AB645,53,2524
(c) "Stepchild" means a child of the decedent's surviving, deceased or former
25spouse, and not of the decedent.
AB645,54,3
1(2) Scope of coverage. This section applies to revocable provisions in a
2governing instrument executed by the decedent that provide for an outright transfer
3upon the death of the decedent to any of the following persons:
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(a) A grandparent of the decedent, or issue of a grandparent, subject to s.
5854.21.
AB645,54,66
(b) A stepchild of the decedent, subject to s. 854.15.
AB645,54,10
7(3) Substitute gift to issue of covered transferee. Subject to sub. (4), if a
8transferee under a provision described in sub. (2) does not survive the decedent but
9has issue who do survive, the issue of the transferee take the transfer per stirpes, as
10provided in s. 854.04 (1).
AB645,54,13
11(4) Contrary intent. (a) This section does not apply if there is a finding of
12contrary intent of the decedent. Extrinsic evidence may be used to construe that
13intent.
AB645,54,1814
(b) If the governing instrument designates one or more persons, groups of
15people or classes of contingent transferees, those transferees take in preference to
16those under sub. (3). But if none of the contingent transferees survives, sub. (3)
17applies to the first group in the sequence of successors that has one or more
18transferees specified in sub. (2) who left surviving issue.
AB645,54,21
19854.07 Failed transfer and residue. (1) Except as provided in sub. (4) and
20s. 854.06, an attempted transfer, other than a residuary transfer, under a governing
21instrument that fails becomes part of the residue of the governing instrument.
AB645,54,25
22(2) Except as provided in sub. (4) and s. 854.06, if the residue of a governing
23instrument is to be transferred to 2 or more persons, the share of a residuary
24transferee that fails passes to the other residuary transferees in proportion to the
25interest of each in the remaining part of the residue.
AB645,55,3
1(3) If a governing instrument other than a will does not effectively dispose of
2an asset that is governed by the instrument, that asset shall be paid or distributed
3to the decedent's probate estate.
AB645,55,6
4(4) This section does not apply if there is a finding of contrary intent of the
5person who executed the governing instrument. Extrinsic evidence may be used to
6construe that intent.
AB645,55,9
7854.08 Nonademption of specific gifts in certain cases. (1) Abrogation
8of common law. The common law doctrine of ademption by extinction, as it might
9otherwise apply to the situations governed by this section, is abolished.
AB645,55,13
10(2) Proceeds of sale. (a) Subject to sub. (6), if property that is the subject of
11a specific gift is sold by the person who executed the governing instrument within 2
12years of the person's death, the specific beneficiary has the right to the following
13amounts if available under the governing instrument:
AB645,55,1614
1. Any balance of the purchase price unpaid at the time of death, including any
15security interest in the property and interest accruing before death, together with
16the incidents of the specific gift.
AB645,55,1817
2. A general pecuniary transfer equivalent to the amount of the purchase price
18paid to, or for the benefit of, the person within one year of the seller's death.
AB645,55,2419
(b) Acceptance of a promissory note of the purchaser or a 3rd party is not
20considered payment, but payment on the note is payment on the purchase price; and
21for purposes of this section property is considered sold as of the date when a valid
22contract of sale is made. Sale by an agent of the person who executed the governing
23instrument or by a trustee under a revocable living trust created by the person is a
24sale by the person for purposes of this section.
AB645,56,5
1(3) Proceeds of insurance on property. Subject to sub. (6), if insured property
2that is the subject of a specific gift is destroyed, damaged, lost, stolen or otherwise
3subject to any casualty compensable by insurance, the specific beneficiary has the
4right to the following amounts, if available under the governing instrument, reduced
5by any amount expended or incurred to restore or repair the property:
AB645,56,76
(a) Any insurance proceeds paid with respect to the property after the
7decedent's death, together with the incidents of the specific gift.
AB645,56,98
(b) A general pecuniary transfer equivalent to any insurance proceeds paid to,
9or for the benefit of, the decedent within one year of the decedent's death.
AB645,56,13
10(4) Condemnation award. (a) Subject to sub. (6), if property that is the subject
11of a specific gift is taken by condemnation prior to the death of the person who
12executed the governing instrument, the specific beneficiary has the right to the
13following amounts if available under the governing instrument:
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1. Any amount of the condemnation award unpaid at the time of death.
AB645,56,1715
2. A general pecuniary transfer equivalent to the amount of an award paid to,
16or for the benefit of, the person who executed the governing instrument within one
17year of that person's death.
