AB490,80,87
(b) If the terms of the trust do not provide a method, by any of the following
8means:
AB490,80,109
1. A later will or codicil that expressly refers to the trust or specifically devises
10property that would otherwise have passed according to the terms of the trust.
AB490,80,1211
2. Any other method manifesting clear and convincing evidence of the settlor's
12intent.
AB490,80,16
13(4) Upon revocation of a revocable trust, the trustee shall transfer the trust
14property as the settlor directs. However, with respect to marital or community
15property, the trustee shall transfer the property to both spouses as marital or
16community property.
AB490,80,19
17(5) A settlor's powers with respect to revocation, amendment, or distribution
18of trust property may be exercised by an agent under a power of attorney only to the
19extent expressly authorized by the terms of the power of attorney.
AB490,80,23
20(6) A guardian of the estate or a conservator of the settlor may exercise a
21settlor's powers with respect to revocation, amendment, or distribution of trust
22property only with the approval of the court supervising the guardianship or
23conservatorship.
AB490,81,2
24(7) A trustee who does not know that a trust has been revoked or amended is
25not liable for distributions made and other actions taken on the assumption that the
1trust had not been amended or revoked, or for distributions made pursuant to sub.
2(5).
AB490,116
3Section
116. 701.0603 of the statutes is created to read:
AB490,81,7
4701.0603 Settlor's powers; powers of withdrawal. (1) While a trust is
5revocable, the rights of the beneficiaries are subject to the control of, and the duties
6of the trustee, a directing party, and a trust protector are owed exclusively to, the
7settlor.
AB490,81,9
8(2) If a revocable trust has more than one settlor, the duties of the trustee, a
9directing party, and a trust protector are owed to all of the settlors.
AB490,81,12
10(3) During the period in which a power of withdrawal may be exercised, the
11holder of the power has the rights of a settlor of a revocable trust under this section
12to the extent of the property subject to the power.
AB490,117
13Section
117. 701.0604 of the statutes is created to read:
AB490,81,17
14701.0604 Limitation on action contesting validity of revocable trust;
15distribution of trust property. (1) A person must commence a judicial proceeding
16to contest the validity of a trust that was revocable immediately before the settlor's
17death within the earlier of the following:
AB490,81,1818
(a) One year after the settlor's death.
AB490,81,2319
(b) Four months after the trustee sent the person a copy of the trust instrument
20and a notice informing the person of the trust's existence, of the trustee's name and
21address, and of the time allowed for commencing a proceeding. Except as provided
22in s. 701.0813 (2), a trustee is not liable to any person for not providing the
23information described in this paragraph.
AB490,82,2
24(2) Upon the death of the settlor of a trust that was revocable immediately
25before the settlor's death, the trustee may proceed to distribute the trust property
1in accordance with the terms of the trust. The trustee is not subject to liability for
2doing so unless one of the following applies:
AB490,82,43
(a) The trustee knows of a pending judicial proceeding contesting the validity
4of the trust.
AB490,82,75
(b) A potential contestant has notified the trustee of a possible judicial
6proceeding to contest the trust and a judicial proceeding is commenced within 60
7days after the contestant sent the notification.
AB490,82,9
8(3) A beneficiary of a trust that is determined to have been invalid is liable to
9return any distribution received.
AB490,118
10Section
118. 701.065 (title), (1), (2), (3) and (4) of the statutes are renumbered
11701.0508 (title), (1), (2), (3) and (4), and 701.0508 (1) (a) 2., as renumbered, is
12amended to read:
AB490,82,1813
701.0508
(1) (a) 2. Except as provided in pars. (b) and (c), if the trustee satisfies
14the requirements for the publication of the notice under subd. 1., all claims, including
15claims of
the any state and any
subdivision thereof of its subdivisions, whether due
16or to become due, absolute or contingent, liquidated or unliquidated, are barred
17against the trustee, the trust property and any recipient of trust property unless filed
18with the trustee on or before the date specified in the notice under subd. 1.
AB490,120
21Section
120. 701.07 of the statutes is repealed.
AB490,121
22Section
121. Subchapter VII (title) of chapter 701 [precedes 701.0701] of the
23statutes is created to read:
AB490,82,2424
chapter 701
AB490,82,2525
subchapter VII
AB490,83,1
1office of trustee
AB490,122
2Section
122. 701.0701 of the statutes is created to read:
AB490,83,5
3701.0701 Accepting or declining trusteeship. (1) Except as provided in
4sub. (3), a person designated as trustee accepts the trusteeship by doing any of the
5following:
AB490,83,76
(a) Substantially complying with a method of acceptance provided in the terms
7of the trust.
AB490,83,118
(b) If the terms of the trust do not provide a method or the method provided in
9the terms is not expressly made exclusive, by accepting delivery of the trust property,
10exercising powers or performing duties as trustee, or otherwise indicating
11acceptance of the trusteeship.
AB490,83,15
12(2) A person designated as trustee who has not yet accepted the trusteeship
13may decline the trusteeship. A designated trustee who does not accept the
14trusteeship within a reasonable time after knowing of the designation is considered
15to have rejected the trusteeship.
AB490,83,17
16(3) A person designated as trustee, without accepting the trusteeship, may do
17any of the following:
AB490,83,2118
(a) Act to preserve the trust property if, within a reasonable time after acting,
19the person sends a declination of the trusteeship in writing to the settlor or, if the
20settlor is dead or incapacitated, to the designated cotrustee, or, if none, to the
21successor trustee, or, if none, to a distributee or a permissible distributee of the trust.
AB490,83,2322
(b) Inspect or investigate trust property to determine potential liability under
23environmental or other law or for any other purpose.
AB490,123
24Section
123. 701.0702 of the statutes is created to read:
AB490,84,4
1701.0702 Trustee's bond. (1) A trustee shall give bond to secure performance
2of the trustee's duties only if the court finds that a bond is needed to protect the
3interests of the beneficiaries or is required by the terms of the trust and the court has
4not dispensed with the requirement.
AB490,84,6
5(2) The court may specify the amount of a bond, its liabilities, and whether
6sureties are necessary. The court may modify or terminate a bond at any time.
AB490,84,10
7(3) A court may not require a bond from a trust company bank, state bank, or
8national bank that is authorized to exercise trust powers and that has complied with
9s. 220.09 or 223.02 nor shall a bond be required of a religious, charitable, or
10educational corporation or society.
AB490,124
11Section
124. 701.0703 of the statutes is created to read:
AB490,84,12
12701.0703 Cotrustees. (1) Cotrustees may act only by majority decision.
AB490,84,14
13(2) If a vacancy occurs in a cotrusteeship, as provided under s. 701.0704, a
14majority of the remaining cotrustees may act for the trust.
AB490,84,19
15(3) A cotrustee shall participate in the performance of a trustee's function
16unless the cotrustee is unavailable to perform the function because of absence,
17illness, disqualification under other law, or the cotrustee is otherwise temporarily
18incapacitated or the cotrustee has properly delegated the performance of the
19function to another trustee.
AB490,84,24
20(4) If a cotrustee is unavailable to perform duties because of absence, illness,
21disqualification under other law, or the cotrustee is otherwise temporarily
22incapacitated, and prompt action is necessary to achieve the purposes of the trust or
23to avoid injury to the trust property, the remaining cotrustee or a majority of the
24remaining cotrustees may act for the trust.
AB490,85,3
1(5) A trustee may delegate to a cotrustee a function unless the delegation is
2expressly prohibited by the terms of the trust. Unless a delegation is irrevocable, a
3trustee may revoke a delegation previously made.
AB490,85,5
4(6) Except as provided in sub. (7), a trustee who does not join in an action of
5another trustee is not liable for the action.
AB490,85,6
6(7) Each trustee shall exercise reasonable care to do all of the following:
AB490,85,77
(a) Prevent a cotrustee from committing a material breach of trust.
AB490,85,88
(b) Compel a cotrustee to redress a material breach of trust.
AB490,85,11
9(8) A dissenting trustee who joins in an action at the direction of the majority
10of the trustees and who notified all cotrustees of the dissent at or before the time of
11the action is not liable for the action unless the action is a material breach of trust.
AB490,125
12Section
125. 701.0704 of the statutes is created to read:
AB490,85,14
13701.0704 Vacancy in trusteeship; appointment of successor. (1) A
14vacancy in a trusteeship exists if any of the following occurs:
AB490,85,1515
(a) A person designated as trustee declines the trusteeship.
AB490,85,1616
(b) A person designated as trustee cannot be identified or does not exist.
AB490,85,1717
(c) A trustee resigns.
AB490,85,1818
(d) A trustee is disqualified or removed.
AB490,85,1919
(e) A trustee dies.
AB490,85,2020
(f) A guardian or conservator is appointed for an individual serving as trustee.
AB490,85,23
21(2) If one or more cotrustees remain in office, a vacancy in a trusteeship does
22not need to be filled. A vacancy in a trusteeship shall be filled if the trust has no
23remaining trustee.
