Wis. Stat. § 701.1314 — WI Code / Chapter 701 / Section 701.1314
Protection of charitable interest.
Status: in_force

(1) In this section:

(a) “Determinable charitable interest” means an interest that is all of the following:

1. A charitable interest.

2. Entitled to receive a mandatory distribution currently, periodically, on the occurrence of a specified event, or after the passage of a specified time.

3. Unconditional or held solely for charitable purposes.

(b) “Unconditional” means not subject to the occurrence of a specified event that is not certain to occur, other than a requirement in a trust instrument that a charitable organization be in existence or qualify under a particular provision of the Internal Revenue Code, on the date of the distribution, if the charitable organization meets the requirement on the date of determination.

(2) The attorney general may represent and bind a charitable interest only when the attorney general has the rights of a qualified beneficiary as provided in s. 701.0110 (3) .

(3) If a first trust contains a charitable interest, the 2nd trust or trusts may not do any of the following:

(a) Diminish the charitable interest.

(b) Diminish the interest of an identified charitable organization that holds the charitable interest.

(c) Alter any charitable purpose stated in the first-trust instrument.

(d) Alter any condition or restriction related to the charitable interest.

(3m) Notwithstanding subs. (3) and (5) , if the first trust is an account in a pooled trust described in 42 USC 1396p (d) (4) (C), the 2nd trust may be an account in another pooled trust described in 42 USC 1396p (d) (4) (C) or a trust described in 42 USC 1396p (d) (4) (A) regardless of any of the following:

(a) Any effect on a charitable interest in property that is permitted to be retained in the first trust under 42 USC 1396p (d) (4) (C) (iv).

(b) Any effect the trust retention and Medicaid reimbursement provisions of the 2nd trust may have on a charitable interest in the first trust.

(c) Any change in the identified charitable organization.

(d) Any change in the governing law or principal place of administration of the trust.

(4) If there are 2 or more 2nd trusts, the 2nd trusts shall be treated as one trust for purposes of determining whether the exercise of the decanting power diminishes the charitable interest or diminishes the interest of an identified charitable organization for purposes of sub. (3) .

(5) If a first trust contains a determinable charitable interest, the 2nd trust or trusts that include a charitable interest pursuant to sub. (3) must be administered under the law of this state unless any of the following applies:

(a) The attorney general, after receiving notice under s. 701.1307 , fails to object in a signed record delivered to the authorized fiduciary within the notice period.

(b) The attorney general consents in a signed record to the 2nd trust or trusts being administered under the law of another jurisdiction.

(c) The court approves the exercise of the decanting power.

(d) The identified charitable organization consents in a signed record delivered to the authorized fiduciary.

(6) This subchapter does not limit the powers and duties of the attorney general under the laws of this state other than this subchapter.

History: 2023 a. 127 .