AB645,56,2018
(b) In the event of an appeal in a condemnation proceeding, the award is, for
19purposes of this section, limited to the amount established on the appeal. Acceptance
20of an agreed price or a jurisdictional offer is a sale under sub. (2).
AB645,57,7
21(5) Sale or loss of property of an incompetent. Subject to sub. (6), if property
22that is the subject of a specific gift is sold by a guardian or conservator of the person
23who executed the governing instrument, or if a condemnation award or insurance
24proceeds are paid to a guardian or conservator, the specific beneficiary has the right
25to a general pecuniary transfer equivalent to the proceeds of the sale or the
1condemnation award, or the insurance proceeds, reduced by any amount expended
2or incurred to restore or repair the property if the funds are available under the
3governing instrument. This provision does not apply if the person who executed the
4governing instrument, subsequent to the sale or award or receipt of insurance
5proceeds, is adjudicated competent and survives such adjudication for a period of one
6year; but in such event a sale by a guardian or conservator within 2 years of that
7person's death is a sale by that person for purposes of sub. (2).
AB645,57,8
8(6) Limitations. (a) This section is inapplicable if any of the following applies:
AB645,57,109
1. The governing instrument, either expressly or as construed from extrinsic
10evidence, shows the intent that a transfer fail under the particular circumstances.
AB645,57,1311
2. The person who executed the governing instrument gives property during
12the person's lifetime to the specific beneficiary with the intent of satisfying the
13specific gift. Extrinsic evidence may be used to construe that intent.
AB645,57,1714
(b) If part of the property that is the subject of the specific gift is destroyed,
15damaged, sold or condemned, the specific gift of any remaining interest in the
16property is not affected by this section; but this section applies to the part affected
17by the destruction, damage, sale or condemnation.
AB645,57,2218
(c) The amount that the specific beneficiary receives under subs. (2) to (5) is
19reduced by any expenses of the sale, by the expenses of collection of the proceeds of
20insurance, sale, or condemnation award and by any amount by which the income tax
21of the decedent or the decedent's estate is increased because of items covered by this
22section. Expenses include legal fees paid or incurred.
AB645,58,2
23854.09 Advancement; satisfaction. (1) A gift that the decedent made
24during his or her lifetime, including an incomplete gift that became complete on the
25decedent's death, is treated as a full or partial satisfaction of a transfer at death to
1an heir under s. 852.01 (1) or a transferee under a governing instrument executed
2by the decedent only if at least one of the following applies:
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(a) The governing instrument, if any, either expressly or as construed from
4extrinsic evidence, provides that the gift be taken into account.
AB645,58,85
(b) The decedent declared in a document, either expressly or as construed from
6extrinsic evidence, that the gift is in satisfaction of, or an advance against, what the
7transferee would receive at the decedent's death, whether or not the document was
8contemporaneous with the gift.
AB645,58,129
(c) The transferee acknowledged in writing before or after the decedent's death,
10either expressly or as construed from extrinsic evidence, that the gift is in
11satisfaction of, or an advance against, what the transferee would receive at the
12decedent's death.
AB645,58,15
13(2) For partial satisfaction, property given during life is valued as of the time
14that the transferee came into possession or enjoyment of the property or at the death
15of the person who executed the governing instrument, whichever occurs first.
AB645,58,19
16(3) If the transferee fails to survive the person who executed the governing
17instrument, the gift is treated as a full or partial satisfaction of the transfer, unless
18the transferor has declared otherwise in a document, either expressly or as construed
19from extrinsic evidence.
AB645,58,23
20854.10 Choice of law. The meaning and legal effect of a governing instrument
21are determined by the local law of the state selected by the transferor in the
22governing instrument, unless the application of that law is contrary to s. 861.02 or
23861.31 or any other public policy of this state otherwise applicable to the disposition.
AB645,58,25
24854.11 Gift of securities. (1) Definition. In this section, "securities" includes
25all of the following:
AB645,59,2
1(a) Any note, stock, treasury stock, bond, debenture, evidence of indebtedness,
2collateral trust certificate, transferable share or voting trust certificate.
AB645,59,43
(b) Any certificate of interest or participation in an oil, gas or mining title or
4lease or in payments out of production under such a title or lease.
AB645,59,55
(c) Any interest or instrument commonly known as a security.
