reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0709 - Reimbursement of expenses.

701.0709
Reimbursement of expenses.
(1)
A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for all of the following:
(a)
Expenses that were properly incurred in the administration of the trust.
(b)
To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(2)
An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0710 - Title of trust property.

701.0710
Title of trust property.
A settlor or transferor may effectively transfer property to a trust by placing legal title of the property in the name of the trustee, which shall include any successor trustee regardless of whether a successor trustee is referenced in the transfer document. A transfer that places legal title in the name of the trust itself places legal title in the name of the trustee.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0801 - Duty to administer trust.

701.0801
Duty to administer trust.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0803 - Impartiality.

701.0803
Impartiality.
If a trust has 2 or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests and the purposes and terms of the trust.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0804 - Prudent administration.

701.0804
Prudent administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0805 - Costs of administration.

701.0805
Costs of administration.
In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, the skills of the trustee, and the complexity of the trust administration.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0806 - Trustee's skills.

701.0806
Trustee's skills.
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0807 - Delegation by trustee.

701.0807
Delegation by trustee.
(1)
A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in each of the following:
(a)
Selecting an agent.
(b)
Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust.
(c)
Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(2)
In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(3)
A trustee who complies with sub. (1) is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(4)
By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state even if the terms of the delegation provide for a different jurisdiction or venue.
(5)
This section does not apply to a trustee's delegation of investment and management functions. A trustee's delegation of investment and management functions is governed by s. 881.01 (10).
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0810 - Record keeping and identification of trust property.

701.0810
Record keeping and identification of trust property.
(1)
A trustee shall keep adequate records of the administration of the trust.
(2)
A trustee shall keep trust property separate from the trustee's own property.
(3)
Except as otherwise provided in sub. (4), a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
(4)
If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of 2 or more separate trusts.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0812 - Collecting trust property; duties of successor trustees.

701.0812
Collecting trust property; duties of successor trustees.
(1)
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a trustee or former trustee, or a trust protector or former trust protector.
(2)
A successor trustee does not have a duty to examine the accounts of a former trustee.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0814 - Discretionary powers; tax savings.

701.0814
Discretionary powers; tax savings.
(1)
Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as “absolute," “sole," or “uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries. A court may not determine that a trustee abused its discretion merely because the court would have exercised the discretion in a different manner or would not have exercised the discretion.
(2)
Subject to sub. (4), and unless the terms of the trust expressly indicate that a provision of this subsection does not apply, all of the following apply:
(a)
A person other than a settlor who is a beneficiary and a trustee, directing party, or trust protector of a trust that confers on the trustee, directing party, or trust protector a power to make discretionary distributions to or for the trustee's, directing party's, or trust protector's personal benefit may exercise the power only in accordance with an ascertainable standard.
(b)
A trustee, directing party, or trust protector may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee, directing party, or trust protector personally owes another person.
(3)
A power whose exercise is limited or prohibited by sub. (2) may be exercised by a majority of the remaining trustees, directing parties, or trust protectors whose exercise of the power is not so limited or prohibited. If the power of all trustees, directing parties, or trust protectors is so limited or prohibited, the court may appoint a trustee, directing party, or trust protector with authority to exercise the power.
(4)
Subsection (2) does not apply to any of the following:
(a)
A power held by the settlor's spouse who is the trustee, directing party, or trust protector of a trust for which a marital deduction, as defined in section 2056 (b) (5) or 2523 (e) of the Internal Revenue Code, was previously allowed.
(b)
A trust during a period when the trust may be revoked or amended by its settlor.
(c)
A trust if contributions to the trust qualify for the annual exclusion under section 2503 (c) of the Internal Revenue Code.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0815 - General powers of trustee.

701.0815
General powers of trustee.
(1)
A trustee, without authorization by the court, may exercise the following powers:
(a)
Powers conferred by the terms of the trust.
(b)
Except as limited by the terms of the trust, all of the following powers:
1.
All powers over the trust property that an unmarried, competent owner has over individually owned property.
2.
Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property.
3.
Any other powers conferred by this chapter.
(2)
The exercise of a power is subject to the fiduciary duties prescribed by this chapter.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0817 - Distribution upon termination.

701.0817
Distribution upon termination.
(1)
Upon termination or partial termination of a trust, the trustee may send a proposal for distribution to the beneficiaries of the trust. The right of any beneficiary to whom the proposal is sent to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within 30 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
(2)
Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed within a reasonable time to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
(3)
A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent any of the following applies:
(a)
The release was induced by improper conduct of the trustee.
(b)
The beneficiary, at the time of the release, did not know of the beneficiary's rights or of the material facts relating to the breach.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0819 - Marital deduction transfers.

701.0819
Marital deduction transfers.
(1)
For purposes of this section, “marital deduction transfer" means a lifetime or testamentary transfer of property that is intended to qualify for the marital deduction as indicated by the terms of the trust.
(2)
In interpreting, construing, or administering a trust instrument, absent a clear expression of intent by the settlor to the contrary, a trustee shall apply the following presumptions that may only be rebutted by clear and convincing evidence:
(a)
The settlor intended to take advantage of tax deductions, exemptions, exclusions, and credits.
(b)
The settlor intended that any transfer made to a spouse outright and free of trust qualify for the gift or estate tax marital deduction and is a marital deduction transfer.
(c)
If the trust instrument refers to a trust as a marital trust, qualified terminable interest property trust, or spousal trust, or refers to qualified terminable interest property, section 2044, 2056, 2056A, or 2523 of the Internal Revenue Code, or a similar provision of applicable state law, the settlor intended that the trust and property passing to the trust qualify for the applicable gift or estate tax marital deduction and that the transfer qualifies for the marital deduction for federal and state gift or estate tax purposes.
(3)
If a trust receives a marital deduction transfer, the trust instrument shall be construed to comply with the marital deduction provisions of the Internal Revenue Code.
(4)
If a trust receives a marital deduction transfer, the trustee has all the powers, duties, and discretionary authority necessary to comply with the marital deduction provisions of the Internal Revenue Code. The trustee may not take any action or have any power that may impair the availability of the marital deduction, but this does not require the trustee to make the election under either section 2056 (b) (7), 2056A (a) (3), or 2523 (f) of the Internal Revenue Code.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0902 - Directed trust property.

701.0902
Directed trust property.
(1)
A directing party who has power over directed trust property shall do all of the following:
(a)
Direct the trustee on the retention, purchase, sale, exchange, tender, encumbrance, or any other investment transaction of the directed trust property and the investment and reinvestment of principal and income.
(b)
Direct the trustee with respect to the management, control, and voting powers, including voting proxies, of the directed trust property.
(c)
Select and determine reasonable compensation of one or more outside investment advisors, managers, consultants, or counselors, which may include the trustee, and delegate investment authority to them pursuant to the investment delegation provisions under s. 881.01 (10).
(d)
Determine the frequency of and methodology for valuing directed trust property and provide the value of property for which there is no readily available daily market value.
(2)
A trustee who has no power over directed trust property does not have a duty to do any of the following with respect to the directed trust property:
(a)
Prepare or review investment policy statements.
(b)
Perform investment or suitability reviews, inquiries, or investigations.
(c)
Determine or verify the value of directed trust property for which there is no readily available daily market value.
(d)
Monitor the conduct or investment performance of the directing party.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0903 - Nonapplication of prudent investor rule to life insurance contracts owned by trusts.

