Amendment ASA1-AB645

AB645-ASA1,45,21 Here: Date Signed:

AB645-ASA1,45,25 I declare that the testator signed the will in front of me, acknowledged to me that this document was his or her will or acknowledged to me that the signature above is his or her signature. The testator appears to me to be of sound mind and not under undue influence.

AB645-ASA1,46,1 Signature Residence Address:

AB645-ASA1,46,2 Print Name

AB645-ASA1,46,3 Here: Date Signed:

AB645-ASA1, s. 173 Section 173. 853.59 (form) (a) of the statutes is amended to read:

AB645-ASA1,46,9 853.59 (form) (a) TO MY SPOUSE IF LIVING; IF NOT LIVING, THEN IN ONE TRUST TO PROVIDE FOR THE SUPPORT AND EDUCATION OF MY CHILDREN AND THE DESCENDANTS OF ANY DECEASED CHILD BY RIGHT OF REPRESENTATION UNTIL I HAVE NO LIVING CHILD UNDER 21 YEARS OF AGE.

AB645-ASA1, s. 174 Section 174. 853.59 (form) (2) (a) of the statute is amended to read:

AB645-ASA1,46,24 853.59 (form) (2) (a) As long as any child of mine under 21 years of age is living, the trustee shall distribute from time to time to or for the benefit of any one or more of my children and the descendants of any deceased child (the beneficiaries) by right of representation of any age as much, or all, of the principal or net income of the trust or both, as the trustee deems necessary for their health, support, maintenance and education. Any undistributed income shall be accumulated and added to the principal. "Education" includes, but is not limited to, college, vocational and other studies after high school, and reasonably related living expenses. Consistent with the trustee's fiduciary duties, the trustee may distribute trust income or principal in equal or unequal shares and to any one or more of the beneficiaries to the exclusion of other beneficiaries. In deciding on distributions, the trustee may take into account the beneficiaries' other income, outside resources or sources of support, including the capacity for gainful employment of a beneficiary who has completed his or her education.

AB645-ASA1, s. 175 Section 175. Chapter 854 of the statutes is created to read:

AB645-ASA1,47,3 Chapter 854 transfers at death — General rules

AB645-ASA1,47,10 854.01 Definition. In this chapter, "governing instrument" means a will; a deed; a trust instrument; an insurance or annuity policy; a contract; a pension, profit-sharing, retirement or similar benefit plan; a marital property agreement under s. 766.58 (3) (f); a beneficiary designation under s. 40.02 (8) (a); an instrument under ch. 705; an instrument that creates or exercises a power of appointment or any other dispositive, appointive or nominative instrument that transfers property at death.

AB645-ASA1,47,12 854.02 Scope. This chapter applies to all statutes and governing instruments that transfer property at death.

AB645-ASA1,47,18 854.03 Requirement of survival by 120 hours. (1) Requirement of survival. Except as provided in sub. (5), if property is transferred to an individual under a statute or under a provision in a governing instrument that requires the individual to survive an event and it is not established that the individual survived the event by at least 120 hours, the individual is considered to have predeceased the event.

AB645-ASA1,47,23 (2) Coowners with right of survivorship. (a) In this subsection, "coowners with right of survivorship" includes joint tenants, owners of survivorship marital property and other coowners of property or accounts that are held under circumstances that entitle one or more persons to all of the property or account upon the death of one or more of the others.

AB645-ASA1,48,3 (b) Except as provided in sub. (5), if property is transferred under a governing instrument that establishes 2 or more coowners with survivorship, and if it is not established that at least one of the coowners survived the others by at least 120 hours, the property is transferred to the coowners in proportion to their ownership interests.

AB645-ASA1,48,9 (3) Marital property. Except as provided in subs. (4) and (5), if a husband and wife die leaving marital property and it is not established that one survived the other by at least 120 hours, 50% of the marital property shall be distributed as if it were the husband's individual property and the husband had survived, and 50% of the marital property shall be distributed as if it were the wife's individual property and the wife had survived.

AB645-ASA1,48,17 (4) Life insurance. Except as provided in sub. (5), if the insured and the beneficiary under a policy of life or accident insurance have both died and it is not established that one survived the other by at least 120 hours, the proceeds of the policy shall be distributed as if the insured had survived the beneficiary. If the policy is the marital property of the insured and of the insured's spouse and there is no alternative beneficiary except the estate or the personal representative of the estate, the proceeds shall be distributed as marital property in the manner provided in sub. (3).

AB645-ASA1,48,19 (5) Exceptions. This section does not apply if any of the following conditions applies:

AB645-ASA1,48,21 (a) The statute or governing instrument requires the individual to survive an event by a specified period.

AB645-ASA1,48,23 (b) The statute or governing instrument indicates that the individual is not required to survive an event by any specified period.

