)  Create or modify a power of appointment if the
1690-powerholder is a current beneficiary of the first trust and
1691-the authorized fiduciary has expanded distributive dis-
1692-cretion to distribute principal to the beneficiary.
1693-(d)  Create or modify a power of appointment if the
1694-powerholder is a presumptive remainder beneficiary or
1695-successor beneficiary of the first trust, but the exercise of
1696-the power may take effect only after the powerholder
1697-becomes, or would have become if then living, a current
1698-beneficiary.
1699-(5)  A power of appointment described in sub. (4) (a)
1700-to (d) may be general or nongeneral.  The class of permis-
1701-sible appointees in favor of which the power may be exer-
1702-cised may be broader than or different from the beneficia-
1703-ries of the first trust.
1704-(6)  If an authorized fiduciary has expanded distribu-
1705-tive discretion over part but not all of the principal of a
1706-first trust, the fiduciary may exercise the decanting power
1707-under this section over that part of the principal over  − 17 − 2023 Wisconsin Act 127 2023 Senate Bill 759
1708-which the authorized fiduciary has expanded distributive
1709-discretion.
1710-701.1312  Decanting power under limited dis-
1711-tributive discretion.  (1)  In this section, “limited dis-
1712-tributive discretion” means a discretionary power of dis-
1713-tribution that is limited to an ascertainable standard or a
1714-reasonably definite standard.
1715-(2)  An authorized fiduciary that has limited distribu-
1716-tive discretion over the principal of the first trust for the
1717-benefit of one or more current beneficiaries may exercise
1718-the decanting power over the principal of the first trust.
1719-(3)  Under this section and subject to s. 701.1314, a
1720-2nd trust may be created or administered under the law
1721-of any jurisdiction.  Under this section, the 2nd trusts, in
1722-the aggregate, must grant each beneficiary of the first
1723-trust beneficial interests that are substantially similar to
1724-the beneficial interests of the beneficiary in the first trust.
1725-(3m)  Notwithstanding sub. (3), an authorized fidu-
1726-ciary exercising the decanting power under this section
1727-may grant to a beneficiary of the 2nd trust a testamentary
1728-power of appointment exercisable in favor of the credi-
1729-tors of the beneficiary’s estate, but only if the authorized
1730-fiduciary concludes the granting of such power will be
1731-unlikely to adversely affect the beneficial interest of the
1732-presumptive remainder beneficiaries of the first trust.
1733-(4)  A power to make a distribution under a 2nd trust
1734-for the benefit of a beneficiary who is an individual is
1735-substantially similar to a power under the first trust to
1736-make a distribution directly to the beneficiary.  A distri-
1737-bution is for the benefit of a beneficiary if any of the fol-
1738-lowing applies:
1739-(a)  The distribution is applied for the benefit of the
1740-beneficiary.
1741-(b)  The beneficiary is under a legal disability or the
1742-trustee reasonably believes the beneficiary is incapaci-
1743-tated, and the distribution is made as permitted under this
1744-chapter.
1745-(c)  The distribution is made as permitted under the
1746-terms of the first−trust instrument and the 2nd−trust
1747-instrument for the benefit of the beneficiary.
1748-(5)  If an authorized fiduciary has limited distributive
1749-discretion over part but not all of the principal of a first
1750-trust, the fiduciary may exercise the decanting power
1751-under this section over that part of the principal over
1752-which the authorized fiduciary has limited distributive
1753-discretion.
1754-701.1313  Trust for beneficiary with disability.  (1)
1755-In this section:
1756-(a)  “Beneficiary with a disability” means a benefi-
1757-ciary of a first trust who the special−needs fiduciary
1758-believes in good faith is an individual with a disability.
1759-(b)  “Special−needs fiduciary” means, with respect to
1760-a trust that has a beneficiary with a disability, any of the
1761-following:
1762-1.  A trustee or other fiduciary, other than a settlor, that
1763-has discretion to distribute part or all of the principal of
1764-a first trust to one or more current beneficiaries.
1765-2.  If no trustee or fiduciary has discretion under subd.
1766-1., a trustee or other fiduciary, other than a settlor, that has
1767-discretion to distribute part or all of the income of the first
1768-trust to one or more current beneficiaries.
1769-3.  If no trustee or fiduciary has discretion under
1770-subds. 1. and 2., a trustee or other fiduciary, other than a
1771-settlor, that is required to distribute part or all of the
1772-income or principal of the first trust to one or more cur-
1773-rent beneficiaries.
1774-(c)  “Special−needs trust” means a trust the trustee
1775-believes would not be considered a resource for purposes
1776-of determining whether an individual with a disability is
1777-eligible for the supplemental security income program or
1778-the medical assistance program.
1779-(2)  A special−needs fiduciary may exercise the
1780-decanting power under s. 701.1311 over the principal of
1781-a first trust as if the fiduciary had authority to distribute
1782-principal to a beneficiary with a disability subject to
1783-expanded distributive discretion if all of the following
1784-apply:
1785-(a)  A 2nd trust is a special−needs trust that benefits
1786-the beneficiary with a disability.
1787-(b)  The special−needs fiduciary determines that
1788-exercise of the decanting power will further the purposes
1789-of the first trust.
1790-(3)  In an exercise of the decanting power under this
1791-section, the following rules apply:
1792-(a)  Notwithstanding s. 701.1311 (3) (b), the interest
1793-in the 2nd trust of a beneficiary with a disability may do
1794-any of the following:
1795-1.  Be an account in a pooled trust for the benefit of
1796-the beneficiary with a disability described in 42 USC
1797-1396p (d) (4) (C) that includes the trust retention provi-
1798-sions permitted by 42 USC 1396p (d) (4) (C) (iv).
1799-2.  Contain payback provisions complying with reim-
1800-bursement requirements of Medicaid law under 42 USC
1801-1396p (d) (4) (A) or (C).
1802-(b)  Section 701.1311 (3) (c) does not apply to the
1803-interests of the beneficiary with a disability.
1804-(c)  Except as affected by any change to the interests
1805-of the beneficiary with a disability or by the effects on
1806-remainder beneficiaries of a transfer to a 2nd trust under
1807-par. (a), if the special needs fiduciary has limited distribu-
1808-tive discretion over the principal of the 2nd trust, or if
1809-there are 2 or more 2nd trusts, the 2nd trusts in the aggre-
1810-gate must grant each other beneficiary of the first trust
1811-beneficial interests in the 2nd trusts that are substantially
1812-similar to the beneficiary’s beneficial interests in the first
1813-trust.
1814-701.1314  Protection of charitable interest.  (1)  In
1815-this section:  − 18 −2023 Wisconsin Act 127  2023 Senate Bill 759
1816-(a) “Determinable charitable interest” means an
1817-interest that is all of the following:
1818-1.  A charitable interest.
1819-2.  Entitled to receive a mandatory distribution cur-
1820-rently, periodically, on the occurrence of a specified
1821-event, or after the passage of a specified time.
1822-3.  Unconditional or held solely for charitable pur-
1823-poses.
1824-(b)  “Unconditional” means not subject to the occur-
1825-rence of a specified event that is not certain to occur, other
1826-than a requirement in a trust instrument that a charitable
1827-organization be in existence or qualify under a particular
1828-provision of the Internal Revenue Code, on the date of the
1829-distribution, if the charitable organization meets the
1830-requirement on the date of determination.
1831-(2)  The attorney general may represent and bind a
1832-charitable interest only when the attorney general has the
1833-rights of a qualified beneficiary as provided in s.
1834-701.0110 (3).
1835-(3)  If a first trust contains a charitable interest, the
1836-2nd trust or trusts may not do any of the following:
1837-(a)  Diminish the charitable interest.
1838-(b)  Diminish the interest of an identified charitable
1839-organization that holds the charitable interest.
1840-(c)  Alter any charitable purpose stated in the first−
1841-trust instrument.
1842-(d)  Alter any condition or restriction related to the
1843-charitable interest.
1844-(3m)  Notwithstanding subs. (3) and (5), if the first
1845-trust is an account in a pooled trust described in 42 USC
1846-1396p (d) (4) (C), the 2nd trust may be an account in
1847-another pooled trust described in 42 USC 1396p (d) (4)
1848-(C) or a trust described in 42 USC 1396p (d) (4) (A)
1849-regardless of any of the following:
1850-(a)  Any effect on a charitable interest in property that
1851-is permitted to be retained in the first trust under 42 USC
1852-1396p (d) (4) (C) (iv).
1853-(b)  Any effect the trust retention and Medicaid reim-
1854-bursement provisions of the 2nd trust may have on a char-
1855-itable interest in the first trust.
1856-(c)  Any change in the identified charitable organiza-
1857-tion.
1858-(d)  Any change in the governing law or principal
1859-place of administration of the trust.
1860-(4)  If there are 2 or more 2nd trusts, the 2nd trusts
1861-shall be treated as one trust for purposes of determining
1862-whether the exercise of the decanting power diminishes
1863-the charitable interest or diminishes the interest of an
1864-identified charitable organization for purposes of sub.
1865-(3).
1866-(5)  If a first trust contains a determinable charitable
1867-interest, the 2nd trust or trusts that include a charitable
1868-interest pursuant to sub. (3) must be administered under
1869-the law of this state unless any of the following applies:
1870-(a)  The attorney general, after receiving notice under
1871-s. 701.1307, fails to object in a signed record delivered to
1872-the authorized fiduciary within the notice period.
1873-(b)  The attorney general consents in a signed record
1874-to the 2nd trust or trusts being administered under the law
1875-of another jurisdiction.
