AB490: Bill Text

AB490,36,7 2. A trustee is a resident of the jurisdiction designated in the trust instrument.

AB490,36,9 3. All or part of the administration of the trust occurs in the jurisdiction designated in the trust instrument.

AB490,36,11 4. The trust instrument designates the jurisdiction where the settlor is domiciled at the time the trust instrument is executed.

AB490,36,15 (b) If the principal place of administration is not validly designated in the trust instrument under par. (a), the jurisdiction where the trustee's usual place of business is located or, if the trustee has no place of business, the jurisdiction where the trustee's residence is located.

AB490,36,16 (c) The jurisdiction selected by the trustee under sub. (3).

AB490,37,5 (2) (a) If a corporate trustee is designated as the trustee of a trust and the corporate trustee has offices in multiple states and performs administrative functions for the trust in multiple states, the corporate trustee may designate the corporate trustee's usual place of business by providing notice to the qualified beneficiaries, trust protectors, and directing parties. The notice is valid and controlling if the corporate trustee has a connection to the jurisdiction designated in the notice, including an office where trustee services are performed and the actual performance of some administrative functions for that particular trust in that particular jurisdiction. The subsequent transfer of some of the administrative functions of the corporate trustee to another state or states does not transfer the usual place of business as long as the corporate trustee continues to maintain an office and perform some administrative functions in the jurisdiction designated in the notice and the corporate trustee does not transfer the principal place of administration pursuant to sub. (4).

AB490,37,7 (b) If there are cotrustees, the trustee's usual place of business is determined by any of the following:

AB490,37,9 1. If there is only one corporate trustee, the jurisdiction where the usual place of business of the corporate trustee is located.

AB490,37,12 2. The jurisdiction where the usual place of business or the residence of any of the cotrustees is located as agreed to by all of the cotrustees with notice to the qualified beneficiaries, trust protectors, and directing parties.

AB490,37,14 3. If the cotrustees cannot agree on a jurisdiction under subd. 2., and subd. 1. does not apply, by a court.

AB490,37,18 (3) Without precluding the right of the court to approve or disapprove a transfer and subject to sub. (5), a trustee may, but has no affirmative duty to, transfer a trust's principal place of administration to another state or to a jurisdiction outside of the United States.

AB490,37,22 (4) A trustee shall notify the qualified beneficiaries, trust protectors, and directing parties of a proposed transfer of a trust's principal place of administration not less than 30 days before initiating the transfer. The trustee shall include in the notice of proposed transfer all of the following:

AB490,37,24 (a) The name of the jurisdiction to which the principal place of administration is to be transferred.

AB490,38,2 (b) The mailing address, electronic mail address, if available, and telephone number at the new location at which the trustee can be contacted.

AB490,38,3 (c) An explanation of the reasons for the proposed transfer.

AB490,38,4 (d) The date on which the proposed transfer is anticipated to occur.

AB490,38,7 (e) The date, not less than 30 days after the giving of the notice, by which a qualified beneficiary, trust protector, or directing party must notify the trustee of an objection to the proposed transfer.

AB490,38,12 (5) If a qualified beneficiary, trust protector, or directing party commences a judicial proceeding objecting to the proposed transfer on or before the date specified in the notice, a trustee may not act under sub. (3) without court approval to transfer a trust's principal place of administration until the judicial proceeding is resolved or withdrawn.

AB490,38,15 (6) In connection with a transfer of a trust's principal place of administration, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms of the trust or appointed pursuant to s. 701.0704.

AB490,38,17 (7) The law of the trust's principal place of administration governs administrative matters related to the trust.

AB490,57 Section 57. 701.0109 of the statutes is created to read:

AB490,38,25 701.0109 Methods and waiver of notice. (1) Notice to a person under this chapter or the sending of a document to a person under this chapter shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include 1st class mail, personal delivery, delivery to the person's last known place of residence or place of business, or a properly directed electronic message.

AB490,39,3 (2) Notice otherwise required under this chapter or a document otherwise required to be sent under this chapter does not need to be provided to a person whose identity or location is unknown to and not reasonably ascertainable by a trustee.

AB490,39,5 (3) Notice under this chapter or the sending of a document under this chapter may be waived by the person to be notified or sent the document.

AB490,39,6 (4) Notice of a judicial proceeding shall be given as provided in s. 701.0205.

AB490,58 Section 58. 701.0110 of the statutes is created to read:

AB490,39,15 701.0110 Others treated as qualified beneficiaries. (1) A charitable organization that is expressly designated to receive distributions under the terms of a charitable trust and that is not subject to a right of substitution by the settlor or by any other party prior to the charitable organization becoming a distributee or permissible distributee of trust income or principal has the rights of a qualified beneficiary under this chapter if the charitable organization, on the date on which the charitable organization's qualification is being determined, satisfies one of the following:

AB490,39,17 (a) The charitable organization is a distributee or permissible distributee of trust income or principal.

AB490,39,21 (b) The charitable organization would be a distributee or permissible distributee of trust income or principal upon the termination of the interests of other distributees or permissible distributees then receiving or eligible to receive distributions.

AB490,39,23 (c) The charitable organization would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.

AB490,40,3 (2) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in s. 701.0408 or 701.0409 has the rights of a qualified beneficiary under this chapter.

AB490,40,8 (3) The attorney general of this state has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state only when the charitable interest to be represented would qualify under sub. (1) but no charitable organization has been expressly designated to receive distribution under the terms of a charitable trust.

AB490,59 Section 59. 701.0111 of the statutes is created to read:

AB490,40,12 701.0111 Nonjudicial settlement agreements. (1) In this section, "interested person" means a person whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.

AB490,40,14 (2) An interested person may be represented under this section as provided in subch. III.

AB490,40,17 (3) Except as provided in sub. (4), an interested person may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. A binding nonjudicial settlement agreement is considered part of the trust instrument.

AB490,40,20 (4) A nonjudicial settlement agreement is valid only to the extent it includes terms and conditions that could be properly approved by a court under this chapter or other applicable law.

AB490,40,22 (5) Except as provided in sub. (4), matters that may be addressed by a nonjudicial settlement agreement include any of the following:

AB490,40,23 (a) The interpretation or construction of the terms of the trust.

AB490,40,25 (b) The approval of a trustee's report or accounting or waiver of the preparation of a trustee's report or accounting.

AB490,41,2 (c) Direction to a trustee to perform or refrain from performing a particular act or the grant to a trustee of any necessary power.

AB490,41,3 (d) The resignation or appointment of a trustee.

AB490,41,4 (e) The determination of a trustee's compensation.

AB490,41,5 (f) The transfer of a trust's principal place of administration.

AB490,41,7 (g) The liability or release from liability of a trustee for an action relating to the trust.

AB490,41,9 (h) The criteria for distribution to a beneficiary where the trustee is given discretion.

AB490,41,11 (i) The resolution of disputes arising out of the administration or distribution of the trust.

AB490,41,12 (j) An investment action.

AB490,41,14 (k) The appointment of and powers granted to a directing party or a trust protector.

AB490,41,17 (L) Direction to a directing party or to a trust protector to perform or refrain from performing a particular act or the grant of a power to a directing party or trust protector.

AB490,41,21 (6) Any interested person may request a court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in subch. III was adequate, or to determine whether the agreement contains terms and conditions the court could have properly approved.

AB490,60 Section 60. 701.02 of the statutes is repealed.

AB490,61 Section 61. Subchapter II (title) of chapter 701 [precedes 701.0201] of the statutes is created to read:

AB490,41,25 chapter 701

AB490,42,2 subchapter ii Judicial proceedings

AB490,62 Section 62. 701.0201 of the statutes is created to read:

AB490,42,6 701.0201 Role of court in administration of trust. (1) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law.

AB490,42,9 (2) Unless ordered by the court upon a petition of a settlor, trustee, or qualified beneficiary requesting continuing judicial supervision, a trust is not subject to continuing judicial supervision.

AB490,42,11 (3) A judicial proceeding involving a trust or the trust's administration may involve any of the following:

AB490,42,12 (a) Determining the validity of all or any part of a trust.

AB490,42,13 (b) Appointing or removing a trustee, directing party, or trust protector.

AB490,42,16 (c) Appointing a representative or guardian ad litem, as provided in s. 701.0305, whether or not any other judicial proceeding concerning the trust is pending.

AB490,42,18 (d) Reviewing and approving a fee of a trustee, directing party, or trust protector.

AB490,42,19 (e) Approving interim or final accounts.

AB490,42,20 (f) Ascertaining trust beneficiaries.

AB490,42,22 (g) Determining the existence or nonexistence of any immunity, power, privilege, duty, or right.

AB490,42,23 (h) Requesting trustee instructions.

AB490,42,24 (i) Obtaining a declaratory judgment.

AB490,42,25 (j) Seeking reformation or other equitable relief with respect to a trust.

AB490,43,2 (k) Resolving a question arising in the administration of a trust, including a question of construction of a trust instrument.

AB490,43,4 (L) Determining any other matter involving a trustee, directing party, trust protector, or beneficiary.

AB490,63 Section 63. 701.0202 of the statutes is created to read:

AB490,43,11 701.0202 Personal jurisdiction. (1) A trustee, trust protector, or directing party submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust by accepting an appointment as a trustee, trust protector, or directing party of a trust having its principal place of administration in this state or by continuing to serve as the trustee, trust protector, or directing party of a trust after the principal place of administration of the trust is moved to this state.

AB490,43,17 (2) With respect to a beneficiary's interest in a trust, the beneficiary of a trust having its principal place of administration in this state is subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from a trust having its principal place of administration in this state, a recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

AB490,43,23 (3) Notwithstanding any contractual provision or other agreement between the trustee and the agent to the contrary, by accepting the delegation of a trust function pursuant to s. 701.0807 or 881.01 (10), or otherwise, from the trustee of a trust having a principal place of administration in this state, the agent submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

AB490,44,3 (4) This section does not preclude other methods of obtaining jurisdiction over a trustee, directing party, trust protector, beneficiary, or other person receiving property from the trust.

AB490,64 Section 64. 701.0203 of the statutes is created to read:

AB490,44,11 701.0203 Subject matter jurisdiction. (1) The circuit court assigned to exercise probate jurisdiction has exclusive jurisdiction of proceedings in this state brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust. Except as otherwise provided in this chapter, and as applicable, the probate procedure described in ch. 879 applies to a proceeding brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust.

AB490,44,13 (2) This section does not preclude judicial or nonjudicial alternative dispute resolution, including nonjudicial settlement agreements described in s. 701.0111.

AB490,65 Section 65. 701.0204 of the statutes is created to read:

AB490,44,19 701.0204 Venue. (1) Except as provided in sub. (2), venue for a judicial proceeding involving a trust may be in the county of this state in which the trust's principal place of administration is or will be located or, if the trust is a testamentary trust and the decedent's estate is not yet closed, in the county of this state in which the decedent's estate is being administered.

AB490,44,21 (2) If a trust has no trustee, venue for a judicial proceeding for the appointment of a trustee is in any of the following:

AB490,44,22 (a) A county of this state in which a beneficiary resides.

AB490,44,23 (b) A county of this state in which any trust property is located.

AB490,44,25 (c) A county of this state in which the holder of trust property maintains an office.

AB490,45,3 (d) If the trust is a testamentary trust and the decedent's estate is not yet closed, in the county of this state in which the decedent's estate is being administered.

AB490,45,6 (3) Venue for a judicial proceeding involving a trust is also governed by ss. 801.50 to 801.62, as applicable, and the proceeding is regarded as a civil action for that purpose.

AB490,66 Section 66. 701.03 of the statutes is repealed.

AB490,67 Section 67. Subchapter III (title) of chapter 701 [precedes 701.0301] of the statutes is created to read: