SB384,170 4Section 170. 701.1010 of the statutes is created to read:
SB384,124,8 5701.1010 Limitation on personal liability of trustee. (1) Except as
6otherwise provided in the contract, a trustee is not personally liable on a contract
7properly entered into in the trustee's fiduciary capacity in the course of
8administering the trust if the trustee in the contract disclosed the fiduciary capacity.
SB384,124,12 9(2) A trustee is personally liable for torts committed in the course of
10administering a trust, or for obligations arising from ownership or control of trust
11property, including liability for violation of environmental law, only if the trustee is
12personally at fault.
SB384,171 13Section 171. 701.1011 of the statutes is created to read:
SB384,124,18 14701.1011 Interest as general partner. (1) Unless personal liability is
15imposed in the contract, a trustee who holds an interest as a general partner in a
16general or limited partnership is not personally liable on a contract entered into by
17the partnership after the trust's acquisition of the interest if the fiduciary capacity
18was disclosed in the contract.
SB384,124,21 19(2) A trustee who holds an interest as a general partner is not personally liable
20for torts committed by the partnership or for obligations arising from ownership or
21control of the interest unless the trustee is personally at fault.
SB384,124,24 22(3) If the trustee of a revocable trust holds an interest as a general partner, the
23settlor is personally liable for contracts and other obligations of the partnership as
24if the settlor were a general partner.
SB384,172 25Section 172. 701.1012 of the statutes is created to read:
SB384,125,5
1701.1012 Protection of person dealing with trustee. (1) A person other
2than a beneficiary who in good faith assists a trustee, or who in good faith and for
3value deals with a trustee, without knowledge that the trustee is exceeding or
4improperly exercising the trustee's powers is protected from liability as if the trustee
5properly exercised the power.
SB384,125,8 6(2) A person other than a beneficiary who in good faith deals with a trustee is
7not required to inquire into the extent of the trustee's powers or the propriety of their
8exercise.
SB384,125,10 9(3) A person who in good faith delivers assets to a trustee does not need to
10ensure their proper application.
SB384,125,14 11(4) A person other than a beneficiary who in good faith assists a former trustee,
12or who in good faith and for value deals with a former trustee, without knowledge
13that the trusteeship has terminated is protected from liability as if the former trustee
14were still a trustee.
SB384,125,17 15(5) Comparable protective provisions of other laws relating to commercial
16transactions or transfer of securities by fiduciaries prevail over the protection
17provided by this section.
SB384,173 18Section 173. 701.1013 of the statutes is created to read:
SB384,125,21 19701.1013 Certification of trust. (1) Instead of furnishing a copy of the trust
20instrument to a person other than a beneficiary, the trustee may furnish to the
21person a certification of trust containing the following information:
SB384,125,2322 (a) That the trust exists and the date on which the trust instrument was
23executed.
SB384,125,2424 (b) The identity of the settlor.
SB384,125,2525 (c) The identity and address of the currently acting trustee.
SB384,126,1
1(d) The powers of the trustee.
SB384,126,32 (e) The revocability or irrevocability of the trust and the identity of any person
3holding a power to revoke the trust.
SB384,126,64 (f) The authority of a cotrustee to sign or otherwise authenticate and whether
5all cotrustees or less than all cotrustees are required to sign or otherwise
6authenticate in order to exercise powers of the trustee.
SB384,126,77 (g) The manner in which title to trust property may be taken.
SB384,126,9 8(2) A certification of trust may be signed or otherwise authenticated by any
9trustee.
SB384,126,12 10(3) A trustee shall include in a certification of trust that the trust has not been
11revoked, modified, or amended in any manner that would cause the representations
12contained in the certification of trust to be incorrect.
SB384,126,14 13(4) A certification of trust does not need to contain the dispositive terms of a
14trust.
SB384,126,18 15(5) A recipient of a certification of trust may require the trustee to furnish
16copies of those excerpts from the original trust instrument and later amendments
17that designate the trustee and confer upon the trustee the power to act in the pending
18transaction.
SB384,126,24 19(6) A person who acts in reliance upon a certification of trust without
20knowledge that the representations contained therein are incorrect is not liable to
21any person for so acting and may assume without inquiry the existence of the facts
22contained in the certification. Knowledge of the terms of the trust may not be
23inferred solely from the fact that a copy of all or part of the trust instrument is held
24by the person relying upon the certification.
SB384,127,3
1(7) A person who in good faith enters into a transaction in reliance upon a
2certification of trust may enforce the transaction against the trust property as if the
3representations contained in the certification were correct.
SB384,127,8 4(8) A person making a demand for copies of the trust instrument or excerpts
5from the trust instrument, other than those excerpts described in sub. (5), in addition
6to a certification of trust is liable for costs, expenses, reasonable attorney fees and
7damages if the court determines that the person did not act in good faith in
8demanding the copies.
SB384,127,10 9(9) This section does not limit the right of a person to obtain a copy of the trust
10instrument in a judicial proceeding concerning the trust.
SB384,174 11Section 174. 701.105 (title), (1), (2) and (3) of the statutes are renumbered
12701.1201 (title), (1), (2) and (3), and 701.1201 (1), (2) and (3), as renumbered, are
13amended to read:
SB384,127,1914 701.1201 (1) (a) In the administration of any trust which that is a private
15foundation, as defined in section 509 of the internal revenue code Internal Revenue
16Code
, a charitable trust, as defined described in section 4947 (a) (1) of the internal
17revenue code
Internal Revenue Code, or a split-interest trust as defined described
18in section 4947 (a) (2) of the internal revenue code Internal Revenue Code, all of the
19following acts shall be prohibited:
SB384,127,2320 1. Engaging in any act of self-dealing, as defined in section 4941 (d) of the
21internal revenue code, which Internal Revenue Code, that would give rise to any
22liability for the tax imposed by section 4941 (a) of the internal revenue code Internal
23Revenue Code
.
SB384,128,224 2. Retaining any excess business holdings, as defined in section 4943 (c) of the
25internal revenue code, which Internal Revenue Code, that would give rise to any

1liability for the tax imposed by section 4943 (a) of the internal revenue code Internal
2Revenue Code
.
SB384,128,63 3. Making any investments which that would jeopardize the carrying out of any
4of the exempt purposes of the trust, within the meaning of section 4944 of the internal
5revenue code
Internal Revenue Code, so as to give rise to any liability for the tax
6imposed by section 4944 (a) of the internal revenue code Internal Revenue Code.
SB384,128,107 4. Making any taxable expenditures, as defined in section 4945 (d) of the
8internal revenue code, which Internal Revenue Code, that would give rise to any
9liability for the tax imposed by section 4945 (a) of the internal revenue code Internal
10Revenue Code
.
SB384,128,1411 (b) This subsection shall does not apply either to those split-interest trusts or
12to amounts thereof which that are not subject to the prohibitions applicable to
13private foundations by reason of the provisions of section 4947 of the internal
14revenue code
Internal Revenue Code.
SB384,128,21 15(2) In the administration of any trust which that is a private foundation, as
16defined in section 509 of the internal revenue code Internal Revenue Code, or which
17that is a charitable trust, as defined described in section 4947 (a) (1) of the internal
18revenue code
Internal Revenue Code, there shall be distributed, for the purposes
19specified in the trust instrument, for each taxable year, amounts at least sufficient
20to avoid liability for the tax imposed by section 4942 (a) of the internal revenue code
21Internal Revenue Code.
SB384,128,25 22(3) Subsections (1) and (2) shall do not apply to any trust to the extent that a
23court of competent jurisdiction shall determine determines that such the application
24would be contrary to the terms of the instrument governing such trust and that the
25same may not properly be changed to conform to such subsections.
SB384,175
1Section 175. 701.105 (4) of the statutes is repealed.
SB384,176 2Section 176. 701.11 of the statutes is repealed.
SB384,177 3Section 177. Subchapter XI (title) of chapter 701 [precedes 701.1101] of the
4statutes is created to read:
SB384,129,55 chapter 701
SB384,129,66 subchapter xi
SB384,129,77 uniform principal and income act
SB384,178 8Section 178. 701.1101 of the statutes is created to read:
SB384,129,12 9701.1101 Short title and scope. This subchapter may be cited as the
10Wisconsin Uniform Principal and Income Act. Subject to s. 701.1206 (2), this
11subchapter applies to a trust described in s. 701.0102 and an estate that is
12administered in this state.
SB384,179 13Section 179. 701.1102 (intro.) of the statutes is created to read:
SB384,129,14 14701.1102 Definitions. (intro.) In this subchapter:
SB384,180 15Section 180. 701.1102 (1g) of the statutes is created to read:
SB384,129,1716 701.1102 (1g) "Asset" has the meaning given for property under s. 701.0103
17(20).
SB384,181 18Section 181. 701.1106 (6) of the statutes is created to read:
SB384,129,2019 701.1106 (6) Sections 701.0410 to 701.0418 do not apply to a conversion of a
20trust to a unitrust under this section.
SB384,182 21Section 182. 701.1123 (1) of the statutes is created to read:
SB384,129,2222 701.1123 (1) In this section:
SB384,130,223 (a) "Marital deduction trust" means a trust for which an election to qualify for
24a marital deduction under section 2056 (b) (7), 2056A (a) (3), or 2523 (f) of the Internal

1Revenue Code has been made or a trust that qualified for the marital deduction
2under other provisions of section 2056 or 2523 of the Internal Revenue Code.
SB384,130,43 (b) "Payment" means an amount of money or property received by a trustee that
4is any of the following:
SB384,130,85 1. Part of a series, or eligible to be part of a series, of distributions payable over
6a fixed number of years or during the life of one or more individuals because of
7services rendered or property transferred to the payer in exchange for the future
8distributions.
SB384,130,99 2. Distributed from a plan, regardless of the reason for the distribution.
SB384,130,1410 (c) "Plan" means a contractual, custodial, trust, or other arrangement that
11provides for distributions to a trust. "Plan" includes a private or commercial annuity,
12an individual retirement account, a Roth individual retirement account, a qualified
13retirement plan such as a pension, profit-sharing, stock-bonus, or stock-ownership
14plan, or any nonqualified deferred compensation plan.
SB384,130,1815 (e) "Separate account" means an account established or maintained under a
16plan under which income, gains, and losses, whether or not realized, from assets
17allocated to the account, are credited to or charged against the account without
18regard to other income, gains, or losses of the plan.
SB384,183 19Section 183. 701.1123 (4) of the statutes is created to read:
SB384,131,220 701.1123 (4) (a) Notwithstanding sub. (3), a trustee of a marital deduction trust
21shall determine plan income for an accounting period as if the plan were a trust
22subject to this subchapter. If the trustee of a marital deduction trust cannot
23determine the plan income, the plan income is 4 percent of the total present value
24of the trust's income in the plan on the first day of the accounting period, based on

1reasonable actuarial assumptions as determined by the trustee of the marital
2deduction trust.
SB384,131,93 (b) Notwithstanding subs. (2) and (3), a trustee of a marital deduction trust
4shall allocate a payment from a plan to income to the extent of the plan income and
5distribute that amount to the surviving spouse. The trustee of the marital deduction
6trust shall allocate the balance of the payment to principal. Upon the request of the
7surviving spouse, the trustee of a marital deduction trust shall allocate principal to
8income to the extent the plan income exceeds payments made from the plan to the
9trust during the accounting period.
SB384,131,1210 (c) Upon the request of the surviving spouse of the settlor, a trustee of a marital
11deduction trust shall demand that a person administering a plan distribute the plan
12income to the trust.
SB384,184 13Section 184. 701.1126 (title) of the statutes is created to read:
SB384,131,14 14701.1126 (title) Timber.
SB384,185 15Section 185. 701.1134 (3) (c) and (d) and (4) of the statutes are created to read:
SB384,131,1716 701.1134 (3) (c) Proportionately from principal and income to the extent that
17receipts from the entity are allocated to both income and principal.
SB384,131,1918 (d) From principal to the extent that the tax exceeds the total receipts from the
19entity.
SB384,131,22 20(4) After applying subs. (1) to (3), the trustee shall adjust income or principal
21receipts to the extent that the trust's taxes are reduced because the trust receives a
22deduction for payments made to a beneficiary.
SB384,186 23Section 186. 701.115 of the statutes is repealed.
SB384,187 24Section 187. 701.12 of the statutes is repealed.
SB384,188
1Section 188. Subchapter XII (title) of chapter 701 [precedes 701.1201] of the
2statutes is created to read:
SB384,132,33 chapter 701
SB384,132,44 subchapter Xii
SB384,132,55 Miscellaneous Provisions
SB384,189 6Section 189. 701.1202 of the statutes is created to read:
SB384,132,13 7701.1202 Electronic records and signatures. The provisions of this
8chapter governing the legal effect, validity, or enforceability of electronic records or
9signatures, and of contracts formed or performed with the use of such records or
10signatures conform to the requirements of section 102 of the federal Electronic
11Signatures in Global and National Commerce Act, 15 USC 7002, and supersede,
12modify, and limit the federal Electronic Signatures in Global and National
13Commerce Act, 15 USC 7001 to 7031.
SB384,190 14Section 190. 701.1203 of the statutes is created to read:
SB384,132,17 15701.1203 Uniformity of application and construction. This chapter shall
16be applied and construed to effectuate its general purpose to make uniform the law
17with respect to the subject of this chapter among states enacting it.
SB384,191 18Section 191. 701.1205 (3) of the statutes is created to read:
SB384,132,2119 701.1205 (3) (a) Except as provided in par. (b), this chapter applies to a judicial
20proceeding concerning a trust commenced before, on, or after the effective date of this
21paragraph .... [LRB inserts date].
SB384,133,422 (b) If a court finds that application of a particular provision of this chapter to
23a judicial proceeding commenced before the effective date of this paragraph .... [LRB
24inserts date], will substantially interfere with the effective conduct of the judicial
25proceedings or prejudice the rights of the parties, the particular provision of this

1chapter does not apply to that judicial proceeding and the court shall apply ch. 701,
22011 stats., as the court finds to be necessary to prevent interference with the
3effective conduct of the judicial proceeding and to avoid prejudicing the rights of the
4parties.
SB384,192 5Section 192. 701.13 of the statutes is repealed.
SB384,193 6Section 193. 701.14 (title) and (1) of the statutes are repealed.
SB384,194 7Section 194. 701.14 (2) of the statutes is renumbered 701.0205 and amended
8to read:
SB384,133,23 9701.0205 Notice. If notice of a judicial proceeding involving a trust proceeding
10to a an interested person interested in the trust, to the person's representative or
11guardian ad litem as provided in s. 701.15, or to other persons, is required by law or
12deemed necessary by the court, the court shall order such notice to be given as
13prescribed in s. 879.05 except that service by publication shall may not be required
14unless ordered by the court. The court may order both personal service and service
15by publication on designated persons. Proof of service shall be made as provided in
16s. 879.07. Persons interested in the trust Interested persons, on behalf of
17themselves, or their representatives or guardians ad litem as provided in s. 701.15,
18on behalf of themselves the representative or guardian ad litem and those whom they
19represent
the interested person the representative or guardian ad litem represents,
20may in writing waive service of notice and consent to the hearing of any matter
21without notice. Waiver of notice or an appearance by any interested person
22interested in the trust or the interested person's representative or guardian ad litem
23as provided in s. 701.15 is equivalent to timely service of notice.
SB384,195 24Section 195. 701.14 (3) of the statutes is renumbered 701.0206 and amended
25to read:
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