701.0903
Nonapplication of prudent investor rule to life insurance contracts owned by trusts.
(1)
Notwithstanding s. 881.01, if a principal purpose of a trust is to hold a life insurance contract or to purchase a life insurance contract from contributions made to the trust, the trustee does not have a duty to determine whether the life insurance contract is or remains a proper investment of the trust. For purposes of this subsection, determining whether a life insurance contact is or remains a proper investment includes all of the following:
(a)
Investigating the financial strength or changes in the financial strength of the life insurance company maintaining the life insurance contract.
(b)
Determining whether to exercise any policy option, right, or privilege available under the life insurance contract.
(c)
Diversifying the life insurance contract relative to any other life insurance contracts or any other assets of the trust.
(d)
Inquiring about or investigating the health or financial condition of an insured.
(e)
Preventing the lapse of a life insurance contract if the trust does not receive contributions or hold other readily marketable assets to pay the life insurance contract premiums.
(2)
A trustee is not liable for a loss that arises because the trustee did not take an action specified in sub. (1).
(4)
This section does not apply to a trust that was executed before July 1, 2014, unless the trustee notifies the qualified beneficiaries that the trustee elects to be governed by this section and provides the qualified beneficiaries with a copy of this section.
(5)
Subject to sub. (4), this section applies to a life insurance contract acquired, retained, or owned by a trustee before, on, or after July 1, 2014.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1001 - Remedies for breach of trust.

701.1001
Remedies for breach of trust.
(1)
A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
(2)
To remedy a breach of trust that has occurred or may occur, a court may do any of the following:
(a)
Compel the trustee to perform the trustee's duties.
(b)
Enjoin the trustee from committing a breach of trust.
(c)
Compel the trustee to redress a breach of trust by paying money, restoring property, or other means.
(d)
Order a trustee to account.
(e)
Appoint an additional trustee, a directing party, or a trust protector having the duties and authority ordered by the court, including, in the case of an additional trustee, the authority to take possession of the trust property and administer the trust.
(f)
Suspend the trustee.
(g)
Remove the trustee as provided in s. 701.0706.
(h)
Reduce the compensation of or deny compensation to the trustee.
(i)
Subject to s. 701.1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and order recovery of the property or its proceeds.
(j)
Order any other appropriate relief, whether provided elsewhere in this chapter, available at common law, or under equity principles.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1002 - Damages for breach of trust; liability of successor trustee.

701.1002
Damages for breach of trust; liability of successor trustee.
(1)
A trustee who commits a breach of trust is liable to an affected beneficiary for the greater of the following:
(a)
The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred.
(b)
The profit the trustee made by reason of the breach.
(2)
Except as otherwise provided in this subsection, if more than one trustee is liable to a beneficiary for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiary. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
(3)
A successor trustee is not liable for the acts and omissions of a former trustee or for the acts or omissions of any directing party or trust protector that are taken before the appointment of the successor trustee.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1005 - Limitation of action against trustee.

701.1005
Limitation of action against trustee.
(1)
A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date on which the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust.
(2)
A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.
(3)
If sub. (1) does not apply, a proceeding by a beneficiary against a trustee for breach of trust must be commenced within 5 years after the first to occur of the following:
(a)
The removal, resignation, or death of the trustee.
(b)
The termination of the beneficiary's interest in the trust.
(c)
The termination of the trust.
(4)
Subsections (1) and (3) do not apply to a claim for fraud. The time for asserting a claim for fraud is governed by applicable law.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1006 - Reliance on trust instrument.

701.1006
Reliance on trust instrument.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1007 - Event affecting administration or distribution.

701.1007
Event affecting administration or distribution.
If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1008 - Exculpation of trustee.

701.1008
Exculpation of trustee.
(1)
A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it does any of the following:
(a)
Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of a beneficiary.
(b)
Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship with the settlor.
(2)
An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term was fair under the circumstances existing at the time the trust instrument was signed and that the existence and contents of the exculpatory term were adequately communicated to the settlor.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1009 - Beneficiary's consent, release, or ratification.

701.1009
Beneficiary's consent, release, or ratification.
A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless any of the following applies:
(1)
The consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee.
(2)
At the time of the consent, release, or ratification, the beneficiary did not have knowledge of the beneficiary's rights or of the material facts relating to the breach.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1010 - Limitation on personal liability of trustee.

701.1010
Limitation on personal liability of trustee.
(1)
Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(2)
A trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1011 - Interest as general partner.

701.1011
Interest as general partner.
(1)
Unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract.
(2)
A trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.
(3)
If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1012 - Protection of person dealing with trustee.

701.1012
Protection of person dealing with trustee.
(1)
A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(2)
A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
(3)
A person who in good faith delivers assets to a trustee does not need to ensure their proper application.
(4)
A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(5)
Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1013 - Certification of trust.

701.1013
Certification of trust.
(1)
Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information:
(a)
That the trust exists and the date on which the trust instrument was executed.
(b)
The identity of the settlor.
(c)
The identity and address of the currently acting trustee.
(d)
The powers of the trustee.
(e)
The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust.
(f)
The authority of a cotrustee to sign or otherwise authenticate and whether all cotrustees or less than all cotrustees are required to sign or otherwise authenticate in order to exercise powers of the trustee.
(g)
The manner in which title to trust property may be taken.
(2)
A certification of trust may be signed or otherwise authenticated by any trustee.
(3)
A trustee shall include in a certification of trust that the trust has not been revoked, modified, or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.
(4)
A certification of trust does not need to contain the dispositive terms of a trust.
(5)
A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments that designate the trustee and confer upon the trustee the power to act in the pending transaction.
(6)
A person who acts in reliance upon a certification of trust without knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying upon the certification.
(7)
A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.
(8)
A person making a demand for copies of the trust instrument or excerpts from the trust instrument, other than those excerpts described in sub. (5), in addition to a certification of trust is liable for costs, expenses, reasonable attorney fees, and damages if the court determines that the person did not act in good faith in demanding the copies.
(9)
This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.
History:  2013 a. 92; 2013 a. 151 s. 28.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1101 - Short title and scope.

701.1101
Short title and scope.
This subchapter may be cited as the Wisconsin Uniform Principal and Income Act. Subject to s. 701.1205 (2), this subchapter applies to a trust described in s. 701.0102 and an estate that is administered in this state.
History:  2013 a. 92, 151.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1102 - Definitions.

701.1102
Definitions.
In this subchapter:
(1)
“Accounting period" means a calendar year, unless a fiduciary selects another 12-month period, and includes a portion of a calendar year or other 12-month period that begins when an income interest begins or that ends when an income interest ends.
(1g)
“Asset" has the meaning given for property under s. 701.0103 (20).
(1m)
Notwithstanding s. 701.0103 (3), “beneficiary" means a person who has a beneficial interest in a trust or an estate and includes, in the case of a decedent's estate, an heir, a legatee, and a devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary.
(2)
“Fiduciary" means a personal representative or a trustee and includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function as any of those.
(3)
“Income" means money or property that a fiduciary receives as current return from a principal asset. “Income" includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in ss. 701.1115 to 701.1129.
(4)
“Income beneficiary" means a person to whom net income of a trust is or may be payable.
(5)
“Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion.
(6)
“Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute.
(7)
“Net income" means the total receipts allocated to income during an accounting period, minus the disbursements made from income during the period, plus or minus transfers under this subchapter to or from income during the period.
(8)
“Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates or property held in trust in perpetuity.
(9)
“Remainder beneficiary" means a person who is a beneficiary under s. 701.0103 (21) (b).
History:  2013 a. 92 ss. 179, 180, 205 to 212, 214, 215.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1103 - Fiduciary duties; general principles.

701.1103
Fiduciary duties; general principles.
(1)
In allocating receipts and disbursements to income or principal or between income and principal, and with respect to any matter within the scope of ss. 701.1110 to 701.1114, a fiduciary:
(a)
Shall first administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this subchapter.
(b)
May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this subchapter.
(c)
Shall administer a trust or estate in accordance with this subchapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration.
(d)
Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this subchapter do not provide a rule for allocating the receipt or disbursement to principal or income or between principal and income.
(2)
In exercising the power to adjust under s. 701.1104 (1) or a discretionary power of administration regarding a matter within the scope of this subchapter, whether granted by the terms of a trust, a will, or this subchapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this subchapter is presumed to be fair and reasonable to all of the beneficiaries.
History:  2013 a. 92 s. 217.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1105 - Notice to beneficiaries of proposed action.

701.1105
Notice to beneficiaries of proposed action.
(1)
A trustee may, but is not required to, obtain approval of a proposed action under s. 701.1104 (1) by providing a written notice that complies with all of the following:
(a)
Is given at least 30 days before the proposed effective date of the proposed action.
(b)
Is given in the manner provided in ch. 879, except that notice by publication is not required.
(c)
Is given to all qualified beneficiaries.
(d)
States that it is given in accordance with this section and discloses the following information:
1.
The identification of the trustee.
2.
A description of the proposed action.
3.
The time within which a beneficiary may object to the proposed action, which shall be at least 30 days after the giving of the notice.
4.
The effective date of the proposed action if no objection is received from any beneficiary within the time specified in subd. 3.
(2)
If a trustee gives notice of a proposed action under this section, the trustee is not required to give notice to a qualified beneficiary who consents to the proposed action in writing at any time before or after the proposed action is taken.
(3)
A qualified beneficiary may object to the proposed action by giving a written objection to the trustee within the time specified in the notice under sub. (1) (d) 3.
(4)
A trustee may decide not to take a proposed action after the trustee receives a written objection to the proposed action or at any other time for any other reason. In that case, the trustee shall give written notice to the qualified beneficiaries of the decision not to take the proposed action.
(5)
If a trustee receives a written objection to a proposed action within the time specified in the notice under sub. (1) (d) 3., either the trustee or the qualified beneficiary making the written objection may petition the court to have the proposed action approved, modified, or prohibited. In the court proceeding, the qualified beneficiary objecting to the proposed action has the burden of proving that the proposed action should be modified or prohibited. A qualified beneficiary who did not make the written objection may oppose the proposed action in the court proceeding.
(6)
For purposes of this section, a proposed action under s. 701.1104 includes a course of action or a decision not to take action under s. 701.1104.
History:  2013 a. 92 ss. 219 to 223, 225 to 230.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1107 - Express unitrusts.

701.1107
Express unitrusts.
(1)
In this section, “express unitrust" means any trust that by its trust instrument requires the distribution at least annually of a unitrust amount equal to a fixed percentage of the net fair market value of the trust's assets, valued at least annually, other than a trust solely for charitable purposes or a charitable split-interest trust under section 664 (d) or 170 (f) (2) (B) of the Internal Revenue Code.
(2)
The following apply to an express unitrust:
(a)
To the extent not otherwise provided for in the trust instrument, the unitrust amount of not less than 3 percent nor more than 5 percent may be determined by reference to the net fair market value of the trust's assets averaged over a preceding period determined by the trustee, which is at least 3 years but not more than 5 years.
(b)
Distribution of such a fixed percentage unitrust amount of not less than 3 percent nor more than 5 percent is a distribution of all of the income of the unitrust and is an income interest.
(c)
Such a distribution of a fixed percentage of not less than 3 percent nor more than 5 percent is a reasonable apportionment of the total return of the trust.
(d)
A trust that provides for a fixed annual percentage payout in excess of 5 percent per year of the net fair market value of the trust is considered to be a 5 percent express unitrust, paying out all of the income of the unitrust, and to have paid out principal of the trust to the extent that the fixed percentage payout exceeds 5 percent per year.
(e)
The trust instrument may grant discretion to the trustee to adopt a consistent practice of treating capital gains as part of the unitrust distribution, to the extent that the unitrust distribution exceeds the income determined as if the trust were not a unitrust, or it may specify the ordering of such classes of income.
(f)
Unless the terms of the trust specifically provide otherwise, a distribution of the unitrust amount is considered to have been made from the following sources in the following order of priority:
1.
Net income determined as if the trust were not a unitrust.
2.
Ordinary income for federal income tax purposes that is not net income under subd. 1.
3.
Net realized short-term capital gains for federal income tax purposes.
4.
Net realized long-term capital gains for federal income tax purposes.
5.
Principal.
(g)
The trust instrument may provide that assets used by the trust beneficiary, such as a residence or tangible personal property, may be excluded from the net fair market value for computing the unitrust amount. Such use may be considered equivalent to the income or unitrust amount.
(h)
In the absence of contrary provisions in the trust instrument of an express unitrust, the provisions of s. 701.1106 (3) (a), (d), and (e) apply.
History:  2013 a. 92 s. 243.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1108 - Power to treat capital gains as part of a distribution.

