AB803,33,823 (b) The trustee may, or the court may order the trustee to, in the case of a
24contested claim, make distribution of the trust but retain sufficient funds to pay the
25claim if and when the same becomes absolute. For this purpose, the trust may not

1be required to remain intact longer than 2 years after distribution of the remainder
2of the trust has been made, and if the claim has not become absolute within that time,
3distribution shall be made to the distributees of the retained funds, after paying any
4costs and expenses accruing during such period, but the distributees shall be liable
5to the claimant to the extent provided in sub. (6), if the contingent claim thereafter
6becomes absolute. When distribution is so made to distributees, the trustee or the
7court may require the distributees to give bond for the satisfaction of their liability
8to the contingent claimant.
AB803,33,149 (c) The trustee may require, or the court, in the case of a contested claim, may
10order, distribution of the trust as though the contingent claim did not exist, but the
11distributees shall be liable to the claimant as limited by sub. (7), if the contingent
12claim thereafter becomes absolute. The trustee or the court may require the
13distributees to give bond for the satisfaction of their liability to the contingent
14claimant.
AB803,33,1615 (d) Any other method the trustee determines or the court, in the case of a
16contested claim, orders.
AB803,34,4 17(6) Payment of contingent claims by distributees. If a contingent claim is filed
18and the trustee determines the claim to be valid subject to the contingency and all
19of the assets of the trust, including the fund set apart for the payment of the claim,
20have been distributed, the claimant may recover on the claim against those
21distributees, or the persons who furnish bond for the distributees, whose distributive
22shares have been increased by reason of the fact that the amount of the claim as
23finally determined was not paid prior to final distribution, if a proceeding for the
24claim is commenced in court within 6 months after the claim becomes absolute. A
25distributee or the person who furnishes bond for the distributee shall not be liable

1for an amount exceeding that person's proportionate share of the trust subject to the
2claim, nor for an amount greater than the value of the property that that person
3received from the trust, the value to be determined as of the time of distribution to
4the distributee.
AB803,34,10 5(7) Priority of payment of claims and allowances. (a) Classes and priority.
6At the time a claim is determined to be valid, the claim shall be classified in one of
7the categories under subds. 1. to 8. The trustee shall pay an absolute claim if the
8trustee reasonably believes the assets of the trust are sufficient to pay the claim. If
9the applicable assets of the trust are insufficient to pay the claim in full, the trustee
10shall make payment in the following order:
AB803,34,1111 1. Costs and expenses of administration.
AB803,34,1212 2. Reasonable funeral and burial expenses.
AB803,34,1513 3. Provisions for the family of the deceased settlor under ss. 861.31, 861.33, and
14861.35, which sections are incorporated by reference and applied as if the trust is an
15estate.
AB803,34,1716 4. Reasonable and necessary expenses of the last illness of the deceased settlor,
17including compensation of persons attending the deceased settlor.
AB803,34,1918 5. All debts, charges, or taxes owing to the United States, this state, or a
19governmental subdivision or municipality of this state.
AB803,34,2220 6. Wages, including pension, welfare, and vacation benefits, due to employees
21that have been earned within 3 months before the date of the death of the deceased
22settlor, not to exceed $300 in value to each employee.
AB803,34,2523 7. Property assigned to the surviving spouse or surviving domestic partner
24under s. 861.41, which section is incorporated by reference and applied as if the trust
25is an estate.
AB803,35,1
18. All other claims allowed.
AB803,35,42 (b) No preference within classes. Preference shall not be given in the payment
3of any claim over any other claim of the same class, nor shall a claim due and payable
4be entitled to a preference over a claim not due.
AB803,35,10 5(8) Execution and levies prohibited. Garnishment, attachment, or execution
6shall not issue against, nor shall any levy be made against, any property of the trust
7under any judgment or cause of action against a deceased settlor or the trustee, but
8this subsection shall not be construed to prevent the enforcement of mortgages,
9pledges, liens, or other security agreements upon real or personal property in an
10appropriate proceeding.
AB803,35,25 11(9) Qualified beneficiaries and claimants may be informed of claims. After
12the deadline for filing a claim against the trust under s. 701.0508, any qualified
13beneficiary or claimant may make a written request to the trustee for a statement
14listing all claims that have been filed against the trust. The statement provided by
15the trustee shall show each claim, the name of the claimant, a brief description of the
16basis of the claim, the amount claimed, and the trustee's determination of whether
17the claim is valid, absolute, contingent, or invalid, or whether the trustee will object
18to the claim in whole or in part. The trustee shall provide notice of the statement to
19the requester, including any representative under subch. III within 5 business days
20of the receipt of the request. The requester shall, within 5 business days of receiving
21notice of the statement from the trustee, inform the trustee whether the requester
22agrees or objects to the trustee's determination on whether to allow the claim in
23whole or in part or whether to object to the claim. Failure on the part of any party
24to comply with this subsection does not affect the jurisdiction of the court to intervene
25in the administration of the claim.
AB803,36,6
1(10) Compromise of claims. When a claim against a trust has been filed and
2payment of the claim is pending, the claimant and trustee may, if it appears to be in
3the best interest of the trust, compromise the claim, whether due or not due, absolute
4or contingent, or liquidated or unliquidated. If an objection to the claim has been
5filed by a qualified beneficiary or another claimant, no compromise of the claim may
6be made without the consent of the objector.
AB803,36,22 7(11) Contest and enforcement of claims; court procedure. (a) Initiation.
8Any person may initiate a court proceeding to contest or enforce a claim, object to
9denial of a claim, or assert an offset or counterclaim, including the trustee, a qualified
10beneficiary or representative under subch. III on behalf of a qualified beneficiary, or
11a claimant. Such persons may initiate the court proceeding by petitioning the court
12to exercise jurisdiction over the claim and any objection, offset, or counterclaim. The
13petition shall be served upon or mailed to each person who has standing to object to
14the claim and filed with the court within 60 days after the trustee's response or
15failure to respond to the claim under sub. (2) (c), or, in the case of an objection by a
16qualified beneficiary or representative of the qualified beneficiary or another
17potential claimant, within 30 days after the copy of the claim was mailed to or served
18upon the objector. The trustee shall not be obligated to assert any offset or
19counterclaim in court and may, if the trustee deems it to be in the best interest of the
20trust, assert the offset or counterclaim in any separate action otherwise authorized
21by law outside the court proceedings. Any offset or counterclaim so asserted shall
22be deemed denied by the original claimant.
AB803,37,223 (b) Procedure. If any claim, offset, or counterclaim is contested, the court may
24require the issues to be made definite, fix a date for pretrial conference, and direct

1the manner in which pleadings, if any, shall be exchanged. The court shall set a time
2for trial upon its own motion or upon the motion of any party.
AB803,37,5 3(12) Prompt judgment. The hearing on any contested claim, offset, or
4counterclaim may be adjourned from time to time, but the hearing shall be concluded
5as soon as practicable.
AB803,37,10 6(13) Judgment on claims. The court shall enter a judgment on contested claims
7and any offsets and counterclaims asserted, stating how much was allowed for or
8against the trust in each case. The judgment shall set a date by which payment shall
9be made. If the balance as to any claimant is in favor of the trust, the payment of the
10claim may be enforced as with any other judgment.
AB803,37,16 11(14) Delay of payment of claims when funds are insufficient. If it appears at
12any time that the trust is or may be insolvent, that there are insufficient funds on
13hand for payment of claims in full, or that there is other good cause for delaying
14payment, the trustee shall provide notice of the delay to the claimants and any other
15person with standing to object and may petition the court for any order that the
16trustee deems necessary.
AB803,38,4 17(15) Claimant's action for property fraudulently transferred by deceased
18settlor.
Whenever there is reason to believe that the assets of the trust may be
19insufficient to pay the deceased settlor's debts, and the deceased settlor transferred
20any property with intent to defraud the deceased settlor's creditors or to avoid any
21duty, or executed conveyances void as against creditors, any claimant whose claim
22has been allowed may, on behalf of all, bring an action to reach any property and
23subject it to sale. The claimant's action shall not be brought to trial until the
24insufficiency of the assets of the trust is ascertained. If it is found likely that the
25assets may be insufficient, the action shall be brought to trial. If the action is tried,

1any property that ought to be subjected to the payment of the debts of the deceased
2settlor shall be sold in the action and the net proceeds used to pay such debts and to
3reimburse the claimant for the reasonable expenses and attorney fees incurred by
4the claimant in such action, as approved by the court.
AB803,38,8 5(16) Encumbered assets; payment of debt. (a) Rights of secured claimants not
6affected.
Nothing in this subchapter shall affect or prevent any action or proceeding
7to enforce any mortgage, pledge, lien, or other security agreement against property
8of the trust.
AB803,38,149 (b) Payment. When any property in the trust is encumbered by mortgage,
10pledge, lien, or other security agreement, the trustee may pay the encumbrance or
11any part of the encumbrance, renew or extend any obligation secured by the
12encumbrance, or may convey or transfer the encumbered assets to the creditor in
13satisfaction of the claimant's lien, in whole or in part, whether or not the holder of
14the encumbrance has filed a claim.
AB803,38,19 15(17) Tort claims. (a) Filed within time limited. If a claim based on a cause
16of action in tort or for contribution resulting from a cause of action in tort is filed on
17or before the deadline for filing a claim under s. 701.0508, the claimant will receive
18the same protection in regard to payment as a claimant who has filed a required
19claim.
AB803,39,920 (b) Not filed within time limited. A cause of action against a deceased settlor
21in tort or for contribution resulting from a cause of action in tort is not defeated by
22failure to file the claim or commence or continue an action against the trustee on or
23before the deadline for filing a claim under s. 701.0508 against a trust, but the failure
24to file the claim with the trustee relieves the trustee of all responsibility to protect
25the rights of the claimant, and the claimant shall not be granted any of the

1protections under sub. (5). If the claim is determined to be valid and absolute
2through court-approved settlement or adjudication and a certified copy of the
3settlement or judgment is filed with the trustee and there are sufficient funds in the
4trust to pay the claim, the claim shall be paid prior to the distribution of the trust.
5After the trust has been distributed or if there are not sufficient funds in the trust,
6a claimant whose claim has been determined to be valid and absolute through
7court-approved settlement or through adjudication may proceed against the
8distributees, but no distributee may be liable for an amount greater than that
9allowed under sub. (6).
AB803,39,13 10(18) Payment of unfiled claims. A trustee may pay a debt of a deceased settlor
11prior to the expiration of the deadline for filing claims under s. 701.0508 whether or
12not a claim is filed if the trustee reasonably believes that the debt is owed and that
13the assets of the trust are sufficient to satisfy all of the deceased settlor's debts.
AB803,39,18 14(19) Last illness and funeral expense of deceased spouse. The reasonable
15expense of the last illness and funeral may, if properly presented, be paid by the
16trustee of a deceased settlor's trust and, if so paid, shall be recognized as valid
17expenditures even though the surviving spouse of the deceased settlor could have
18been held liable for the expense.
AB803,87 19Section 87 . 701.0602 (1) of the statutes is amended to read:
AB803,39,2320 701.0602 (1) Unless the terms of a trust expressly provide that the trust is
21irrevocable, there is a rebuttable presumption that the settlor may revoke or amend
22the trust. This subsection does not apply to a trust created under an instrument
23executed before July 1, 2014.
AB803,88 24Section 88 . 701.0602 (3) (intro.), (a) and (b) (intro.) of the statutes are
25consolidated, renumbered 701.0602 (3) (intro.) and amended to read:
AB803,40,4
1701.0602 (3) (intro.) A settlor may revoke or amend a revocable trust by any
2of the following means: (a) By
substantial compliance with a method provided in the
3terms of the trust. (b) (intro.) If, or, if the terms of the trust do not provide a method,
4by any of the following means:
AB803,89 5Section 89 . 701.0602 (3) (b) 1. of the statutes is renumbered 701.0602 (3) (am).
AB803,90 6Section 90 . 701.0602 (3) (b) 2. of the statutes is renumbered 701.0602 (3) (bm).
AB803,91 7Section 91 . 701.0602 (4) of the statutes is amended to read:
AB803,40,118 701.0602 (4) Upon revocation of a revocable trust, the trustee shall transfer the
9trust property to the settlor or as the settlor directs. However, with respect to marital
10or community property, the trustee shall transfer the property to both spouses as
11marital or community property or as both spouses direct.
AB803,92 12Section 92 . 701.0605 of the statutes is created to read:
AB803,40,18 13701.0605 Future interests in trust. Subject to s. 701.1204, unless a contrary
14intention is found, if a person has a future interest in property under a revocable
15trust and, under the terms of the trust, the person has the right to possession and
16enjoyment of the property at the settlor's death, the right to possession and
17enjoyment is contingent on the person surviving the settlor. Extrinsic evidence may
18be used to show contrary intent.
AB803,93 19Section 93 . 701.0702 (3) of the statutes is amended to read:
AB803,40,2320 701.0702 (3) A court may not require a bond from a trust company bank, state
21bank, or national bank that is authorized to exercise trust powers and that has
22complied with s. 220.09 or 223.02 nor shall a bond be required of a religious,
23charitable, or educational corporation or society
.
AB803,94 24Section 94 . 701.0704 (1) (g) of the statutes is created to read:
AB803,40,2525 701.0704 (1) (g) Any other event occurs resulting in no person acting as trustee.
AB803,95
1Section 95. 701.0706 (2) (c) of the statutes is amended to read:
AB803,41,42 701.0706 (2) (c) The court determines that removal Removal of the trustee best
3serves the interests of the beneficiaries
is appropriate because of unfitness,
4unwillingness, or persistent failure of the trustee to administer the trust effectively.
AB803,96 5Section 96 . 701.0706 (2) (d) of the statutes is amended to read:
AB803,41,106 701.0706 (2) (d) There has been a substantial change of circumstances or
7removal is requested by all of the qualified beneficiaries, the court finds that the
8removal of the trustee best serves the interests of all of the beneficiaries and is not
9inconsistent with a material purpose of the trust, and a suitable cotrustee or
10successor trustee is available.
AB803,97 11Section 97 . 701.0707 (2) of the statutes is amended to read:
AB803,41,1612 701.0707 (2) A trustee who has resigned or been removed shall proceed
13expeditiously within a reasonable time to deliver the trust property within the
14trustee's possession to the cotrustee, successor trustee, or other person entitled to it,
15subject to the right of the trustee to retain a reasonable reserve for the payment of
16debts, expenses, and taxes
.
AB803,98 17Section 98 . 701.0802 (5) of the statutes is renumbered 701.0802 (5) (a).
AB803,99 18Section 99 . 701.0802 (5) (b) of the statutes is created to read:
AB803,42,319 701.0802 (5) (b) A trust company acting in any fiduciary capacity with respect
20to a trust may purchase any service or product, including insurance or securities
21underwritten or otherwise distributed by the trust company or by an affiliate,
22through or directly from the trust company or an affiliate of a syndicate or selling
23group that includes the trust company of an affiliate, provided the purchase
24otherwise complies with the prudent investor rule in s. 881.01 and with s. 881.015.
25Compensation for the service or product must be reasonable and not prohibited by

1the instrument governing the fiduciary relationship. The compensation for the
2service or product may be in addition to the compensation that the trust company is
3otherwise entitled to receive.
AB803,100 4Section 100 . 701.0802 (9) of the statutes is created to read:
AB803,42,95 701.0802 (9) A trustee is not liable for releasing information, including a copy
6of all or any portion of the trust instrument, to any deceased settlor's heir-at-law or
7other person indicating that the person is not a beneficiary of the trust if the trustee
8reasonably believes that doing so will not harm the beneficiaries of the trust and that
9doing so will reduce the likelihood of litigation involving the trust.
AB803,101 10Section 101 . 701.0813 (1), (2) (d) and (3) (a) (intro.) of the statutes are amended
11to read:
AB803,42,1712 701.0813 (1) A trustee shall keep the distributees or permissible distributees
13of trust income or principal,
current beneficiaries and other qualified presumptive
14remainder
beneficiaries who so request, reasonably informed about the
15administration of the trust. Unless unreasonable under the circumstances, a trustee
16shall promptly respond to a qualified beneficiary's request for information related to
17the administration of the trust.
AB803,42,21 18(2) (d) Notify the distributees or permissible distributees of trust income or
19principal,
current beneficiaries and other qualified presumptive remainder
20beneficiaries who so request, of any change in the method or rate of the trustee's
21compensation.
AB803,42,25 22(3) (a) (intro.) At Subject to par. (c), at least annually and upon the termination
23of a trust, a trustee shall send to the distributees or permissible distributees of trust
24income or principal,
current beneficiaries and to other qualified presumptive
25remainder
beneficiaries who request it, all of the following:
AB803,102
1Section 102. 701.0813 (2) (a) of the statutes is amended to read:
AB803,43,62 701.0813 (2) (a) Upon the request of a qualified beneficiary for a copy of the
3trust instrument, promptly furnish to the qualified beneficiary either a copy of the
4portions of the trust instrument relating to the interest of the qualified beneficiary
5or a copy of the trust instrument or, upon the request of a settlor for a copy of the trust
6instrument, promptly furnish to the settlor a copy of the trust instrument
.
AB803,103 7Section 103 . 701.0813 (3) (b) of the statutes is amended to read:
AB803,43,138 701.0813 (3) (b) Upon Subject to par. (c), upon a vacancy in a trusteeship, unless
9a cotrustee remains in office, the former trustee shall send a report containing the
10information described under par. (a) 1. to the qualified beneficiaries. A personal
11representative or guardian may send the qualified beneficiaries a report containing
12the information described in par. (a) 1. on behalf of a deceased or incapacitated
13trustee.
AB803,104 14Section 104 . 701.0813 (3) (c) of the statutes is created to read:
AB803,43,1715 701.0813 (3) (c) A trustee may limit the report to a qualified beneficiary of a
16specific dollar amount or specific property to information that relates to the specific
17dollar amount or specific property.
AB803,105 18Section 105 . 701.0813 (5) of the statutes is amended to read:
AB803,43,2119 701.0813 (5) Subsections (2) (b) and , (c), and (d) and (3) do not apply to a trustee
20who accepts a trusteeship before July 1, 2014, to an irrevocable trust created before
21July 1, 2014, or to a revocable trust that becomes irrevocable before July 1, 2014.
AB803,106 22Section 106 . 701.0813 (6) and (7) of the statutes are created to read:
AB803,43,2523 701.0813 (6) The trustee has no duty to provide information about the
24administration of the trust to the settlor, but the trustee may provide such
25information if the trustee chooses to do so.
AB803,44,9
1(7) The trust instrument may expand, restrict, eliminate, or otherwise vary the
2right of a beneficiary or class of beneficiaries to be informed of the beneficiary's
3interest in a trust or to receive any or all information concerning the trust, and may
4do so for any period of time, including for the lifetime of a beneficiary or a class of
5beneficiaries. If there is no current acting representative of such a beneficiary or
6class of beneficiaries in accordance with the trust instrument, and a provision to
7appoint such a representative is not provided for in the trust instrument, the trustee
8may appoint a representative for a beneficiary or class of beneficiaries whose rights
9to information have been restricted or eliminated by the trust instrument.
AB803,107 10Section 107 . 701.0815 (3) of the statutes is created to read:
AB803,44,1211 701.0815 (3) A trustee has no power to give warranties in a sale, mortgage, or
12lease that are binding on the trustee personally.
AB803,108 13Section 108 . 701.0816 (29) of the statutes is created to read:
AB803,44,1514 701.0816 (29) Fund a trust or account that meets the requirements under 42
15USC 1396p
(d) (4) (A) or (C) for the benefit of an individual with a disability.
AB803,109 16Section 109 . 701.0816 (30) of the statutes is created to read:
AB803,44,1817 701.0816 (30) Fund an account that is part of an ABLE program under section
18529A of the Internal Revenue Code for a beneficiary's benefit.
AB803,110 19Section 110 . 701.0817 (3) (b) of the statutes is amended to read:
AB803,44,2220 701.0817 (3) (b) The beneficiary, at the time of the release, did not know of the
21beneficiary's rights or have a reasonable opportunity to know of the material facts
22relating to the breach.
AB803,111 23Section 111 . 701.0818 (2) (b) 2. h. of the statutes is repealed and recreated to
24read:
AB803,45,3
1701.0818 (2) (b) 2. h. Exercise a decanting power under subch. XIII or direct
2an authorized fiduciary, as defined in s. 701.1302 (1), to exercise a decanting power
3under subch. XIII.
AB803,112 4Section 112 . 701.1005 (1) of the statutes is amended to read:
AB803,45,105 701.1005 (1) A beneficiary may not commence a proceeding against a trustee
6for breach of trust more than one year after the earlier of either the date on which
7the beneficiary or a representative of the beneficiary waived the right to a report
8under s. 701.0813 (4) or the
date on which the beneficiary or a representative of the
9beneficiary was sent a report or other record that adequately disclosed the existence
10of a potential claim for breach of trust.
AB803,113 11Section 113 . 701.1005 (2) of the statutes is amended to read:
AB803,45,1512 701.1005 (2) A report or other record adequately discloses the existence of a
13potential claim for breach of trust if it provides sufficient information so that the
14beneficiary or representative knows of the potential claim or should have inquired
15into its existence.
AB803,114 16Section 114 . 701.1009 (2) of the statutes is amended to read:
AB803,45,1917 701.1009 (2) At the time of the consent, release, or ratification, the beneficiary
18did not have knowledge or a reasonable opportunity to obtain knowledge of the
19beneficiary's rights or of the material facts relating to the breach.
AB803,115 20Section 115 . 701.1105 (1) (b) of the statutes is amended to read:
AB803,45,2221 701.1105 (1) (b) Is given in the manner provided in ch. 879, except that notice
22by publication is not required
s. 701.0109.
AB803,116 23Section 116 . 701.1136 (1) of the statutes is amended to read:
AB803,46,424 701.1136 (1) Distribution of income. Except as otherwise determined by the
25trustee or a court under s. 701.1106 with respect to unitrust distributions, if a

1beneficiary is entitled to receive income from a trust, but the trust instrument fails
2to specify how frequently it is to be paid a current beneficiary is to receive income
3from the trust
, the trustee shall distribute at least annually the income to which such
4the current beneficiary is entitled at least annually.
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