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2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0302 - Representation by holder of general power of appointment.

701.0302
Representation by holder of general power of appointment.
To the extent there is no conflict of interest between a holder of a general power of appointment and a person represented with respect to the particular question or dispute, the holder may represent and bind the person whose interests, as a permissible appointee, a taker in default, or otherwise, are subject to the power.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0303 - Representation by fiduciaries, parents, or a person appointed by a trustee.

701.0303
Representation by fiduciaries, parents, or a person appointed by a trustee.
Except as provided in s. 701.0411, to the extent there is no conflict of interest between a representative and the person represented or among those being represented with respect to a particular question or dispute, all of the following apply:
(1)
A conservator may represent and bind the estate that the conservator controls.
(2)
Notwithstanding ss. 54.20 (2) and 54.25 (2), a guardian of the estate may represent and bind the ward and a guardian of the person may represent and bind the ward if a guardian of the estate of the ward has not been appointed.
(3)
An agent having authority to act with respect to the particular question or dispute may represent and bind the principal.
(4)
A trustee may represent and bind the beneficiaries of the trust, except as to matters relating to the administration or distribution of the trust.
(5)
A personal representative of a decedent's estate may represent and bind a person interested in the estate, except as to matters relating to the administration or distribution of the estate.
(6)
A parent may represent and bind the parent's minor or unborn child. If a disagreement arises between parents seeking to represent the same minor child or unborn child, representation is determined as follows:
(a)
If only one parent is a beneficiary of the trust that is the subject of the representation, that parent may represent the minor child or unborn child.
(b)
If both parents are beneficiaries of the trust that is the subject of the representation, the parent who is related to the settlor, other than by reason of being married to the other parent, may represent the minor child or unborn child.
(c)
Subject to s. 701.0301 (4), if neither parent is a beneficiary of the trust that is the subject of the representation, the parent who is the settlor of the trust that is the subject of the representation may represent the minor child or unborn child.
(d)
If neither parent is a beneficiary or settlor of the trust that is the subject of the representation, the parent who is related to the settlor, other than by reason of being married to the other parent, may represent the minor child or unborn child.
(7)
The order in which the representatives are listed in subs. (1) to (6) sets forth the priority that each such representative has relative to the others.
(8)
If there is no representation by a person having a substantially identical interest under s. 701.0304, the trustee may appoint a representative to act if any of the following applies:
(a)
There is no one permitted to act under subs. (1) to (6).
(b)
All of the people entitled to act under subs. (1) to (6) have declined to act.
(c)
The trustee determines that the otherwise available representation under subs. (1) to (6) might be inadequate.
History:  2013 a. 92, 151.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0304 - Representation by person having substantially identical interest.

701.0304
Representation by person having substantially identical interest.
Unless otherwise represented with respect to a particular question or dispute, a minor, incapacitated, or unborn individual or a person whose identity or location is unknown and not reasonably ascertainable may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person represented with respect to the particular question or dispute.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0305 - Appointment of representative by a court.

701.0305
Appointment of representative by a court.
(1)
If the court determines that an interest is not represented under this subchapter, or that the otherwise available representation might be inadequate, the court may appoint a representative or guardian ad litem to receive notice, give consent, and otherwise represent, bind, and act on behalf of the person who is not represented or whose representation might be inadequate. A representative or guardian ad litem may be appointed to represent several persons or interests.
(2)
A representative or guardian ad litem may act on behalf of the individual represented with respect to any matter arising under this chapter, whether or not a judicial proceeding concerning the trust is pending.
(3)
In making decisions, a representative or guardian ad litem may consider any general benefit accruing to the living members of the individual's family.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0401 - Methods of creating a trust.

701.0401
Methods of creating a trust.
A trust may be created by any of the following:
(1)
A transfer of property to another person as trustee during the settlor's lifetime, by will, or by other disposition taking effect upon the settlor's death.
(2)
A declaration by an owner of property that the owner holds identifiable property as trustee or declaration by any person who intends to create a trust with the expectation that property of the person or others will be transferred to the trust.
(3)
An exercise of a power of appointment in favor of a trustee.
(4)
A court pursuant to its statutory or equitable powers.
(5)
A guardian of the estate or conservator acting with authority of the court, a representative payee, or an agent under a power of attorney that expressly grants authority to create the trust.
(6)
Any other manner authorized by statute, regulation, common law, or other provision having the effect of law.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0402 - Requirements for creation.

701.0402
Requirements for creation.
(1)
A trust is created only if all of the following are satisfied:
(a)
The settlor of the trust has capacity, as defined in sub. (4), to create the trust, unless the trust is created by court order or by an agent, guardian of the estate, conservator, or representative payee with authority to act.
(b)
The settlor indicates an intention to create the trust; or a statute, regulation, common law, other provision having the effect of law, judgment, or decree creates or authorizes the creation of a trust.
(c)
The trust has a definite beneficiary or is one of the following:
1.
A charitable trust.
2.
A trust for the care of an animal, as provided in s. 701.0408.
3.
A trust for a noncharitable purpose, as provided in s. 701.0409.
(d)
The trustee has duties to perform.
(e)
The same person is not the sole trustee and sole beneficiary.
(2)
A beneficiary is definite if the beneficiary can be ascertained at the time the trust is created or in the future.
(3)
A power in a trustee or trust protector to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.
(4)
The capacity required to create a trust is the same as the capacity to make a will.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0403 - Trusts created in other jurisdictions.

701.0403
Trusts created in other jurisdictions.
A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation, any of the following was satisfied:
(1)
The settlor was domiciled, had a place of abode, or was a national.
(2)
A trustee was domiciled or had a place of business.
(3)
Any trust property was located.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0404 - Trust purposes.

701.0404
Trust purposes.
A trust may be created only to the extent its purposes are lawful and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries or for a noncharitable, but otherwise valid, purpose as described in s. 701.0409.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0405 - Charitable purposes; enforcement.

701.0405
Charitable purposes; enforcement.
(1)
A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health or governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
(2)
If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, or designate persons or procedures for selecting charitable purposes or beneficiaries, the court may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained.
(3)
The settlor of a charitable trust or his or her designees, whether identified within or without the terms of the trust, or a charitable entity named in the trust instrument, or the attorney general, or a cotrustee, or such other person the court determines to have sufficient interest may maintain a proceeding to enforce the trust.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0407 - Evidence of oral trust.

701.0407
Evidence of oral trust.
Except as required by a statute other than this chapter, a trust does not need to be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0408 - Trust for care of animal.

701.0408
Trust for care of animal.
(1)
A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal.
(2)
A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed under this subsection.
(3)
Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0409 - Noncharitable trust without ascertainable beneficiary.

701.0409
Noncharitable trust without ascertainable beneficiary.
Except as otherwise provided in s. 701.0408 or by another statute, the following rules apply:
(1)
A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee.
(2)
A trust may be created for maintaining, keeping in repair, and preserving any grave, tomb, monument, gravestone, or any cemetery. Any cemetery authority under s. 157.061 (2) may receive property in trust for any of the purposes specified in this subsection and apply the income from the trust to the purpose stated in the trust instrument.
(3)
A trust authorized by this section may be enforced by a trust protector with the power to enforce the trust. If there is not a trust protector with the power to enforce the trust, a court may appoint a trust protector with the power to enforce the trust under s. 701.0818.
(4)
Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0410 - Modification or termination of trust; proceedings for approval or disapproval.

701.0410
Modification or termination of trust; proceedings for approval or disapproval.
(1)
In addition to the methods of termination prescribed by ss. 701.0411 to 701.0414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful or impossible to achieve.
(2)
A proceeding to approve or disapprove a proposed modification or termination under ss. 701.0411 to 701.0416, or a proposed trust combination or division under s. 701.0417, may be commenced by a trustee or beneficiary, and a proceeding to approve or disapprove a proposed modification or termination under s. 701.0411 may be commenced by the settlor. The settlor of a charitable trust may maintain a proceeding to modify the trust under s. 701.0413. A trustee does not have standing to oppose a proposed modification or termination commenced under s. 701.0411 (1).
(3)
A trustee may not be compelled by a modification or termination under this section or under ss. 701.0411 to 701.0416 to make distributions to or for any beneficiary of a trust for an individual with a disability or to terminate the trust, during the lifetime of the individual with a disability. A court may modify the terms of a trust for an individual with a disability with retroactive effect or reform the terms of such trust to achieve the settlor's objective or, if because of circumstances not anticipated by the settlor, to otherwise further the purposes of the trust so that it does not result in trust property being countable as resources or income of the individual with a disability for purposes of public assistance.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0411 - Modification or termination of noncharitable irrevocable trust by consent.

701.0411
Modification or termination of noncharitable irrevocable trust by consent.
(1)
A noncharitable irrevocable trust may be modified or terminated, with or without court approval, upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's modification or termination may be exercised by a representative under s. 701.0303 only if the representative is specifically authorized to consent to a trust's modification or termination under a power of attorney, the terms of the trust, or by a court under a guardianship or conservatorship.
(2)
(a)
A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.
(b)
A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
(3)
A spendthrift provision in the terms of the trust is not presumed to constitute a material purpose of the trust.
(4)
A court may not compel a beneficiary to consent to a modification or termination to satisfy a creditor of the beneficiary.
(5)
Upon termination of a trust under sub. (1) or (2), the trustee shall distribute the trust property as agreed by the beneficiaries.
(6)
If not all of the beneficiaries consent to a proposed modification or termination of the trust under sub. (1) or (2), the modification or termination may be approved by the court if the court is satisfied that all of the following apply:
(a)
If all of the beneficiaries had consented, the trust could have been modified or terminated under this section.
(b)
The interests of a beneficiary who does not consent will be adequately protected.
(7)
A party proposing to modify or terminate a trust under sub. (1) or (2) shall give notice of the proposed modification or termination to the settlor, if living, the trustee, each trust protector, each directing party, and each beneficiary at least 30 days before the proposed effective date of the modification or termination.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0412 - Modification or termination because of unanticipated circumstances or inability to administer trust effectively.

701.0412
Modification or termination because of unanticipated circumstances or inability to administer trust effectively.
(1)
The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the court shall make the modification in accordance with the settlor's probable intention.
(2)
The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(3)
Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(4)
A party petitioning the court for action under this section shall give notice of the proceeding to the settlor, if living, the trustee, each trust protector, each directing party, and the qualified beneficiaries.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0413 - Cy pres.

701.0413
Cy pres.
(1)
The purpose of this section is to broaden the power of the courts to make charitable gifts more effective. The court shall liberally apply the cy pres doctrine.
(2)
Except as provided in sub. (3), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful, all of the following apply:
(a)
The trust does not fail, in whole or in part.
(b)
The trust property does not revert to the settlor or the settlor's successors in interest.
(c)
The court may apply the cy pres doctrine to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes. In determining the alternative plan for disposition of the property under this paragraph, the court shall take into account current and future community needs in the general field of charity within which the original charitable purpose falls, other charitable interests of the settlor, the amount of principal and income available under the trust, and other relevant factors. A person with standing to enforce the terms of a charitable trust under s. 701.0405 (3) has standing to commence a proceeding under this paragraph. The attorney general is a necessary party in all proceedings under this paragraph.
(3)
A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under sub. (2) to apply the cy pres doctrine to modify or terminate the trust only if, when the provision takes effect, the trust property is to revert to the settlor and the settlor is still living.
(4)
A party petitioning the court for action under this section shall give notice to the settlor, if living, the trustee, each trust protector, each directing party, the qualified beneficiaries, and any person with standing to enforce the terms of a charitable trust under s. 701.0405 (3).
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0414 - Modification or termination of uneconomic trust.

701.0414
Modification or termination of uneconomic trust.
(1)
In this section:
(a)
“Adjustment reference number" means the consumer price index for all urban consumers, as published by the United States bureau of labor statistics, in effect on January 1 of the year in which an adjustment is to be made in accordance with sub. (3).
(b)
“Base reference number" means the consumer price index for all urban consumers, as published by the United States bureau of labor statistics, in effect on January 1 of the base year.
(c)
“Base year" means 2014.
(2)
After notice to the settlor, if living, each trust protector, each directing party, and the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $100,000 or a revised applicable figure, as determined under sub. (3), may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
(3)
The dollar amount specified in sub. (2) shall be adjusted to a revised applicable figure on July 1, 2019, and every 5 years thereafter. The revised applicable figure shall be determined as follows:
(a)
Calculate the percentage change between the base reference number and the adjustment reference number for the year in which the adjustment is being made.
(b)
1.
If the percentage change determined in par. (a) is a positive number, determine the revised applicable figure as follows:
a.
Multiply $100,000 by the percentage change determined in par. (a), expressed as a decimal.
b.
Round the product under subd. 1. a. to the nearest $1,000.
c.
Add the value determined under subd. 1. b. to $100,000.
2.
If the percentage change determined in par. (a) is a negative number, determine the revised applicable figure as follows:
a.
Multiply $100,000 by the absolute value of the percentage change determined in par. (a), expressed as a decimal.
b.
Round the product under subd. 2. a. to the nearest $1,000.
c.
Subtract the value determined under subd. 2. b. from $100,000.
(4)
The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration even if the trust property has a total value in excess of the amount described in sub. (2).
(5)
Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(6)
This section does not apply to an easement for conservation or preservation.
(7)
A party petitioning the court for action under this section shall give notice of the proceeding to the settlor, if living, the trustee, each trust protector, each directing party, and the qualified beneficiaries.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0415 - Reformation to correct mistakes.

701.0415
Reformation to correct mistakes.
The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intent if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement. A party petitioning the court for action under this section shall give notice of the proceeding to the settlor, if living, the trustee, each trust protector, each directing party, and the qualified beneficiaries.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0416 - Modification to achieve settlor's tax objectives.

701.0416
Modification to achieve settlor's tax objectives.
To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intent. The court may provide that the modification has retroactive effect. A party petitioning the court for action under this section shall give notice of the proceeding to the settlor, if living, the trustee, each trust protector, each directing party, and the qualified beneficiaries.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0417 - Combination and division of trusts.

701.0417
Combination and division of trusts.
(1)
After notice to each trust protector, each directing party, and the qualified beneficiaries, a trustee may do any of the following if the result does not impair rights of any beneficiary or adversely affect achievement of any trust purposes:
(a)
Combine 2 or more trusts into a single trust.
(b)
Divide a trust into 2 or more separate trusts.
(2)
Subject to the terms of the trust, the trustee may take into consideration differences in federal tax attributes and other pertinent factors in administering the trust property of any separate account or trust, in making applicable tax elections, and in making distributions. A separate trust created by severance under sub. (1) (b) is treated as a separate trust for all purposes from the date on which the severance is effective. The effective date of the severance may be retroactive to a date before the date on which the trustee exercises the power.
(3)
If a trustee combines 2 or more trusts into a single trust, the trustee shall identify which trust is the surviving trust.
(4)
In case of a division of a trust into 2 or more trusts, any distribution or allocation of assets as an equivalent of a dollar amount fixed by formula or otherwise shall be made at current fair market values unless the trust instrument expressly provided that another value may be used. If the trust instrument requires or permits a different value to be used, all property available for distribution, including cash, shall be distributed so that the property, including cash, is fairly representative of the net appreciation or depreciation in the value of the available property on the date or dates of distribution. A provision in the trust instrument that the trustee may fix values for purposes of distribution or allocation does not of itself constitute authorization to fix a value other than current fair market value.
History:  2013 a. 92 ss. 91, 294.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0419 - Transfers to trusts.

701.0419
Transfers to trusts.
(1)
Validity and effect. The order of execution of a trust instrument and a will or other instrument purporting to transfer or appoint property to the trust evidenced by the trust instrument shall be disregarded in determining the validity of the transfer or appointment. No reference in any will to a trust shall cause assets in such trust to be included in property administered as part of the testator's estate.
(2)
Governing terms. Property transferred or appointed by a will or by a beneficiary designation under an employee benefit plan, life insurance policy, or online tool, as defined in s. 711.03 (18), or other instrument permitting designation of a beneficiary to a trust, shall be administered in accordance with the terms of the trust as the terms of the trust may have been modified prior to the testator's or designator's death, even though the will, beneficiary designation, online tool, or other instrument was not reexecuted or republished after exercise of the power to modify, unless the will, beneficiary designation, online tool, or other instrument expressly provides otherwise.
(3)
Disposition when no existing trust. If at the death of a testator a trust has been completely revoked, or otherwise terminated, a provision in the testator's will purporting to transfer or appoint property to the trust shall have the following effect, unless the will provides otherwise:
(a)
If the testator was a necessary party to the revocation or other termination of the trust, the provision in the testator's will shall be invalid.
(b)
If the testator was not a necessary party to the revocation or other termination of such trust, the provision in the testator's will shall be deemed to create a trust upon the terms of the trust instrument at the time the will was executed or as otherwise provided where sub. (2) is applicable.
History:  1971 c. 66; 1991 a. 316; 2013 a. 92 s. 132; Stats. 2013 s. 701.0419; 2015 a. 300.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0501 - Rights of beneficiary's creditor or assignee.

701.0501
Rights of beneficiary's creditor or assignee.
(1)
(a)
To the extent a beneficiary's interest is not protected by a spendthrift provision, the court may authorize a judgment creditor or an assignee of the beneficiary to reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The court may limit the award to such relief as is appropriate under the circumstances.
(b)
This subsection does not apply to a trust for an individual with a disability.
(2)
A trustee is not liable to any creditor of a beneficiary for any distributions made to or for the benefit of the beneficiary if any of the following applies:
(a)
The beneficiary's interest is protected by a spendthrift provision.
(b)
The trust is a trust for an individual with a disability.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0502 - Spendthrift provision.

701.0502
Spendthrift provision.
(1)
A spendthrift provision is valid only if any of the following applies:
(a)
The beneficiary is a person other than the settlor and is not treated as the settlor under s. 701.0505 (2).
(b)
The trust is a trust for an individual with a disability.
(2)
Subject to sub. (1), a term of a trust providing that the interest of a beneficiary is held subject to a spendthrift trust, or words of similar import, restrains both a voluntary and involuntary transfer of the beneficiary's interest.
(3)
A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this subchapter, a creditor or assignee of the beneficiary may not attach, garnish, execute on, or otherwise reach the interest or a distribution by the trustee before its receipt by the beneficiary.
(4)
Real property or tangible personal property that is owned by the trust but that is made available for a beneficiary's occupancy or use in accordance with the trustee's authority under the trust instrument may not be considered to have been distributed by the trustee or received by the beneficiary for purposes of allowing a creditor or assignee of the beneficiary to reach the property.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0504 - Discretionary trusts; effect of standard.

701.0504
Discretionary trusts; effect of standard.
(1)
For purposes of this subchapter, and except as provided in sub. (3), a beneficiary's interest in a trust that is subject to the trustee's discretion does not constitute an interest in property or an enforceable right even if the discretion is expressed in the form of a standard of distribution or the beneficiary is then serving as sole trustee or cotrustee.
(2)
Except as provided in this subchapter, a creditor or other claimant may not attach present or future distributions from a beneficiary's interest in property or an enforceable right, obtain an order from a court forcing the judicial sale of the interest or compelling the trustee to make distributions, or reach the interest or right by any other means, even if the trustee has abused the trustee's discretion.
(3)
Subsections (1) and (2) do not apply if a beneficiary is acting as sole trustee of a trust for his or her benefit and his or her discretion to make distributions to himself or herself is not limited by an ascertainable standard or the consent of a party holding an adverse interest to the beneficiary.
(4)
(a)
Except as provided in par. (b), this section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
(b)
The right of a beneficiary described in par. (a) may not be exercised by a creditor.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0506 - Overdue distribution.

701.0506
Overdue distribution.
(1)
In this section, “mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. “Mandatory distribution" does not include a distribution subject to the exercise of the trustee's discretion even if any of the following applies:
(a)
The discretion is expressed in the form of a standard of distribution.
(b)
The terms of the trust authorizing a distribution couple language of discretion with language of direction.
(2)
Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0601 - Capacity of settlor of revocable trust.

701.0601
Capacity of settlor of revocable trust.
The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0602 - Revocation or amendment of revocable trust.

701.0602
Revocation or amendment of revocable trust.
(1)
Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before July 1, 2014.
(2)
If a revocable trust is created or funded by more than one settlor, all of the following apply:
(a)
To the extent the trust consists of marital or community property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses.
(b)
To the extent the trust consists of property other than marital or community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor's contribution.
(c)
Upon the revocation or amendment of the trust by fewer than all of the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.
(3)
A settlor may revoke or amend a revocable trust by any of the following means:
(a)
By substantial compliance with a method provided in the terms of the trust.
(b)
If the terms of the trust do not provide a method, by any of the following means:
1.
A later will or codicil that expressly refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust.
2.
Any other method manifesting clear and convincing evidence of the settlor's intent.
(4)
Upon revocation of a revocable trust, the trustee shall transfer the trust property as the settlor directs. However, with respect to marital or community property, the trustee shall transfer the property to both spouses as marital or community property.
(5)
A settlor's powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the power of attorney.
(6)
A guardian of the estate or a conservator of the settlor may exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the guardianship or conservatorship.
(7)
A trustee who does not know that a trust has been revoked or amended is not liable for distributions made and other actions taken on the assumption that the trust had not been amended or revoked, or for distributions made pursuant to sub. (5).
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0603 - Settlor's powers; powers of withdrawal.

701.0603
Settlor's powers; powers of withdrawal.
(1)
While a trust is revocable, the rights of the beneficiaries are subject to the control of, and the duties of the trustee, a directing party, and a trust protector are owed exclusively to, the settlor.
(2)
If a revocable trust has more than one settlor, the duties of the trustee, a directing party, and a trust protector are owed to all of the settlors.
(3)
During the period in which a power of withdrawal may be exercised, the holder of the power has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0604 - Limitation on action contesting validity of revocable trust; distribution of trust property.

701.0604
Limitation on action contesting validity of revocable trust; distribution of trust property.
(1)
A person must commence a judicial proceeding to contest the validity of a trust that was revocable immediately before the settlor's death within the earlier of the following:
(a)
One year after the settlor's death.
(b)
Four months after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding. Except as provided in s. 701.0813 (2), a trustee is not liable to any person for not providing the information described in this paragraph.
(2)
Upon the death of the settlor of a trust that was revocable immediately before the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless one of the following applies:
(a)
The trustee knows of a pending judicial proceeding contesting the validity of the trust.
(b)
A potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(3)
A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0701 - Accepting or declining trusteeship.

701.0701
Accepting or declining trusteeship.
(1)
Except as provided in sub. (3), a person designated as trustee accepts the trusteeship by doing any of the following:
(a)
Substantially complying with a method of acceptance provided in the terms of the trust.
(b)
If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(2)
A person designated as trustee who has not yet accepted the trusteeship may decline the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is considered to have rejected the trusteeship.
(3)
A person designated as trustee, without accepting the trusteeship, may do any of the following:
(a)
Act to preserve the trust property if, within a reasonable time after acting, the person sends a declination of the trusteeship in writing to the settlor or, if the settlor is dead or incapacitated, to the designated cotrustee, or, if none, to the successor trustee, or, if none, to a distributee or a permissible distributee of the trust.
(b)
Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0702 - Trustee's bond.

701.0702
Trustee's bond.
(1)
A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(2)
The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(3)
A court may not require a bond from a trust company bank, state bank, or national bank that is authorized to exercise trust powers and that has complied with s. 220.09 or 223.02 nor shall a bond be required of a religious, charitable, or educational corporation or society.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0703 - Cotrustees.

701.0703
Cotrustees.
(1)
Cotrustees may act only by majority decision.
(2)
If a vacancy occurs in a cotrusteeship, as provided under s. 701.0704, a majority of the remaining cotrustees may act for the trust.
(3)
A cotrustee shall participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or the cotrustee is otherwise temporarily incapacitated or the cotrustee has properly delegated the performance of the function to another trustee.
(4)
If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or the cotrustee is otherwise temporarily incapacitated, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(5)
A trustee may delegate to a cotrustee a function unless the delegation is expressly prohibited by the terms of the trust. Unless a delegation is irrevocable, a trustee may revoke a delegation previously made.
(6)
Except as provided in sub. (7), a trustee who does not join in an action of another trustee is not liable for the action.
(7)
Each trustee shall exercise reasonable care to do all of the following:
(a)
Prevent a cotrustee from committing a material breach of trust.
(b)
Compel a cotrustee to redress a material breach of trust.
(8)
A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified all cotrustees of the dissent at or before the time of the action is not liable for the action unless the action is a material breach of trust.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0704 - Vacancy in trusteeship; appointment of successor.

701.0704
Vacancy in trusteeship; appointment of successor.
(1)
A vacancy in a trusteeship exists if any of the following occurs:
(a)
A person designated as trustee declines the trusteeship.
(b)
A person designated as trustee cannot be identified or does not exist.
(c)
A trustee resigns.
(d)
A trustee is disqualified or removed.
(e)
A trustee dies.
(f)
A guardian or conservator is appointed for an individual serving as trustee.
(2)
If one or more cotrustees remain in office, a vacancy in a trusteeship does not need to be filled. A vacancy in a trusteeship shall be filled if the trust has no remaining trustee.
(3)
A vacancy in a trusteeship that is required to be filled shall be filled in the following order of priority:
(a)
By a person designated in the terms of the trust to act as successor trustee.
(b)
By a person appointed by unanimous agreement of the qualified beneficiaries, except that, if the trust is a trust for an individual with a disability, the person appointed under this paragraph may not be the individual with a disability, his or her spouse, or a relative of the individual with a disability who is legally responsible for his or her support.
(c)
By a person appointed by the court.
(4)
Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee, directing party, or trust protector whenever the court considers the appointment necessary for the administration of the trust.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0705 - Resignation of trustee.

701.0705
Resignation of trustee.
(1)
A trustee may resign in any of the following manners:
(a)
Upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, each cotrustee, each trust protector, and each directing party.
(b)
With the approval of the court.
(2)
In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(3)
Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0706 - Removal of trustee.

701.0706
Removal of trustee.
(1)
The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(2)
The court may remove a trustee if any of the following applies:
(a)
The trustee has committed a material breach of trust.
(b)
A lack of cooperation among cotrustees substantially impairs the administration of the trust.
(c)
The court determines that removal of the trustee best serves the interests of the beneficiaries because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively.
(d)
There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
(3)
Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under s. 701.1001 (2) as may be necessary to protect the trust property or the interests of the beneficiaries.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0707 - Delivery of property by former trustee.

701.0707
Delivery of property by former trustee.
(1)
Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(2)
A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it.
History:  2013 a. 92.
2023 Wisconsin Statutes & Annotations › Chapter 701 - Trusts. › 701.0708 - Compensation of trustee.

701.0708
Compensation of trustee.
(1)
If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
(2)
If the terms of a trust specify the trustee's compensation or refer to another ascertainable source for determining that compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if any of the following applies:
(a)
The duties of the trustee are substantially different from those contemplated when the trust was created.
(b)
The compensation specified by the terms of the trust would be unreasonably low or high.
(3)
If the trustee has rendered other services in connection with the administration of the trust, the trustee may receive reasonable compensation for the other services rendered, in addition to reasonable compensation as trustee.
History:  2013 a. 92.