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:
SB384,134,10
1701.0206 Attorney for person in military service. At the time of filing a
2petition for a trust judicial proceeding, involving a trust, the petitioner shall file an
3affidavit shall be filed setting forth the name of any interested person interested in
4the proceeding
who is actively engaged in the military service of the United States.
5Whenever it appears by the affidavit or otherwise that any person in the active
6military service of the United States is an interested in any trust proceeding person
7and is not represented by an attorney, or by an attorney-in-fact who is duly
8authorized to act on the interested person's behalf in the matter, the court shall
9appoint an attorney to represent the interested person and protect the person's
10interest.
SB384,196 11Section 196. 701.14 (4) of the statutes is repealed.
SB384,197 12Section 197. 701.15 of the statutes is repealed.
SB384,198 13Section 198. 701.16 (title), (1), (2), (3), (4) (title) and (a) to (c), (5) and (6) of the
14statutes are repealed.
SB384,199 15Section 199. 701.16 (4) (d) of the statutes is renumbered 879.47 (2) and
16amended to read:
SB384,134,2017 879.47 (2) Notwithstanding s. 879.47, trustees Trustees and cotrustees may
18submit to courts accounts in the format that they normally use for accounts
19submitted to beneficiaries under this subsection, if all of the information required by
20the court is included.
SB384,200 21Section 200. 701.17 of the statutes is repealed.
SB384,201 22Section 201. 701.18 of the statutes is repealed.
SB384,202 23Section 202. 701.19 of the statutes is repealed.
SB384,203 24Section 203. 701.20 (title) of the statutes is repealed.
SB384,204 25Section 204. 701.20 (2) (intro.) of the statutes is repealed.
SB384,205
1Section 205. 701.20 (2) (a) of the statutes is renumbered 701.1102 (1).
SB384,206 2Section 206. 701.20 (2) (b) of the statutes is renumbered 701.1102 (1m) and
3amended to read:
SB384,135,74 701.1102 (1m) "Beneficiary" Notwithstanding s. 701.0103 (3), "beneficiary"
5means a person who has a beneficial interest in a trust or an estate and includes, in
6the case of a decedent's estate, an heir, a legatee, and a devisee and, in the case of a
7trust, an income beneficiary and a remainder beneficiary.
SB384,207 8Section 207. 701.20 (2) (c) of the statutes is renumbered 701.1102 (2).
SB384,208 9Section 208. 701.20 (2) (d) of the statutes is renumbered 701.1102 (3) and
10amended to read:
SB384,135,1411 701.1102 (3) "Income" means money or property that a fiduciary receives as
12current return from a principal asset. "Income" includes a portion of receipts from
13a sale, exchange, or liquidation of a principal asset, to the extent provided in subs.
14(10)
ss. 701.1115 to (24) 701.1129.
SB384,209 15Section 209. 701.20 (2) (e) of the statutes is renumbered 701.1102 (4).
SB384,210 16Section 210. 701.20 (2) (f) of the statutes is renumbered 701.1102 (5).
SB384,211 17Section 211. 701.20 (2) (g) of the statutes is renumbered 701.1102 (6).
SB384,212 18Section 212. 701.20 (2) (h) of the statutes is renumbered 701.1102 (7) and
19amended to read:
SB384,135,2320 701.1102 (7) "Net income" means the total receipts allocated to income during
21an accounting period, minus the disbursements made from income during the period,
22plus or minus transfers under this section subchapter to or from income during the
23period.
SB384,213 24Section 213. 701.20 (2) (i) of the statutes is repealed.
SB384,214 25Section 214. 701.20 (2) (j) of the statutes is renumbered 701.1102 (8).
SB384,215
1Section 215. 701.20 (2) (k) of the statutes is renumbered 701.1102 (9) and
2amended to read:
SB384,136,53 701.1102 (9) "Remainder beneficiary" means a person entitled to receive
4principal when an income interest ends
who is a beneficiary under s. 701.0103 (21)
5(b)
.
SB384,216 6Section 216. 701.20 (2) (L), (m) and (n) of the statutes are repealed.
SB384,217 7Section 217. 701.20 (3) of the statutes is renumbered 701.1103, and 701.1103
8(1) and (2), as renumbered, are amended to read:
SB384,136,119 701.1103 (1) In allocating receipts and disbursements to income or principal
10or between income and principal, and with respect to any matter within the scope of
11subs. (5) ss. 701.1110 to (9) 701.1114, a fiduciary:
SB384,136,1312 (a) Shall first administer a trust or estate in accordance with the terms of the
13trust or the will, even if there is a different provision in this section subchapter.
SB384,136,1714 (b) May administer a trust or estate by the exercise of a discretionary power
15of administration given to the fiduciary by the terms of the trust or the will, even if
16the exercise of the power produces a result different from a result required or
17permitted by this section subchapter.
SB384,136,2018 (c) Shall administer a trust or estate in accordance with this section subchapter
19if the terms of the trust or the will do not contain a different provision or do not give
20the fiduciary a discretionary power of administration.
SB384,136,2321 (d) Shall add a receipt or charge a disbursement to principal to the extent that
22the terms of the trust and this section subchapter do not provide a rule for allocating
23the receipt or disbursement to principal or income or between principal and income.
SB384,137,6 24(2) In exercising the power to adjust under sub. (4) (a) s. 701.1104 (1) or a
25discretionary power of administration regarding a matter within the scope of this

1section subchapter, whether granted by the terms of a trust, a will, or this section
2subchapter, a fiduciary shall administer a trust or estate impartially, based on what
3is fair and reasonable to all of the beneficiaries, except to the extent that the terms
4of the trust or the will clearly manifest an intention that the fiduciary shall or may
5favor one or more of the beneficiaries. A determination in accordance with this
6section subchapter is presumed to be fair and reasonable to all of the beneficiaries.
SB384,218 7Section 218. 701.20 (4) of the statutes is renumbered 701.1104, and 701.1104
8(1), (2) (intro.), (3) (h) and (i), (4), (5) and (6) as renumbered, are amended to read:
SB384,137,149 701.1104 (1) A trustee may adjust between principal and income to the extent
10the trustee considers necessary if the trustee invests and manages trust assets as a
11prudent investor, the terms of the trust describe the amount that may or must be
12distributed to a beneficiary by referring to the trust's income, and the trustee
13determines, after applying the rules in sub. (3) (a) s. 701.1103 (1), that the trustee
14is unable to comply with sub. (3) (b) s. 701.1103 (2).
SB384,137,17 15(2) (intro.) In deciding whether and to what extent to exercise the power
16conferred by par. (a) sub. (1), a trustee shall consider all factors relevant to the trust
17and its beneficiaries, including the following factors to the extent they are relevant:
SB384,137,18 18(3) (h) If the trust has been converted under sub. (4g) s. 701.1106 to a unitrust.
SB384,137,1919 (i) If the trust is an express unitrust, as defined in sub. (4j) (a) s. 701.1107 (1).
SB384,137,23 20(4) If par. (c) 5., 6. sub. (3) (e), (f), or 7. (g) applies to a trustee and there is more
21than one trustee, a cotrustee to whom the provision does not apply may make the
22adjustment unless the terms of the trust do not permit the exercise of the power by
23that cotrustee.
SB384,138,6 24(5) A trustee may release the entire power conferred by par. (a) sub. (1) or may
25release only the power to adjust from income to principal or the power to adjust from

1principal to income if the trustee is uncertain about whether possessing or exercising
2the power will cause a result described in par. (c) 1. sub. (3) (a) to 6. (f) or if the trustee
3determines that possessing or exercising the power will or may deprive the trust of
4a tax benefit or impose a tax burden not described in par. (c) sub. (3). The release may
5be permanent or for a specified period, including a period measured by the life of an
6individual.
SB384,138,10 7(6) Terms of a trust that limit the power of a trustee to make an adjustment
8between principal and income do not affect the application of this subsection unless
9it is clear from the terms of the trust that the terms are intended to deny the trustee
10the power of adjustment conferred by par. (a) sub. (1).
SB384,219 11Section 219. 701.20 (4c) (title) of the statutes is renumbered 701.1105 (title).
SB384,220 12Section 220. 701.20 (4c) (b) (intro.) of the statutes is renumbered 701.1105 (1)
13(intro.) and amended to read:
SB384,138,1614 701.1105 (1) (intro.) A trustee may, but is not required to, obtain approval of
15a proposed action under sub. (4) (a) s. 701.1104 (1) by providing a written notice that
16complies with all of the following:
SB384,221 17Section 221. 701.20 (4c) (b) 1. of the statutes is renumbered 701.1105 (1) (a).
SB384,222 18Section 222. 701.20 (4c) (b) 2. of the statutes is renumbered 701.1105 (1) (b).
SB384,223 19Section 223. 701.20 (4c) (b) 3. (intro.) of the statutes is renumbered 701.1105
20(1) (c) and amended to read:
SB384,138,2221 701.1105 (1) (c) Is given to all sui juris qualified beneficiaries who are any of
22the following:
.
SB384,224 23Section 224. 701.20 (4c) (b) 3. a., b. and c. of the statutes are repealed.
SB384,225 24Section 225. 701.20 (4c) (b) 4. of the statutes is renumbered 701.1105 (1) (d),
25and 701.1105 (1) (d) (intro.) and 4., as renumbered, are amended to read:
SB384,139,2
1701.1105 (1) (d) (intro.) States that it is given in accordance with this subsection
2section and discloses the following information:
SB384,139,43 4. The effective date of the proposed action if no objection is received from any
4beneficiary within the time specified in subd. 4. c. 3.
SB384,226 5Section 226. 701.20 (4c) (c) of the statutes is renumbered 701.1105 (2) and
6amended to read:
SB384,139,107 701.1105 (2) If a trustee gives notice of a proposed action under this subsection
8section, the trustee is not required to give notice to a sui juris qualified beneficiary
9who consents to the proposed action in writing at any time before or after the
10proposed action is taken.
SB384,227 11Section 227. 701.20 (4c) (d) of the statutes is renumbered 701.1105 (3) and
12amended to read:
SB384,139,1513 701.1105 (3) A sui juris qualified beneficiary may object to the proposed action
14by giving a written objection to the trustee within the time specified in the notice
15under par. (b) 4. c. sub. (1) (d) 3.
SB384,228 16Section 228. 701.20 (4c) (e) of the statutes is renumbered 701.1105 (4) and
17amended to read:
Loading...
Loading...