Amendment ASA1-AB645

AB645-ASA1,58,23 (a) The additional securities were acquired after the governing instrument was executed.

AB645-ASA1,58,25 (b) The additional securities were acquired as a result of ownership of the described securities.

AB645-ASA1,59,1 (c) The additional securities are any of the following types:

AB645-ASA1,59,3 1. Securities of the same organization acquired as a result of a plan of reinvestment.

AB645-ASA1,59,6 2. Securities of the same organization acquired by action initiated by the organization or any successor, related or acquiring organization, excluding any acquired by exercise of purchase options.

AB645-ASA1,59,9 3. Securities of another organization acquired as a result of a merger, consolidation, reorganization or other distribution by the organization or any successor, related or acquiring organization.

AB645-ASA1,59,15 (3) Gift of securities construed as specific. Except as provided in sub. (4), a transfer of a stated number of shares or amount of securities is construed to be a specific gift if the same or a greater number of shares or amount of the securities was governed by the instrument at the time of, or immediately after, execution of the instrument, even if the instrument does not describe the securities more specifically or qualify the description by a possessive pronoun such as "my".

AB645-ASA1,59,18 (4) Contrary intent. This section does not apply if there is a finding of contrary intent of the person who executed the governing instrument. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,59,21 854.13 (2) (f) Disclaimer by guardian or conservator. A guardian of the estate or a conservator appointed under ch. 880 may disclaim on behalf of his or her ward, with court approval, if the ward is entitled to disclaim under this section.

AB645-ASA1,59,24 (g) Disclaimer by agent under power of attorney. An agent under a power of attorney may disclaim on behalf of the person who granted the power of attorney if all of the following apply:

AB645-ASA1,60,2 1. The person who granted the power of attorney is entitled to disclaim under this section.

AB645-ASA1,60,3 2. The power of attorney specifically grants the power to disclaim.

AB645-ASA1,60,5 (8) Devolution of disclaimed interest in joint tenancy. A disclaimed interest in a joint tenancy passes to the decedent's probate estate.

AB645-ASA1,60,8 (9) Devolution of disclaimed interest in survivorship marital property. A disclaimed interest in survivorship marital property passes to the decedent's probate estate.

AB645-ASA1,60,11 (12) (b) Any disclaimer that meets the requirements of section 2518 of the Internal Revenue Code, or the requirements of any other federal law relating to disclaimers, constitutes an effective disclaimer under this section.

AB645-ASA1,60,16 (13) Construction of effective date. In this section, the effective date of a transfer under a revocable governing instrument is the date on which the person with the power to revoke the transfer no longer has that power or the power to transfer the legal or equitable ownership of the property that is the subject of the transfer.

AB645-ASA1,60,20 854.14 Beneficiary who kills decedent. (1) Definition. In this section, "disposition of property" means a transfer, including by appointment, of property or any other benefit to a beneficiary designated in a governing instrument or under a statute.

AB645-ASA1,60,22 (2) Revocation of benefits. Except as provided in sub. (6), the unlawful and intentional killing of the decedent does all of the following:

AB645-ASA1,60,24 (a) Revokes a provision in a governing instrument that, by reason of the decedent's death, does any of the following:

AB645-ASA1,60,25 1. Transfers or appoints property to the killer.

AB645-ASA1,61,1 2. Confers a power of appointment on the killer.

AB645-ASA1,61,3 3. Nominates or appoints the killer to serve in any fiduciary or representative capacity, including personal representative, executor, trustee or agent.

AB645-ASA1,61,7 (b) Severs the interests of the decedent and killer in property held by them as joint tenants with the right of survivorship or as survivorship marital property and transforms the interests of the decedent and the killer into tenancies in common or marital property, whichever is appropriate.

AB645-ASA1,61,9 (c) Revokes every statutory right or benefit to which the killer may have been entitled by reason of the decedent's death.

AB645-ASA1,61,15 (3) Effect of revocation. Except as provided in sub. (6), provisions of a governing instrument that are revoked by this section are given effect as if the killer disclaimed all revoked provisions or, in the case of a revoked nomination in a fiduciary or representative capacity, as if the killer predeceased the decedent. Except as provided in sub. (6), the killer's share of the decedent's intestate estate, if any, passes as if the killer had disclaimed his or her intestate share under s. 854.13.

AB645-ASA1,61,19 (4) Wrongful acquisition of property. Except as provided in sub. (6), a wrongful acquisition of property by a killer not covered by this section shall be treated in accordance with the principle that a killer cannot profit from his or her wrongdoing.

AB645-ASA1,61,24 (5) Unlawful and intentional killing; how determined. (a) After all right to appeal has been exhausted, a judgment establishing criminal accountability for the unlawful and intentional killing of the decedent conclusively establishes the convicted individual as the decedent's killer for purposes of this section and s. 861.02 (8).

AB645-ASA1,62,4 (b) After all right of appeal has been exhausted, an adjudication of delinquency on the basis of an unlawful and intentional killing of the decedent conclusively establishes the adjudicated individual as the decedent's killer for purposes of this section and s. 861.02 (8).

AB645-ASA1,62,8 (c) In the absence of a judgment establishing criminal accountability or an adjudication of delinquency, the court, upon the petition of an interested person, shall determine whether, under the preponderance of evidence standard, the killing was unlawful and intentional for purposes of this section and s. 861.02 (8).

AB645-ASA1,62,9 (6) Exceptions. This section does not apply if any of the following applies:

AB645-ASA1,62,12 (a) The court finds that, under the factual situation created by the killing, the decedent's wishes would best be carried out by means of another disposition of the property.

AB645-ASA1,62,14 (b) The decedent provided in his or her will, by specific reference to this section, that this section does not apply.

AB645-ASA1,62,16 854.15 Revocation of provisions in favor of former spouse. (1) Definitions. In this section:

AB645-ASA1,62,18 (a) "Disposition of property" means a transfer, including by appointment, of property or any other benefit to a beneficiary designated in a governing instrument.

AB645-ASA1,62,21 (b) "Divorce, annulment or similar event" means any divorce, any annulment or any other event or proceeding that would exclude a spouse as a surviving spouse under s. 851.30.

AB645-ASA1,62,23 (c) "Former spouse" means a person whose marriage to the decedent has been the subject of a divorce, annulment or similar event.

AB645-ASA1,63,3 (d) "Relative of the former spouse" means an individual who is related to the former spouse by blood, adoption or marriage and who, after the divorce, annulment or similar event, is not related to the decedent by blood, adoption or marriage.

AB645-ASA1,63,10 (e) "Revocable", with respect to a disposition, provision or nomination, means one under which the decedent, at the time of the divorce, annulment or similar event, was alone empowered, by law or under the governing instrument, to cancel the designation in favor of the former spouse or former spouse's relative, whether or not the decedent was then empowered to designate himself or herself in place of the former spouse or the former spouse's relative, and whether or not the decedent then had the capacity to exercise the power.

AB645-ASA1,63,13 (2) Scope. This section applies only to governing instruments that were executed by the decedent before the occurrence of a divorce, annulment or similar event with respect to his or her marriage to the former spouse.

AB645-ASA1,63,15 (3) Revocation upon divorce. Except as provided in subs. (5) and (6), a divorce, annulment or similar event does all of the following:

AB645-ASA1,63,17 (a) Revokes any revocable disposition of property made by the decedent to the former spouse or a relative of the former spouse in a governing instrument.

AB645-ASA1,63,19 (b) Revokes any disposition created by law to the former spouse or a relative of the former spouse.

AB645-ASA1,63,22 (c) Revokes any revocable provision made by the decedent in a governing instrument conferring a power of appointment on the former spouse or a relative of the former spouse.

AB645-ASA1,63,24 (d) Revokes the decedent's revocable nomination of the former spouse or a relative of the former spouse to serve in any fiduciary or representative capacity.

AB645-ASA1,64,4 (e) Severs the interests of the decedent and former spouse in property held by them as joint tenants with the right of survivorship or as survivorship marital property and transforms the interests of the decedent and former spouse into tenancies in common.

AB645-ASA1,64,10 (4) Effect of revocation. Except as provided in subs. (5) and (6), provisions of a governing instrument that are revoked by this section are given effect as if the former spouse and relatives of the former spouse disclaimed the revoked provisions or, in the case of a revoked nomination in a fiduciary or representative capacity, as if the former spouse and relatives of the former spouse died immediately before the divorce, annulment or similar event.

AB645-ASA1,64,11 (5) Exceptions. This section does not apply if any of the following applies:

AB645-ASA1,64,12 (a) The express terms of a governing instrument provide otherwise.

AB645-ASA1,64,13 (b) The express terms of a court order provide otherwise.

