Under the law previous to the effective date of Act 20, the purchase by an
individual or his or her spouse of a promissory note, loan, or mortgage is a transfer
of assets for less than fair market value triggers an ineligibility period unless certain
circumstances apply including that the loan's terms prohibit cancellation of the
balance upon the death of the lender. Current law, under Act 20, specifies that a
promissory note in which the debtor is a presumptive heir of the lender or in which
neither the lender nor debtor has any incentive to enforce repayment is considered
cancelled upon the death of the lender for purposes of divestment and eligibility for
MA. JCF did not approve the implementation of this change in Act 20 and the bill
repeals the change.

Act 20 changes the definition of "financial institutions" for purposes of verifying
the assets of applicants for and recipients of MA programs. The bill removes from
that definition institution-affiliated parties of depository institutions and credit
unions, as institutional-affiliated parties are defined under federal law; benefit
associations; insurance companies; safe deposit companies; money market mutual
funds; and similar entities authorized to do business in Wisconsin.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB384,1 1Section 1. 20.435 (4) (im) of the statutes, as affected by 2013 Wisconsin Act
220
, is amended to read:
SB384,14,123 20.435 (4) (im) Medical assistance; correct payment recovery; collections; other
4recoveries.
All moneys received from the recovery of correct medical assistance
5payments under ss. 49.496, 49.848, and 49.849, all moneys received as collections
6and other recoveries from providers, drug manufacturers, and other 3rd parties
7under medical assistance performance-based contracts, and all moneys credited to
8this appropriation account under s. 49.89 (7) (f), for payments to counties and tribal
9governing bodies under s. 49.496 (4) (a), for payment of claims under s. 49.849 (5),
10for payments to the federal government for its share of medical assistance benefits
11recovered, for the state share of medical assistance benefits provided under subch.
12IV of ch. 49, and for costs related to collections and other recoveries.
SB384,2 13Section 2. 20.435 (4) (in) of the statutes, as affected by 2013 Wisconsin Act 20,
14is amended to read:
SB384,15,215 20.435 (4) (in) Community options program; family care; recovery of costs
16administration.
From the moneys received from the recovery of costs of care under
17ss. 46.27 (7g), 49.848, and 49.849 for enrollees who are ineligible for medical

1assistance, the amounts in the schedule for administration of the recovery of costs
2of the care.
SB384,3 3Section 3. 20.435 (7) (im) of the statutes, as affected by 2013 Wisconsin Act
420
, is amended to read:
SB384,15,155 20.435 (7) (im) Community options program; family care benefit; recovery of
6costs; birth to 3 waiver administration.
From the moneys received from the recovery
7of costs of care under ss. 46.27 (7g), 49.848, and 49.849 for enrollees who are ineligible
8for medical assistance, all moneys not appropriated under sub. (4) (in), and all
9moneys transferred to this appropriation account from the appropriation account
10under sub. (4) (o), for payments to county departments and aging units under s. 46.27
11(7g) (d), payments to care management organizations for provision of the family care
12benefit under s. 46.284 (5), payment of claims under s. 49.849 (5), payments for
13long-term community support services funded under s. 46.27 (7) as provided in ss.
1446.27 (7g) (e) and 49.849 (6) (b), and for administration of the waiver program under
15s. 46.99.
SB384,4 16Section 4. 23.0918 (2) of the statutes is amended to read:
SB384,15,2317 23.0918 (2) Unless the natural resources board determines otherwise in a
18specific case, only the income from the gifts, grants, or bequests in the fund is
19available for expenditure. The natural resources board may authorize expenditures
20only for preserving, developing, managing, or maintaining land under the
21jurisdiction of the department that is used for any of the purposes specified in s. 23.09
22(2) (d). In this subsection, unless otherwise provided in a gift, grant, or bequest,
23principal and income are determined as provided under s. 701.20 subch. XI of ch. 701.
SB384,5 24Section 5. 25.70 of the statutes is amended to read:
SB384,16,8
125.70 Historical society trust fund. There is established a separate
2nonlapsible trust fund designated as the historical society trust fund, consisting of
3all endowment principal and income and all cash balances of the historical society.
4Unless the board of curators of the historical society determines otherwise in each
5case, only the income from the assets in the historical society trust fund is available
6for expenditure. In this section, unless otherwise provided in the gift, grant, or
7bequest, principal and income are determined as provided under s. 701.20 subch. XI
8of ch. 701
.
SB384,6 9Section 6. 46.27 (7g) (a) 5. a. of the statutes, as created by 2013 Wisconsin Act
1020
, is renumbered 46.27 (7g) (a) 5.
SB384,7 11Section 7. 46.27 (7g) (a) 5. b. of the statutes, as created by 2013 Wisconsin Act
1220
, is repealed.
SB384,8 13Section 8. 46.27 (7g) (c) 2m. b. of the statutes, as created by 2013 Wisconsin
14Act 20
, is amended to read:
SB384,16,1915 46.27 (7g) (c) 2m. b. There is a presumption, which may be rebutted by clear
16and convincing evidence
consistent with s. 766.31, which may be rebutted, that all
17property in the estate of the nonclient surviving spouse was marital property held
18with the client and that 100 percent of the property in the estate of the nonclient
19surviving spouse is subject to the department's claim under subd. 1.
SB384,9 20Section 9. 46.27 (7g) (c) 6m. b. of the statutes, as created by 2013 Wisconsin
21Act 20
, is amended to read:
SB384,16,2322 46.27 (7g) (c) 6m. b. The department shall release the lien in the circumstances
23described in s. 49.848 (5) (f) 49.849 (4) (c) 2.
SB384,10 24Section 10. 46.27 (7g) (g) of the statutes, as affected by 2013 Wisconsin Act 20,
25is amended to read:
SB384,17,6
146.27 (7g) (g) The department shall promulgate rules establishing standards
2for determining whether the application of this subsection would work an undue
3hardship in individual cases. If the department determines that the application of
4this subsection would work an undue hardship in a particular case, the department
5shall waive application of this subsection in that case. This paragraph does not apply
6with respect to claims against the estates of nonclient surviving spouses.
SB384,11 7Section 11. 46.286 (7) of the statutes, as affected by 2013 Wisconsin Act 20,
8is amended to read:
SB384,17,129 46.286 (7) Recovery of family care benefit payments. The department shall
10apply to the recovery from persons who receive the family care benefit, including by
11liens and affidavits and from estates, of correctly paid family care benefits, the
12applicable provisions under ss. 49.496, 49.848, and 49.849.
SB384,12 13Section 12. 49.45 (4m) (a) 3. b. of the statutes, as created by 2013 Wisconsin
14Act 20
, is repealed.
SB384,13 15Section 13. 49.45 (4m) (a) 3. d. of the statutes, as created by 2013 Wisconsin
16Act 20
, is repealed.
SB384,14 17Section 14. 49.45 (4m) (a) 3. e. of the statutes, as created by 2013 Wisconsin
18Act 20
, is repealed.
SB384,15 19Section 15. 49.453 (2) (a) (intro.) of the statutes, as affected by 2013 Wisconsin
20Act 20
, is amended to read:
SB384,18,221 49.453 (2) (a) Institutionalized individuals. (intro.) Except as provided in sub.
22(8), if an institutionalized individual or his or her spouse, or another person acting
23on behalf of the institutionalized individual or his or her spouse, transfers assets;
24regardless of whether those assets, if retained, are excluded under 42 USC 1396p;

25for less than fair market value on or after the institutionalized individual's look-back

1date, the institutionalized individual is ineligible for medical assistance for the
2following services for the period specified under sub. (3):
SB384,16 3Section 16. 49.453 (2) (b) (intro.) of the statutes, as affected by 2013 Wisconsin
4Act 20
, is amended to read:
SB384,18,115 49.453 (2) (b) Noninstitutionalized individuals. (intro.) Except as provided in
6sub. (8), if a noninstitutionalized individual or his or her spouse, or another person
7acting on behalf of the noninstitutionalized individual or his or her spouse, transfers
8assets; regardless of whether those assets, if retained, are excluded under 42 USC
91396p;
for less than fair market value on or after the noninstitutionalized
10individual's look-back date, the noninstitutionalized individual is ineligible for
11medical assistance for the following services for the period specified under sub. (3):
SB384,17 12Section 17. 49.453 (4c) (c) of the statutes, as created by 2013 Wisconsin Act
1320
, is repealed.
SB384,18 14Section 18. 49.496 (1) (cm) 1. of the statutes, as created by 2013 Wisconsin Act
1520
, is renumbered 49.496 (1) (cm).
SB384,19 16Section 19. 49.496 (1) (cm) 2. of the statutes, as created by 2013 Wisconsin Act
1720
, is repealed.
SB384,20 18Section 20. 49.496 (3) (aj) 2. of the statutes, as created by 2013 Wisconsin Act
1920
, is amended to read:
SB384,18,2420 49.496 (3) (aj) 2. There is a presumption, which may be rebutted by clear and
21convincing evidence
consistent with s. 766.31, which may be rebutted, that all
22property in the estate of a nonrecipient surviving spouse was marital property held
23with the recipient and that 100 percent of the property in the estate of the
24nonrecipient surviving spouse is subject to the department's claim under par. (a).
SB384,21
1Section 21. 49.496 (3) (dm) 2. of the statutes, as created by 2013 Wisconsin Act
220
, is amended to read:
SB384,19,43 49.496 (3) (dm) 2. The department shall release the lien in the circumstances
4described in s. 49.848 (5) (f) 49.849 (4) (c) 2.
SB384,22 5Section 22. 49.496 (6m) of the statutes, as affected by 2013 Wisconsin Act 20,
6is amended to read:
SB384,19,137 49.496 (6m) Waiver due to hardship. The department shall promulgate rules
8establishing standards for determining whether the application of this section would
9work an undue hardship in individual cases. If the department determines that the
10application of this section would work an undue hardship in a particular case, the
11department shall waive application of this section in that case. This subsection does
12not apply with respect to claims against the estates of nonrecipient surviving
13spouses.
SB384,23 14Section 23. 49.4962 of the statutes, as created by 2013 Wisconsin Act 20, is
15repealed.
SB384,24 16Section 24. 49.682 (1) (e) 1. of the statutes, as created by 2013 Wisconsin Act
1720
, is renumbered 49.682 (1) (e).
SB384,25 18Section 25. 49.682 (1) (e) 2. of the statutes, as created by 2013 Wisconsin Act
1920
, is repealed.
SB384,26 20Section 26. 49.682 (2) (bm) 2. of the statutes, as created by 2013 Wisconsin Act
2120
, is amended to read:
SB384,20,222 49.682 (2) (bm) 2. There is a presumption, which may be rebutted by clear and
23convincing evidence
consistent with s. 766.31, which may be rebutted, that all
24property in the estate of the nonclient surviving spouse was marital property held

1with the client and that 100 percent of the property in the estate of the nonclient
2surviving spouse is subject to the department's claim under par. (a).
SB384,27 3Section 27. 49.682 (2) (fm) 2. of the statutes, as created by 2013 Wisconsin Act
420
, is amended to read:
SB384,20,65 49.682 (2) (fm) 2. The department shall release the lien in the circumstances
6described in s. 49.848 (5) (f) 49.849 (4) (c) 2.
SB384,28 7Section 28. 49.682 (5) of the statutes, as affected by 2013 Wisconsin Act 20,
8is amended to read:
SB384,20,149 49.682 (5) The department shall promulgate rules establishing standards for
10determining whether the application of this section would work an undue hardship
11in individual cases. If the department determines that the application of this section
12would work an undue hardship in a particular case, the department shall waive
13application of this section in that case. This subsection does not apply with respect
14to claims against the estates of nonclient surviving spouses.
SB384,29 15Section 29. 49.848 of the statutes, as created by 2013 Wisconsin Act 20, is
16repealed.
SB384,30 17Section 30. 49.849 (1) (d) 1. of the statutes, as created by 2013 Wisconsin Act
1820
, is renumbered 49.849 (1) (d).
SB384,31 19Section 31. 49.849 (1) (d) 2. of the statutes, as created by 2013 Wisconsin Act
2020
, is repealed.
SB384,32 21Section 32. 49.849 (2) (c) of the statutes, as created by 2013 Wisconsin Act 20,
22is amended to read:
SB384,21,223 49.849 (2) (c) There is a presumption, which may be rebutted by clear and
24convincing evidence
consistent with s. 766.31, which may be rebutted, that all
25property of the deceased nonrecipient surviving spouse was marital property held

1with the recipient and that 100 percent of the property of the deceased nonrecipient
2surviving spouse is subject to the department's claim under par. (a).
SB384,33 3Section 33. 49.849 (4) (c) 2. of the statutes, as created by 2013 Wisconsin Act
420
, is renumbered 49.849 (4) (c) 2. (intro.) and amended to read:
SB384,21,65 49.849 (4) (c) 2. (intro.) The department shall release the lien in the
6circumstances described in s. 49.848 (5) (f).
if any of the following applies:
SB384,34 7Section 34. 49.849 (4) (c) 2. a. of the statutes is created to read:
SB384,21,108 49.849 (4) (c) 2. a. The recipient's surviving spouse or child who is under age
921 or disabled sells the property for fair market value, as described in sub. (5c) (d),
10during the spouse's or child's lifetime.
SB384,35 11Section 35. 49.849 (4) (c) 2. b. of the statutes is created to read:
SB384,21,1812 49.849 (4) (c) 2. b. The recipient's surviving spouse or child who is under age
1321 or disabled transfers the property for less than fair market value, as described in
14sub. (5c) (d), during the spouse's or child's lifetime, the transferee sells the property
15during the spouse's or child's lifetime and places proceeds equal to the lesser of the
16department's lien or the sale proceeds due to the seller in a trust or bond, and the
17department is paid the secured amount upon the death of the recipient's spouse or
18disabled child or when the recipient's child who is not disabled reaches age 21.
SB384,36 19Section 36. 49.849 (4) (c) 2. c. of the statutes is created to read:
SB384,22,220 49.849 (4) (c) 2. c. The surviving owner or transferee of the property, who is not
21the recipient's surviving spouse or child who is under age 21 or disabled, sells the
22property during the lifetime of the recipient's surviving spouse or child who is under
23age 21 or disabled and places proceeds equal to the lesser of the department's lien or
24the sale proceeds due to the seller in a trust or bond, and the department is paid the

1secured amount upon the death of the recipient's spouse or disabled child or when
2the recipient's child who is not disabled reaches age 21.
SB384,37 3Section 37. 49.849 (7) of the statutes, as affected by 2013 Wisconsin Act 20,
4is amended to read:
SB384,22,115 49.849 (7) Rules for hardship waiver. The department shall promulgate rules
6establishing standards to determine whether the application of this section would
7work an undue hardship in individual cases. If the department determines that the
8application of this section would work an undue hardship in a particular case, the
9department shall waive the application of this section in that case. This subsection
10does not apply with respect to collecting from the property of a decedent if the
11decedent is a deceased nonrecipient surviving spouse.
SB384,38 12Section 38. 59.43 (1) (w) of the statutes, as created by 2013 Wisconsin Act 20,
13is repealed.
SB384,39 14Section 39. 223.07 (3) of the statutes is amended to read:
SB384,23,2015 223.07 (3) If the depository institution at which a trust service office is to be
16established has exercised trust powers, the trust company bank and the depository
17institution shall enter into an agreement respecting those fiduciary powers to which
18the trust company bank shall succeed and shall file the agreement with the division.
19The trust company bank shall cause a notice of the filing, in a form prescribed by the
20division, to be published as a class 1 notice, under ch. 985, in the city, village or town
21where the depository institution is located. After filing and publication, the trust
22company bank establishing the office shall, as of the date the office first opens for
23business, without further authorization of any kind, succeed to and be substituted
24for the depository institution as to all fiduciary powers, rights, duties, privileges, and
25liabilities of the depository institution in its capacity as fiduciary for all estates,

1trusts, guardianships, and other fiduciary relationships of which the depository
2institution is then serving as fiduciary, except as may be otherwise specified in the
3agreement between the trust company bank and the depository institution. The
4trust company bank shall also be deemed named as fiduciary in all writings,
5including, but not limited to, wills, trusts, court orders, and similar documents and
6instruments naming the depository institution as fiduciary, signed before the date
7the trust office first opens for business, unless expressly negated by the writing or
8otherwise specified in the agreement between the trust company bank and the
9depository institution. On the effective date of the substitution, the depository
10institution shall be released and absolved from all fiduciary duties and obligations
11under such writings and shall discontinue its exercise of trust powers on all matters
12not specifically retained by the agreement. This subsection does not effect a
13discharge in the manner of s. 701.16 (6) if required by a court under s. 701.0201 (1)
14or other applicable statutes and does not absolve a depository institution exercising
15trust powers from liabilities arising out of any breach of fiduciary duty or obligation
16occurring prior to the date the trust service office first opens for business at the
17depository institution. This subsection does not affect the authority, duties, or
18obligations of a depository institution with respect to relationships which may be
19established without trust powers, including escrow arrangements, whether the
20relationships arise before or after the establishment of the trust service office.
SB384,40 21Section 40. 223.105 (1) (c) of the statutes is amended to read:
SB384,23,2322 223.105 (1) (c) "Trustee" has the meaning designated in s. 701.01 (8) 701.0103
23(28)
.
SB384,41 24Section 41. 445.125 (1) (a) 1. of the statutes is amended to read:
SB384,24,14
1445.125 (1) (a) 1. Except as provided in sub. (3m), whenever a person, referred
2to in this subsection as the depositor, makes an agreement with another person
3selling or offering for sale funeral or burial merchandise or services, referred to in
4this subsection as the beneficiary, for the purchase of a casket, outer burial container
5not preplaced into the burial excavation of a grave, combination casket-outer burial
6container or other receptacle not described in sub. (4) (b) (a) 2. for the burial or other
7disposition of human remains or for the furnishing of funeral or burial services,
8either of which is intended to be provided for the final disposition of the body of a
9person, referred to in this subsection as the potential decedent, wherein the use of
10such personal property or the furnishing of such services is not immediately
11required, all payments made under the agreement shall be and remain trust funds,
12including interest and dividends if any, until occurrence of the death of the potential
13decedent, unless the funds are sooner released upon demand to the depositor, after
14written notice to the beneficiary.
SB384,42 15Section 42. 445.125 (1) (a) 2. of the statutes is amended to read:
SB384,24,1816 445.125 (1) (a) 2. Notwithstanding s. 701.12 (1), such Such agreements may be
17made irrevocable as to the first $3,000 of the funds paid under the agreement by each
18depositor.
SB384,43 19Section 43. 445.125 (4) of the statutes is renumbered 445.125 (4) (a).
SB384,44 20Section 44. 445.125 (4) (bn) of the statutes is created to read:
SB384,24,2221 445.125 (4) (bn) Sections 701.0410 to 701.0418 do not apply to an agreement,
22interest, or dividend that is made irrevocable under sub. (1) (a) 2. to 4.
SB384,45 23Section 45. 700.16 (1) (c) of the statutes is amended to read:
SB384,25,824 700.16 (1) (c) If a future interest or trust is created by exercise of a power of
25appointment, the permissible period is computed from the time the power of

1appointment
is exercised if the power of appointment is a general power of
2appointment
as defined in s. 702.01 (3) 702.02 (5) even if the general power of
3appointment
is exercisable only by will; in. In the case of other powers of
4appointment
the permissible period is computed from the time the power of
5appointment
is created but facts at the time the power of appointment is exercised
6are considered in determining whether the power of alienation is suspended beyond
7a life or lives in being at the time of creation of the power of appointment plus 30
8years.
SB384,46 9Section 46. 700.27 (1) (d), (2) (a) 2. and (b), (4) (e), (5) (b), (7) (a) and (8) (a) of
10the statutes are amended to read:
SB384,25,1211 700.27 (1) (d) "Power of appointment" has the meaning given in s. 702.01 (4)
12702.02 (6).
SB384,25,20 13(2) (a) 2. A person who is a recipient of property or beneficiary under an inter
14vivos governing instrument, donee of a power of appointment created by an inter
15vivos governing instrument, appointee under a power of appointment exercised by
16an inter vivos governing instrument, taker in default under a power of appointment
17created by an inter vivos governing instrument, or person succeeding to disclaimed
18property created by an inter vivos governing instrument may disclaim any property,
19including contingent or future interests or the right to receive discretionary
20distributions, by delivering a written instrument of disclaimer under this section.
SB384,26,221 (b) Partial disclaimer. Property transferred under an inter vivos governing
22instrument may be disclaimed in whole or in part, except that a partial disclaimer
23of property passing by an inter vivos governing instrument or by the exercise of a
24power of appointment may not be made if partial disclaimer is expressly prohibited

1by the inter vivos governing instrument or by the instrument exercising the power
2of appointment.
SB384,26,7 3(4) (e) Interests arising by disclaimer. Notwithstanding pars. (a) and (b), a
4person whose interest in property arises by disclaimer or by default of exercise of a
5power of appointment created by an inter vivos governing instrument may disclaim
6at any time not later than 9 months after the day on which the prior instrument of
7disclaimer is delivered, or the date on which the donee's power of appointment lapses.
SB384,26,12 8(5) (b) Delivery to trustee. If the trustee of any trust to which the interest or
9power of appointment relates does not receive the instrument of disclaimer under
10par. (a), a copy shall also be delivered to the trustee. Failure to deliver a copy of the
11instrument of disclaimer to the trustee within the time specified under sub. (4) does
12not affect the validity of any disclaimer.
SB384,26,25 13(7) (a) In general. Subject to sub. (8), unless the inter vivos governing
14instrument provides otherwise, either expressly or as construed from extrinsic
15evidence, the disclaimed property devolves as if the disclaimant had died before the
16effective date of the transfer under the inter vivos governing instrument. If the
17disclaimed interest is a remainder contingent on surviving to the time of
18distribution, the disclaimed interest passes as if the disclaimant had died
19immediately before the time for distribution. If the disclaimant is an appointee
20under a power of appointment exercised by an inter vivos governing instrument, the
21disclaimed property devolves as if the disclaimant had died before the effective date
22of the exercise of the power of appointment. If the disclaimant is a taker in default
23under a power of appointment created by an inter vivos governing instrument, the
24disclaimed property devolves as if the disclaimant had predeceased the donee of the
25power of appointment.
SB384,27,10
1(8) (a) Subsequent interest not held by disclaimant. Unless the inter vivos
2governing instrument provides otherwise, either expressly or as construed from
3extrinsic evidence, upon the disclaimer of a preceding interest, a subsequent interest
4not held by the disclaimant and limited to take effect in possession or enjoyment after
5the termination of the interest that is disclaimed accelerates to take effect as if the
6disclaimant had died immediately before the time when the disclaimed interest
7would have taken effect in possession or enjoyment or, if the disclaimant is an
8appointee under a power of appointment and that power of appointment has been
9exercised by a power of appointment, as if the disclaimant had died before the
10effective date of the exercise of the power of appointment.
SB384,47 11Section 47. 701.01 of the statutes is repealed.
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