2. All of the following circumstances exist:
a. On or before the date specified in the notice under par. (a) 1., the trustee knew, or in the exercise of reasonable diligence should have known, of the existence of the potential claim and of the identity and mailing address of the potential claimant.
b. At least 30 days before the date specified in the notice under par. (a) 1., the trustee had not given notice to the potential claimant of the final day for filing his or her claim.
c. At least 30 days before the date specified in the notice under par. (a) 1., the claimant did not have actual knowledge of the date on which the claim would be barred.
(c) If an action is pending against a decedent at the time of his or her death and the action survives, the plaintiff in that action may serve a notice of substitution of party defendant on the trustee and file proof of service of notice in the court. Filing of proof of service on or before the deadline for filing a claim under par. (a) 1. gives the plaintiff the same rights against the trust as the filing of a claim. A judgment in any such action constitutes an adjudication for or against the trust.
(2) Effect of statute of limitations. A trustee shall not pay a claim that was barred by a statute of limitations at the time of the decedent's death. A claim not barred by a statute of limitations at the time of the decedent's death shall not be barred thereafter by a statute of limitations if the claim is filed with the trustee on or before the deadline for filing a claim under sub. (1) (a) 1.
(3) Claims of creditors without notice. (a) A claim not barred by sub. (1) (a) 2. because of the operation of sub. (1) (b) 2. may be enforced against trust property only as provided in this subsection.
(b) The claimant shall file the claim with the trustee within one year after the decedent's death and within 30 days after the earlier of the following:
1. The date that the trustee gives notice to the potential claimant of the deadline for filing a claim under sub. (1) (a) 1.
2. The date that the claimant first acquires actual knowledge of the deadline for filing a claim under sub. (1) (a) 1.
(c) The claimant shall have the burden of establishing by the greater weight of the credible evidence that all of the circumstances under sub. (1) (b) 2. existed.
(d) This subsection does not extend the time for commencement of a claim beyond the time provided by any statute of limitations applicable to that claim.
(4) Satisfaction of claim from other property. Failure of a claimant timely to file a claim as provided in this section does not bar the claimant from satisfying the claim, if not otherwise barred, from property other than trust property.
188,18
Section 18
. 701.115 of the statutes is created to read:
701.115 Future interests in revocable trusts.
(1) Unless a contrary intention is found, if a person has a future interest in property under a revocable trust and, under the terms of the trust, the person has the right to possession and enjoyment of the property at the grantor's death, the right to possession and enjoyment is contingent on the person's surviving the grantor. Extrinsic evidence may be used to show contrary intent.
(2) Survivorship under sub. (1) is governed by s. 854.03.
(3) The rights of the issue of a predeceasing beneficiary under sub. (1) are governed by s. 854.06.
188,19
Section 19
. 701.20 (5) (b) 1. of the statutes is amended to read:
701.20 (5) (b) 1. To legatees and devisees of specific property other than money, the income from the property bequeathed or devised to them less the following recurrent and other ordinary expenses attributable to the specific property: property taxes (excluding taxes prorated to the date of death), interest (excluding interest accrued to the date of death), income taxes (excluding taxes on income in respect of a decedent, capital gains and any other income taxes chargeable against principal) which accrue during the period of administration, ordinary repairs, and other expenses of management and operation of the property. For the purpose of this subdivision, property elected by a surviving spouse under s. 861.02 (1) is a bequest or devise to the surviving spouse.
188,20
Section 20
. 701.25 of the statutes is created to read:
701.25 Applicability of general transfers at death provisions. Chapter 854 applies to transfers at death under trust instruments.
188,21
Section 21
. 701.26 of the statutes is created to read:
701.26 Disclaimers of nonprobate transfers at death. A person may disclaim, under s. 854.13, any of the following:
(1) An interest in a joint tenancy, upon the death of another joint tenant.
(2) An interest in survivorship marital property, upon the death of the other spouse.
(3) An interest that is created by a nontestamentary instrument and transferred at death, upon the death that causes the transfer.
188,22
Section 22
. 701.27 (title) of the statutes is renumbered 854.13 (title) and amended to read:
854.13 (title) Disclaimer of transfers under nontestamentary instruments.
188,23
Section 23
. 701.27 (1) (intro.) of the statutes is renumbered 854.13 (1) (intro.).
188,24
Section 24
. 701.27 (1) (a) of the statutes is renumbered 854.13 (1) (a) and amended to read:
854.13 (1) (a) “Beneficiary under a nontestamentary governing instrument" includes any person who receives or might receive property or an interest in property under the terms or legal effect of a nontestamentary
governing instrument.
188,25
Section 25
. 701.27 (1) (b) of the statutes is repealed.
188,26
Section 26
. 701.27 (1) (c) of the statutes is renumbered 854.13 (1) (c) and amended to read:
854.13 (1) (c) “Power" has the meaning
designated given in s. 702.01 (4).
188,27
Section 27
. 701.27 (1) (d) of the statutes is repealed.
188,28
Section 28
. 701.27 (2) (title) of the statutes is renumbered 854.13 (2) (title).
188,29
Section 29
. 701.27 (2) (a) of the statutes is renumbered 854.13 (2) (a) and amended to read:
854.13 (2) (a) In general. A person who is a an heir, recipient of property or beneficiary under a nontestamentary governing instrument, person succeeding to a disclaimed interest created by a nontestamentary instrument, donee of a power created by nontestamentary a governing instrument, appointee under a power exercised by nontestamentary a governing instrument or, taker in default under a power created by nontestamentary a governing instrument, or person succeeding to disclaimed property may disclaim any property or interest in property, including contingent or future interests or the right to receive discretionary distributions, by delivering a written instrument of disclaimer under this section.
188,30
Section 30
. 701.27 (2) (b) (title) of the statutes is renumbered 854.13 (2) (b) (title).
188,31
Section 31
. 701.27 (2) (b) 1. of the statutes is renumbered 854.13 (2) (b) and amended to read:
854.13 (2) (b) Upon the death of a joint tenant
that occurs on or after June 7, 1996, a surviving joint tenant may disclaim any property or interest in property that would otherwise accrue to him or her by right of survivorship and that is the subject of the joint tenancy. A surviving joint tenant may disclaim the entire interest if he or she fulfills the requirements under section 2518 of the internal revenue code by delivering a written instrument of disclaimer under this section.
188,32
Section 32
. 701.27 (2) (b) 2. of the statutes is repealed.
188,33
Section 33
. 701.27 (2) (bm) of the statutes is renumbered 854.13 (2) (c).
188,34
Section 34
. 701.27 (2) (c) of the statutes is renumbered 854.13 (2) (d) and amended to read:
854.13 (2) (d) Partial disclaimer. Property may be disclaimed in whole or in part, except that a partial disclaimer of property passing by nontestamentary
a governing instrument or by the exercise of a power may not be made if partial disclaimer is expressly prohibited by the governing instrument or by the instrument exercising the power.
188,35
Section 35
. 701.27 (2) (d) of the statutes is renumbered 854.13 (2) (e).
188,36
Section 36
. 701.27 (2) (e) of the statutes is renumbered 854.13 (2) (h) and amended to read:
854.13 (2) (h) After death. A person's right to disclaim survives the person's death and may be exercised by the person's personal representative or special administrator upon receiving approval from the court having jurisdiction of the person's estate after hearing upon notice to all interested persons interested in the disclaimed property, if the personal representative or special administrator has not taken any action which would bar the right to disclaim under sub. (7) (11).
188,37
Section 37
. 701.27 (3) (title) of the statutes is renumbered 854.13 (3) (title).
188,38
Section 38
. 701.27 (3) (a) (intro.) of the statutes is renumbered 854.13 (3) (intro.) and amended to read:
854.13 (3) (intro.) The instrument of disclaimer shall do all of the following:
188,39
Section 39
. 701.27 (3) (a) 1. of the statutes is renumbered 854.13 (3) (a) and amended to read:
854.13 (3) (a) Describe the property or interest disclaimed;.
188,40
Section 40
. 701.27 (3) (a) 2. of the statutes is renumbered 854.13 (3) (b) and amended to read:
854.13 (3) (b) Declare the disclaimer and the extent of the disclaimer;.
188,41
Section
41. 701.27 (3) (a) 3. of the statutes is renumbered 854.13 (3) (c) and amended to read:
854.13 (3) (c) Be signed by the disclaimant; and.
188,42
Section 42
. 701.27 (3) (a) 4. of the statutes is renumbered 854.13 (3) (d).
188,43
Section 43
. 701.27 (3) (b) of the statutes is repealed.
188,44
Section 44
. 701.27 (4) (title) of the statutes is renumbered 854.13 (4) (title).
188,45
Section 45
. 701.27 (4) (a) of the statutes is renumbered 854.13 (4) (a) and amended to read:
854.13 (4) (a) (title) Disclaiming a present Present interest. An instrument disclaiming a present interest shall be executed and delivered not later than 9 months after the effective date of the nontestamentary
transfer under the governing instrument, except that, for
. For cause shown, the period may be extended by a court of competent jurisdiction, either within or after the 9-month period, for such additional time as the court deems
considers just. The effective date of a revocable instrument or contract is the date on which the person having the power to revoke no longer has the power to revoke it or to transfer to himself, herself or another person the equitable ownership of the property or interest which is the subject of the disclaimer.
188,46
Section 46
. 701.27 (4) (b) of the statutes is renumbered 854.13 (4) (b) and amended to read:
854.13 (4) (b) (title) Disclaiming a future Future interest. An instrument disclaiming a future interest shall be executed and delivered not later than 9 months after the event that determines that the taker of the property or interest is finally ascertained and his or her interest indefeasibly fixed, except that, for. For cause shown, the period may be extended by a court of competent jurisdiction, either within or after the 9-month period, for such additional time as the court deems considers just.
188,47
Section 47
. 701.27 (4) (c) of the statutes is renumbered 854.13 (4) (c).
188,48
Section 48
. 701.27 (4) (d) of the statutes is renumbered 854.13 (4) (d).
188,49
Section 49
. 701.27 (4) (e) of the statutes is renumbered 854.13 (4) (e) and amended to read:
854.13 (4) (e) Interests arising by disclaimer. Notwithstanding pars. (a) and (b), a person whose interest in property arises by disclaimer or by default of exercise of a power created by nontestamentary a governing instrument may disclaim at any time not later than 9 months after the day on which the prior instrument of disclaimer is delivered, or the date of death of the donee of the power, as the case may be.
188,50
Section 50
. 701.27 (5) of the statutes is renumbered 854.13 (5), and 854.13 (5) (a) (intro.), 1. and 2., as renumbered, are amended to read:
854.13 (5) (a) Delivery. (intro.) In addition to any requirements imposed by the creating governing instrument, the instrument of disclaimer is effective only if, within the time specified under sub. (4), it is delivered to and received by any of the following:
1. The transferor of the property or interest disclaimed, if living;.
2. The personal representative or special administrator of the deceased transferor of the property; or
.
188,51
Section 51
. 701.27 (6) (title) of the statutes is repealed.
188,52
Section 52
. 701.27 (6) (a) of the statutes is renumbered 854.13 (6) and amended to read:
854.13 (6) Property not vested. The property or interest disclaimed under this section shall be deemed considered not to have been vested in, created in or transferred to the disclaimant.
188,53
Section 53
. 701.27 (6) (b) (title) of the statutes is renumbered 854.13 (7) (title) and amended to read:
854.13 (7) (title) Devolution
in general.
188,54
Section 54
. 701.27 (6) (b) of the statutes is renumbered 854.13 (7) (a) and amended to read:
854.13 (7) (a) Unless the transferor of the property or donee of the power has otherwise provided, the disclaimed property or interest disclaimed devolves as if the disclaimant had died before the decedent or before the effective date of the nontestamentary transfer under the governing instrument; or if. If the disclaimant is an appointee under a power exercised by nontestamentary
a governing instrument, the disclaimed property devolves as if the disclaimant had died before the effective date of the exercise of the power; or if. If the disclaimant is a taker in default under a power created by nontestamentary a governing instrument, the disclaimed property devolves as if the disclaimant had predeceased the donee of the power. This paragraph is subject to subs. (8), (9) and (10).
(b) A disclaimer relates back for all purposes to the effective date of the nontestamentary decedent's death or the effective date of the transfer under the governing instrument; or if. If the disclaimant is an appointee under a power exercised by nontestamentary under a governing instrument, the disclaimer relates back to the effective date of the exercise of the power; or if. If the disclaimant is a taker in default under a power created by nontestamentary a governing instrument, the disclaimer relates back to the last possible date for exercise of the power. A disclaimer of the future right to receive mandatory distributions of income or profits relates to the period stated in the disclaimer.
188,55
Section 55
. 701.27 (6) (c) of the statutes is renumbered 854.13 (10) and amended to read:
854.13 (10) (title) Future Devolution of disclaimed future interest. Unless the instrument creating the future interest manifests a contrary intent either expressly or as construed from extrinsic evidence, a future interest limited to take effect in possession or enjoyment after the termination of the interest which is disclaimed takes effect as if the disclaimant had died before the effective date of the nontestamentary governing instrument or, if the disclaimant is an appointee under a power exercised by nontestamentary a governing instrument, as if the disclaimant had died before the effective date of the exercise of the power.
188,56
Section 56
. 701.27 (6) (d) of the statutes is repealed.
188,57
Section 57
. 701.27 (7) of the statutes is renumbered 854.13 (11), and 854.13 (11) (a) (intro.), 1., 2. and 3., as renumbered, are amended to read:
854.13 (11) (a) (title) Method Actions that bar disclaimer. (intro.) A person's right to disclaim property or an interest in property is barred by the person's any of the following:
1. Assignment The person's assignment, conveyance, encumbrance, pledge or transfer of the property or interest or a contract therefor;.
2. Written The person's written waiver of the right to disclaim; or.
3. Acceptance The person's acceptance of the property or interest or benefit of the property.
188,58
Section 58
. 701.27 (8) (title) of the statutes is renumbered 854.13 (12) (title).