1876-(c)  The court approves the exercise of the decanting
1877-power.
1878-(d)  The identified charitable organization consents in
1879-a signed record delivered to the authorized fiduciary.
1880-(6)  This subchapter does not limit the powers and
1881-duties of the attorney general under the laws of this state
1882-other than this subchapter.
1883-701.1315  Trust limitation on decanting.  (1)  An
1884-authorized fiduciary may not exercise the decanting
1885-power to the extent the first−trust instrument expressly
1886-prohibits exercise of any of the following:
1887-(a)  The decanting power.
1888-(b)  A power granted by state law to the fiduciary to
1889-distribute part or all of the principal of the trust to another
1890-trust or to modify the trust.
1891-(2)  Exercise of the decanting power is subject to any
1892-restriction in the first−trust instrument that expressly
1893-applies to exercise of any of the following:
1894-(a)  The decanting power.
1895-(b)  A power granted by state law to a fiduciary to dis-
1896-tribute part or all of the principal of the trust to another
1897-trust or to modify the trust.
1898-(3)  A general prohibition of the amendment or revo-
1899-cation of a first trust, a spendthrift clause, or a clause
1900-restraining the voluntary or involuntary transfer of a ben-
1901-eficiary’s interest does not preclude exercise of the
1902-decanting power.
1903-(4)  Subject to subs. (1) and (2), an authorized fidu-
1904-ciary may exercise the decanting power under this sub-
1905-chapter even if the first−trust instrument permits the
1906-authorized fiduciary or another person to modify the
1907-first−trust instrument or to distribute part or all of the
1908-principal of the first trust to another trust.
1909-(5)  If a first−trust instrument contains an express
1910-restriction described in sub. (2), the provision must be
1911-included in the 2nd−trust instrument.
1912-701.1316  Change in compensation.  (1)  If a first−
1913-trust instrument specifies an authorized fiduciary’s com-
1914-pensation, the fiduciary may not exercise the decanting
1915-power to increase the fiduciary’s compensation above the
1916-specified compensation unless any of the following
1917-applies:
1918-(a)  All qualified beneficiaries of the 2nd trust consent
1919-to the increase in a signed record.
1920-(b)  The increase is approved by the court.
1921-(2)  If a first−trust instrument does not specify an
1922-authorized fiduciary’s compensation, the fiduciary may
1923-not exercise the decanting power to increase the fiducia-  − 19 − 2023 Wisconsin Act 127 2023 Senate Bill 759
1924-ry’s compensation above the compensation permitted by
1925-this chapter unless any of the following applies:
1926-(a)  All qualified beneficiaries of the 2nd trust consent
1927-to the increase in a signed record.
1928-(b)  The increase is approved by the court.
1929-(3)  A change in an authorized fiduciary’s compensa-
1930-tion that is incidental to other changes made by the exer-
1931-cise of the decanting power is not an increase in the fidu-
1932-ciary’s compensation for purposes of subs. (1) and (2).
1933-(4)  This section does not apply to a decanting from
1934-a first trust that is a pooled trust described in 42 USC
1935-1396p (d) (4) (C), or to a decanting to a 2nd trust that is
1936-a pooled trust described in 42 USC 1396p (d) (4) (C).
1937-701.1317  Relief from liability and indemnifica-
1938-tion.  (1)  Except as otherwise provided in this section, a
1939-2nd−trust instrument may not relieve an authorized fidu-
1940-ciary from liability for breach of trust to a greater extent
1941-than the first−trust instrument unless any of the following
1942-applies:
1943-(a)  All the qualified beneficiaries of the 2nd trust con-
1944-sent to the relief from liability in a signed record.
1945-(b)  The relief from liability is approved by the court.
1946-(2)  A 2nd−trust instrument may provide for indemni-
1947-fication of an authorized fiduciary of the first trust or
1948-another person acting in a fiduciary capacity under the
1949-first trust for any liability or claim that would have been
1950-payable from the first trust if the decanting power had not
1951-been exercised.
1952-(3)  Absent consent of all qualified beneficiaries or
1953-the approval of the court, the 2nd−trust instrument may
1954-not reduce the aggregate fiduciary liability of all fiducia-
1955-ries of the 2nd trust.
1956-(4) Subject to sub. (3), a 2nd−trust instrument may
1957-divide and reallocate fiduciary powers among fiducia-
1958-ries, including one or more trustees, directing parties,
1959-trust protectors, or other persons, and relieve a fiduciary
1960-from liability for an act or failure to act of another fidu-
1961-ciary as permitted by law of this state other than this sub-
1962-chapter.
1963-701.1318  Removal or replacement of authorized
1964-fiduciary.  (1)  An authorized fiduciary may not exercise
1965-the decanting power to modify a provision in a first−trust
1966-instrument granting another person power to remove or
1967-replace the fiduciary unless any of the following applies:
1968-(a)  The person holding the power consents to the
1969-modification in a signed record and the modification
1970-applies only to the person.
1971-(b)  The person holding the power and the qualified
1972-beneficiaries of the 2nd trust consent to the modification
1973-in a signed record and the modification grants a substan-
1974-tially similar power to another person.
1975-(c)  The court approves the modification and the mod-
1976-ification grants a substantially similar power to another
1977-person.
1978-(2)  This section does not apply to a decanting from
1979-a first trust that is a pooled trust described in 42 USC
1980-1396p (d) (4) (C), or to a decanting to a 2nd trust that is
1981-a pooled trust described in 42 USC 1396p (d) (4) (C).
1982-701.1319  Tax−related limitations.  (1)  In this sec-
1983-tion:
1984-(a)  “Grantor trust” means a trust as to which a settlor
1985-of a first trust is considered the owner under sections 671
1986-to 677 of the Internal Revenue Code or section 679 of the
1987-Internal Revenue Code.
1988-(b)  “Nongrantor trust” means a trust that is not a
1989-grantor trust.
1990-(c)  “Qualified benefits property” means property
1991-subject to the minimum distribution requirements of sec-
1992-tion 401 (a) (9) of the Internal Revenue Code, and any
1993-applicable regulations, or to any similar requirements
1994-that refer to section 401 (a) (9) of the Internal Revenue
1995-Code or the regulations.
1996-(2)  An exercise of the decanting power is subject to
1997-the following limitations:
1998-(a)  If a first trust contains property that qualified, or
1999-would have qualified but for provisions of this sub-
2000-chapter other than this section, for a marital deduction for
2001-purposes of the gift or estate tax under the Internal Rev-
2002-enue Code or a state gift, estate, or inheritance tax, the
2003-2nd−trust instrument must not include or omit any term
2004-that, if included in or omitted from the trust instrument
2005-for the trust to which the property was transferred, would
2006-have prevented the transfer from qualifying for the
2007-deduction, or would have reduced the amount of the
2008-deduction, under the same provisions of the Internal Rev-
2009-enue Code or state law under which the transfer qualified.
2010-(b)  If the first trust contains property that qualified,
2011-or would have qualified but for provisions of this sub-
2012-chapter other than this section, for a charitable deduction
2013-for purposes of the income, gift, or estate tax under the
2014-Internal Revenue Code or a state income, gift, estate, or
2015-inheritance tax, the 2nd−trust instrument must not
2016-include or omit any term that, if included in or omitted
2017-from the trust instrument for the trust to which the prop-
2018-erty was transferred, would have prevented the transfer
2019-from qualifying for the deduction, or would have reduced
2020-the amount of the deduction, under the same provisions
2021-of the Internal Revenue Code or state law under which the
2022-transfer qualified.
2023-(c)  If the first trust contains property that qualified,
2024-or would have qualified but for provisions of this sub-
2025-chapter other than this section, for the exclusion from the
2026-gift tax described in section 2503 (b) of the Internal Rev-
2027-enue Code, the 2nd−trust instrument must not include or
2028-omit a term that, if included in or omitted from the trust
2029-instrument for the trust to which the property was trans-
2030-ferred, would have prevented the transfer from qualify-
2031-ing under section 2503 (b) of the Internal Revenue Code.
2032-If the first trust contains property that qualified, or would
2033-have qualified but for provisions of this subchapter other
2034-than this section, for the exclusion from the gift tax
2035-described in the Internal Revenue Code section 2503 (b)  − 20 −2023 Wisconsin Act 127  2023 Senate Bill 759
2036-by application of section 2503 (c) of the Internal Revenue
2037-Code, the 2nd−trust instrument must not include or omit
2038-a term that, if included or omitted from the trust instru-
2039-ment for the trust to which the property was transferred,
2040-would have prevented the transfer from qualifying under
2041-section 2503 (c) of the Internal Revenue Code.
2042-(d)  If the property of the first trust includes shares of
2043-stock in an S corporation, as defined in section 1361 of
2044-the Internal Revenue Code, and the first trust is, or but for
2045-provisions of this subchapter other than this section
2046-would be, a permitted shareholder under any provision of
2047-section 1361 of the Internal Revenue Code, an authorized
2048-fiduciary may exercise the power with respect to part or
2049-all of the S−corporation stock only if any 2nd trust receiv-
2050-ing the stock is a permitted shareholder under section
2051-1361 (c) (2) of the Internal Revenue Code.  If the property
2052-of the first trust includes shares of stock in an S corpora-
2053-tion and the first trust is, or but for provisions of this sub-
2054-chapter other than this section would be, a qualified sub-
2055-chapter S trust within the meaning of section 1361 (d) of
2056-the Internal Revenue Code, the 2nd−trust instrument
2057-must not include or omit a term that prevents the 2nd trust
2058-from qualifying as a qualified subchapter S trust.
2059-(e) If the first trust contains property that qualified, or
2060-would have qualified but for provisions of this sub-
2061-chapter other than this section, for a zero inclusion ratio
2062-for purposes of the generation−skipping transfer tax
2063-under section 2642 (c) of the Internal Revenue Code, the
2064-2nd−trust instrument must not include or omit a term that,
2065-if included in or omitted from the first−trust instrument,
2066-would have prevented the transfer to the first trust from
2067-qualifying for a zero inclusion ratio under section 2642
2068-(c) of the Internal Revenue Code.
2069-(f)  If the first trust is directly or indirectly the benefi-
2070-ciary of qualified benefits property, the 2nd−trust instru-
2071-ment may not include or omit any term that, if included
2072-in or omitted from the first−trust instrument, would have
2073-increased the minimum distributions required with
2074-respect to the qualified benefits property under section
2075-401 (a) (9) of the Internal Revenue Code and any applica-
2076-ble regulations, or any similar requirements that refer to
2077-section 401 (a) (9) of the Internal Revenue Code or the
2078-regulations.  If an attempted exercise of the decanting
2079-power violates this paragraph, the trustee is deemed to
2080-have held the qualified benefits property and any rein-
2081-vested distributions of the property as a separate share
2082-from the date of the exercise of the power and s. 701.1322
2083-applies to the separate share.
2084-(g)  If the first trust qualifies as a grantor trust because
2085-of the application of section 672 (f) (2) (A) of the Internal
2086-Revenue Code, the 2nd trust may not include or omit a
2087-term that, if included in or omitted from the first−trust
2088-instrument, would have prevented the first trust from
2089-qualifying under section 672 (f) (2) (A) of the Internal
2090-Revenue Code.
2091-(h)  In this paragraph, “tax benefit” means a federal
2092-or state tax deduction, exemption, exclusion, or other
2093-benefit not otherwise listed in this section, except for a
2094-benefit arising from being a grantor trust.  Subject to par.
2095-(i), a 2nd−trust instrument may not include or omit a term
2096-that, if included in or omitted from the first−trust instru-
2097-ment, would have prevented qualification for a tax bene-
2098-fit if all of the following apply:
2099-1.  The first−trust instrument expressly indicates an
2100-intent to qualify for the benefit or the first−trust instru-
2101-ment clearly is designed to enable the first trust to qualify
2102-for the benefit.
2103-2.  The transfer of property held by the first trust or the
2104-first trust qualified, or but for provisions of this sub-
2105-chapter other than this section, would have qualified for
2106-the tax benefit.
2107-(i)  Subject to par. (d), all of the following apply:
2108-1.  Except as otherwise provided in par. (g), the 2nd
2109-trust may be a nongrantor trust, even if the first trust is a
2110-grantor trust.
2111-2.  Except as otherwise provided in par. (j), the 2nd
2112-trust may be a grantor trust, even if the first trust is a non-
2113-grantor trust.
2114-(j)  An authorized fiduciary may not exercise the
2115-decanting power if a settlor objects in a signed record
2116-delivered to the fiduciary within the notice period and
2117-any of the following applies:
2118-1.  The first trust and a 2nd trust are both grantor
2119-trusts, in whole or in part, the first trust grants the settlor
2120-or another person the power to cause the first trust to
2121-cease to be a grantor trust, and the 2nd trust does not grant
2122-an equivalent power to the settlor or other person.
2123-2.  The first trust is a nongrantor trust and a 2nd trust
2124-is a grantor trust, in whole or in part, with respect to the
2125-settlor, unless any of the following applies:
2126-a.  The settlor has the power at all times to cause the
2127-2nd trust to cease to be a grantor trust.
2128-b.  The first−trust instrument contains a provision
2129-granting the settlor or another person a power that would
2130-cause the first trust to cease to be a grantor trust and the
2131-2nd−trust instrument contains the same provision.
2132-701.1320  Duration of 2nd trust.  (1)  Subject to sub.
2133-(2), a 2nd trust may have a duration that is the same as or
2134-different from the duration of the first trust.
2135-(2)  To the extent that property of a 2nd trust is attrib-
2136-utable to property of the first trust, the property of the 2nd
2137-trust is subject to any rules governing maximum perpetu-
2138-ity, accumulation, or suspension of the power of aliena-
2139-tion that apply to property of the first trust.
2140-701.1321  Need to distribute not required.  An
2141-authorized fiduciary may exercise the decanting power
2142-whether or not under the first trust’s discretionary distri-
2143-bution standard the fiduciary would have made or could
2144-have been compelled to make a discretionary distribution
2145-of principal at the time of the exercise.  − 21 − 2023 Wisconsin Act 127 2023 Senate Bill 759
2146-701.1322  Saving provision. (1)  If exercise of the
2147-decanting power would be effective under this sub-
2148-chapter except that the 2nd−trust instrument in part does
2149-not comply with this subchapter, the exercise of the
2150-power is effective and the following rules apply with
2151-respect to the principal of the 2nd trust attributable to the
2152-exercise of the power:
2153-(a)  A provision in the 2nd−trust instrument that is not
2154-permitted under this subchapter is void to the extent nec-
2155-essary to comply with this subchapter.
2156-(b)  A provision required by this subchapter to be in
2157-the 2nd−trust instrument that is not contained in the
2158-instrument is deemed to be included in the instrument to
2159-the extent necessary to comply with this subchapter.
2160-(2)  If a trustee or other fiduciary of a 2nd trust deter-
2161-mines that sub. (1) applies to a prior exercise of the
2162-decanting power, the fiduciary shall take corrective
2163-action consistent with the fiduciary’s duties.
2164-701.1323  Trust for care of animal. (1)  The decant-
2165-ing power may be exercised over an animal trust that has
2166-an animal protector to the extent the trust could be
2167-decanted under this subchapter if each animal that bene-
2168-fits from the trust were an individual, if the animal protec-
2169-tor consents in a signed record to the exercise of the
2170-power.
2171-(2)  An animal protector has the rights under this sub-
2172-chapter of a qualified beneficiary.
2173-(3)  Notwithstanding any other provision of this sub-
2174-chapter, if a first trust is an animal trust, in an exercise of
2175-the decanting power, the 2nd trust must provide that trust
2176-property may be applied only to its intended purpose for
2177-the period the first trust benefitted the animal.
2178-701.1324  Terms of 2nd trust.  A reference in this
2179-chapter to a trust instrument or terms of the trust includes
2180-a 2nd−trust instrument and the terms of the 2nd trust.
2181-701.1325  Settlor. (1)  For purposes of law of this
2182-state other than this subchapter and subject to sub. (2), a
2183-settlor of a first trust is deemed to be the settlor of the 2nd
2184-trust with respect to the portion of the principal of the first
2185-trust subject to the exercise of the decanting power.
2186-(2)  In determining settlor intent with respect to a 2nd
2187-trust, the intent of a settlor of the first trust, a settlor of the
2188-2nd trust, and the authorized fiduciary may be consid-
2189-ered.
2190-701.1326  Later−discovered property. (1)  Except
2191-as otherwise provided in sub. (3), if exercise of the
2192-decanting power was intended to distribute all the princi-
2193-pal of the first trust to one or more 2nd trusts, later−dis-
2194-covered property belonging to the first trust and property
2195-paid to or acquired by the first trust after the exercise of
2196-the power is part of the trust estate of the 2nd trust or
2197-trusts.
2198-(2)  Except as otherwise provided in sub. (3), if exer-
2199-cise of the decanting power was intended to distribute
2200-less than all the principal of the first trust to one or more
2201-2nd trusts, later−discovered property belonging to the
2202-first trust or property paid to or acquired by the first trust
2203-after exercise of the power remains part of the trust estate
2204-of the first trust.
2205-(3)  An authorized fiduciary may provide in an exer-
2206-cise of the decanting power or by the terms of a 2nd trust
2207-for disposition of later−discovered property belonging to
2208-the first trust or property paid to or acquired by the first
2209-trust after exercise of the power.
2210-701.1327  Obligations.  A debt, liability, or other
2211-obligation enforceable against property of a first trust is
2212-enforceable to the same extent against the property when
2213-held by the 2nd trust after exercise of the decanting
2214-power.
2215-SECTION 118.  Chapter 702 of the statutes is repealed
2216-and recreated to read:
2217-CHAPTER 702
2218-UNIFORM POWERS OF APPOINTMENT
2219-ACT
2220-SUBCHAPTER I
2221-GENERAL PROVISIONS
2222-702.101  Short title.  This act may be cited as the Uni-
2223-form Powers of Appointment Act.
2224-702.102  Definitions.  In this chapter:
2225-(1)  “Appointee” means a person to which a power-
2226-holder makes an appointment of appointive property.
2227-(2)  “Appointive property” means the property or
2228-property interest subject to a power of appointment.
2229-(3)  “Blanket−exercise clause” means a clause in an
2230-instrument that exercises a power of appointment and is
2231-not a specific−exercise clause.  “Blanket−exercise
2232-clause” includes a clause that does any of the following:
2233-(a)  Expressly uses the words “any power” in exercis-
2234-ing a power of appointment the powerholder has.
2235-(b)  Expressly uses the words “any property” in
2236-appointing any property over which a powerholder has a
2237-power of appointment.
2238-(c)  Disposes of all property subject to disposition by
2239-the powerholder.
2240-(4)  “Broad limited power of appointment” means a
2241-power of appointment exercisable in favor of anyone
2242-other than the powerholder, the powerholder’s estate, the
2243-powerholder’s creditors, or the creditors of the power-
2244-holder’s estate.
2245-(5)  “Donor” means a person that creates a power of
2246-appointment.
2247-(6)  “Exclusionary power of appointment” means a
2248-power of appointment exercisable in favor of one or more
2249-permissible appointees to the exclusion of the other per-
2250-missible appointees.
2251-(7)  “General power of appointment” means a power
2252-of appointment exercisable in favor of the powerholder,
2253-the powerholder’s estate, a creditor of the powerholder,
2254-or a creditor of the powerholder’s estate.
2255-(8)  “Gift−in−default clause” means a clause that
2256-identifies a taker in default of appointment.  − 22 −2023 Wisconsin Act 127  2023 Senate Bill 759
2257-(9)  “Impermissible appointee” means a person that
2258-is not a permissible appointee.
2259-(10)  “Instrument” means a writing.
2260-(11)  “Nongeneral power of appointment” means a
2261-power of appointment that is not a general power of
2262-appointment.
2263-(12)  “Permissible appointee” means a person in
2264-whose favor a powerholder may exercise a power of
2265-appointment.
2266-(13)  “Person” means an individual, estate, trust, busi-
2267-ness or nonprofit entity, public corporation, government
2268-or governmental subdivision, agency, or instrumentality,
2269-or other legal entity.
2270-(14)  “Powerholder” means a person in which a donor
2271-creates a power of appointment.
2272-(15)  “Power of appointment” means a power that
2273-enables a powerholder acting in a nonfiduciary capacity
2274-to designate a recipient of an ownership interest in or
2275-another power of appointment over the appointive prop-
2276-erty.  “Power of appointment” does not include a power
2277-of attorney.
2278-(16)  “Presently exercisable power of appointment”
2279-means a power of appointment exercisable by the power-
2280-holder at the relevant time.  “Presently exercisable power
2281-of appointment” includes a power of appointment that is
2282-not exercisable until the occurrence of a specified event,
2283-the satisfaction of an ascertainable standard, or the pas-
2284-sage of a specified time, and only after the occurrence of
2285-the specified event, the satisfaction of the ascertainable
2286-standard, or the passage of the specified time, but does
2287-not include a power exercisable only at the powerhold-
2288-er’s death.
2289-(17) “Specific−exercise clause” means a clause in an
2290-instrument that specifically refers to and exercises a par-
2291-ticular power of appointment.
2292-(18)  “Taker in default of appointment” means a per-
2293-son that takes all or part of the appointive property to the
2294-extent the powerholder does not effectively exercise the
2295-power of appointment.
2296-(19) “Terms of the instrument” means the manifesta-
2297-tion of the intent of the maker of the instrument regarding
2298-the instrument’s provisions as expressed in the instru-
2299-ment or as may be established by other evidence that
2300-would be admissible in a legal proceeding.
2301-702.103  Governing law.  Unless the terms of the
2302-instrument creating a power of appointment manifest a
2303-contrary intent, the creation, revocation, or amendment
2304-of a power of appointment is governed by the law of the
2305-donor’s domicile at the relevant time.  The exercise,
2306-release, or disclaimer of a power of appointment, or the
2307-revocation or amendment of an exercise, release, or dis-
2308-claimer of a power of appointment is governed by the law
2309-of the powerholder’s domicile at the relevant time.
2310-702.104  Common law and principles of equity.
2311-The common law and principles of equity supplement
2312-this chapter, except to the extent modified by this chapter
2313-or any other state law.
2314-702.105  Default rules.  The terms of a governing
2315-instrument prevail over any provision of this subchapter.
2316-SUBCHAPTER II
2317-CREATION, REVOCATION, AND AMEND-
2318-MENT
2319-OF POWER OF APPOINTMENT
2320-702.201  Creation of power of appointment.  (1)  A
2321-power of appointment is created only if the instrument
2322-creating the power satisfies all of the following:
2323-(a)  The instrument is valid under applicable law.
2324-(b)  Except as provided in sub. (2), the instrument
2325-governs the disposition of the appointive property.
2326-(c)  The terms of the instrument manifest the donor’s
2327-intent to create in a powerholder a power of appointment
2328-over the appointive property exercisable in favor of a per-
2329-missible appointee.
2330-(2)  Subsection (1) (b) does not apply to a power of
2331-appointment that is created by the exercise of a power of
2332-appointment.
2333-(3)  A power of appointment may not be created in a
2334-deceased individual.
2335-(4)  A power of appointment may be created in an
2336-unborn or unascertained powerholder.
2337-702.202  Nontransferability.  A powerholder may
2338-not transfer a power of appointment.  If a powerholder
2339-dies without exercising or releasing a power of appoint-
2340-ment, the power lapses.
2341-702.203  Presumption of unlimited authority.  Sub-
2342-ject to ss. 702.204 and 702.205, and unless the terms of
2343-the instrument creating a power of appointment manifest
2344-a contrary intent, a power of appointment is all of the fol-
2345-lowing:
2346-(1)  A presently exercisable power of appointment.
2347-(2)  An exclusionary power of appointment.
2348-(3)  A general power of appointment.
2349-702.204  Exception to presumption of unlimited
2350-authority.  Unless the terms of the instrument creating a
2351-power of appointment manifest a contrary intent, the
2352-power is a nongeneral power of appointment if all of the
2353-following apply:
2354-(1)  The power is exercisable only at the powerhold-
2355-er’s death.
2356-(2)  The permissible appointees of the power are a
2357-defined and limited class that does not include the power-
2358-holder’s estate, the powerholder’s creditors, or the credi-
2359-tors of the powerholder’s estate.
2360-702.205  Rules of classification.  (1) In this section,
2361-“adverse party” means a person with a substantial benefi-
2362-cial interest in appointive property that would be affected
2363-adversely by a powerholder’s exercise or nonexercise of
2364-a power of appointment in favor of the powerholder, the
2365-powerholder’s estate, a creditor of the powerholder, or a
2366-creditor of the powerholder’s estate.  − 23 − 2023 Wisconsin Act 127 2023 Senate Bill 759
2367-(2)  If a powerholder may exercise a power of
2368-appointment only with the consent or joinder of an
2369-adverse party, the power is a nongeneral power of
2370-appointment.
2371-(3)  If the permissible appointees of a power of
2372-appointment are not defined and limited, the power is an
2373-exclusionary power of appointment.
2374-702.206  Power to revoke or amend.  A donor may
2375-revoke or amend a power of appointment only to the
2376-extent that any of the following applies:
2377-(1)  The instrument creating the power is revocable by
2378-the donor.
2379-(2)  The donor reserves a power of revocation or
2380-amendment over the power of appointment in the instru-
2381-ment.
2382-SUBCHAPTER III
2383-EXERCISE OF POWER OF APPOINTMENT
2384-702.301 Requisites for exercise of power of
2385-appointment.  (1) (a) A power of appointment is exer-
2386-cised only if all of the following apply:
2387-1.  The instrument exercising the power is valid under
2388-applicable law.
2389-2.  The terms of the instrument exercising the power
2390-do all of the following:
2391-a.  Manifest the powerholder’s intent to exercise the
2392-power.
2393-b.  Subject to s. 702.304, satisfy the requirements of
2394-exercise, if any, imposed by the donor.
2395-(b)  A power of appointment is exercised under par.
2396-(a) only to the extent the appointment is a permissible
2397-exercise of the power.
2398-(2) If the donor requires the consent of the donor or
2399-any other person for the exercise of a power of appoint-
2400-ment, the consent must be expressed in the instrument
2401-exercising the power of appointment or in a separate writ-
2402-ten instrument, signed in either case by the persons whose
2403-consent is required.  If any person whose consent is
2404-required dies or becomes legally incapable of consenting,
2405-the power of appointment may be exercised by the pow-
2406-erholder without the consent of that person unless the
2407-terms of the instrument creating the power of appoint-
2408-ment manifest a contrary intent.
2409-(3) (a)  Except as provided in par. (b) and unless the
2410-terms of the instrument creating a power of appointment
2411-manifest a contrary intent, if a power of appointment is
2412-vested in 2 or more persons, the joint powerholders may
2413-only exercise the power of appointment unanimously.
2414-(b)  If a power of appointment is vested in 2 or more
2415-persons and one or more of the joint powerholders die,
2416-become incapable of exercising the power of appoint-
2417-ment, or renounce, release, or disclaim the power of
2418-appointment, the power of appointment may be exercised
2419-unanimously by the other powerholders.
2420-702.302  Intent to exercise: determining intent
2421-from residuary clause.  (1)  In this section:
2422-(a) “Residuary clause” does not include a residuary
2423-clause containing a blanket−exercise clause or a specific−
2424-exercise clause.
2425-(b) “Will” includes a codicil and a testamentary
2426-instrument that revises another will.
2427-(2)  A residuary clause in a powerholder’s will, or a
2428-comparable clause in the powerholder’s revocable trust,
2429-manifests the powerholder’s intent to exercise a power of
2430-appointment only if all of the following apply:
2431-(a)  The terms of the instrument containing the resid-
2432-uary clause do not manifest a contrary intent.
2433-(b)  The power of appointment is a general power of
2434-appointment exercisable in favor of the powerholder’s
2435-estate.
2436-(c)  There is no gift−in−default clause in the instru-
2437-ment creating the power of appointment or the gift−in−
2438-default clause in the instrument creating the power of
2439-appointment is ineffective.
2440-(d)  The powerholder did not release the power of
2441-appointment.
2442-702.303  Intent to exercise: after−acquired power.
2443-Unless the terms of the instrument exercising a power of
2444-appointment manifest a contrary intent, all of the follow-
2445-ing apply:
2446-(1)  Except as otherwise provided in sub. (2), a blan-
2447-ket−exercise clause extends to a power of appointment
2448-acquired by the powerholder after executing the instru-
2449-ment containing the clause.
2450-(2)  If the powerholder is also the donor of the power
2451-of appointment, a blanket−exercise clause does not
2452-extend to the power of appointment unless there is not a
2453-gift−in−default clause or the gift−in−default clause is
2454-ineffective.
2455-702.304  Substantial compliance with donor−
2456-imposed formal requirement.  A powerholder’s sub-
2457-stantial compliance with a formal requirement of
2458-appointment imposed by the donor, including a require-
2459-ment that the instrument exercising the power of appoint-
2460-ment make reference or specific reference to the power,
2461-is sufficient if all of the following apply:
2462-(1)  The powerholder knows of and intends to exer-
2463-cise the power of appointment.
2464-(2)  The powerholder’s manner of attempted exercise
2465-of the power of appointment does not impair a material
2466-purpose of the donor in imposing the requirement.
2467-702.305  Permissible appointment.  (1)  A power-
2468-holder of a general power of appointment that permits
2469-appointment to the powerholder or the powerholder’s
2470-estate may make any appointment, including an appoint-
2471-ment in trust or creating a new power of appointment, that
2472-the powerholder could make in disposing of the power-
2473-holder’s own property.
2474-(2)  A powerholder of a general power of appointment
2475-that permits appointment only to the creditors of the pow-  − 24 −2023 Wisconsin Act 127  2023 Senate Bill 759
2476-erholder or the creditors of the powerholder’s estate may
2477-appoint only to those creditors.
2478-(3)  Unless the terms of the instrument creating a
2479-power of appointment manifest a contrary intent, the
2480-powerholder of a nongeneral power of appointment may
2481-do any of the following:
2482-(a)  Make an appointment in any form, including an
2483-appointment in trust, in favor of a permissible appointee.
2484-(b)  Create a general or nongeneral power of appoint-
2485-ment in a permissible appointee that may be exercisable
2486-in favor of persons other than permissible appointees of
2487-the original nongeneral power of appointment.
2488-(c)  Create a nongeneral power of appointment in any
2489-person to appoint to one or more of the permissible
2490-appointees of the original nongeneral power of appoint-
2491-ment.
2492-702.306  Appointment to a deceased appointee.
2493-Subject to s. 854.06, an exercise of a power of appoint-
2494-ment is ineffective to the extent it is in favor of a deceased
2495-appointee.
2496-702.307  Impermissible appointment.  (1)  Except
2497-as otherwise provided in s. 702.306, an exercise of a
2498-power of appointment is ineffective to the extent it is in
2499-favor of an impermissible appointee.
2500-(2)  An exercise of a power of appointment in favor
2501-of a permissible appointee is ineffective to the extent the
2502-appointment is a fraud on the power.
2503-702.308  Selective allocation doctrine.  If a power-
2504-holder exercises a power of appointment in a disposition
2505-that also disposes of property the powerholder owns, the
2506-owned property and the appointive property must be allo-
2507-cated in the permissible manner that best carries out the
2508-powerholder’s intent.
2509-702.309  Capture doctrine: disposition of ineffec-
2510-tively appointed property under general power.  To
2511-the extent a powerholder of a general power of appoint-
2512-ment, other than a power to withdraw property from,
2513-revoke, or amend a trust, makes an ineffective appoint-
2514-ment, all of the following apply:
2515-(1)  The gift−in−default clause controls the disposi-
2516-tion of the ineffectively appointed property.
2517-(2) (a)  If there is no gift−in−default clause or to the
2518-extent the gift−in−default clause is ineffective, the inef-
2519-fectively appointed property passes to one of the follow-
2520-ing:
2521-1.  If the powerholder is a permissible appointee and
2522-living, the powerholder.
2523-2.  If the powerholder is an impermissible appointee
2524-or deceased, the powerholder’s estate if the estate is a per-
2525-missible appointee.
2526-(b)  If there is no taker under par. (a), the ineffectively
2527-appointed property passes under a reversionary interest
2528-to the donor or the donor’s transferee or successor in
2529-interest.
2530-702.310  Disposition of unappointed property
2531-under released or unexercised general power.  To the
2532-extent a powerholder releases or fails to exercise a gen-
2533-eral power of appointment other than a power to with-
2534-draw property from, revoke, or amend a trust, all of the
2535-following apply:
2536-(1)  The gift−in−default clause controls the disposi-
2537-tion of the unappointed property.
2538-(2) (a)  If there is no gift−in−default clause or to the
2539-extent the gift−in−default clause is ineffective, except as
2540-otherwise provided in par. (b), the unappointed property
2541-passes to any of the following:
2542-1.  If the powerholder is a permissible appointee and
2543-living, the powerholder.
2544-2.  If the powerholder is an impermissible appointee
2545-or deceased, the powerholder’s estate if the estate is a per-
2546-missible appointee.
2547-(b)  To the extent the powerholder released the power,
2548-or if there is no taker under par. (a), the unappointed prop-
2549-erty passes under a reversionary interest to the donor or
2550-the donor’s transferee or successor in interest.
2551-702.311 Disposition of unappointed property
2552-under released or unexercised nongeneral power of
2553-appointment.  To the extent a powerholder releases,
2554-ineffectively exercises, or fails to exercise a nongeneral
2555-power of appointment, all of the following apply:
2556-(1)  The gift−in−default clause controls the disposi-
2557-tion of the unappointed property.
2558-(2) (a)  If there is no gift−in−default clause or to the
2559-extent the gift−in−default clause is ineffective, the unap-
2560-pointed property passes to the permissible appointees if
2561-all of the following apply:
2562-1.  The permissible appointees are defined and lim-
2563-ited.
2564-2.  The terms of the instrument creating the power do
2565-not manifest a contrary intent.
2566-(b)  If there is no taker under par. (a), the unappointed
2567-property passes under a reversionary interest to the donor
2568-or the donor’s transferee or successor in interest.
2569-702.312  Disposition of unappointed property if
2570-partial appointment to taker in default.  Unless the
2571-terms of an instrument creating or exercising a power of
2572-appointment manifest a contrary intent, if the power-
2573-holder makes a valid partial appointment to a taker in
2574-default of appointment, the taker in default of appoint-
2575-ment may share fully in unappointed property.
2576-702.313  Appointment to taker in default.  If a pow-
2577-erholder makes an appointment to a taker in default of
2578-appointment and the appointee would have taken the
2579-property under a gift−in−default clause had the property
2580-not been appointed, the power of appointment is consid-
2581-ered not to have been exercised and the appointee takes
2582-under the gift−in−default clause.
2583-702.314  Powerholder’s authority to revoke or
2584-amend exercise.  A powerholder may revoke or amend
2585-an exercise of a power of appointment only to the extent
2586-that any of the following applies:  − 25 − 2023 Wisconsin Act 127 2023 Senate Bill 759
2587-(1)  The powerholder reserves a power of revocation
2588-or amendment in the instrument exercising the power of
2589-appointment and, if the power is a nongeneral power of
2590-appointment, the terms of the instrument creating the
2591-power of appointment do not prohibit the reservation.
2592-(2)  The terms of the instrument creating the power of
2593-appointment provide that the exercise of the power of
2594-appointment is revocable or amendable.
2595-702.315  Presumption of nonexercise of a power of
2596-appointment.  (1)  A personal representative, trustee, or
2597-other fiduciary who holds property subject to a power of
2598-appointment may administer that property as if the power
2599-of appointment was not exercised if the personal repre-
2600-sentative, trustee, or other fiduciary has no notice of the
2601-existence of any of the following within 6 months after
2602-the death of the powerholder:
2603-(a)  A document purporting to be a will of the power-
2604-holder if the power of appointment is exercised by the
2605-will.
2606-(b)  Other documentation of the powerholder purport-
2607-ing to exercise the power of appointment if the power of
2608-appointment is exercisable other than by a will.
2609-(2)  A personal representative, trustee, or other fidu-
2610-ciary who acts in good faith is not liable to any person for
2611-administering property as if a power of appointment was
2612-not exercised as provided in sub. (1).
2613-SUBCHAPTER IV
2614-DISCLAIMER OR RELEASE; CONTRACT
2615-TO APPOINT OR NOT TO APPOINT
2616-702.401  Disclaimer.  (1)  A powerholder may dis-
2617-claim all or part of a power of appointment as provided
2618-under ss. 700.27 and 854.13.
2619-(2)  A permissible appointee, appointee, or taker in
2620-default of appointment may disclaim all or part of an
2621-interest in appointive property, as provided under ss.
2622-700.27 and 854.13.
2623-702.402  Authority to release.  A powerholder may
2624-release a power of appointment, in whole or in part,
2625-except to the extent the terms of the instrument creating
2626-the power prevent the release.
2627-702.403  Method of release.  A powerholder of a
2628-releasable power of appointment may release the power
2629-in whole or in part by any of the following methods:
2630-(1)  Substantial compliance with a method provided
2631-in the terms of the instrument creating the power.
2632-(2)  If the terms of the instrument creating the power
2633-do not provide a method, a writing that manifests the
2634-powerholder’s intent by clear and convincing evidence.
2635-702.404  Revocation of amendment of release.  A
2636-powerholder may revoke or amend a release of a power
2637-of appointment only to the extent that any of the follow-
2638-ing applies:
2639-(1)  The instrument of release is revocable by the
2640-powerholder.
2641-(2)  The powerholder reserves a power of revocation
2642-or amendment in the instrument of release.
2643-702.405  Power to contract: presently exercisable
2644-power of appointment.  A powerholder of a presently
2645-exercisable power of appointment may contract to do any
2646-of the following:
2647-(1)  Not to exercise the power.
2648-(2)  To exercise the power if the contract when made
2649-does not confer a benefit on an impermissible appointee.
2650-702.406  Power to contract: power of appointment
2651-not presently exercisable.  A powerholder of a power of
2652-appointment that is not presently exercisable may con-
2653-tract to exercise or not to exercise the power only if all of
2654-the following apply:
2655-(1)  The powerholder is also the donor of the power.
2656-(2)  The powerholder reserved the power in a revoca-
2657-ble trust.
2658-702.407  Remedy for breach of contract to appoint
2659-or not to appoint.  The remedy for a powerholder’s
2660-breach of a contract to appoint or not to appoint appoint-
2661-ive property is limited to damages payable out of the
2662-appointive property or, if appropriate, specific perfor-
2663-mance of the contract.
2664-SUBCHAPTER V
2665-RIGHTS OF POWERHOLDER’S CREDIT ORS
2666-IN APPOINTIVE PROPERTY
2667-702.501 Creditor claim: general power created by
2668-powerholder.  (1)  In this section, “power of appointment
2669-created by the powerholder” includes a power of appoint-
2670-ment created in a transfer by another person to the extent
2671-the powerholder contributed value to the transfer.
2672-(2)  Appointive property subject to a general power of
2673-appointment created by a powerholder is subject to a
2674-claim of a creditor of the powerholder or of the power-
2675-holder’s estate to the extent provided in ch. 242 and any
2676-other applicable law relating to fraudulent conveyances.
2677-(3)  Subject to sub. (2), appointive property subject to
2678-a general power of appointment created by a powerholder
2679-is not subject to a claim of a creditor of the powerholder
2680-or the powerholder’s estate to the extent the powerholder
2681-irrevocably appointed the property in favor of a person
2682-other than the powerholder or the powerholder’s estate.
2683-(4)  Subject to subs. (2) and (3), and notwithstanding
2684-the presence of a spendthrift provision or whether the
2685-claim arose before or after the creation of the power of
2686-appointment, appointive property subject to a general
2687-power of appointment created by a powerholder is sub-
2688-ject to a claim of a creditor of any of the following:
2689-(a)  If the power of appointment is a presently exercis-
2690-able power of appointment, the powerholder, to the same
2691-extent as if the powerholder owned the appointive prop-
2692-erty.
2693-(b)  If the power of appointment is exercisable at the
2694-powerholder’s death, the powerholder’s estate, to the
2695-extent the estate is insufficient to satisfy the claim and
2696-subject to the right of a decedent to direct the source from
2697-which liabilities are paid.  − 26 −2023 Wisconsin Act 127  2023 Senate Bill 759
2698-702.502  Creditor claim: general power not cre-
2699-ated by powerholder.  (1)  Except as otherwise provided
2700-in sub. (2), appointive property subject to a general power
2701-of appointment created by a person other than the power-
2702-holder is subject to a claim of a creditor of any of the fol-
2703-lowing:
2704-(a)  If the power of appointment is a presently exercis-
2705-able power of appointment, the powerholder to the extent
2706-the powerholder’s property is insufficient.
2707-(b)  If the power of appointment is exercisable at the
2708-powerholder’s death, the powerholder’s estate or revoca-
2709-ble trust, subject to the right of a decedent to direct the
2710-source from which liabilities are paid, but only to the
2711-extent of the powerholder’s exercise of that general
2712-power of appointment and only to the extent that the
2713-claim of the creditor has been filed and allowed in the
2714-powerholder’s estate or filed with and approved by the
2715-trustee of a revocable trust but not paid because the assets
2716-of the estate or revocable trust are insufficient.  For pur-
2717-poses of this paragraph, a revocable trust is a trust that is
2718-revocable, as defined in s. 701.0103 (22), by the power-
2719-holder or jointly by the powerholder and the powerhold-
2720-er’s spouse.
2721-(2)  Subject to s. 702.504 (3), a power of appointment
2722-created by a person other than the powerholder that is
2723-subject to an ascertainable standard relating to an individ-
2724-ual’s health, education, support, or maintenance within
2725-the meaning of 26 USC 2041 (b) (1) (A) or 2514 (c) (1),
2726-is considered for purposes of this subchapter as a nongen-
2727-eral power of appointment.
2728-(3)  If during the powerholder’s lifetime, the power-
2729-holder exercises a general power of appointment created
2730-by a person other than the powerholder, a creditor of the
2731-powerholder can reach the appointed interests to the
2732-same extent that under the law relating to fraudulent con-
2733-veyances the creditor could reach property that the pow-
2734-erholder has owned and transferred during the power-
2735-holder’s lifetime.
2736-702.503  Power to withdraw.  (1)  For purposes of
2737-this subchapter, and except as otherwise provided in sub.
2738-(2), a power to withdraw property from a trust is consid-
2739-ered, during the time the power may be exercised, as a
2740-presently exercisable general power of appointment to
2741-the extent of the property subject to the power to with-
2742-draw.
2743-(2)  On the lapse, release, or waiver of a power to
2744-withdraw property from a trust, the power is treated as a
2745-presently exercisable general power of appointment only
2746-to the extent the value of the property affected by the
2747-lapse, release, or waiver exceeds the greater of the fol-
2748-lowing:
2749-(a)  The amount referenced in section 2041 (b) (2) or
2750-2514 (e) of the Internal Revenue Code.
2751-(b)  The amount referenced in section 2503 (b) of the
2752-Internal Revenue Code for each individual other than the
2753-beneficiary who makes a transfer to the trust or who is
2754-considered to make a transfer to the trust pursuant to an
2755-election to split gifts under section 2513 (a) of the Internal
2756-Revenue Code.
2757-702.504  Creditor claim: nongeneral power of
2758-appointment.  (1)  Except as otherwise provided in subs.
2759-(2) and (3), appointive property subject to a nongeneral
2760-power of appointment is exempt from a claim of a credi-
2761-tor of the powerholder or the powerholder’s estate.
2762-(2)  Appointive property subject to a nongeneral
2763-power of appointment is subject to a claim of a creditor
2764-of the powerholder or the powerholder’s estate to the
2765-extent that the powerholder owned the property and,
2766-reserving the nongeneral power, transferred the property
2767-in violation of the law relating to fraudulent con-
2768-veyances.
2769-(3)  For purposes of this subchapter, if the initial gift
2770-in default of appointment is to the powerholder or the
2771-powerholder’s estate, a nongeneral power of appoint-
2772-ment is treated as a general power of appointment.
2773-702.505.  Third parties in good faith protected.
2774-Any person acting without actual notice of claims of
2775-creditors under this subchapter incurs no liability to those
2776-creditors for transferring property that is subject to a
2777-power of appointment or that has been appointed.  A pur-
2778-chaser without actual notice and for a valuable considera-
2779-tion takes an interest in property, legal or equitable, and
2780-takes the interest free of any rights that a powerholder’s
2781-creditor may have under this subchapter.
2782-SUBCHAPTER VI
2783-MISCELLANEOUS PROVISIONS
2784-702.601 Recording instruments relating to a
2785-power of appointment.  (1)  Each of the following
2786-instruments relating to a power of appointment is entitled
2787-to be recorded as a conveyance upon compliance with s.
2788-706.05 (1):
2789-(a)  An instrument, other than a will, exercising a
2790-power of appointment.
2791-(b)  An instrument expressing consent to exercise a
2792-power of appointment.
2793-(c)  A disclaimer.
2794-(d)  A release.
2795-(2)  If a power of appointment is exercised by a will,
2796-a certified copy of the will and of the certificate of probate
2797-thereof may be recorded.
2798-702.602  Uniformity of application and construc-
2799-tion.  In applying and construing this section, considera-
2800-tion shall be given to the need to promote uniformity of
2801-the law with respect to its subject matter among states that
2802-enact it.
2803-702.603  Relation to electronic signatures in global
2804-and national commerce act.  (1)  Except as provided in
2805-sub. (2), this chapter modifies, limits, and supersedes the
2806-federal Electronic Signatures in Global and National
2807-Commerce Act, 15 USC 7001, et seq.  − 27 − 2023 Wisconsin Act 127 2023 Senate Bill 759
2808-(2)  This chapter does not modify, limit, or supersede
2809-15 USC 7001 (c) or authorize electronic delivery of any
2810-of the notices described in 15 USC 7003 (b).
2811-702.604  Applicability.  (1) (a)  This chapter applies
2812-to a power of appointment created before, on, or after the
2813-effective date of this paragraph .... [LRB inserts date].
2814-(b)  This chapter applies to a judicial proceeding con-
2815-cerning a power of appointment commenced on or after
2816-the effective date of this paragraph .... [LRB inserts date].
2817-(c)  This chapter applies to a judicial proceeding con-
2818-cerning a power of appointment commenced before the
2819-effective date of this paragraph .... [LRB inserts date],
2820-unless the court finds that application of a particular pro-
2821-vision of this chapter would interfere substantially with
2822-the effective conduct of the judicial proceeding or preju-
2823-dice a right of a party, in which case the particular provi-
2824-sion of this chapter does not apply and the superseded law
2825-applies.
2826-(d)  A rule of construction or presumption in this
2827-chapter applies to an instrument executed before the
2828-effective date of this paragraph .... [LRB inserts date],
2829-unless there is a clear indication of a contrary intent in the
2830-terms of the instrument.
2831-(e)  Except as otherwise provided in pars. (a) to (d),
2832-this chapter does not apply to an action taken before the
2833-effective date of this paragraph .... [LRB inserts date].
2834-(2)  If a right is acquired, extinguished, or barred on
2835-the expiration of a prescribed period that commenced
2836-under a law of this state other than this chapter before the
2837-effective date of this subsection .... [LRB inserts date],
2838-the law continues to apply to the right.
2839-SECTION 119.  711.03 (4m) of the statutes is created
2840-to read:
2841-711.03 (4m)  “Consent instrument” means a written
2842-notarized document in physical or electronic form evi-
2843-dencing the user’s consent to the disclosure of the con-
2844-tents of electronic communications to a then acting fidu-
2845-ciary.
2846-SECTION 120.  711.04 (1) of the statutes is renum-
2847-bered 711.04 (1) (intro.) and amended to read:
2848-711.04 (1) (intro.)  A user may use an online tool to
2849-direct the custodian to disclose or not disclose to a desig-
2850-nated recipient or not to disclose some or all of the user’s
2851-digital property, including the content of electronic com-
2852-munications.  If the online tool allows the user to modify
2853-or delete a direction at all times, a direction regarding dis-
2854-closure using an online tool overrides a contrary direction
2855-by the user in  a  any of the following:
2856-(a)  A will, trust, power of attorney, or any other gov-
2857-erning instrument.
2858-SECTION 121.  711.04 (1) (b) of the statutes is created
2859-to read:
2860-711.04 (1) (b)  A power of attorney.
2861-SECTION 122.  711.04 (1) (c) of the statutes is created
2862-to read:
2863-711.04 (1) (c)  A consent instrument.
2864-SECTION 123.  711.04 (1) (d) of the statutes is created
2865-to read:
2866-711.04 (1) (d)  Any other record.
2867-SECTION 124.  711.04 (2) of the statutes is amended
2868-to read:
2869-711.04 (2)  If a user has not used an online tool to give
2870-direction under sub. (1), or if the custodian has not pro-
2871-vided an online tool, the user may allow or prohibit dis-
2872-closure to a fiduciary of some or all of the user’s digital
2873-property, including the content of electronic communica-
2874-tions sent or received by the user, in a will, trust, any other
2875-governing instrument, power of attorney, or any other
2876-governing consent instrument.
2877-SECTION 125.  711.05 (2) (b) of the statutes is
2878-amended to read:
2879-711.05 (2) (b)  Unless the user provided direction
2880-using an online tool, a copy of the user’s will, certifica-
2881-tion of trust under s. 701.1013, or other governing instru-
2882-ment, or consent instrument evidencing the deceased
2883-user’s consent to disclosure of the content of electronic
2884-communications.
2885-SECTION 126.  711.06 (2) (intro.) of the statutes is
2886-amended to read:
2887-711.06 (2)  DISCLOSURE OF CONTENT OF ELECTRONIC
2888-COMMUNICATIONS; PRINCIPAL.  (intro.)  To the extent a
2889-power of attorney expressly grants an agent authority
2890-over the content of electronic communications sent or
2891-received by the principal, or to the extent a consent instru-
2892-ment expressly consents to the disclosure to the agent the
2893-content of electronic communications sent or received by
2894-the principal, and unless directed otherwise by the princi-
2895-pal or the court, a custodian shall grant an agent authority
2896-over the content of electronic communications or dis-
2897-close to the agent the content of electronic communica-
2898-tions if the agent gives the custodian all of the following:
2899-SECTION 127.  711.06 (2) (b) of the statutes is
2900-amended to read:
2901-711.06 (2) (b)  An original or a copy of the power of
2902-attorney that expressly grants the agent authority over the
2903-content of electronic communications of the principal or
2904-the consent instrument that expressly grants consent to
2905-disclosure to the agent of the content of electronic com-
2906-munications of the principal.
2907-SECTION 128.  711.07 (3) (b) of the statutes is
2908-amended to read:
2909-711.07 (3) (b)  A consent instrument or certification
2910-of the trust under s. 701.1013 that includes an original or
2911-successor user’s consent to disclosure of the content of
2912-electronic communications to the trustee.
2913-SECTION 129.  711.13 of the statutes is amended to
2914-read:
2915-711.13  Marital property classification of digital
2916-property.  Chapter 766 Section 766.625 governs the
2917-classification of digital property of a user who is married
2918-person.  − 28 −2023 Wisconsin Act 127  2023 Senate Bill 759
2919-SECTION 130.  766.01 (9) (a) of the statutes is
2920-amended to read:
2921-766.01 (9) (a)  Except as provided in pars. (b) to (d)
2922-(f), property is “held” by a person only if a document of
2923-title to the property is registered, recorded, or filed in a
2924-public office in the name of the person or a writing that
2925-customarily operates as a document of title to the type of
2926-property is issued for the property in the person’s name.
2927-SECTION 131.  766.01 (9) (e) of the statutes is created
2928-to read:
2929-766.01 (9) (e) 1.  An account, as defined in s. 711.03
2930-(1), and the digital property in the account, including the
2931-content of an electronic communication, as defined in s.
2932-711.03 (6), are “held” by a person who is the user, as
2933-defined in s. 711.03 (28).
2934-2.  The catalogue of electronic communications, as
2935-defined in s. 711.03 (4), or similar identifying informa-
2936-tion for digital property in an account, is “held” by a per-
2937-son who holds such digital property, including the con-
2938-tent of such electronic communications, under subd. 1.
2939-3.  For purposes of subds. 1. and 2., “person” has the
2940-meaning given under s. 711.03 (19).
2941-SECTION 132.  766.01 (9) (f) of the statutes is created
2942-to read:
2943-766.01 (9) (f)  A right or interest in digital property,
2944-not titled in the name of either spouse, that has been iden-
2945-tified as having been originally created, purchased, or
2946-otherwise acquired by a spouse is “held” by that spouse.
2947-SECTION 133.  766.31 (7) (b) of the statutes is
2948-amended to read:
2949-766.31 (7) (b)  In Except as provided in s. 766.625 (2)
2950-(b) 1., in exchange for or with the proceeds of other indi-
2951-vidual property of the spouse.
2952-SECTION 134.  766.31 (7) (g) of the statutes is created
2953-to read:
2954-766.31 (7) (g)  By classification under s. 766.625 (2),
2955-designating an account and the digital property in an
2956-account, including the content of electronic communica-
2957-tions, as defined in s. 711.03 (6), as the individual prop-
2958-erty of the holding spouse.
2959-SECTION 135.  766.58 (7) (c) of the statutes is created
2960-to read:
2961-766.58 (7) (c)  Unless the marital property agreement
2962-expressly provides otherwise, a marital property agree-
2963-ment that classifies digital property as marital property
2964-does not affect the operation of s. 766.625 (2).
2965-SECTION 136.  766.58 (13) (b) of the statutes is
2966-renumbered 766.58 (13) (b) 1. and amended to read:
2967-766.58 (13) (b) 1.  After the death of a spouse, if an
2968-estate administration proceeding is filed, no action con-
2969-cerning a marital property agreement may be brought
2970-later than 6 months after the inventory is filed under s.
2971-858.01.  If an amended inventory is filed, the action may
2972-be brought within 6 months after the filing of the
2973-amended inventory if the action relates to information
2974-contained in the amended inventory that was not con-
2975-tained in a previous inventory.
2976-SECTION 137.  766.58 (13) (b) 2. and 3. of the statutes
2977-are created to read:
2978-766.58 (13) (b) 2.  After the death of a spouse, if no
2979-estate administration proceeding is filed, no action con-
2980-cerning a marital property agreement may be brought
2981-later than 8 months after the death of the spouse.
2982-3.  If an action concerning a marital property agree-
2983-ment is barred under subd. 2. and an estate administration
2984-proceeding is thereafter commenced, any judgment in an
2985-action concerning a marital property agreement not
2986-barred under subd. 1. may be recovered only from the
2987-estate of the deceased spouse.
2988-SECTION 138.  766.58 (13) (c) of the statutes is
2989-amended to read:
2990-766.58 (13) (c)  The court may extend the 6−month
2991-period under par. (b) 1. for cause if a motion for extension
2992-is made within the applicable 6−month period.
2993-SECTION 139.  766.59 (1) of the statutes is amended
2994-to read:
2995-766.59 (1)  A  Except as provided in s. 766.625 (2) (b)
2996-2., a spouse may unilaterally execute a written statement
2997-which classifies the income attributable to all or certain
2998-of that spouse’s property other than marital property as
2999-individual property.
3000-SECTION 140.  766.625 of the statutes is created to
3001-read:
3002-766.625  Classification of digital property, includ-
3003-ing the content of electronic communications.  (1)
3004-GENERAL.  Except as otherwise determined under sub.
3005-(2), classification of digital property, including the con-
3006-tent of electronic communications, is determined under
3007-s. 766.31.
3008-(2)  EXCEPTIONS.  (a)  Digital property in an account.
3009-An account and the digital property held in an account, as
3010-defined in s. 766.01 (9) (e), including the content of elec-
3011-tronic communications, as defined in s. 711.03 (6), not
3012-otherwise classified as individual property under s.
3013-766.31 (6) and (7) (a) to (d), is classified as the individual
3014-property of the holding spouse, regardless of the classifi-
3015-cation of property used to create, purchase, or otherwise
3016-acquire the account and digital property held in the
3017-account, unless the nonholding spouse can prove that any
3018-of the following apply:
3019-1.  ‘Creation.’  The account or the digital property in
3020-the account was not originally created, purchased, or oth-
3021-erwise acquired exclusively for the personal, noneco-
3022-nomic purposes of the holding spouse.
3023-2.  ‘Use.’  The account or the digital property in the
3024-account has at any time been used for purposes other than
3025-the personal, noneconomic purposes of the holding
3026-spouse.
3027-(b)  Exchanges; income.  Notwithstanding par. (a),
3028-with respect to an account and the digital property held  − 29 − 2023 Wisconsin Act 127 2023 Senate Bill 759
3029-in the account, as defined in s. 766.01 (9) (e), including
3030-the content of electronic communications, as defined in
3031-s. 711.03 (6), classified as individual property solely by
3032-reason of par. (a), all of the following apply:
3033-1.  ‘Exchanges; Proceeds.’  Section 766.31 (7) (b)
3034-does not apply, and in the event of a sale, exchange, or
3035-other disposition, property received in exchange for such
3036-account, or the digital property in the account, is classi-
3037-fied as marital property.
3038-2.  ‘Income.’  Section 766.59 does not apply, and
3039-income during marriage and after the determination date
3040-attributable to the account, or the digital property in the
3041-account, is classified as marital property.
3042-SECTION 141.  766.63 (1) of the statutes is amended
3043-to read:
3044-766.63 (1)  Except as provided otherwise in ss. 766.61
3045-and, 766.62, and 766.625 (2), mixing marital property
3046-with property other than marital property reclassifies the
3047-other property to marital property unless the component
3048-of the mixed property which is not marital property can
3049-be traced.
3050-SECTION 142.  766.70 (3) (dm) of the statutes is cre-
3051-ated to read:
3052-766.70 (3) (dm)  An interest in a digital property
3053-account, as defined in s. 711.03 (1).
3054-SECTION 143.  814.66 (1) (o) of the statutes is created
3055-to read:
3056-814.66 (1) (o)  For filing a petition to commence a
3057-judicial proceeding under ch. 701, $250.
3058-SECTION 144.  851.21 (2) (e) of the statutes is
3059-amended to read:
3060-851.21 (2) (e)  A beneficiary of a trust created under
3061-documents offered for probate as the will of the decedent
3062-upon the admission of the decedent’s will to probate and
3063-the issuance of letters of trust to court’s appointment of
3064-the trustee.
3065-SECTION 145.  854.13 (1) (c) of the statutes is
3066-amended to read:
3067-854.13 (1) (c)  “Power of appointment” has the mean-
3068-ing given in s. 702.02 (6) 702.102 (15).
3069-SECTION 146.  856.29 of the statutes is amended to
3070-read:
3071-856.29  Letters issued to trustee Appointment of
3072-testamentary trust trustee.  If the will of the decedent
3073-provides for a testamentary trust, letters of trust shall be
3074-issued to the court shall appoint the trustee upon admis-
3075-sion of the will to probate at the same time that letters are
3076-granted to the personal representative, unless the court
3077-otherwise directs.  Upon issuance of letters of trust, the
3078-The trustee so appointed shall continue to be interested in
3079-the estate, and beneficiaries in the testamentary trust shall
3080-cease to be interested in the estate except under s. 851.21
3081-(3).  Letters of trust shall not be required to evidence the
3082-authority of a testamentary trustee and a certification of
3083-trust under s. 701.1013 shall be sufficient evidence of
3084-such authority.  This section shall apply to wills admitted
3085-to informal probate and letters issued in informal admin-
3086-istrations.
3087-SECTION 147.  859.02 (3) of the statutes is amended
3088-to read:
3089-859.02 (3)  Failure of a claimant timely to file a claim
3090-against a decedent’s estate does not bar the claimant from
3091-satisfying the claim not otherwise barred from property
3092-other than the decedent’s estate.
3093-SECTION 148.  865.08 (6) of the statutes is amended
3094-to read:
3095-865.08 (6)  If the will of the decedent provides for a
3096-testamentary trust, letters of trust shall be issued by the
3097-probate registrar to shall appoint the trustee upon admis-
3098-sion of the will to informal probate at the same time that
3099-letters are granted to the personal representative.  Letters
3100-of trust shall not be required to evidence the authority of
3101-the appointed trustee and a certification of trust under s.
3102-701.1013 shall be sufficient evidence of such authority.
3103-The probate registrar shall determine if bond shall be
3104-required and, if so, the amount thereof, and for such pur-
3105-pose the probate registrar shall have the authority granted
3106-to the court by, and shall proceed pursuant to s. 701.0702.
3107-Thereafter, the trustee shall continue to be interested in
3108-the estate, and beneficiaries of the testamentary trust shall
3109-cease to be interested in the estate except under s. 851.21
3110-(3).  The administration of the trust shall be administered
3111-under supervision of the court under governed by ch. 701.
3112-SECTION 149.  905.03 (2m) of the statutes is created
3113-to read:
3114-905.03 (2m)  PRIVILEGE WHEN CLIENT IS A FIDUCIARY.
3115-When a lawyer represents a client who is serving as a per-
3116-sonal representative, trustee, trust protector, directing
3117-party, guardian, conservator, guardian ad litem, attorney
3118-in fact for financial matters, health care agent, or other
3119-fiduciary, the lawyer’s client is the person who is acting
3120-as a fiduciary, and not anyone to whom the client owes
3121-fiduciary or other duties, and communication between
3122-the lawyer and such a client is protected from disclosure
3123-to the same extent as if the client was not acting as a fidu-
3124-ciary.  The privilege may be claimed by the client, or oth-
3125-erwise as provided in sub. (3), even against anyone to
3126-whom the client owes fiduciary or other duties.
4810+SECTION 143. 814.66 (1) (o) of the statutes is created to read:
4811+814.66 (1) (o) For filing a petition to commence a judicial proceeding under ch.
4812+701, $250.
4813+SECTION 144. 851.21 (2) (e) of the statutes is amended to read:
4814+851.21 (2) (e) A beneficiary of a trust created under documents offered for
4815+probate as the will of the decedent upon the admission of the decedent's will to
4816+probate and the issuance of letters of trust to court's appointment of the trustee.
4817+SECTION 145. 854.13 (1) (c) of the statutes is amended to read:
4818+854.13 (1) (c) “Power of appointment" has the meaning given in s. 702.02 (6)
4819+702.102 (14).
4820+SECTION 146. 856.29 of the statutes is amended to read:
4821+856.29 Letters issued to trustee Appointment of testamentary trust
4822+trustee. If the will of the decedent provides for a testamentary trust, letters of trust
4823+shall be issued to the court shall appoint the trustee upon admission of the will to
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4851+SECTION 146
4852+ SENATE BILL 759
4853+probate at the same time that letters are granted to the personal representative,
4854+unless the court otherwise directs. Upon issuance of letters of trust, the The trustee
4855+so appointed shall continue to be interested in the estate, and beneficiaries in the
4856+testamentary trust shall cease to be interested in the estate except under s. 851.21
4857+(3). Letters of trust shall not be required to evidence the authority of a testamentary
4858+trustee and a certification of trust under s. 701.1013 shall be sufficient evidence of
4859+such authority. This section shall apply to wills admitted to informal probate and
4860+letters issued in informal administrations.
4861+SECTION 147. 859.02 (3) of the statutes is amended to read:
4862+859.02 (3) Failure of a claimant timely to file a claim against a decedent's estate
4863+does not bar the claimant from satisfying the claim not otherwise barred from
4864+property other than the decedent's estate.
4865+SECTION 148. 865.08 (6) of the statutes is amended to read:
4866+865.08 (6) If the will of the decedent provides for a testamentary trust, letters
4867+of trust shall be issued by the probate registrar to shall appoint the trustee upon
4868+admission of the will to informal probate at the same time that letters are granted
4869+to the personal representative. Letters of trust shall not be required to evidence the
4870+authority of the appointed trustee and a certification of trust under s. 701.1013 shall
4871+be sufficient evidence of such authority. The probate registrar shall determine if
4872+bond shall be required and, if so, the amount thereof, and for such purpose the
4873+probate registrar shall have the authority granted to the court by, and shall proceed
4874+pursuant to s. 701.0702. Thereafter, the trustee shall continue to be interested in the
4875+estate, and beneficiaries of the testamentary trust shall cease to be interested in the
4876+estate except under s. 851.21 (3). The administration of the trust shall be
4877+administered under supervision of the court under governed by ch. 701.
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4903+KMS&JPC:cdc
4904+SECTION 149 SENATE BILL 759
4905+SECTION 149. 905.03 (2m) of the statutes is created to read:
4906+905.03 (2m) PRIVILEGE WHEN CLIENT IS A FIDUCIARY. When a lawyer represents
4907+a client who is serving as a personal representative, trustee, trust protector, directing
4908+party, guardian, conservator, guardian ad litem, attorney in fact for financial
4909+matters, health care agent, or other fiduciary, the lawyer's client is the person who
4910+is acting as a fiduciary, and not anyone to whom the client owes fiduciary or other
4911+duties, and communication between the lawyer and such a client is protected from
4912+disclosure to the same extent as if the client was not acting as a fiduciary. The
4913+privilege may be claimed by the client, or otherwise as provided in sub. (3), even
4914+against anyone to whom the client owes fiduciary or other duties.
4915+(END)
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