AB1038,35,1918
854.04
(5) (b) An individual who has a surviving ancestor who is an issue of the
19designated person is not
entitled to allocated a share.
AB1038, s. 102
20Section
102. 854.04 (6) of the statutes is amended to read:
AB1038,35,2521
854.04
(6) Contrary intent. This section does not apply if If the transfer is
22made under a governing instrument and
there is a finding of contrary intent of the
23person who executed the governing instrument
had an intent contrary to any
24provision in this section, then that provision is not applicable to the transfer.
25Extrinsic evidence may be used to construe
that the intent.
AB1038, s. 103
1Section
103. 854.05 (5) of the statutes is renumbered 854.05 (5) (a) and
2amended to read:
AB1038,36,73
854.05
(5) (a)
This section does not apply to the extent that a If the person who
4executed the governing instrument
, either expressly or as construed from extrinsic 5had an intent contrary to any provision in this section, then that provision is not
6applicable to the transfer. Extrinsic evidence
, provides otherwise may be used to
7construe the intent.
AB1038,36,9
8(b) A general directive to pay debts does not give rise to a presumption of
9exoneration.
AB1038, s. 104
10Section
104. 854.06 (1) (b) of the statutes is repealed.
AB1038, s. 105
11Section
105. 854.06 (4) (a) of the statutes is renumbered 854.06 (4) (a) (intro.)
12and amended to read:
AB1038,36,1413
854.06
(4) (a) (intro.)
This section
Subsection (3) does not apply if
there is a
14finding of contrary intent of the decedent any of the following applies:
AB1038,36,17
15(bm) If the person who executed the governing instrument had an intent
16contrary to any provision in this section, then that provision is not applicable to the
17transfer. Extrinsic evidence may be used to construe
that the intent.
AB1038, s. 106
18Section
106. 854.06 (4) (a) 1. of the statutes is created to read:
AB1038,36,2019
854.06
(4) (a) 1. The governing instrument provides that a transfer to a
20predeceased beneficiary lapses.
AB1038, s. 107
21Section
107. 854.06 (4) (b) of the statutes is renumbered 854.06 (4) (a) 2. and
22amended to read:
AB1038,37,323
854.06
(4) (a) 2.
If the The governing instrument designates one or more
24persons, classes
, or groups of people as contingent transferees,
in which case those
25transferees take in preference to those under sub. (3). But if none of the contingent
1transferees survives, sub. (3) applies to the first group in the sequence of contingent
2transferees that has one or more transferees specified in sub. (2) who left surviving
3issue.
AB1038, s. 108
4Section
108. 854.07 (3) of the statutes is amended to read:
AB1038,37,75
854.07
(3) If a governing instrument other than a will does not effectively
6dispose of an asset that is governed by the instrument, that asset shall be paid or
7distributed to the
decedent's transferor's probate estate.
AB1038, s. 109
8Section
109. 854.07 (4) of the statutes is amended to read:
AB1038,37,129
854.07
(4) This section does not apply if there is a finding of contrary intent of 10If the person who executed the governing instrument
had an intent contrary to any
11provision in this section, then that provision is inapplicable to the transfer. Extrinsic
12evidence may be used to construe
that the intent.
AB1038, s. 110
13Section
110. 854.08 (5) (title) of the statutes is repealed and recreated to read:
AB1038,37,1514
854.08
(5) (title)
Property under guardianship, conservatorship, or power of
15attorney.
AB1038, s. 111
16Section
111. 854.08 (5) of the statutes is renumbered 854.08 (5) (b) and
17amended to read:
AB1038,38,218
854.08
(5) (b) Subject to
pars. (c) and (d) and sub. (6), if property that is the
19subject of a specific gift is sold
or mortgaged by a guardian
or, conservator
, or agent
20of the person who executed the governing instrument, or if a condemnation award
21or insurance proceeds are paid to a guardian
or, conservator
, or agent, the specific
22beneficiary has the right to a general pecuniary transfer equivalent to the proceeds
23of the sale
or the, mortgage, condemnation award, or
the insurance proceeds, reduced
24by any amount expended or incurred to restore or repair the property
or to reduce
1the indebtedness on the mortgage, if the funds are available under the governing
2instrument.
This provision
AB1038,38,10
3(c) Paragraph (b) does not apply
if the person who executed the governing
4instrument with respect to a guardian or conservator if, subsequent to the sale
or,
5mortgage, award
, or receipt of insurance proceeds,
the person who executed the
6governing instrument is adjudicated competent and survives such adjudication for
7a period of one year; but in such event
a sale by a guardian or conservator within 2
8years of that person's death is a sale by that person for purposes of sub. (2) the rights
9of the specific beneficiary shall be determined as though the proceeds were paid to
10the owner under sub. (2), (3), or (4).