701.1108
Power to treat capital gains as part of a distribution.
Unless prohibited by the will or trust instrument, a fiduciary may cause gains from the sale or exchange of estate or trust property, as determined for federal income tax purposes, to be taxed for federal income tax purposes as part of a distribution of income that has been increased by an adjustment from principal to income under s. 701.1104, of a unitrust distribution, of a fixed annuity distribution, or of a principal distribution to a beneficiary.
History:  2013 a. 92 s. 244.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1111 - Distribution to residuary and remainder beneficiaries.

701.1111
Distribution to residuary and remainder beneficiaries.
(1)
Each beneficiary described in s. 701.1110 (4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(2)
In determining a beneficiary's share of net income, the following rules apply:
(a)
The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations.
(b)
The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not determined by a pecuniary formula.
(c)
The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.
(d)
The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
(3)
If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
(4)
A trustee may apply the rules in this section, to the extent that the trustee considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.
History:  2013 a. 92 s. 252
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1112 - When right to income begins and ends.

701.1112
When right to income begins and ends.
(1)
An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(2)
An asset becomes subject to a trust:
(a)
On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life.
(b)
On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate.
(c)
On the date of an individual's death in the case of an asset that a 3rd party transfers to a fiduciary because of the individual's death.
(3)
An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under sub. (4), even if there is an intervening period of administration to wind up the preceding income interest.
(4)
An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
History:  2013 a. 92 s. 253.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1113 - Apportionment of receipts and disbursements when decedent dies or income interest begins.

701.1113
Apportionment of receipts and disbursements when decedent dies or income interest begins.
(1)
A trustee shall allocate to principal an income receipt or disbursement other than one to which s. 701.1110 (1) applies if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(2)
A trustee shall allocate to income an income receipt or disbursement if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date of death or an income interest begins must be allocated to principal and the balance must be allocated to income.
(3)
An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this section. Distributions to shareholders or other owners from an entity, as defined in s. 701.1115, are due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
History:  2013 a. 92 s. 254.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1114 - Apportionment when income interest ends.

701.1114
Apportionment when income interest ends.
(1)
In this section, “undistributed income" means net income received before the date on which an income interest ends. “Undistributed income" does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.
(2)
When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or to the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than 5 percent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.
(3)
When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.
History:  2013 a. 92 s. 255; 2013 a. 151 s. 27.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1115 - Character of receipts.

701.1115
Character of receipts.
(1)
In this section, “entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which s. 701.1116 applies, a business or activity to which s. 701.1117 applies, or an asset-backed security to which s. 701.1129 applies.
(2)
Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
(3)
A trustee shall allocate the following receipts from an entity to principal:
(a)
Property other than money.
(b)
Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity.
(c)
Money received in total or partial liquidation of the entity.
(d)
Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(4)
Money is received in partial liquidation:
(a)
To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation.
(b)
If the total amount of money and property distributed in a distribution or series of related distributions is greater than 20 percent of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.
(5)
Money is not received in partial liquidation, nor may it be taken into account under sub. (4) (b), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.
(6)
A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
History:  2013 a. 92 s. 256.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1116 - Distribution from trust or estate.

701.1116
Distribution from trust or estate.
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, s. 701.1115 or 701.1129 applies to a receipt from the trust.
History:  2013 a. 92 s. 257.