reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1117 - Business and other activities conducted by trustee.

701.1117
Business and other activities conducted by trustee.
(1)
If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
(2)
A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.
(3)
Activities for which a trustee may maintain separate accounting records include:
(a)
Retail, manufacturing, service, and other traditional business activities.
(b)
Farming.
(c)
Raising and selling livestock and other animals.
(d)
Management of rental properties.
(e)
Extraction of minerals and other natural resources.
(f)
Timber operations.
(g)
Activities to which s. 701.1128 applies.
History:  2013 a. 92 s. 258.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1118 - Principal receipts.

701.1118
Principal receipts.
A trustee shall allocate to principal:
(1)
To the extent not allocated to income under this subchapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary.
(2)
Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to ss. 701.1115 to 701.1129.
(3)
Amounts recovered from 3rd parties to reimburse the trust because of disbursements described in s. 701.1131 (1) (g) or for other reasons to the extent not based on the loss of income.
(4)
Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.
(5)
Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income.
(6)
Other receipts as provided in ss. 701.1122 to 701.1129.
History:  2013 a. 92 s. 259.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1119 - Rental property.

701.1119
Rental property.
To the extent that a trustee accounts for receipts from rental property in accordance with this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
History:  2013 a. 92 s. 260.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1120 - Obligation to pay money.

701.1120
Obligation to pay money.
(1)
An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.
(2)
A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after the trustee purchases or acquires it, an amount received in excess of its purchase price or its value when the trust acquires it must be allocated to income.
(3)
This section does not apply to an obligation to which s. 701.1123, 701.1124, 701.1125, 701.1126, 701.1128, or 701.1129 applies.
History:  2013 a. 92 s. 261.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1121 - Insurance policies and similar contracts.

701.1121
Insurance policies and similar contracts.
(1)
Except as provided in sub. (2), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to, a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
(2)
A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to s. 701.1117, loss of profits from a business.
(3)
This section does not apply to a contract to which s. 701.1123 applies.
History:  2013 a. 92 s. 262.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1122 - Insubstantial allocations not required.

701.1122
Insubstantial allocations not required.
If a trustee determines that an allocation between principal and income required by s. 701.1120 (2), 701.1123, 701.1124, 701.1125, 701.1126, or 701.1129 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in s. 701.1104 (3) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in s. 701.1104 (4) and may be released for the reasons and in the manner described in s. 701.1104 (5). An allocation is presumed to be insubstantial if:
(1)
The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent.
(2)
The value of the asset producing the receipt for which the allocation would be made is less than 10 percent of the total value of the trust's assets at the beginning of the accounting period.
History:  2013 a. 92 s. 263.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1124 - Liquidating asset.

701.1124
Liquidating asset.
(1)
In this section, “liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to s. 701.1123, resources subject to s. 701.1125, timber subject to s. 701.1126, an activity subject to s. 701.1128, an asset subject to s. 701.1129, or any asset for which the trustee establishes a reserve for depreciation under s. 701.1132.
(2)
A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.
History:  2013 a. 92 s. 271.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1125 - Minerals, water, and other natural resources.

701.1125
Minerals, water, and other natural resources.
(1)
To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources in accordance with this section, the trustee shall allocate them as follows:
(a)
If received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income.
(b)
If received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.
(c)
If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 90 percent must be allocated to principal and the balance to income.
(d)
If an amount is received from a working interest or any other interest not provided for in par. (a), (b), or (c), 90 percent of the net amount received must be allocated to principal and the balance to income.
(2)
An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, 90 percent of the amount must be allocated to principal and the balance to income.
(3)
This section applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.
(4)
If a trust owns an interest in minerals, water, or other natural resources on May 17, 2005, the trustee may allocate receipts from the interest as provided in this section or in the manner used by the trustee before May 17, 2005. If the trust acquires an interest in minerals, water, or other natural resources after May 17, 2005, the trustee shall allocate receipts from the interest as provided in this section.
History:  2013 a. 92 s. 272.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1126 - Timber.

701.1126
Timber.
(1)
To the extent that a trustee accounts for receipts from the sale of timber and related products in accordance with this section, the trustee shall allocate the net receipts:
(a)
To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest.
(b)
To principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber.
(c)
To income or principal or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in pars. (a) and (b).
(d)
To principal to the extent that advance payments, bonuses, and other payments are not allocated under par. (a), (b), or (c).
(2)
In determining net receipts to be allocated under sub. (1), a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(3)
This section applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
(4)
If a trust owns an interest in timberland on May 17, 2005, the trustee may allocate net receipts from the sale of timber and related products as provided in this section or in the manner used by the trustee before May 17, 2005. If the trust acquires an interest in timberland after May 17, 2005, the trustee shall allocate net receipts from the sale of timber and related products as provided in this section.
History:  2013 a. 92 ss. 184, 274.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1127 - Property not productive of income.