AB645-ASA1,48,25 (c) The statute or governing instrument deals with simultaneous deaths or deaths in a common disaster and the provision is relevant to the facts.

AB645-ASA1,49,3 (d) The imposition of a 120-hour requirement would cause a nonvested property interest or a power of appointment to fail to be valid, or to be invalidated, under s. 700.16 or under the rule against perpetuities of the applicable jurisdiction.

AB645-ASA1,49,6 (e) The application of this section to more than one statute or governing instrument would result in an unintended failure or unintended duplication of a transfer.

AB645-ASA1,49,8 (f) The application of this section would result in the escheat of an intestate estate under s. 852.01 (3).

AB645-ASA1,49,11 (6) Evidentiary standard. Unless the statute or governing instrument provides otherwise, proof that an individual survived the period required under subs. (1) to (4) must be by clear and convincing evidence.

AB645-ASA1,49,13 (7) Extrinsic evidence. Extrinsic evidence may be used to construe a governing instrument affected by this section.

AB645-ASA1,49,20 854.04 Representation; per stirpes; modified per stirpes; per capita at each generation; per capita. (1) By representation or per stirpes. (a) Except as provided in subs. (5) and (6), if a statute or a governing instrument calls for property to be distributed to the issue or descendants of a designated person "by representation", "by right of representation" or "per stirpes", the property is divided into equal shares for the children of the designated person. Each surviving child and each deceased child who left surviving issue are allocated one share.

AB645-ASA1,49,23 (b) The share of each deceased child allocated a share under par. (a) is divided among that person's issue in the same manner as under par. (a), repeating until the property is fully allocated among surviving issue.

AB645-ASA1,50,4 (2) Modified per stirpes. (a) Except as provided in subs. (5) and (6), if a statute or a governing instrument calls for property to be distributed to the issue or descendants of a designated person by "modified per stirpes", the property is divided into equal shares at the generation nearest to the designated person that contains one or more surviving issue. Each survivor and each deceased person in that same generation who left surviving issue are allocated one share.

AB645-ASA1,50,7 (b) The share of each deceased person allocated a share in par. (a) is divided among that person's issue in the same manner as under par. (a), repeating until the property is fully allocated.

AB645-ASA1,50,14 (3) Per capita at each generation. (a) Except as provided in subs. (5) and (6), if a statute or a governing instrument calls for property to be distributed to the issue or descendants of a designated person "per capita at each generation", the property is divided into equal shares at the generation nearest to the designated person that contains one or more surviving issue. Each survivor in that generation is allocated one share, and the shares of the deceased persons in that same generation who left surviving issue are combined for distribution under par. (b).

AB645-ASA1,50,18 (b) The combined share created under par. (a) is divided among the surviving issue of the persons whose shares were combined in the same manner as under par. (a), as though all of those issue were the issue of one person. The process is repeated until the property is fully allocated.

AB645-ASA1,50,22 (4) Per capita. Except as provided in sub. (6), if a statute or governing instrument calls for property to be distributed to a group or class "per capita", the property is divided into as many shares as there are surviving members of the group or class, and each member receives one share.

AB645-ASA1,50,24 (5) Certain individuals disregarded. For the purposes of this section, all of the following apply:

AB645-ASA1,51,2 (a) An individual who is deceased and who left no surviving issue is disregarded.

AB645-ASA1,51,4 (b) An individual who has a surviving ancestor who is an issue of the designated person is not entitled to a share.

AB645-ASA1,51,8 (6) Contrary intent. This section does not apply if the transfer is made under a governing instrument and there is a finding of contrary intent of the person who executed the governing instrument. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,51,10 854.05 No exoneration of encumbered property. (1) Definitions. In this section:

AB645-ASA1,51,11 (a) "Debt" includes accrued interest on the debt.

AB645-ASA1,51,13 (b) "Encumbrance" includes mortgages, liens, pledges and other security agreements that are encumbrances on property.

AB645-ASA1,51,17 (2) Generally. (a) Except as provided in sub. (5), all property that is specifically transferred by a governing instrument shall be assigned to the transferee without exoneration of a debt that is secured by an encumbrance on the property.

AB645-ASA1,51,20 (b) If the debt that is secured by the encumbrance on the property is paid in whole or in part out of other assets, the specifically transferred property shall be assigned to the transferee only if any of the following applies:

AB645-ASA1,51,22 1. The transferee contributes to the person or entity that held the assets that were used to pay the debt an amount equal to the amount that was paid.

AB645-ASA1,51,24 2. The person or entity secures the amount described in subd. 1. through a new encumbrance on the property.

AB645-ASA1,52,6 (3) Joint tenancy; survivorship marital property. Except as provided in sub. (5), if all or part of a debt that is secured by an encumbrance on property in which the decedent at the time of death had an interest as a joint tenant or as a holder of survivorship marital property is paid out of other assets as the result of a claim being allowed, the person or entity that makes the payment is subrogated to all rights that the claimant had against the property.

AB645-ASA1,52,11 (4) Insurance. Except as provided in sub. (5), if all or part of a debt that is secured by an encumbrance on the proceeds payable under a life insurance policy in which the decedent was the named insured is paid out of other assets as the result of a claim being allowed, the person or entity that makes the payment is subrogated to all rights that the claimant had against the proceeds.

AB645-ASA1,52,15 (5) Contrary intent. This section does not apply to the extent that a governing instrument, either expressly or as construed from extrinsic evidence, provides otherwise. A general directive to pay debts does not give rise to a presumption of exoneration.

AB645-ASA1,52,16 854.06 Predeceased transferee. (1) Definitions. In this section:

AB645-ASA1,52,17 (a) "Provision in a governing instrument" includes all of the following:

AB645-ASA1,52,19 1. A gift to an individual whether or not the individual is alive at the time of the execution of the instrument.

AB645-ASA1,52,21 2. A share in a class gift only if a member of the class dies after the execution of the instrument.

AB645-ASA1,52,24 3. An appointment by the decedent under any power of appointment, unless the issue who would take under this section could not have been appointees under the terms of the power.

AB645-ASA1,53,2 (b) "Revocable provision" means a provision that the decedent had the power to change or revoke immediately before death.

AB645-ASA1,53,4 (c) "Stepchild" means a child of the decedent's surviving, deceased or former spouse, and not of the decedent.

AB645-ASA1,53,7 (2) Scope of coverage. This section applies to revocable provisions in a governing instrument executed by the decedent that provide for an outright transfer upon the death of the decedent to any of the following persons:

AB645-ASA1,53,9 (a) A grandparent of the decedent, or issue of a grandparent, subject to s. 854.21.

AB645-ASA1,53,10 (b) A stepchild of the decedent, subject to s. 854.15.

AB645-ASA1,53,14 (3) Substitute gift to issue of covered transferee. Subject to sub. (4), if a transferee under a provision described in sub. (2) does not survive the decedent but has issue who do survive, the issue of the transferee take the transfer per stirpes, as provided in s. 854.04 (1).

AB645-ASA1,53,17 (4) Contrary intent. (a) This section does not apply if there is a finding of contrary intent of the decedent. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,53,22 (b) If the governing instrument designates one or more persons, classes or groups of people as contingent transferees, those transferees take in preference to those under sub. (3). But if none of the contingent transferees survives, sub. (3) applies to the first group in the sequence of contingent transferees that has one or more transferees specified in sub. (2) who left surviving issue.

AB645-ASA1,54,2 854.07 Failed transfer and residue. (1) Except as provided in sub. (4) and s. 854.06, if an attempted transfer under a governing instrument fails, the attempted transfer becomes part of the residue of the governing instrument. This subsection does not apply if the attempted transfer is itself a residuary transfer.

AB645-ASA1,54,6 (2) Except as provided in sub. (4) and s. 854.06, if the residue of a governing instrument is to be transferred to 2 or more persons, the share of a residuary transferee that fails passes to the other residuary transferees in proportion to the interest of each in the remaining part of the residue.

AB645-ASA1,54,9 (3) If a governing instrument other than a will does not effectively dispose of an asset that is governed by the instrument, that asset shall be paid or distributed to the decedent's probate estate.

AB645-ASA1,54,12 (4) This section does not apply if there is a finding of contrary intent of the person who executed the governing instrument. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,54,15 854.08 Nonademption of specific gifts in certain cases. (1) Abrogation of common law. The common law doctrine of ademption by extinction, as it might otherwise apply to the situations governed by this section, is abolished.

AB645-ASA1,54,19 (2) Proceeds of sale. (a) Subject to sub. (6), if property that is the subject of a specific gift is sold by the person who executed the governing instrument within 2 years of the person's death, the specific beneficiary has the right to the following amounts if available under the governing instrument:

AB645-ASA1,54,22 1. Any balance of the purchase price unpaid at the time of death, including any security interest in the property and interest accruing before death, together with the incidents of the specific gift.

AB645-ASA1,54,24 2. A general pecuniary transfer equivalent to the amount of the purchase price paid to, or for the benefit of, the person within one year of the seller's death.

AB645-ASA1,55,6 (b) Acceptance of a promissory note of the purchaser or a 3rd party is not considered payment, but payment on the note is payment on the purchase price; and for purposes of this section property is considered sold as of the date when a valid contract of sale is made. Sale by an agent of the person who executed the governing instrument or by a trustee under a revocable living trust created by the person is a sale by the person for purposes of this section.

AB645-ASA1,55,11 (3) Proceeds of insurance on property. Subject to sub. (6), if insured property that is the subject of a specific gift is destroyed, damaged, lost, stolen or otherwise subject to any casualty compensable by insurance, the specific beneficiary has the right to the following amounts, if available under the governing instrument, reduced by any amount expended or incurred to restore or repair the property:

AB645-ASA1,55,13 (a) Any insurance proceeds paid with respect to the property after the decedent's death, together with the incidents of the specific gift.

AB645-ASA1,55,15 (b) A general pecuniary transfer equivalent to any insurance proceeds paid to, or for the benefit of, the decedent within one year of the decedent's death.

AB645-ASA1,55,19 (4) Condemnation award. (a) Subject to sub. (6), if property that is the subject of a specific gift is taken by condemnation prior to the death of the person who executed the governing instrument, the specific beneficiary has the right to the following amounts if available under the governing instrument:

AB645-ASA1,55,20 1. Any amount of the condemnation award unpaid at the time of death.

AB645-ASA1,55,23 2. A general pecuniary transfer equivalent to the amount of an award paid to, or for the benefit of, the person who executed the governing instrument within one year of that person's death.

AB645-ASA1,56,3 (b) In the event of an appeal in a condemnation proceeding, the award is, for purposes of this section, limited to the amount established on the appeal. Acceptance of an agreed price or a jurisdictional offer is a sale under sub. (2).

AB645-ASA1,56,15 (5) Sale or loss of property of an incompetent. Subject to sub. (6), if property that is the subject of a specific gift is sold by a guardian or conservator of the person who executed the governing instrument, or if a condemnation award or insurance proceeds are paid to a guardian or conservator, the specific beneficiary has the right to a general pecuniary transfer equivalent to the proceeds of the sale or the condemnation award, or the insurance proceeds, reduced by any amount expended or incurred to restore or repair the property if the funds are available under the governing instrument. This provision does not apply if the person who executed the governing instrument, subsequent to the sale or award or receipt of insurance proceeds, is adjudicated competent and survives such adjudication for a period of one year; but in such event a sale by a guardian or conservator within 2 years of that person's death is a sale by that person for purposes of sub. (2).

AB645-ASA1,56,16 (6) Limitations. (a) This section is inapplicable if any of the following applies:

AB645-ASA1,56,18 1. The governing instrument, either expressly or as construed from extrinsic evidence, shows the intent that a transfer fail under the particular circumstances.

AB645-ASA1,56,21 2. The person who executed the governing instrument gives property during the person's lifetime to the specific beneficiary with the intent of satisfying the specific gift. Extrinsic evidence may be used to construe that intent.

AB645-ASA1,56,25 (b) If part of the property that is the subject of the specific gift is destroyed, damaged, sold or condemned, the specific gift of any remaining interest in the property is not affected by this section; but this section applies to the part affected by the destruction, damage, sale or condemnation.

AB645-ASA1,57,5 (c) The amount that the specific beneficiary receives under subs. (2) to (5) is reduced by any expenses of the sale, by the expenses of collection of the proceeds of insurance, sale, or condemnation award and by any amount by which the income tax of the decedent or the decedent's estate is increased because of items covered by this section. Expenses include legal fees paid or incurred.

AB645-ASA1,57,10 854.09 Advancement; satisfaction. (1) A gift that the decedent made during his or her lifetime, including an incomplete gift that became complete on the decedent's death, is treated as a full or partial satisfaction of a transfer at death to an heir under s. 852.01 (1) or a transferee under a governing instrument executed by the decedent only if at least one of the following applies:

AB645-ASA1,57,12 (a) The governing instrument, if any, either expressly or as construed from extrinsic evidence, provides that the gift be taken into account.

AB645-ASA1,57,16 (b) The decedent declared in a document, either expressly or as construed from extrinsic evidence, that the gift is in satisfaction of, or an advance against, what the transferee would receive at the decedent's death, whether or not the document was contemporaneous with the gift.

AB645-ASA1,57,20 (c) The transferee acknowledged in writing before or after the decedent's death, either expressly or as construed from extrinsic evidence, that the gift is in satisfaction of, or an advance against, what the transferee would receive at the decedent's death.

AB645-ASA1,57,23 (2) For partial satisfaction, property given during life is valued as of the time that the transferee came into possession or enjoyment of the property or at the death of the person who executed the governing instrument, whichever occurs first.

AB645-ASA1,58,2 (3) If the transferee fails to survive the person who executed the governing instrument, the gift is treated as a full or partial satisfaction of the transfer, unless the transferor has declared otherwise in a document, either expressly or as construed from extrinsic evidence.