AB1038, s. 112
11Section
112. 854.08 (5) (a) of the statutes is created to read:
AB1038,38,1312
854.08
(5) (a) In this subsection, "agent" means an agent under a durable power
13of attorney, as defined in s. 243.07 (1) (a).
AB1038, s. 113
14Section
113. 854.08 (5) (d) of the statutes is created to read:
AB1038,38,1915
854.08
(5) (d) Paragraph (b) does not apply with respect to an agent if the
16person who executed the governing instrument is competent at the time of the sale,
17mortgage, award, or receipt of insurance proceeds but in such event the rights of the
18specific beneficiary shall be determined as though the proceeds were paid to the
19owner under sub. (2), (3), or (4).
AB1038, s. 114
20Section
114. 854.08 (6) (a) (intro.) and 2. of the statutes are consolidated,
21renumbered 854.08 (6) (ag) and amended to read:
AB1038,39,222
854.08
(6) (ag) This section is inapplicable if
any of the following applies: 2.
23The the person who executed the governing instrument gives property during the
24person's lifetime to the specific beneficiary with the intent of satisfying the specific
1gift
. Extrinsic evidence may be used to construe that intent and the requirement
2under s. 854.09 (1) is satisfied.
AB1038, s. 115
3Section
115. 854.08 (6) (a) 1. of the statutes is renumbered 854.08 (6) (ar) and
4amended to read:
AB1038,39,95
854.08
(6) (ar)
The If the person who executed the governing instrument
, either
6expressly or as construed from extrinsic evidence, shows the had an intent
that a 7contrary to any provision in this section, then that provision is inapplicable to the 8transfer
fail under the particular circumstances. Extrinsic evidence may be used to
9construe the intent.
AB1038, s. 116
10Section
116. 854.09 (3) of the statutes is amended to read:
AB1038,39,1611
854.09
(3) If the transferee fails to survive the person who executed the
12governing instrument
, the gift is treated as a full or partial satisfaction of the
13transfer and his or her issue take a substitute transfer under intestacy or under a
14governing instrument, the issue receive the same transfer that the named transferee
15would have received had the transferee survived, unless the transferor
has declared
16otherwise in a document, either expressly or as construed from extrinsic evidence.
AB1038, s. 117
17Section
117. 854.11 (4) of the statutes is amended to read:
AB1038,39,2118
854.11
(4) Contrary intent. This section does not apply if there is a finding of
19contrary intent of If the person who executed the governing instrument
had an intent
20contrary to any provision in this section, then that provision is inapplicable to the
21transfer. Extrinsic evidence may be used to construe
that the intent.
AB1038, s. 118
22Section
118. 854.12 of the statutes is created to read:
AB1038,39,25
23854.12 Debt to transferor. (1) Heir under intestacy. (a) If an heir owes a
24debt to the decedent, the amount of the indebtedness shall be offset against the
25intestate share of the debtor heir.
AB1038,40,7
1(b) In contesting an offset under par. (a), the debtor heir shall have the benefit
2of any defense that would be available to the debtor heir in a direct proceeding by the
3personal representative for the recovery of the debt, except that the debtor heir may
4not defend on the basis that the debt was discharged in bankruptcy or on the basis
5that the relevant statute of limitations has expired. If the debtor fails to survive the
6decedent, the court may not include the debt in computing any intestate shares of the
7debtor's issue.
AB1038,40,13
8(2) Transferee under revocable governing instrument. (a) Subject to par.
9(c), if a transferee under a revocable governing instrument survives the transferor
10and is indebted to the transferor, the amount of the indebtedness shall be treated as
11an offset against the property to which the debtor transferee is entitled. If multiple
12revocable governing instruments transfer property to the debtor, the debt shall be
13equitably allocated against the various instruments.
AB1038,40,2014
(b) Subject to par. (c), in contesting an offset under par. (a), the debtor shall have
15the benefit of any defense that would be available to the transferee in a direct
16proceeding for the recovery of the debt, except that the transferee may not defend on
17the basis that the debt was discharged in bankruptcy, unless that discharge occurred
18before the execution of the governing instrument, or on the basis that the relevant
19statute of limitations has expired. If the transferee fails to survive the decedent, the
20debt may not be included in computing the entitlement of alternate beneficiaries.
AB1038,40,2321
(c) If the person who executed the governing instrument had an intent contrary
22to any provision in this subsection, then that provision is not applicable to the
23transfer. Extrinsic evidence may be used to construe the intent.
AB1038,41,2
24(3) Property not distributed because of offset. The property not distributed
25to the debtor becomes part of the residue of the entity that holds the debt. If the debt
1is not held by an entity, then the property not distributed to the debtor becomes part
2of the residue of the decedent's probate estate.
AB1038, s. 119
3Section
119. 854.13 (title) of the statutes is amended to read:
AB1038,41,4
4854.13 (title)
Disclaimer of transfers at death.
AB1038, s. 120
5Section
120. 854.13 (2) (a) of the statutes is renumbered 854.13 (2) (a) 2.
AB1038, s. 121
6Section
121. 854.13 (2) (a) 1. of the statutes is created to read:
AB1038,41,87
854.13
(2) (a) 1. In this paragraph, "person" includes a person who is unborn
8or whose identity is unascertained.
AB1038, s. 122
9Section
122. 854.13 (2) (gm) of the statutes is created to read:
AB1038,41,1410
854.13
(2) (gm)
Disclaimer by trustee. The trustee of a trust named as a
11recipient of property under a governing instrument may disclaim that property on
12behalf of the trust if the trust authorizes disclaimer by the trustee. If the trust does
13not authorize disclaimer by the trustee, the trustee's power to disclaim is subject to
14the approval of the court.
AB1038, s. 123
15Section
123. 854.13 (2) (h) of the statutes is amended to read:
AB1038,41,2116
854.13
(2) (h)
After death. A person's right to disclaim survives the person's
17death and may be exercised by the person's personal representative or special
18administrator upon receiving approval from the court having jurisdiction of the
19person's estate after hearing upon notice to all persons interested in the disclaimed
20property, if the personal representative or special administrator has not taken any
21action
which that would bar the right to disclaim under sub.
(11) (11g).
AB1038, s. 124
22Section
124. 854.13 (2) (i) of the statutes is created to read:
AB1038,41,2523
854.13
(2) (i)
Disclaimer of inter vivos transfers. A person who is a recipient
24of property under an inter vivos governing instrument, as defined in s. 700.27 (1) (c),
25may disclaim the property as provided in s. 700.27.
AB1038, s. 125
1Section
125. 854.13 (4) (c) of the statutes is amended to read:
AB1038,42,52
854.13
(4) (c)
Future right to income or profits principal. Notwithstanding
3pars. (a) and (b), an instrument disclaiming the future right to receive
discretionary
4or mandatory distributions of income or
profits
principal from any source may be
5executed and delivered at any time.
AB1038, s. 126
6Section
126. 854.13 (7) (title) of the statutes is amended to read:
AB1038,42,77
854.13
(7) (title)
Devolution in general.
AB1038, s. 127
8Section
127. 854.13 (7) (a) of the statutes is amended to read:
AB1038,42,229
854.13
(7) (a)
In general. Unless the transferor of the property or donee of the
10power has otherwise provided Subject to pars. (bm) and (c) and subs. (8), (9), and (10),
11unless the governing instrument provides otherwise, either expressly or as
12construed from extrinsic evidence, the disclaimed property devolves as if the
13disclaimant had died before the decedent
or before the effective date of the transfer
14under the governing instrument. If the disclaimed interest is a remainder
15contingent on surviving to the time of distribution, the disclaimed interest passes as
16if the disclaimant had died immediately before the time for distribution. If the
17disclaimant is an appointee under a power exercised by a governing instrument, the
18disclaimed property devolves as if the disclaimant had died before the effective date
19of the exercise of the power. If the disclaimant is a taker in default under a power
20created by a governing instrument, the disclaimed property devolves as if the
21disclaimant had predeceased the donee of the power.
This paragraph is subject to
22subs. (8), (9) and (10).
AB1038, s. 128
23Section
128. 854.13 (7) (b) of the statutes is repealed.
AB1038, s. 129
24Section
129. 854.13 (7) (bm) and (c) of the statutes are created to read:
AB1038,43,8
1854.13
(7) (bm)
Devolution to issue of the disclaimants. Unless the governing
2instrument provides otherwise, either expressly or as construed from extrinsic
3evidence, if, by law or under the governing instrument, the issue of the disclaimant
4would share in the disclaimed interest by any method of representation had the
5disclaimant died before the time the disclaimed interest would have taken effect in
6possession or enjoyment, the disclaimed interest passes only to the issue of the
7disclaimant who survive when the disclaimed interest takes effect in possession or
8enjoyment.
AB1038,43,119
(c)
Disclaimer of a devisable future interest. 1. In this paragraph, "devisable
10future interest" is a future interest that can be passed under the will of the person
11who holds the future interest.
AB1038,43,1412
2. If the disclaimed interest is a devisable future interest under the law
13governing the transfer, then the disclaimed interest devolves as if it were a
14nondevisable future interest.
AB1038, s. 130
15Section
130. 854.13 (8) of the statutes is amended to read:
AB1038,43,1916
854.13
(8) Devolution of disclaimed interest in joint tenancy. A Unless the
17decedent provided otherwise in a governing instrument, either expressly or as
18construed from extrinsic evidence, a disclaimed interest in a joint tenancy passes to
19the decedent's probate estate.
AB1038, s. 131
20Section
131. 854.13 (9) of the statutes is amended to read:
AB1038,43,2421
854.13
(9) Devolution of disclaimed interest in survivorship marital
22property. A Unless the decedent provided otherwise in a governing instrument,
23either expressly or as construed from extrinsic evidence, a disclaimed interest in
24survivorship marital property passes to the decedent's probate estate.
AB1038, s. 132
1Section
132. 854.13 (10) (title) of the statutes is repealed and recreated to
2read:
AB1038,44,43
854.13
(10) (title)
Acceleration of subsequent interests when preceding
4interest is disclaimed.
AB1038, s. 133
5Section
133. 854.13 (10) of the statutes is renumbered 854.13 (10) (a) and
6amended to read:
AB1038,44,177
854.13
(10) (a)
Subsequent interest not held by disclaimant. Unless the
8governing instrument
creating the future interest manifests a contrary intent 9provides otherwise, either expressly or as construed from extrinsic evidence,
a future 10upon the disclaimer of a preceding interest, a subsequent interest
not held by the
11disclaimant and limited to take effect in possession or enjoyment after the
12termination of the interest
which that is disclaimed
takes accelerates to take effect
13as if the disclaimant had died
immediately before the
effective date of the governing
14instrument time when the disclaimed interest would have taken effect in possession
15or enjoyment or, if the disclaimant is an appointee under a power exercised by a
16governing instrument power of appointment, as if the disclaimant had died before
17the effective date of the exercise of the power.
AB1038, s. 134
18Section
134. 854.13 (10) (b) of the statutes is created to read:
AB1038,44,2219
854.13
(10) (b)
Subsequent interest held by the disclaimant. Unless the
20governing instrument provides otherwise, either expressly or as construed from
21extrinsic evidence, upon the disclaimer of a preceding interest, a subsequent interest
22held by the disclaimant does not accelerate.
AB1038, s. 135
23Section
135. 854.13 (11) (title) of the statutes is repealed.
AB1038, s. 136
24Section
136. 854.13 (11) (a) of the statutes is renumbered 854.13 (11g), and
25854.13 (11g) (intro.) and (a), as renumbered, are amended to read:
AB1038,45,3
1854.13
(11g) Actions that bar disclaimer Bar. (intro.)
A Bars to a person's
2right to disclaim property
is barred by include, but are not limited to, any of the
3following:
AB1038,45,64
(a) The person's assignment, conveyance, encumbrance, pledge
, or transfer of
5the property or a contract
therefor for the assignment, conveyance, encumbrance,
6pledge, or transfer of the property.
AB1038, s. 137
7Section
137. 854.13 (11) (b) of the statutes is renumbered 854.13 (11p), and
8854.13 (11p) (title), as renumbered, is amended to read:
AB1038,45,109
854.13
(11p) (title)
Effect upon successors in interest of disclaimer or
10waiver.
AB1038, s. 138
11Section
138. 854.13 (12) (b) of the statutes is amended to read:
AB1038,45,1412
854.13
(12) (b) Any disclaimer that meets the requirements of section
2518 of
13the Internal Revenue Code, or the requirements of any other federal law relating to
14disclaimers, constitutes an effective disclaimer under this section
or s. 700.27.
AB1038, s. 140
16Section
140. 854.14 (3m) of the statutes is created to read:
AB1038,45,1817
854.14
(3m) Additional effects if death caused by spouse. (a)
Definitions. 18In this subsection:
AB1038,45,2519
1. "Owner" means a person appearing on the records of the policy issuer as the
20person having the ownership interest, or means the insured if no person other than
21the insured appears on those records as a person having that interest. In the case
22of group insurance, the "owner" means the holder of each individual certificate of
23coverage under the group plan and does not include the person who contracted with
24the policy issuer on behalf of the group, regardless of whether that person is listed
25as the owner on the contract.
AB1038,46,1
12. "Ownership interest" means the rights of an owner under a policy.
AB1038,46,32
3. "Policy" means an insurance policy insuring the life of a spouse and providing
3for payment of death benefits at the spouse's death.
AB1038,46,64
4. "Proceeds" means the death benefit from a policy and all other economic
5benefits from it, whether they accrue or become payable as a result of the death of
6an insured person or upon the occurrence or nonoccurrence of another event.