AB645,59,86
(d) Any certificate of interest or participation in, any temporary or interim
7certificate, receipt or certificate of deposit for, or any warrant or right to subscribe
8to or purchase, any of the instruments or interests specified in pars. (a) to (c).
AB645,59,13
9(2) Increase in securities; accessions. Except as provided in sub. (4), if a
10person executes a governing instrument that transfers securities and at the time of
11the execution or immediately after execution the described securities are in fact
12governed by the instrument, the transfer includes additional securities that are
13governed by the instrument at the person's death if all of the following apply:
AB645,59,1514
(a) The additional securities were acquired after the governing instrument was
15executed.
AB645,59,1716
(b) The additional securities were acquired as a result of ownership of the
17described securities.
AB645,59,1818
(c) The additional securities are any of the following types:
AB645,59,2019
1. Securities of the same organization acquired as a result of a plan of
20reinvestment.
AB645,59,2321
2. Securities of the same organization acquired by action initiated by the
22organization or any successor, related or acquiring organization, excluding any
23acquired by exercise of purchase options.
AB645,60,3
13. Securities of another organization acquired as a result of a merger,
2consolidation, reorganization or other distribution by the organization or any
3successor, related or acquiring organization.
AB645,60,9
4(3) Gift of securities construed as specific. Except as provided in sub. (4),
5a transfer of a stated number of shares or amount of securities is construed to be a
6specific gift if the same or a greater number of shares or amount of the securities was
7governed by the instrument at the time of, or immediately after, execution of the
8instrument, even if the instrument does not describe the securities more specifically
9or qualify the description by a possessive pronoun such as "my".
AB645,60,12
10(4) Contrary intent. This section does not apply if there is a finding of contrary
11intent of the person who executed the governing instrument. Extrinsic evidence may
12be used to construe that intent.
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13854.13 (2) (f)
Disclaimer by guardian. A guardian of the estate appointed
14under ch. 880 may disclaim on behalf of his or her ward, with court approval, if the
15ward is entitled to disclaim under this section.
AB645,60,1816
(g)
Disclaimer by agent under power of attorney. An agent under a power of
17attorney may disclaim on behalf of the person who granted the power of attorney if
18all of the following apply:
AB645,60,2019
1. The person who granted the power of attorney is entitled to disclaim under
20this section.
AB645,60,2121
2. The power of attorney specifically grants the power to disclaim.
AB645,60,23
22(8) Devolution of disclaimed interest in joint tenancy. A disclaimed interest
23in a joint tenancy passes to the decedent's probate estate.
AB645,61,3
1(9) Devolution of disclaimed interest in survivorship marital property. A
2disclaimed interest in survivorship marital property passes to the decedent's probate
3estate.
AB645,61,6
4(12) (b) Any disclaimer that meets the requirements of section
2518 of the
5Internal Revenue Code, or the requirements of any other federal law relating to
6disclaimers, constitutes an effective disclaimer under this section.
AB645,61,11
7(13) Construction of effective date. In this section, the effective date of a
8transfer under a revocable governing instrument is the date on which the person
9with the power to revoke the transfer no longer has that power or the power to
10transfer the legal or equitable ownership of the property that is the subject of the
11transfer.
AB645,61,15
12854.14 Beneficiary who kills decedent. (1) Definition. In this section,
13"disposition of property" means a transfer, including by appointment, of property or
14any other benefit to a beneficiary designated in a governing instrument or under a
15statute.
AB645,61,17
16(2) Revocation of benefits. Except as provided in sub. (6), the unlawful and
17intentional killing of the decedent does all of the following:
AB645,61,1918
(a) Revokes a provision in a governing instrument that, by reason of the
19decedent's death, does any of the following:
AB645,61,2020
1. Transfers or appoints property to the killer.
AB645,61,2121
2. Confers a power of appointment on the killer.
AB645,61,2322
3. Nominates or appoints the killer to serve in any fiduciary or representative
23capacity, including personal representative, executor, trustee or agent.
AB645,62,224
(b) Severs the interests of the decedent and killer in property held by them as
25joint tenants with the right of survivorship or as survivorship marital property and
1transforms the interests of the decedent and the killer into tenancies in common or
2marital property, whichever is appropriate.
AB645,62,43
(c) Revokes every statutory right or benefit to which the killer may have been
4entitled by reason of the decedent's death.
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5(3) Effect of revocation. Except as provided in sub. (6), provisions of a
6governing instrument that are revoked by this section are given effect as if the killer
7disclaimed all revoked provisions or, in the case of a revoked nomination in a
8fiduciary or representative capacity, as if the killer predeceased the decedent.
AB645,62,12
9(4) Wrongful acquisition of property. Except as provided in sub. (6), a
10wrongful acquisition of property by a killer not covered by this section shall be
11treated in accordance with the principle that a killer cannot profit from his or her
12wrongdoing.
AB645,62,17
13(5) Unlawful and intentional killing; how determined. (a) After all right to
14appeal has been exhausted, a judgment establishing criminal accountability for the
15unlawful and intentional killing of the decedent conclusively establishes the
16convicted individual as the decedent's killer for purposes of this section and s. 861.02
17(8).
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(b) After all right of appeal has been exhausted, an adjudication of delinquency
19on the basis of an unlawful and intentional killing of the decedent conclusively
20establishes the adjudicated individual as the decedent's killer for purposes of this
21section and s. 861.02 (8).
AB645,62,2522
(c) In the absence of a judgment establishing criminal accountability or an
23adjudication of delinquency, the court, upon the petition of an interested person,
24shall determine whether, under the preponderance of evidence standard, the killing
25was unlawful and intentional for purposes of this section and s. 861.02 (8).
AB645,63,1
1(6) Exceptions. This section does not apply if any of the following applies:
AB645,63,42
(a) The court finds that, under the factual situation created by the killing, the
3decedent's wishes would best be carried out by means of another disposition of the
4property.
AB645,63,65
(b) The decedent provided in his or her will, by specific reference to this section,
6that this section does not apply.
AB645,63,8
7854.15 Revocation of provisions in favor of former spouse. (1) 8Definitions. In this section:
AB645,63,109
(a) "Disposition of property" means a transfer, including by appointment, of
10property or any other benefit to a beneficiary designated in a governing instrument.
AB645,63,1311
(b) "Divorce, annulment or similar event" means any divorce, any annulment
12or any other event or proceeding that would exclude a spouse as a surviving spouse
13under s. 851.30.
AB645,63,1514
(c) "Former spouse" means a person whose marriage to the decedent has been
15the subject of a divorce, annulment or similar event.
AB645,63,1816
(d) "Relative of the former spouse" means an individual who is related to the
17former spouse by blood, adoption or marriage and who, after the divorce, annulment
18or similar event, is not related to the decedent by blood, adoption or marriage.
AB645,63,2519
(e) "Revocable", with respect to a disposition, provision or nomination, means
20one under which the decedent, at the time of the divorce, annulment or similar event,
21was alone empowered, by law or under the governing instrument, to cancel the
22designation in favor of the former spouse or former spouse's relative, whether or not
23the decedent was then empowered to designate himself or herself in place of the
24former spouse or the former spouse's relative, and whether or not the decedent then
25had the capacity to exercise the power.
AB645,64,3
1(2) Scope. This section applies only to governing instruments that were
2executed by the decedent before the occurrence of a divorce, annulment or similar
3event with respect to his or her marriage to the former spouse.
AB645,64,5
4(3) Revocation upon divorce. Except as provided in subs. (5) and (6), a divorce,
5annulment or similar event does all of the following:
AB645,64,76
(a) Revokes any revocable disposition of property made by the decedent to the
7former spouse or a relative of the former spouse in a governing instrument.
AB645,64,98
(b) Revokes any disposition created by law to the former spouse or a relative
9of the former spouse.
AB645,64,1210
(c) Revokes any revocable provision made by the decedent in a governing
11instrument conferring a power of appointment on the former spouse or a relative of
12the former spouse.
AB645,64,1613
(d) Revokes the decedent's revocable nomination of the former spouse or a
14relative of the former spouse to serve in any fiduciary or representative capacity,
15including a personal representative, executor, trustee, conservator, agent or
16guardian.
AB645,64,2017
(e) Severs the interests of the decedent and former spouse in property held by
18them as joint tenants with the right of survivorship or as survivorship marital
19property and transforms the interests of the decedent and former spouse into
20tenancies in common.
AB645,65,2
21(4) Effect of revocation. Except as provided in subs. (5) and (6), provisions
22of a governing instrument that are revoked by this section are given effect as if the
23former spouse and relatives of the former spouse disclaimed the revoked provisions
24or, in the case of a revoked nomination in a fiduciary or representative capacity, as
1if the former spouse and relatives of the former spouse died immediately before the
2divorce, annulment or similar event.
AB645,65,3
3(5) Exceptions. This section does not apply if any of the following applies: