(3) Subsections (1) and (2) shall
do not apply to any trust to the extent that a court of competent jurisdiction shall determine determines that
such the application would be contrary to the terms of the instrument governing such trust and that the same may not properly be changed to conform to such subsections.
701.105 (4) of the statutes is repealed.
701.11 of the statutes is repealed.
Subchapter XI (title) of chapter 701 [precedes 701.1101] of the statutes is created to read:
uniform principal and income act
701.1101 of the statutes is created to read:
701.1101 Short title and scope. This subchapter may be cited as the Wisconsin Uniform Principal and Income Act. Subject to s. 701.1206 (2), this subchapter applies to a trust described in s. 701.0102 and an estate that is administered in this state.
701.1102 (intro.) of the statutes is created to read:
701.1102 Definitions. (intro.) In this subchapter:
701.1102 (1g) of the statutes is created to read:
701.1102 (1g) "Asset" has the meaning given for property under s. 701.0103 (20).
701.1106 (6) of the statutes is created to read:
701.1106 (6) Sections 701.0410 to 701.0418 do not apply to a conversion of a trust to a unitrust under this section.
701.1123 (1) of the statutes is created to read:
701.1123 (1) In this section:
(a) "Marital deduction trust" means a trust for which an election to qualify for a marital deduction under section 2056
(b) (7), 2056A
(a) (3), or 2523
(f) of the Internal Revenue Code has been made or a trust that qualified for the marital deduction under other provisions of section 2056
of the Internal Revenue Code.
(b) "Payment" means an amount of money or property received by a trustee that is any of the following:
1. Part of a series, or eligible to be part of a series, of distributions payable over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for the future distributions.
2. Distributed from a plan, regardless of the reason for the distribution.
(c) "Plan" means a contractual, custodial, trust, or other arrangement that provides for distributions to a trust. "Plan" includes a private or commercial annuity, an individual retirement account, a Roth individual retirement account, a qualified retirement plan such as a pension, profit-sharing, stock-bonus, or stock-ownership plan, or any nonqualified deferred compensation plan.
(e) "Separate account" means an account established or maintained under a plan under which income, gains, and losses, whether or not realized, from assets allocated to the account, are credited to or charged against the account without regard to other income, gains, or losses of the plan.
701.1123 (4) of the statutes is created to read:
701.1123 (4) (a) Notwithstanding sub. (3), a trustee of a marital deduction trust shall determine plan income for an accounting period as if the plan were a trust subject to this subchapter. If the trustee of a marital deduction trust cannot determine the plan income, the plan income is 4 percent of the total present value of the trust's income in the plan on the first day of the accounting period, based on reasonable actuarial assumptions as determined by the trustee of the marital deduction trust.
(b) Notwithstanding subs. (2) and (3), a trustee of a marital deduction trust shall allocate a payment from a plan to income to the extent of the plan income and distribute that amount to the surviving spouse. The trustee of the marital deduction trust shall allocate the balance of the payment to principal. Upon the request of the surviving spouse, the trustee of a marital deduction trust shall allocate principal to income to the extent the plan income exceeds payments made from the plan to the trust during the accounting period.
(c) Upon the request of the surviving spouse of the settlor, a trustee of a marital deduction trust shall demand that a person administering a plan distribute the plan income to the trust.
701.1126 (title) of the statutes is created to read:
701.1126 (title) Timber.
701.1134 (3) (c) and (d) and (4) of the statutes are created to read:
701.1134 (3) (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.
701.115 of the statutes is repealed.
701.12 of the statutes is repealed.
Subchapter XII (title) of chapter 701 [precedes 701.1201] of the statutes is created to read:
701.1202 of the statutes is created to read:
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
701.1203 of the statutes is created to read:
701.1203 Uniformity of application and construction. This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
701.1205 (3) of the statutes is created to read:
701.1205 (3) (a) Except as provided in par. (b), this chapter applies to a judicial proceeding concerning a trust commenced before, on, or after the effective date of this paragraph .... [LRB inserts date].
(b) If a court finds that application of a particular provision of this chapter to a judicial proceeding commenced before the effective date of this paragraph .... [LRB inserts date], 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.
701.13 of the statutes is repealed.
701.14 (title) and (1) of the statutes are repealed.
701.14 (2) of the statutes is renumbered 701.0205 and amended to read:
701.0205 Notice. If notice of a judicial proceeding involving a trust proceeding to a an interested person interested in the trust, to the person's representative or guardian ad litem as provided in s. 701.15, or to other persons, is required by law or deemed necessary by the court, the court shall order such notice to be given as prescribed in s. 879.05 except that service by publication shall
may not be required unless ordered by the court. The court may order both personal service and service by publication on designated persons. Proof of service shall be made as provided in s. 879.07. Persons interested in the trust Interested persons, on behalf of themselves, or their representatives or guardians ad litem as provided in s. 701.15, on behalf of themselves the representative or guardian ad litem and those whom they represent
the interested person the representative or guardian ad litem represents, may in writing waive service of notice and consent to the hearing of any matter without notice. Waiver of notice or an appearance by any interested person interested in the trust or the interested person's representative or guardian ad litem as provided in s. 701.15 is equivalent to timely service of notice.
701.14 (3) of the statutes is renumbered 701.0206 and amended to read:
701.0206 Attorney for person in military service. At the time of filing a petition for a trust judicial proceeding, involving a trust, the petitioner shall file an affidavit shall be filed setting forth the name of any interested person interested in the proceeding who is actively engaged in the military service of the United States. Whenever it appears by the affidavit or otherwise that any person in the active military service of the United States is an interested in any trust proceeding person and is not represented by an attorney, or by an attorney-in-fact who is duly authorized to act on the interested person's behalf in the matter, the court shall appoint an attorney to represent the interested person and protect the person's interest.
701.14 (4) of the statutes is repealed.
701.15 of the statutes is repealed.
701.16 (title), (1), (2), (3), (4) (title) and (a) to (c), (5) and (6) of the statutes are repealed.
701.16 (4) (d) of the statutes is renumbered 879.47 (2) and amended to read:
879.47 (2) Notwithstanding s. 879.47, trustees Trustees and cotrustees may submit to courts accounts in the format that they normally use for accounts submitted to beneficiaries under this subsection, if all of the information required by the court is included.
701.17 of the statutes is repealed.
701.18 of the statutes is repealed.
701.19 of the statutes is repealed.
701.20 (title) of the statutes is repealed.
701.20 (2) (intro.) of the statutes is repealed.
701.20 (2) (a) of the statutes is renumbered 701.1102 (1).
701.20 (2) (b) of the statutes is renumbered 701.1102 (1m) and amended to read:
701.1102 (1m) "Beneficiary" Notwithstanding s. 701.0103 (3), "beneficiary" means a person who has a beneficial interest in a trust or an estate and includes, in the case of a decedent's estate, an heir, a legatee, and a devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary.
701.20 (2) (c) of the statutes is renumbered 701.1102 (2).
701.20 (2) (d) of the statutes is renumbered 701.1102 (3) and amended to read:
701.1102 (3) "Income" means money or property that a fiduciary receives as current return from a principal asset. "Income" includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in subs. (10) ss. 701.1115 to (24) 701.1129.
701.20 (2) (e) of the statutes is renumbered 701.1102 (4).
701.20 (2) (f) of the statutes is renumbered 701.1102 (5).
701.20 (2) (g) of the statutes is renumbered 701.1102 (6).
701.20 (2) (h) of the statutes is renumbered 701.1102 (7) and amended to read:
701.1102 (7) "Net income" means the total receipts allocated to income during an accounting period, minus the disbursements made from income during the period, plus or minus transfers under this section subchapter to or from income during the period.
701.20 (2) (i) of the statutes is repealed.
701.20 (2) (j) of the statutes is renumbered 701.1102 (8).
701.20 (2) (k) of the statutes is renumbered 701.1102 (9) and amended to read:
701.1102 (9) "Remainder beneficiary" means a person entitled to receive principal when an income interest ends who is a beneficiary under s. 701.0103 (21) (b).
701.20 (2) (L), (m) and (n) of the statutes are repealed.
701.20 (3) of the statutes is renumbered 701.1103, and 701.1103 (1) and (2), as renumbered, are amended to read:
701.1103 (1) In allocating receipts and disbursements to income or principal or between income and principal, and with respect to any matter within the scope of subs. (5) ss. 701.1110 to (9) 701.1114, a fiduciary:
(a) Shall first administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this section subchapter.
(b) May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this section subchapter.
(c) Shall administer a trust or estate in accordance with this section subchapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration.
(d) Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this section subchapter do not provide a rule for allocating the receipt or disbursement to principal or income or between principal and income.
(2) In exercising the power to adjust under sub. (4) (a) s. 701.1104 (1) or a discretionary power of administration regarding a matter within the scope of this section subchapter, whether granted by the terms of a trust, a will, or this section subchapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this section subchapter is presumed to be fair and reasonable to all of the beneficiaries.
701.20 (4) of the statutes is renumbered 701.1104, and 701.1104 (1), (2) (intro.), (3) (h) and (i), (4), (5) and (6), as renumbered, are amended to read:
701.1104 (1) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income, and the trustee determines, after applying the rules in sub. (3) (a) s. 701.1103 (1), that the trustee is unable to comply with sub. (3) (b) s. 701.1103 (2).
(2) (intro.) In deciding whether and to what extent to exercise the power conferred by par. (a) sub. (1), a trustee shall consider all factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:
(3) (h) If the trust has been converted under sub. (4g) s. 701.1106 to a unitrust.