AB645-ASA1,64,16 (c) The express terms of a contract relating to the division of the decedent's and former spouse's property made between the decedent and the former spouse before or after the marriage or the divorce, annulment or similar event provide otherwise.

AB645-ASA1,64,17 (d) The divorce, annulment or similar event is nullified.

AB645-ASA1,64,18 (e) The decedent and the former spouse have remarried.

AB645-ASA1,64,20 (f) There is a finding of the decedent's contrary intent. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,64,23 (6) Revocation of nontestamentary provision in marital property agreement. The effect of a judgment of annulment, divorce or legal separation on marital property agreements under s. 766.58 is governed by s. 767.266 (1).

AB645-ASA1,65,4 854.18 Order in which assets apportioned; abatement. (1) (a) Except as provided in sub. (3) or in connection with the share of the surviving spouse who elects to take an elective share in deferred marital property under s. 861.02, a spouse who takes under s. 853.11 (2) or a child who takes under s. 853.25, shares of distributees abate, without any preference or priority as between real and personal property, in the following order:

AB645-ASA1,65,5 1. If the governing instrument is a will, property subject to intestacy.

AB645-ASA1,65,6 2. Residuary transfers or devises under the governing instrument.

AB645-ASA1,65,7 3. General transfers or devises under the governing instrument.

AB645-ASA1,65,8 4. Specific transfers or devises under the governing instrument.

AB645-ASA1,65,12 (b) For purposes of abatement, a general transfer or devise charged on any specific property or fund is a specific transfer to the extent of the value of the property on which it is charged, and upon the failure or insufficiency of the property on which it is charged, it is a general transfer to the extent of the failure or insufficiency.

AB645-ASA1,65,15 (2) (a) Abatement within each classification is in proportion to the amount of property that each of the beneficiaries would have received if full distribution of the property had been made in accordance with the terms of the governing instrument.

AB645-ASA1,65,18 (b) If the subject of a preferred transfer is sold or used incident to administration of an estate, abatement shall be achieved by appropriate adjustments in, or contribution from, other interests in the remaining assets.

AB645-ASA1,65,22 (3) If the governing instrument expresses an order of abatement, or if the decedent's estate plan or the express or implied purpose of the transfer would be defeated by the order of abatement under sub. (1), the shares of the distributees abate as necessary to give effect to the intention of the transferor.

AB645-ASA1,66,2 854.19 Penalty clause for contest. A provision in a governing instrument that prescribes a penalty against an interested person for contesting the governing instrument or instituting other proceedings relating to the governing instrument may not be enforced if the court determines that the interested person had probable cause for instituting the proceedings.

AB645-ASA1,66,3 854.20 Status of adopted persons.

AB645-ASA1,66,7 (3) Sequential adoption. Subject to sub. (4), if an adoptive parent dies or his or her parental rights are terminated in a legal proceeding and the adopted child is subsequently adopted by another person, the former adoptive parent is considered to be a birth parent for purposes of this section.

AB645-ASA1,66,9 (4) Applicability. Subsections (1), (2) and (3) apply only if at least one of the following applies:

AB645-ASA1,66,10 (a) The decedent or transferor is the adoptive parent or adopted child.

AB645-ASA1,66,11 (b) The adopted person was a minor at the time of adoption.

AB645-ASA1,66,13 (c) The adopted person was raised as a member of the household by the adoptive parent from the child's 15th birthday or before.

AB645-ASA1,66,16 (5) Contrary intent. This section does not apply if the transfer is made under a governing instrument and there is a finding of contrary intent of the person who executed the instrument. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,66,23 854.21 Persons included in family groups or classes. (1) Adopted persons. (a) Except as provided in par. (b) or sub. (7), a gift of property by a governing instrument to a class of persons described as issue, lawful issue, children, grandchildren, descendants, heirs, heirs of the body, next of kin, distributees or the like includes a person adopted by a person whose birth child would be a member of the class, and issue of the adopted person, if the conditions for membership in the class are otherwise satisfied and any of the following applies:

AB645-ASA1,66,24 1. The transferor is the adoptive parent or adopted child.

AB645-ASA1,66,25 2. The adopted person was a minor at the time of adoption.

AB645-ASA1,67,2 3. The adopted person was raised as a member of the household by the adoptive parent from the child's 15th birthday or before.

AB645-ASA1,67,5 (b) Except as provided in sub. (7), a gift under par. (a) excludes a birth child and his or her issue otherwise within the class if the birth child has been adopted and would cease to be a child of the birth parent under s. 854.20 (2).

AB645-ASA1,67,8 (2) Individuals born to unmarried parents. (a) Subject to par. (b) and sub. (7), individuals born to unmarried parents are included in class gifts and other terms of relationship in accordance with s. 852.05.

AB645-ASA1,67,14 (b) In addition to the requirements of par. (a) and subject to the provisions of sub. (7), in construing a disposition by a transferor who is not the birth parent, an individual born to unmarried parents is not considered to be the child of a birth parent unless that individual lived while a minor as a regular member of the household of that birth parent or of that birth parent's parent, brother, sister, spouse or surviving spouse.

AB645-ASA1,67,17 (3) Relatives by marriage. Subject to sub. (7), terms of family relationship in statutes or governing instruments that do not differentiate between relationships by blood and relationships by marriage are construed to exclude relatives by marriage.

AB645-ASA1,67,21 (4) Relatives of the half-blood. Subject to sub. (7), terms of family relationship in statutes or governing instruments that do not differentiate between relationships by the half-blood and relationships by the full-blood are construed to include both types of relationships.

AB645-ASA1,68,2 (5) Posthumous issue. Subject to sub. (7), if a statute or governing instrument transfers an interest to a group of persons described as a class, such as "issue", "children", "nephews and nieces" or any other class, a person conceived at the time the membership in the class is determined and subsequently born alive is entitled to take as a member of the class if that person otherwise satisfies the conditions for class membership and survives at least 120 hours past birth.

AB645-ASA1,68,6 (6) Person related through 2 lines. Subject to sub. (7), a person who is eligible to be a transferee under a statute or governing instrument through 2 lines of relationship is limited to one share, based on the relationship that entitles the person to the larger share.

AB645-ASA1,68,10 (7) Contrary intent. This section does not apply if the transfer is made under a governing instrument and there is a finding of contrary intent of the person who executed the governing instrument. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,68,21 854.22 Form of distribution for transfers to family groups or classes. (1) Interests in heirs, next of kin and the like. Subject to sub. (4), if a statute or governing instrument specifies that a present or future interest is to be created in a designated individual's "heirs", "heirs at law", "next of kin", "relatives", "family" or a term that has a similar meaning, the property passes to the persons, including the state, to whom it would pass and in the shares in which it would pass under the laws of intestacy of the designated individual's domicile, as if the designated individual had died immediately before the transfer was to take effect in possession or enjoyment. If the designated individual's surviving spouse is living and remarried when the transfer is to take effect in possession or enjoyment, the surviving spouse is not an heir of the designated individual.

AB645-ASA1,69,3 (2) Transfers to descendants, issue and the like. Subject to sub. (4), if a statute or governing instrument creates a class gift in favor of a designated individual's "descendants", "issue" or "heirs of the body" the property is distributed among the class members who are living when the interest is to take effect in possession or enjoyment in the shares that they would receive under the laws of intestacy of the designated individual's domicile, as if the designated individual had then died owning the subject matter of the class gift.

AB645-ASA1,69,9 (3) Doctrine of worthier title abolished. The doctrine of worthier title is abolished as a rule of law and as a rule of construction. Language in a governing instrument describing the beneficiaries of a disposition as the transferor's "heirs", "heirs at law", "next of kin", "distributees", "relatives" or "family", or a term that has a similar meaning, does not create or presumptively create a reversionary interest in the transferor.

AB645-ASA1,69,13 (4) Contrary intent. This section does not apply if the transfer is made under a governing instrument and there is a finding of contrary intent of the person who executed the governing instrument. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,69,22 854.23 Protection of payers and other 3rd parties. (1) Liability depends on notice. (a) A payer or other 3rd party is not liable for having transferred property to a beneficiary designated in a governing instrument who, under this chapter, is not entitled to the property, or for having taken any other action in good faith reliance on the beneficiary's apparent entitlement under the terms of the governing instrument, before the payer or other 3rd party received written notice of a claimed lack of entitlement under this chapter. However, a payer or other 3rd party is liable for a payment made or other action taken after the payer or other 3rd party received written notice of a claimed lack of entitlement under this chapter.

AB645-ASA1,70,3 (b) Severance of a joint interest under the provisions of this chapter does not affect any 3rd-party interest in property acquired for value and in good faith reliance on an apparent title by survivorship, unless a document declaring the severance has been noted, registered, filed or recorded in records appropriate to the kind and location of the property that are relied upon, in the ordinary course of transactions involving such property, as evidence of ownership.