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:
SB759,50,65 (a) Specify the manner in which the authorized fiduciary intends to exercise
6the decanting power.
SB759,50,77 (b) Specify the proposed effective date for exercise of the power.
SB759,50,88 (c) Include a copy of the first-trust instrument.
SB759,50,99 (d) Include a copy of all 2nd-trust instruments.
SB759,50,12 10(6) The decanting power may be exercised before expiration of the notice period
11under sub. (1) if all persons entitled to receive notice waive the period in a signed
12record.
SB759,50,15 13(7) The receipt of notice, waiver of the notice period, or expiration of the notice
14period does not affect the right of a person to file an application under s. 701.1309
15asserting any of the following:
SB759,50,1816 (a) That an attempted exercise of the decanting power is ineffective because it
17did not comply with this subchapter or was an abuse of discretion or breach of
18fiduciary duty.
SB759,50,1919 (b) That s. 701.1322 applies to the exercise of the decanting power.
SB759,50,22 20(8) An exercise of the decanting power is not ineffective because of the failure
21to give notice to one or more persons under sub. (3) if the authorized fiduciary acted
22with reasonable care to comply with sub. (3).
SB759,51,2 23701.1309 Court involvement. (1) On application of an authorized fiduciary,
24a person entitled to notice under s. 701.1307 (3), a beneficiary, or with respect to a

1charitable interest the attorney general or other person that has standing to enforce
2the charitable interest, the court may do any of the following:
SB759,51,53 (a) Provide instructions to the authorized fiduciary regarding whether a
4proposed exercise of the decanting power is permitted under this subchapter and
5consistent with the fiduciary duties of the authorized fiduciary.
SB759,51,86 (b) Appoint a special fiduciary and authorize the special fiduciary to determine
7whether the decanting power should be exercised under this subchapter and to
8exercise the decanting power.
SB759,51,99 (c) Approve an exercise of the decanting power.
SB759,51,1110 (d) Determine that a proposed or attempted exercise of the decanting power is
11ineffective for any of the following reasons:
SB759,51,1312 1. After applying s. 701.1322, the proposed or attempted exercise does not or
13did not comply with this subchapter.
SB759,51,1514 2. The proposed or attempted exercise would be or was an abuse of the
15fiduciary's discretion or a breach of fiduciary duty.
SB759,51,1716 3. The proposed or attempted exercise is expressly prohibited under the terms
17of the first trust.
SB759,51,1918 (e) Determine the extent to which s. 701.1322 applies to a prior exercise of the
19decanting power.
SB759,51,2120 (f) Provide instructions to the trustee regarding the application of s. 701.1322
21to a prior exercise of the decanting power.
SB759,51,2222 (g) Order other relief to carry out the purposes of this subchapter.
SB759,51,24 23(2) On application of an authorized fiduciary, the court may approve any of the
24following:
SB759,51,2525 (a) An increase in the fiduciary's compensation under s. 701.1316.
SB759,52,2
1(b) A modification under s. 701.1318 of a provision granting a person the right
2to remove or replace the fiduciary.
SB759,52,7 3701.1310 Formalities. An exercise of the decanting power must be made in
4a record signed by an authorized fiduciary. The signed record must, directly or by
5reference to the notice required by s. 701.1307, identify the first trust and the 2nd
6trust or trusts and state the property of the first trust being distributed to each 2nd
7trust and the property, if any, that remains in the first trust.
SB759,52,9 8701.1311 Decanting power under expanded distributive discretion. (1)
9In this section:
SB759,52,1410 (a) “Noncontingent right” means a right that is not subject to the exercise of
11discretion or the occurrence of a specified event that is not certain to occur. The term
12does not include a right held by a beneficiary if any person has discretion to distribute
13property subject to the right to any person other than the beneficiary or the
14beneficiary's estate.
SB759,52,1815 (b) “Successor beneficiary” means a beneficiary that is not a qualified
16beneficiary on the date the beneficiary's qualification is determined. The term does
17not include a person that is a beneficiary only because the person holds a nongeneral
18power of appointment.
SB759,52,1919 (c) “Vested interest” means any of the following:
SB759,52,2120 1. A right to a mandatory distribution that is a noncontingent right as of the
21date of the exercise of the decanting power.
SB759,52,2422 2. A current and noncontingent right, annually or more frequently, to a
23mandatory distribution of income, a specified dollar amount, or a percentage of value
24of some or all of the trust property.
SB759,53,3
13. A current and noncontingent right, annually or more frequently, to withdraw
2income, a specified dollar amount, or a percentage of value of some or all of the trust
3property.
SB759,53,44 4. A presently exercisable general power of appointment.
SB759,53,75 5. A right to receive an ascertainable part of the trust property on the trust's
6termination that is not subject to the exercise of discretion or to the occurrence of a
7specified event that is not certain to occur.
SB759,53,11 8(2) Subject to sub. (3) and s. 701.1314, an authorized fiduciary that has
9expanded distributive discretion over the principal of a first trust for the benefit of
10one or more current beneficiaries may exercise the decanting power over the
11principal of the first trust.
SB759,53,13 12(3) Subject to s. 701.1313, in an exercise of the decanting power under this
13section, a 2nd trust may not do any of the following:
SB759,53,1514 (a) Include as a current beneficiary a person that is not a current beneficiary
15of the first trust, except as otherwise provided in sub. (4).
SB759,53,1816 (b) Include as a presumptive remainder beneficiary or successor beneficiary a
17person that is not a current beneficiary, presumptive remainder beneficiary, or
18successor beneficiary of the first trust, except as otherwise provided in sub. (4).
SB759,53,1919 (c) Reduce or eliminate a vested interest.
SB759,53,2120(d) Fail to be a trust described in 42 USC 1396p (d) (4) (A) or (C) if the first trust
21is a trust described in 42 USC 1396p (d) (4) (A) or (C).
SB759,53,24 22(4) Subject to sub. (3) (c) and s. 701.1314, in an exercise of the decanting power
23under this section, a 2nd trust may be a trust created or administered under the law
24of any jurisdiction and may do any of the following:
SB759,53,2525 (a) Retain a power of appointment granted in the first trust.
SB759,54,2
1(b) Omit a power of appointment granted in the first trust, other than a
2presently exercisable general power of appointment.
SB759,54,53 (c) Create or modify a power of appointment if the powerholder is a current
4beneficiary of the first trust and the authorized fiduciary has expanded distributive
5discretion to distribute principal to the beneficiary.
SB759,54,96 (d) Create or modify a power of appointment if the powerholder is a
7presumptive remainder beneficiary or successor beneficiary of the first trust, but the
8exercise of the power may take effect only after the powerholder becomes, or would
9have become if then living, a current beneficiary.
SB759,54,12 10(5) A power of appointment described in sub. (4) (a) to (d) may be general or
11nongeneral. The class of permissible appointees in favor of which the power may be
12exercised may be broader than or different from the beneficiaries of the first trust.
SB759,54,16 13(6) If an authorized fiduciary has expanded distributive discretion over part
14but not all of the principal of a first trust, the fiduciary may exercise the decanting
15power under this section over that part of the principal over which the authorized
16fiduciary has expanded distributive discretion.
SB759,54,20 17701.1312 Decanting power under limited distributive discretion. (1)
18In this section, “limited distributive discretion” means a discretionary power of
19distribution that is limited to an ascertainable standard or a reasonably definite
20standard.
SB759,54,23 21(2) An authorized fiduciary that has limited distributive discretion over the
22principal of the first trust for the benefit of one or more current beneficiaries may
23exercise the decanting power over the principal of the first trust.
SB759,55,3 24(3) Under this section and subject to s. 701.1314, a 2nd trust may be created
25or administered under the law of any jurisdiction. Under this section, the 2nd trusts,

1in the aggregate, must grant each beneficiary of the first trust beneficial interests
2that are substantially similar to the beneficial interests of the beneficiary in the first
3trust.
SB759,55,9 4(3m) Notwithstanding sub. (3), an authorized fiduciary exercising the
5decanting power under this section may grant to a beneficiary of the 2nd trust a
6testamentary power of appointment exercisable in favor of the creditors of the
7beneficiary's estate, but only if the authorized fiduciary concludes the granting of
8such power will be unlikely to adversely affect the beneficial interest of the
9presumptive remainder beneficiaries of the first trust.
SB759,55,13 10(4) A power to make a distribution under a 2nd trust for the benefit of a
11beneficiary who is an individual is substantially similar to a power under the first
12trust to make a distribution directly to the beneficiary. A distribution is for the
13benefit of a beneficiary if any of the following applies:
SB759,55,1414 (a) The distribution is applied for the benefit of the beneficiary.
SB759,55,1715 (b) The beneficiary is under a legal disability or the trustee reasonably believes
16the beneficiary is incapacitated, and the distribution is made as permitted under this
17chapter.
SB759,55,1918 (c) The distribution is made as permitted under the terms of the first-trust
19instrument and the 2nd-trust instrument for the benefit of the beneficiary.
SB759,55,23 20(5) If an authorized fiduciary has limited distributive discretion over part but
21not all of the principal of a first trust, the fiduciary may exercise the decanting power
22under this section over that part of the principal over which the authorized fiduciary
23has limited distributive discretion.
SB759,55,24 24701.1313 Trust for beneficiary with disability. (1) In this section:
SB759,56,2
1(a) “Beneficiary with a disability” means a beneficiary of a first trust who the
2special-needs fiduciary believes in good faith is an individual with a disability.
SB759,56,43 (b) “Special-needs fiduciary” means, with respect to a trust that has a
4beneficiary with a disability, any of the following:
SB759,56,75 1. A trustee or other fiduciary, other than a settlor, that has discretion to
6distribute part or all of the principal of a first trust to one or more current
7beneficiaries.
SB759,56,108 2. If no trustee or fiduciary has discretion under subd. 1., a trustee or other
9fiduciary, other than a settlor, that has discretion to distribute part or all of the
10income of the first trust to one or more current beneficiaries.
SB759,56,1311 3. If no trustee or fiduciary has discretion under subds. 1. and 2., a trustee or
12other fiduciary, other than a settlor, that is required to distribute part or all of the
13income or principal of the first trust to one or more current beneficiaries.
SB759,56,1714 (c) “Special-needs trust” means a trust the trustee believes would not be
15considered a resource for purposes of determining whether an individual with a
16disability is eligible for the supplemental security income program or the medical
17assistance program.
SB759,56,21 18(2) A special-needs fiduciary may exercise the decanting power under s.
19701.1311 over the principal of a first trust as if the fiduciary had authority to
20distribute principal to a beneficiary with a disability subject to expanded distributive
21discretion if all of the following apply:
SB759,56,2322 (a) A 2nd trust is a special-needs trust that benefits the beneficiary with a
23disability.
SB759,56,2524 (b) The special-needs fiduciary determines that exercise of the decanting
25power will further the purposes of the first trust.
SB759,57,2
1(3) In an exercise of the decanting power under this section, the following rules
2apply:
SB759,57,43 (a) Notwithstanding s. 701.1311 (3) (b), the interest in the 2nd trust of a
4beneficiary with a disability may do any of the following:
SB759,57,75 1. Be an account in a pooled trust for the benefit of the beneficiary with a
6disability described in 42 USC 1396p (d) (4) (C) that includes the trust retention
7provisions permitted by 42 USC 1396p (d) (4) (C) (iv).
SB759,57,98 2. Contain payback provisions complying with reimbursement requirements
9of Medicaid law under 42 USC 1396p (d) (4) (A) or (C).
SB759,57,1110 (b) Section 701.1311 (3) (c) does not apply to the interests of the beneficiary with
11a disability.
SB759,57,1812 (c) Except as affected by any change to the interests of the beneficiary with a
13disability or by the effects on remainder beneficiaries of a transfer to a 2nd trust
14under par. (a), if the special needs fiduciary has limited distributive discretion over
15the principal of the 2nd trust, or if there are 2 or more 2nd trusts, the 2nd trusts in
16the aggregate must grant each other beneficiary of the first trust beneficial interests
17in the 2nd trusts that are substantially similar to the beneficiary's beneficial
18interests in the first trust.
SB759,57,19 19701.1314 Protection of charitable interest. (1) In this section:
SB759,57,2120 (a) “Determinable charitable interest” means an interest that is all of the
21following:
SB759,57,2222 1. A charitable interest.
SB759,57,2423 2. Entitled to receive a mandatory distribution currently, periodically, on the
24occurrence of a specified event, or after the passage of a specified time.
SB759,57,2525 3. Unconditional or held solely for charitable purposes.
SB759,58,5
1(b) “Unconditional” means not subject to the occurrence of a specified event that
2is not certain to occur, other than a requirement in a trust instrument that a
3charitable organization be in existence or qualify under a particular provision of the
4Internal Revenue Code, on the date of the distribution, if the charitable organization
5meets the requirement on the date of determination.
SB759,58,8 6(2) The attorney general may represent and bind a charitable interest only
7when the attorney general has the rights of a qualified beneficiary as provided in s.
8701.0110 (3).
SB759,58,10 9(3) If a first trust contains a charitable interest, the 2nd trust or trusts may not
10do any of the following:
SB759,58,1111 (a) Diminish the charitable interest.
SB759,58,1312 (b) Diminish the interest of an identified charitable organization that holds the
13charitable interest.
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