701.1127
Property not productive of income.
(1)
If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the surviving spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under s. 701.1104 and distributes to the spouse from principal in accordance with the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by s. 701.1104 (1). The trustee may decide which action or combination of actions to take.
(2)
In cases not governed by sub. (1), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.
History:  2013 a. 92 s. 275.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1128 - Derivatives and options.

701.1128
Derivatives and options.
(1)
In this section, “derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or another market indicator for an asset or a group of assets.
(2)
To the extent that a trustee does not account under s. 701.1117 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
(3)
If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.
History:  2013 a. 92 s. 276.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1129 - Asset-backed securities.

701.1129
Asset-backed securities.
(1)
In this section, “asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which s. 701.1115 or 701.1123 applies.
(2)
If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment that the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.
(3)
If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate 10 percent of the payment to income and the balance to principal.
History:  2013 a. 92 s. 277.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1130 - Disbursements from income.

701.1130
Disbursements from income.
A trustee shall make the following disbursements from income to the extent that they are not disbursements specified in s. 701.1110 (2) (b) or (c):
(1)
One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee.
(2)
One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests.
(3)
All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest.
(4)
Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
History:  2013 a. 92 s. 278.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1131 - Disbursements from principal.

701.1131
Disbursements from principal.
(1)
A trustee shall make the following disbursements from principal:
(a)
The remaining one-half of the disbursements described in s. 701.1130 (1) and (2).
(b)
All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale.
(c)
Payments on the principal of a trust debt.
(d)
Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property.
(e)
Premiums paid on a policy of insurance not described in s. 701.1130 (4) of which the trust is the owner and beneficiary.
(f)
Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust.
(g)
Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental law and other payments made to comply with environmental law, statutory or common law claims by 3rd parties, and defending claims based on environmental matters.
(2)
If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.
History:  2013 a. 92 s. 279.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1132 - Transfers from income to principal for depreciation.

701.1132
Transfers from income to principal for depreciation.
(1)
In this section, “depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.
(2)
A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:
(a)
Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary.
(b)
During the administration of a decedent's estate.
(c)
Under this section if the trustee is accounting under s. 701.1117 for the business or activity in which the asset is used.
(3)
An amount transferred to principal need not be held as a separate fund.
History:  2013 a. 92 s. 280.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1133 - Transfers from income to reimburse principal.

701.1133
Transfers from income to reimburse principal.
(1)
If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.
(2)
Principal disbursements to which sub. (1) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a 3rd party:
(a)
An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs.
(b)
A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments.
(c)
Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and brokers' commissions.
(d)
Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments.
(e)
Disbursements described in s. 701.1131 (1) (g).
(3)
If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in sub. (1).
History:  2013 a. 92 s. 281.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1134 - Income taxes.

701.1134
Income taxes.
(1)
A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
(2)
A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
(3)
A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid as follows:
(a)
From income to the extent that receipts from the entity are allocated only to income.
(b)
From principal to the extent that receipts from the entity are allocated only to principal.
(c)
Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal.
(d)
From principal to the extent that the tax exceeds the total receipts from the entity.
(4)
After applying subs. (1) to (3), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
History:  2013 a. 92 ss. 185, 282 to 287.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1135 - Adjustments between principal and income because of taxes.

701.1135
Adjustments between principal and income because of taxes.
(1)
A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:
(a)
Elections and decisions, other than those described in sub. (2), that the fiduciary makes from time to time regarding tax matters.
(b)
An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust.
(c)
The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate or trust or of a beneficiary.
(2)
If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
History:  2013 a. 92 s. 290.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1136 - Income payments and accumulations.

701.1136
Income payments and accumulations.
(1)
Distribution of income. Except as otherwise determined by the trustee or a court under s. 701.1106 with respect to unitrust distributions, if a beneficiary is entitled to receive income from a trust, but the trust instrument fails to specify how frequently it is to be paid, the trustee shall distribute at least annually the income to which such beneficiary is entitled.
(2)
Permitted accumulations. No provision directing or authorizing accumulation of income is invalid.
(3)
Charitable trust accumulations. A trust containing a direction or authorization to accumulate income from property devoted to a charitable purpose shall be subject to the general equitable supervision of the court with respect to any such accumulation of income, including its reasonableness, amount and duration.
(4)
Disposition of accumulated income. Income not required to be distributed by the trust instrument may, in the trustee's discretion, be held in reserve for future distribution as income or be added to principal subject to retransfer to income of the dollar amount originally transferred to principal. At the termination of the income interest, any undistributed income shall be distributed as principal.
History:  2005 a. 10; 2013 a. 92 s. 292; Stats. 2013 s. 701.1136.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1201 - Private foundations.

701.1201
Private foundations.
(1)
(a)
In the administration of any trust that is a private foundation, as defined in section 509 of the Internal Revenue Code, a charitable trust, as described in section 4947 (a) (1) of the Internal Revenue Code, or a split-interest trust as described in section 4947 (a) (2) of the Internal Revenue Code, all of the following acts shall be prohibited:
1.
Engaging in any act of self-dealing, as defined in section 4941 (d) of the Internal Revenue Code, that would give rise to any liability for the tax imposed by section 4941 (a) of the Internal Revenue Code.
2.
Retaining any excess business holdings, as defined in section 4943 (c) of the Internal Revenue Code, that would give rise to any liability for the tax imposed by section 4943 (a) of the Internal Revenue Code.
3.
Making any investments that would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of section 4944 of the Internal Revenue Code, so as to give rise to any liability for the tax imposed by section 4944 (a) of the Internal Revenue Code.
4.
Making any taxable expenditures, as defined in section 4945 (d) of the Internal Revenue Code, that would give rise to any liability for the tax imposed by section 4945 (a) of the Internal Revenue Code.
(b)
This subsection does not apply either to those split-interest trusts or to amounts thereof that are not subject to the prohibitions applicable to private foundations by reason of the provisions of section 4947 of the Internal Revenue Code.
(2)
In the administration of any trust that is a private foundation, as defined in section 509 of the Internal Revenue Code, or that is a charitable trust, as described in section 4947 (a) (1) of the Internal Revenue Code, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by section 4942 (a) of the Internal Revenue Code.
(3)
Subsections (1) and (2) do not apply to any trust to the extent that a court of competent jurisdiction determines that the application would be contrary to the terms of the trust and that the same may not properly be changed to conform to such subsections.
History:  1971 c. 66; 1991 a. 39; 2013 a. 92 ss. 174, 175; Stats. 2013 s. 701.1201.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1202 - Electronic records and signatures.

701.1202
Electronic records and signatures.
The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or signatures, and of contracts formed or performed with the use of such records or signatures conform to the requirements of section 102 of the federal Electronic Signatures in Global and National Commerce Act, 15 USC 7002, and supersede, modify, and limit the federal Electronic Signatures in Global and National Commerce Act, 15 USC 7001 to 7031.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1204 - Applicability of general transfers at death provisions.

701.1204
Applicability of general transfers at death provisions.
Chapter 854 applies to transfers at death under trust instruments.
History:  1997 a. 188; 2013 a. 92 s. 300; Stats. 2013 s. 701.1204.
Wisconsin's New Probate Code. Erlanger. Wis. Law. Oct. 1998.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.1205 - Applicability.

701.1205
Applicability.
(1)
Except as otherwise provided in sub. (2) and ss. 701.0602, 701.0813, and 701.0903 (4), this chapter is applicable to a trust existing on July 1, 2014, as well as a trust created after such date, and shall govern trustees acting under such trusts. If application of any provision of this chapter to a trust in existence on July 1, 2014, is unconstitutional, it shall not affect application of the provision to a trust created after that date.
(2)
Subchapter XI of this chapter applies to a trust or decedent's estate existing on July 1, 2014, and to a trust or decedent's estate created or coming into existence after that date, except as otherwise expressly provided in subch. XI or by the decedent's will or the terms of the trust. With respect to a trust or decedent's estate existing on July 1, 2014, ss. 701.1110 to 701.1135 shall apply at the beginning of the trust's or estate's first accounting period, as defined in s. 701.1102 (1), that begins on or after July 1, 2014.
(3)
(a)
Except as provided in par. (b), this chapter applies to a judicial proceeding concerning a trust commenced before, on, or after July 1, 2014.
(b)
If a court finds that application of a particular provision of this chapter to a judicial proceeding commenced before July 1, 2014, will substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, the particular provision of this chapter does not apply to that judicial proceeding and the court shall apply ch. 701, 2011 stats., as the court finds to be necessary to prevent interference with the effective conduct of the judicial proceeding and to avoid prejudicing the rights of the parties.
History:  1971 c. 66; 1977 c. 309; 2005 a. 10, 216; 2013 a. 92 ss. 191, 296 to 298; Stats. 2013 s. 701.1205; 2013 a. 151.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.02 - Definitions.

702.02
Definitions.
As used in this chapter, unless the context indicates otherwise:
(1)
“Appointee" means the person to whom an interest is appointed.
(2)
“Creating instrument" means the will, trust agreement, or other document which creates or reserves the power of appointment.
(3)
“Donee" means the person in whom the power of appointment is created or reserved.
(4)
“Donor" means the person who creates or reserves the power of appointment.
(5)
“General power of appointment" means a power exercisable in favor of the donee, the donee's estate, the donee's creditors, or the creditors of the donee's estate, whether or not it is also exercisable in favor of others. A power to appoint to any person or a power of appointment that is not expressly restricted as to appointees may be exercised in favor of the donee or the donee's creditors if exercisable during lifetime, and in favor of the donee's estate or the creditors of the donee's estate if exercisable by will.
(6)
“Power of appointment" means a power to appoint legal or equitable interests in real or personal property. A power of appointment is created or reserved by a person having property subject to his or her disposition which enables the donee of the power of appointment to designate, within such limits as may be prescribed, the transferees of the property or the shares or the interests in which it shall be received. A power of appointment does not include a power of sale, a power of attorney, a power of revocation, or a power exercisable by a trustee, a directing party, as defined in s. 701.0103 (7), another fiduciary in his or her fiduciary capacity, or a trust protector, as defined in s. 701.0103 (31).
(7)
“Special power of appointment" means a power of appointment that is not a general power of appointment.
History:  1971 c. 66; 1983 a. 189; 1993 a. 486; 2013 a. 92 ss. 302 to 310; Stats. 2013 s. 702.02.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.03 - Manifestation of intent to exercise a power of appointment.

702.03
Manifestation of intent to exercise a power of appointment.
(1)
Unless the person who executed it had a contrary intention, if a creating instrument creates a power of appointment that expressly requires that the power of appointment be exercised by any type of reference to the power of appointment or its source, the donor's intention in requiring the reference is presumed to be to prevent an inadvertent exercise of the power of appointment. Extrinsic evidence, as defined in s. 854.01 (1), may be used to construe the intent.
(2)
In the case of other powers of appointment, a creating instrument manifests an intent to exercise the power of appointment if the creating instrument purports to transfer an interest in the appointive property which the donee would have no power to transfer except by virtue of the power of appointment, even though the power of appointment is not recited or referred to in the creating instrument, or if the creating instrument either expressly or by necessary implication from its wording interpreted in light of the circumstances surrounding its drafting and execution manifests an intent to exercise the power of appointment. If there is a general power of appointment exercisable by will with no gift in default in the creating instrument, a residuary clause or other general language in the donee's will purporting to dispose of all of the donee's estate or property operates to exercise the power of appointment in favor of the donee's estate, but in all other cases such a clause or language does not in itself manifest an intent to exercise a power of appointment exercisable by will.
History:  1997 a. 188; 2005 a. 216; 2013 a. 92.
Sub. (1) recognizes that a specific power of appointment requirement creates a presumption that the specific reference was intended to prevent inadvertent exercise. This presumption can be overcome if it can be demonstrated that the donee had knowledge of and intended to exercise the power. Czaplewski v. Shepherd, 2012 WI App 116, 344 Wis. 2d 440, 823 N.W.2d 523, 11-2521.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.05 - Exercise of a power of appointment.

702.05
Exercise of a power of appointment.
(1)
Capacity to exercise a power of appointment. A power of appointment can be exercised only by a person who would have the capacity to transfer the property covered by the power of appointment.
(2)
Kind of instrument and formalities of execution. A donee can exercise a power of appointment only by an instrument which meets the intent of the donor as to kind of instrument and formalities of execution. If the power of appointment is exercisable by will, this means a will executed with the formalities necessary for a valid will. A written instrument signed by the donee is sufficient if the donor fails to require any additional formalities or fails to indicate a will, but if the power of appointment is to appoint interests in land, it can be exercised only by an instrument executed with sufficient formalities for that purpose.
(3)
Consent of 3rd persons. When the consent of the donor or of any other person is required by the donor for the exercise of a power of appointment, such consent must be expressed in the creating instrument exercising the power of appointment or in a separate written instrument, signed in either case by the persons whose consent is required. If any person whose consent is required dies or becomes legally incapable of consenting, the power of appointment may be exercised by the donee without the consent of that person unless the donor has manifested a contrary intent in the creating instrument.
(4)
Power of appointment vested in 2 or more donees. Unless the donor manifests a contrary intent, when a power of appointment is vested in 2 or more persons, all must unite in its exercise, but if one or more of the donees dies, becomes incapable of exercising the power of appointment, or renounces, releases, or disclaims the power of appointment, the power of appointment may be exercised by the others.
(5)
Presumption of nonexercise of a power of appointment. A personal representative, trustee, or other fiduciary who holds property subject to a power of appointment may administer that property as if the power of appointment was not exercised if the personal representative, trustee, or other fiduciary has no notice of the existence of any of the following within 6 months after the death of the donee of the power of appointment:
(a)
A document purporting to be a will of the donee of the power of appointment if the power of appointment is exercisable by a will.
(b)
Some other documentation of the donee purporting to exercise the power of appointment if the power of appointment is exercisable other than by a will.
History:  1971 c. 66; 1977 c. 309; 2005 a. 253; 2013 a. 92.
A warranty deed grants a present fee simple interest. A purported reservation of a power of appointment in a warranty deed is ineffective. Powers may be reserved and a lesser interests granted, but not by warranty deed. Lucareli v. Lucareli, 2000 WI App 133, 237 Wis. 2d 487, 614 N.W.2d 60, 99-1679.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.07 - Power of appointment to be construed as exclusive.

702.07
Power of appointment to be construed as exclusive.
The donee of any power of appointment may appoint the whole or any part of the appointive assets to any one or more of the permissible appointees and exclude others, except to the extent that the donor specifies either a minimum share or amount to be appointed to each permissible appointee or to designated appointees, or a maximum share or amount appointable to any one or more appointees.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.08 - Disclaimer of a power of appointment.

702.08
Disclaimer of a power of appointment.
The donee of any power of appointment may disclaim all or part of the power of appointment as provided under s. 700.27 or 854.13.
History:  1977 c. 309; 1997 a. 188; 2005 a. 216; 2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.09 - Release of a power of appointment.

702.09
Release of a power of appointment.
(1)
Unless the creating instrument expressly provides that the power of appointment cannot be released or expressly restricts the time, manner, or scope of release, the donee of any power of appointment may do any of the following:
(a)
At any time completely release the donee's power of appointment.
(b)
At any time or times release the donee's power of appointment in any one or more of the following respects:
1.
As to the whole or any part of the property which is subject thereto.
2.
As to any one or more persons or objects, or classes of persons or objects, in whose favor such power of appointment is exercisable.
3.
So as to limit in any other respect the extent to or manner in which the power of appointment may be exercised.
(2)
A release may be effected, either with or without consideration, by written instrument signed by the donee and delivered.
(3)
Delivery of a release may be accomplished in any of the following manners, but this subsection is permissive and does not preclude a determination that a release has been delivered in some other manner:
(a)
Delivery to any person specified in the creating instrument.
(b)
Delivery to a trustee or to one of several trustees of the property to which the power of appointment relates, or filing with the court having jurisdiction over the trust.
(c)
Delivery to any person, other than the donee, who could be adversely affected by an exercise of the power of appointment.
(d)
Recording in the office of register of deeds in the county where the property is located.
History:  1993 a. 301, 486; 2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.11 - Irrevocability of creation, exercise and release of a power of appointment.

702.11
Irrevocability of creation, exercise and release of a power of appointment.
The creation, exercise or release of a power of appointment is irrevocable unless the power to revoke is reserved in the creation, exercise or release of the power of appointment.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.13 - Recording instruments relating to a power of appointment.

702.13
Recording instruments relating to a power of appointment.
(1)
Any of the following instruments relating to a power of appointment is entitled to be recorded as a conveyance upon compliance with s. 706.05 (1):
(a)
An instrument, other than a will, exercising a power of appointment.
(b)
An instrument expressing consent to exercise.
(c)
A disclaimer.
(d)
A release.
(2)
If a power of appointment is exercised by a will, a certified copy of the will and of the certificate of probate thereof may be recorded.
History:  1971 c. 41 s. 11; 1977 c. 309; 2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.15 - Disposition when a special power of appointment is unexercised.

702.15
Disposition when a special power of appointment is unexercised.
If the donee of a special power of appointment fails to exercise effectively the special power of appointment, the interests which might have been appointed under the special power of appointment pass in one of the following ways:
(1)
If the creating instrument contains an express gift in default, then in accordance with the terms of such gift.
(2)
If the creating instrument contains no express gift in default and does not clearly indicate that the permissible appointees are to take only if the donee exercises the special power of appointment, then to the permissible appointees equally, but if the special power of appointment is to appoint among a class such as “relatives," “issue," or “heirs," then to those persons who would have taken had there been an express gift to the described class.
(3)
(a)
Except as provided in par. (b), if the creating instrument contains no express gift in default and clearly indicates that the permissible appointees are to take only if the donee exercises the special power of appointment, then by reversion to the donor or the donor's estate.
(b)
If the creating instrument expressly states that there is no reversion in the donor, then any language in the creating instrument indicating or stating that the permissible appointees are to take only if the donee exercises the special power of appointment is to be disregarded and the interests shall pass in accordance with sub. (2).
History:  1993 a. 486; 2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 702 - Powers of appointment. › 702.19 - Matters governed by common law.

702.19
Matters governed by common law.
As to all matters within the scope of those sections of ch. 232, 1963 stats., which have been repealed, and not within this chapter or any other applicable statute, the common law is to govern. This section is not intended to restrict in any manner the meaning of any provision of this chapter or any other applicable statute.
History:  1983 a. 192 s. 304.
2023 Wisconsin Statutes & Annotations › Chapter 703 - Condominiums. › 703.01 - Condominium ownership act.

703.01
Condominium ownership act.
This chapter shall be known as the “Condominium Ownership Act".
History:  1977 c. 407.
State and federal regulation of condominiums. Minahan. 58 MLR 55.
Condominium conversion and tenant rights — Wisconsin statutes section 703.08: What kind of protection does it really provide. Wynn. 63 MLR 73 (1979).
Transferring Declarant Rights and Obligations Under the Wisconsin Condominium Ownership Act. Ishikawa. Wis. Law. Feb. 1992.
Wisconsin's Revised Condominium Ownership Act. Hinkston. Wis. Law. Sept. 2004.
Advising Prospective Owners of Troubled Condominium Projects. Ishikawa. Wis. Law. Oct. 2009.
2023 Wisconsin Statutes & Annotations › Chapter 703 - Condominiums. › 703.03 - Application of chapter.

703.03
Application of chapter.
This chapter applies only to property, a sole owner or all of the owners of which submit the property to the provisions of this chapter by duly executing and recording a declaration as provided in this chapter.
Master-planned communities are not part of the purpose behind this chapter's promulgation. Master-planned communities are an entirely different type and level of development than condominiums. A condominium is a multiple-unit complex, the units of which are individually owned, each owner receiving a recordable deed to the individual unit purchased and sharing in joint ownership of any common grounds or passageways. A master-planned community is a private quasi-town that may include different types of homes, including condominiums, commercial property, private streets and parks, and other recreational facilities. Just because a master-planned community has condominiums as part of the plan, a covenant governing the community is not subject to this chapter. Solowicz v. Forward Geneva National, 2010 WI 20, 323 Wis. 2d 556, 780 N.W.2d 111, 08-0010.
History:  1977 c. 407.
2023 Wisconsin Statutes & Annotations › Chapter 703 - Condominiums. › 703.06 - Alterations prohibited.

703.06
Alterations prohibited.
Except as otherwise provided in this chapter, no unit owner may make any alteration that would jeopardize the soundness or safety of the property, reduce the value thereof, impair any easement or hereditament, or change the exterior appearance of a unit or any other portion of the condominium not part of the unit.
History:  1977 c. 407; 2003 a. 283.
NOTE:  2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
2023 Wisconsin Statutes & Annotations › Chapter 703 - Condominiums. › 703.065 - Recording requirements; general.

703.065
Recording requirements; general.
Every instrument offered for record related to a condominium other than a plat or addendum shall satisfy all of the following criteria:
(1)
The instrument shall include the name of the condominium as it appears in the declaration.
(2)
The instrument shall be prepared in the standard format for recorded documents under s. 59.43 (2m) and (5) (a).
(3)
The instrument shall comply with s. 706.05 (2) (a) and (b).
(4)
If the instrument is a condominium instrument or an instrument that modifies a condominium instrument and the county in which the instrument is to be recorded has adopted an ordinance under s. 703.115, the instrument is accompanied by the certified written approval of the person who performed the review under the ordinance.
History:  2021 a. 168.