SB759,41,106 701.0706 (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.
SB759,97 11Section 97 . 701.0707 (2) of the statutes is amended to read:
SB759,41,1612 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
.
SB759,98 17Section 98 . 701.0802 (5) of the statutes is renumbered 701.0802 (5) (a).
SB759,99 18Section 99 . 701.0802 (5) (b) of the statutes is created to read:
SB759,42,319 701.0802 (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.
SB759,100 4Section 100 . 701.0802 (9) of the statutes is created to read:
SB759,42,95 701.0802 (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.
SB759,101 10Section 101 . 701.0813 (1), (2) (d) and (3) (a) (intro.) of the statutes are amended
11to read:
SB759,42,1712 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.
SB759,42,21 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.
SB759,42,25 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:
SB759,102
1Section 102. 701.0813 (2) (a) of the statutes is amended to read:
SB759,43,62 701.0813 (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
.
SB759,103 7Section 103 . 701.0813 (3) (b) of the statutes is amended to read:
SB759,43,138 701.0813 (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.
SB759,104 14Section 104 . 701.0813 (3) (c) of the statutes is created to read:
SB759,43,1715 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.
SB759,105 18Section 105 . 701.0813 (5) of the statutes is amended to read:
SB759,43,2119 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.
SB759,106 22Section 106 . 701.0813 (6) and (7) of the statutes are created to read:
SB759,43,2523 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.
SB759,44,9
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.
SB759,107 10Section 107 . 701.0815 (3) of the statutes is created to read:
SB759,44,1211 701.0815 (3) A trustee has no power to give warranties in a sale, mortgage, or
12lease that are binding on the trustee personally.
SB759,108 13Section 108 . 701.0816 (29) of the statutes is created to read:
SB759,44,1514 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.
SB759,109 16Section 109 . 701.0816 (30) of the statutes is created to read:
SB759,44,1817 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.
SB759,110 19Section 110 . 701.0817 (3) (b) of the statutes is amended to read:
SB759,44,2220 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.
SB759,111 23Section 111 . 701.0818 (2) (b) 2. h. of the statutes is repealed and recreated to
24read:
SB759,45,3
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.
SB759,112 4Section 112 . 701.1005 (1) of the statutes is amended to read:
SB759,45,105 701.1005 (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.
SB759,113 11Section 113 . 701.1005 (2) of the statutes is amended to read:
SB759,45,1512 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.
SB759,114 16Section 114 . 701.1009 (2) of the statutes is amended to read:
SB759,45,1917 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.
SB759,115 20Section 115 . 701.1105 (1) (b) of the statutes is amended to read:
SB759,45,2221 701.1105 (1) (b) Is given in the manner provided in ch. 879, except that notice
22by publication is not required
s. 701.0109.
SB759,116 23Section 116 . 701.1136 (1) of the statutes is amended to read:
SB759,46,424 701.1136 (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.
SB759,117 5Section 117 . Subchapter XIII of chapter 701 [precedes 701.1301] of the
6statutes is created to read:
SB759,46,77 CHAPTER 701
SB759,46,98 SUBCHAPTER XIII
9 Uniform trust decanting act
SB759,46,11 10701.1301 Short title. This subchapter may be cited as the Uniform Trust
11Decanting Act.
SB759,46,12 12701.1302 Definitions. In this subchapter:
SB759,46,13 13(1) “Authorized fiduciary” means any of the following:
SB759,46,1614 (a) A trustee, a directing party, or another fiduciary, other than a settlor, that
15has discretion to distribute or direct a trustee to distribute part or all of the principal
16of the first trust to one or more current beneficiaries.
SB759,46,1717 (b) A special fiduciary appointed under s. 701.1309.
SB759,46,1818 (c) A special-needs fiduciary under s. 701.1313.
SB759,46,2019 (d) A trust protector who has been granted a decanting power, which may be
20exercised in a fiduciary or nonfiduciary capacity, under s. 701.0818 (2) (b) 2. h.
SB759,46,23 21(2) “Decanting power” means the power of an authorized fiduciary under this
22subchapter to distribute property of a first trust to one or more 2nd trusts or to modify
23the terms of the first trust.
SB759,47,3
1(3) “Expanded distributive discretion” means a discretionary power of
2distribution that is not limited to an ascertainable standard or a reasonably definite
3standard.
SB759,47,5 4(4) “First trust” means a trust over which an authorized fiduciary may exercise
5the decanting power.
SB759,47,6 6(5) “First-trust instrument” means the trust instrument for a first trust.
SB759,47,10 7(6) “Reasonably definite standard” means a clearly measurable standard
8under which a holder of a power of distribution is legally accountable within the
9meaning of section 674 (b) (5) (A) of the Internal Revenue Code and any applicable
10regulations.
SB759,47,11 11(7) “Second trust” means any of the following:
SB759,47,1212 (a) A first trust after modification under this subchapter.
SB759,47,1413 (b) A trust to which a distribution of property from a first trust is or may be
14made under this subchapter.
SB759,47,15 15(8) “Second-trust instrument” means the trust instrument for a 2nd trust.
SB759,47,18 16701.1303 Scope. (1) Except as otherwise provided in subs. (2) and (3), this
17subchapter applies to an express trust that is irrevocable or revocable by the settlor
18only with the consent of the trustee or a person holding an adverse interest.
SB759,47,19 19(2) This subchapter does not apply to a trust held solely for charitable purposes.
SB759,47,21 20(3) Subject to s. 701.1315, a trust instrument may restrict or prohibit exercise
21of the decanting power.
SB759,47,25 22(4) This subchapter does not limit the power of an authorized fiduciary or other
23person to distribute or appoint property in further trust or to modify a trust under
24the trust instrument, law of this state other than this subchapter, common law, a
25court order, or a nonjudicial settlement agreement.
SB759,48,3
1(5) This subchapter does not affect the ability of a settlor to provide in a trust
2instrument for the distribution of the trust property or appointment in further trust
3of the trust property or for modification of the trust instrument.
SB759,48,11 4701.1304 Fiduciary duty. (1) In exercising the decanting power, an
5authorized fiduciary shall act in accordance with its fiduciary duties, including the
6duty to act in accordance with the purposes of the first trust. If a trustee or other
7authorized fiduciary is directed by another authorized fiduciary to exercise the
8decanting power, the trustee or other directed authorized fiduciary shall act to
9comply with the exercise of the decanting power and the trustee or other directed
10authorized fiduciary shall not be liable for the action regardless of any fiduciary duty
11that the trustee or other directed authorized fiduciary might otherwise have.
SB759,48,13 12(2) This subchapter does not create or imply a duty to exercise the decanting
13power or to inform beneficiaries about the applicability of this subchapter.
SB759,48,16 14(3) Except as otherwise provided in a first-trust instrument, for purposes of
15this subchapter and ss. 701.0801 and 701.0802 (2), the terms of the first trust are
16deemed to include the decanting power.
SB759,48,19 17701.1305 Application; governing law. This subchapter applies to a trust
18created before, on, or after the effective date of this section .... [LRB inserts date], if
19any of the following applies:
SB759,48,21 20(1) The trust has its principal place of administration in this state, including
21a trust whose principal place of administration has been changed to this state.
SB759,48,23 22(2) The trust provides by its trust instrument that it is governed by the law of
23this state or is governed by the law of this state for the purpose of any of the following:
SB759,48,2524 (a) Administration, including administration of a trust whose governing law
25for purposes of administration has been changed to the law of this state.
SB759,49,1
1(b) Construction of terms of the trust.
SB759,49,22 (c) Determining the meaning or effect of terms of the trust.
SB759,49,7 3701.1306 Reasonable reliance. A trustee or other person that reasonably
4relies on the validity of a distribution of part or all of the property of a trust to another
5trust, or a modification of a trust, under this subchapter, law of this state other than
6this subchapter, or the law of another jurisdiction is not liable to any person for any
7action or failure to act as a result of the reliance.
SB759,49,10 8701.1307 Notice; exercise of decanting power. (1) In this section, a notice
9period begins on the day notice is given under sub. (3) and ends 30 days after the day
10notice is given.
SB759,49,13 11(2) Except as otherwise provided in this subchapter, an authorized fiduciary
12may exercise the decanting power without the consent of any person and without
13court approval.
SB759,49,16 14(3) Except as otherwise provided in sub. (6), an authorized fiduciary shall give
15notice of the intended exercise of the decanting power not later than 30 days before
16the exercise to all of the following:
SB759,49,1717 (a) Each settlor of the first trust, if living or then in existence.
SB759,49,1818 (b) Each qualified beneficiary of the first trust.
SB759,49,2019 (c) Each holder of a presently exercisable power of appointment over any part
20or all of the first trust.
SB759,49,2221 (d) Each person that currently has the right to remove or replace the authorized
22fiduciary.
SB759,49,2323 (e) Each directing party, trust protector, or other fiduciary of the first trust.
SB759,49,2424 (f) Each directing party, trust protector, or other fiduciary of the 2nd trust.
SB759,49,2525 (g) If s. 701.1314 (2) applies, the attorney general.
SB759,50,3
1(4) An authorized fiduciary is not required to give notice under sub. (3) to a
2person that is not known to the fiduciary or is known to the fiduciary but cannot be
3located by the fiduciary after reasonable diligence.
SB759,50,4 4(5) A notice under sub. (3) must do all of the following:
Loading...
Loading...