AB490,85,25
24(3) A vacancy in a trusteeship that is required to be filled shall be filled in the
25following order of priority:
AB490,86,1
1(a) By a person designated in the terms of the trust to act as successor trustee.
AB490,86,62
(b) By a person appointed by unanimous agreement of the qualified
3beneficiaries, except that, if the trust is a trust for an individual with a disability, the
4person appointed under this paragraph may not be the individual with a disability,
5his or her spouse, or a relative of the individual with a disability who is legally
6responsible for his or her support.
AB490,86,77
(c) By a person appointed by the court.
AB490,86,11
8(4) Whether or not a vacancy in a trusteeship exists or is required to be filled,
9the court may appoint an additional trustee, directing party, or trust protector
10whenever the court considers the appointment necessary for the administration of
11the trust.
AB490,126
12Section
126. 701.0705 of the statutes is created to read:
AB490,86,14
13701.0705 Resignation of trustee. (1) A trustee may resign in any of the
14following manners:
AB490,86,1615
(a) Upon at least 30 days' notice to the qualified beneficiaries, the settlor, if
16living, each cotrustee, each trust protector, and each directing party.
AB490,86,1717
(b) With the approval of the court.
AB490,86,19
18(2) In approving a resignation, the court may issue orders and impose
19conditions reasonably necessary for the protection of the trust property.
AB490,86,22
20(3) Any liability of a resigning trustee or of any sureties on the trustee's bond
21for acts or omissions of the trustee is not discharged or affected by the trustee's
22resignation.
AB490,127
23Section
127. 701.0706 of the statutes is created to read:
AB490,87,3
1701.0706 Removal of trustee.
(1) The settlor, a cotrustee, or a qualified
2beneficiary may request the court to remove a trustee, or a trustee may be removed
3by the court on its own initiative.
AB490,87,4
4(2) The court may remove a trustee if any of the following applies:
AB490,87,55
(a) The trustee has committed a material breach of trust.
AB490,87,76
(b) A lack of cooperation among cotrustees substantially impairs the
7administration of the trust.
AB490,87,108
(c) The court determines that removal of the trustee best serves the interests
9of the beneficiaries because of unfitness, unwillingness, or persistent failure of the
10trustee to administer the trust effectively.
AB490,87,1511
(d) There has been a substantial change of circumstances or removal is
12requested by all of the qualified beneficiaries, the court finds that removal of the
13trustee best serves the interests of all of the beneficiaries and is not inconsistent with
14a material purpose of the trust, and a suitable cotrustee or successor trustee is
15available.
AB490,87,19
16(3) Pending a final decision on a request to remove a trustee, or in lieu of or in
17addition to removing a trustee, the court may order such appropriate relief under s.
18701.1001 (2) as may be necessary to protect the trust property or the interests of the
19beneficiaries.
AB490,128
20Section
128. 701.0707 of the statutes is created to read:
AB490,87,25
21701.0707 Delivery of property by former trustee. (1) Unless a cotrustee
22remains in office or the court otherwise orders, and until the trust property is
23delivered to a successor trustee or other person entitled to it, a trustee who has
24resigned or been removed has the duties of a trustee and the powers necessary to
25protect the trust property.
AB490,88,3
1(2) A trustee who has resigned or been removed shall proceed expeditiously to
2deliver the trust property within the trustee's possession to the cotrustee, successor
3trustee, or other person entitled to it.
AB490,129
4Section
129. 701.0708 of the statutes is created to read:
AB490,88,7
5701.0708 Compensation of trustee. (1) If the terms of a trust do not specify
6the trustee's compensation, a trustee is entitled to compensation that is reasonable
7under the circumstances.
AB490,88,11
8(2) If the terms of a trust specify the trustee's compensation or refer to another
9ascertainable source for determining that compensation, the trustee is entitled to be
10compensated as specified, but the court may allow more or less compensation if any
11of the following applies:
AB490,88,1312
(a) The duties of the trustee are substantially different from those
13contemplated when the trust was created.
AB490,88,1514
(b) The compensation specified by the terms of the trust would be unreasonably
15low or high.
AB490,88,18
16(3) If the trustee has rendered other services in connection with the
17administration of the trust, the trustee may receive reasonable compensation for the
18other services rendered, in addition to reasonable compensation as trustee.
AB490,130
19Section
130. 701.0709 of the statutes is created to read:
AB490,88,22
20701.0709 Reimbursement of expenses.
(1) A trustee is entitled to be
21reimbursed out of the trust property, with interest as appropriate, for all of the
22following: