AB490,165,521 702.02 (6) "Power of appointment" means a power of appointment over to
22appoint
legal or equitable interests in real or personal property. A power of
23appointment is a power created or reserved by a person having property subject to
24his or her disposition which enables the donee of the power of appointment to
25designate, within such limits as may be prescribed, the transferees of the property

1or the shares or the interests in which it shall be received ; it. A power of appointment
2does not include a power of sale, a power of attorney, a power of revocation, or a power
3exercisable by a trustee or other, a directing party, as defined in s. 701.0103 (7),
4another
fiduciary in his or her fiduciary capacity, or a trust protector, as defined in
5s. 701.0103 (31)
.
AB490,307 6Section 307. 702.01 (5) of the statutes is renumbered 702.02 (7) and amended
7to read:
AB490,165,148 702.02 (7) "Special power of appointment" means a power of appointment
9exercisable only in favor of one or more persons not including the donee, the donee's
10estate, the donee's creditors or the creditors of the donee's estate and, when
11exercisable in favor of a class, so limited in size by description of the class that in the
12event of nonexercise of the power a court can make distribution to persons within the
13class if the donor has failed to provide for this contingency
that is not a general power
14of appointment
.
AB490,308 15Section 308. 702.01 (6) of the statutes is repealed.
AB490,309 16Section 309. 702.02 (1) of the statutes is created to read:
AB490,165,1717 702.02 (1) "Appointee" means the person to whom an interest is appointed.
AB490,310 18Section 310. 702.02 (3) of the statutes is created to read:
AB490,165,2019 702.02 (3) "Donee" means the person in whom the power of appointment is
20created or reserved.
AB490,311 21Section 311. 702.03 of the statutes is amended to read:
AB490,166,5 22702.03 Manifestation of intent to exercise powers a power of
23appointment
. (1) Unless the person who executed it had a contrary intention, if
24a governing creating instrument, as defined in s. 854.01 (2), or an inter vivos
25governing instrument, as defined in s. 700.27 (1) (c),
creates a power of appointment

1that expressly requires that the power of appointment be exercised by any type of
2reference to the power of appointment or its source, the donor's intention in requiring
3the reference is presumed to be to prevent an inadvertent exercise of the power of
4appointment
. Extrinsic evidence, as defined in s. 854.01 (1), may be used to construe
5the intent.
AB490,166,19 6(2) In the case of other powers, an of appointment, a creating instrument
7manifests an intent to exercise the power of appointment if the creating instrument
8purports to transfer an interest in the appointive property which the donee would
9have no power to transfer except by virtue of the power of appointment, even though
10the power of appointment is not recited or referred to in the creating instrument, or
11if the creating instrument either expressly or by necessary implication from its
12wording interpreted in light of the circumstances surrounding its drafting and
13execution manifests an intent to exercise the power of appointment. If there is a
14general power of appointment exercisable by will with no gift in default in the
15creating instrument, a residuary clause or other general language in the donee's will
16purporting to dispose of all of the donee's estate or property operates to exercise the
17power of appointment in favor of the donee's estate, but in all other cases such a
18clause or language does not in itself manifest an intent to exercise a power of
19appointment
exercisable by will.
AB490,312 20Section 312. 702.05 of the statutes is amended to read:
AB490,166,24 21702.05 Exercise of powers a power of appointment. (1) Capacity to
22exercise
a power of appointment. A power of appointment can be exercised only by
23a person who would have the capacity to transfer the property covered by the power
24of appointment.
AB490,167,8
1(2) Kind of instrument and formalities of execution. A donee can exercise
2a power of appointment only by an instrument which meets the intent of the donor
3as to kind of instrument and formalities of execution. If the power of appointment
4is exercisable by will, this means a will executed with the formalities necessary for
5a valid will. A written instrument signed by the donee is sufficient if the donor fails
6to require any additional formalities or fails to indicate a will, but if the power of
7appointment
is to appoint interests in land, it can be exercised only by an instrument
8executed with sufficient formalities for that purpose.
AB490,167,16 9(3) Consent of 3rd persons. When the consent of the donor or of any other
10person is required by the donor for the exercise of a power of appointment, such
11consent must be expressed in the creating instrument exercising the power of
12appointment
or in a separate written instrument, signed in either case by the
13persons whose consent is required. If any person whose consent is required dies or
14becomes legally incapable of consenting, the power of appointment may be exercised
15by the donee without the consent of that person unless the donor has manifested a
16contrary intent in the creating instrument creating the power.
AB490,167,22 17(4) Power of appointment vested in 2 or more donees. Unless the donor
18manifests a contrary intent, when a power of appointment is vested in 2 or more
19persons, all must unite in its exercise, but if one or more of the donees dies, becomes
20incapable of exercising the power of appointment, or renounces, releases, or
21disclaims the power of appointment, the power of appointment may be exercised by
22the others.
AB490,313 23Section 313. 702.05 (5) of the statutes is created to read:
AB490,168,424 702.05 (5) Presumption of nonexercise of a power of appointment. A personal
25representative, trustee, or other fiduciary who holds property subject to a power of

1appointment may administer that property as if the power of appointment was not
2exercised if the personal representative, trustee, or other fiduciary has no notice of
3the existence of any of the following within 6 months after the death of the donee of
4the power of appointment:
AB490,168,65 (a) A document purporting to be a will of the donee of the power of appointment
6if the power of appointment is exercisable by a will.
AB490,168,87 (b) Some other documentation of the donee purporting to exercise the power of
8appointment if the power of appointment is exercisable other than by a will.
AB490,314 9Section 314. 702.07 of the statutes is amended to read:
AB490,168,15 10702.07 Powers Power of appointment to be construed as exclusive. The
11donee of any power of appointment may appoint the whole or any part of the
12appointive assets to any one or more of the permissible appointees and exclude
13others, except to the extent that the donor specifies either a minimum share or
14amount to be appointed to each permissible appointee or to designated appointees,
15or a maximum share or amount appointable to any one or more appointees.
AB490,315 16Section 315. 702.08 of the statutes is amended to read:
AB490,168,19 17702.08 Disclaimer of powers a power of appointment. The donee of any
18power of appointment may disclaim all or part of the power of appointment as
19provided under s. 700.27 or 854.13.
AB490,316 20Section 316. 702.09 (title), (1) and (3) (a), (b) and (c) of the statutes are
21amended to read:
AB490,168,25 22702.09 (title) Release of powers a power of appointment. (1) Except as
23Unless the creating instrument expressly provides that the power of appointment
24cannot be released or expressly restricts the time, manner, or scope of release, the
25donee of any power of appointment may do any of the following:
AB490,169,1
1(a) At any time completely release the donee's power; of appointment.
AB490,169,32 (b) At any time or times release the donee's power of appointment in any one
3or more of the following respects:
AB490,169,44 1. As to the whole or any part of the property which is subject thereto ;.
AB490,169,65 2. As to any one or more persons or objects, or classes of persons or objects, in
6whose favor such power of appointment is exercisable ;.
AB490,169,87 3. So as to limit in any other respect the extent to or manner in which it the
8power of appointment
may be exercised.
AB490,169,9 9(3) (a) Delivery to any person specified in the creating instrument;.
AB490,169,1210 (b) Delivery to a trustee or to one of several trustees of the property to which
11the power of appointment relates, or filing with the court having jurisdiction over the
12trust;.
AB490,169,1413 (c) Delivery to any person, other than the donee, who could be adversely
14affected by an exercise of the power; or of appointment.
AB490,317 15Section 317. 702.11 of the statutes is amended to read:
AB490,169,19 16702.11 Irrevocability of creation, exercise and release of powers a
17power of appointment
. The creation, exercise or release of a power of appointment
18is irrevocable unless the power to revoke is reserved in the creation, exercise or
19release of the power of appointment.
AB490,318 20Section 318. 702.13 (title), (1) (intro.), (a), (b) and (c) and (2) of the statutes
21are amended to read:
AB490,169,25 22702.13 (title) Recording instruments relating to powers a power of
23appointment
. (1) (intro.) Any of the following instruments relating to powers a
24power of appointment
is entitled to be recorded as a conveyance upon compliance
25with s. 706.05 (1):
AB490,170,1
1(a) An instrument, other than a will, exercising a power ; of appointment.
AB490,170,22 (b) An instrument expressing consent to exercise;.
AB490,170,33 (c) A disclaimer;.
AB490,170,5 4(2) If a power of appointment is exercised by a will, a certified copy of the will
5and of the certificate of probate thereof may be recorded.
AB490,319 6Section 319. 702.15 (intro.), (1) and (2) of the statutes are amended to read:
AB490,170,10 7702.15 Disposition when a special power of appointment is
8unexercised.
(intro.) If the donee of a special power of appointment fails to exercise
9effectively the special power of appointment, the interests which might have been
10appointed under the special power of appointment pass in one of the following ways:
AB490,170,12 11(1) If the creating instrument contains an express gift in default, then in
12accordance with the terms of such gift;.
AB490,170,18 13(2) If the creating instrument contains no express gift in default and does not
14clearly indicate that the permissible appointees are to take only if the donee exercises
15the special power of appointment, then to the permissible appointees equally, but if
16the special power of appointment is to appoint among a class such as "relatives,"
17"issue," or "heirs," then to those persons who would have taken had there been an
18express gift to the described class; or.
AB490,320 19Section 320. 702.15 (3) of the statutes is renumbered 702.15 (3) (a) and
20amended to read:
AB490,170,2421 702.15 (3) (a) If Except as provided in par. (b), if the creating instrument
22contains no express gift in default and clearly indicates that the permissible
23appointees are to take only if the donee exercises the special power of appointment,
24then by reversion to the donor or the donor's estate. But if
AB490,171,5
1(b) If the creating instrument expressly states that there is no reversion in the
2donor, then any language in the creating instrument indicating or stating that the
3permissible appointees are to take only if the donee exercises the special power of
4appointment
is to be disregarded and the interests shall pass in accordance with sub.
5(2).
AB490,321 6Section 321. 702.17 (1), (2) and (5) of the statutes are amended to read:
AB490,171,137 702.17 (1) General policy: general power of appointment. If the donee has
8either a general power or an unclassified power which is unlimited as to permissible
9appointees except for exclusion of the donee, the donee's estate, the donee's creditors
10and the creditors of the donee's estate, or a substantially similar exclusion
of
11appointment
, any interest which the donee has power to appoint or has appointed
12is to be treated as property of the donee for purposes of satisfying claims of the donee's
13creditors, as provided in this section.
AB490,171,23 14(2) During lifetime of the donee. If the donee has an unexercised general
15power of the kinds specified in sub. (1) appointment, and can presently exercise such
16a
the general power of appointment in favor of the donee or the donee's creditors, any
17creditor of the donee may by appropriate proceedings reach any interest which the
18donee could appoint, to the extent that the donee's individual assets are insufficient
19to satisfy the creditor's claim. Such an interest is to be treated as property of the
20donee within ch. 816. If the donee has exercised such a general power of
21appointment
, the creditor can reach the appointed interests to the same extent that
22under the law relating to fraudulent conveyances the creditor could reach property
23which the donee has owned and transferred.
AB490,172,4 24(5) Third parties in good faith protected. Any person acting without actual
25notice of claims of creditors under this section incurs no liability to such creditors in

1transferring property which is subject to a power of appointment or which has been
2appointed; and a purchaser without actual notice and for a valuable consideration
3of any interest in property, legal or equitable, takes such interest free of any rights
4which a creditor of the donee might have under this section.
AB490,322 5Section 322. 702.17 (3) of the statutes is renumbered 702.17 (3) (a) and
6amended to read:
AB490,172,157 702.17 (3) (a) If Except as provided in par. (b), if the donee has at the time of
8his or her the donee's death a general power of the kinds specified in sub. (1)
9appointment, whether or not the donee exercises the general power of appointment,
10any creditor of the donee may reach any interest which the donee could have
11appointed or has appointed, to the extent that the claim of the creditor has been filed
12and allowed in the donee's estate or filed with and approved by the trustee of a trust
13that is revocable, as defined in s. 701.0103 (22), by the donee or jointly by the donee
14and the donee's spouse
but not paid because the assets of the estate or revocable trust
15are insufficient.
AB490,323 16Section 323. 702.17 (3) (b) of the statutes is created to read:
AB490,172,2017 702.17 (3) (b) If the donee fails to exercise a general power of appointment, in
18whole or in part, that the donee has at the time of the donee's death and neither the
19donee nor the donee's spouse is the donor of the power, a creditor of the donee may
20not reach an interest subject to the power, to the extent the power was not exercised.
AB490,324 21Section 324. 702.17 (6) of the statutes is created to read:
AB490,172,2422 702.17 (6) General policy: special power of appointment. If the donee has a
23special power of appointment, property subject to the donee's special power of
24appointment is exempt from a claim of a creditor of the donee or the donee's estate.
AB490,325 25Section 325. 702.21 of the statutes is amended to read:
AB490,173,3
1702.21 Applicability of chapter. The provisions of this chapter are
2applicable to any power of appointment existing on May 16, 1965, as well as a power
3of appointment created after such date.
AB490,326 4Section 326. 766.55 (2) (bm) of the statutes, as created by 2013 Wisconsin Act
520
, is amended to read:
AB490,173,116 766.55 (2) (bm) An obligation incurred by a spouse that is recoverable under
7s. 46.27 (7g), 49.496, 49.682, or 49.849 may be satisfied from all property that was
8the property of that spouse immediately before that spouse's death and from all
9property that was marital property at any time within 5 years before that spouse
10applied for public assistance, as defined in s. 49.849 (1) (e), or while that spouse was
11eligible for public assistance, as defined in s. 49.849 (1) (e)
.
AB490,327 12Section 327. 766.575 (1) (e) of the statutes is amended to read:
AB490,173,1413 766.575 (1) (e) "Trustee" has the meaning given under s. 701.01 (8) 701.0103
14(28)
.
AB490,328 15Section 328. 840.01 (1) of the statutes is amended to read:
AB490,173,2316 840.01 (1) Except as provided in sub. (2), "interest in real property" includes
17estates in, powers of appointment under ch. 702 over, present and future rights to,
18title to, and interests in real property, including, without limitation by enumeration,
19security interests and liens on land, easements, profits, rights of appointees under
20powers of appointment, rights under covenants running with the land, powers of
21termination, and homestead rights. The interest may be an interest that was
22formerly designated legal or equitable. The interest may be surface, subsurface,
23suprasurface, riparian, or littoral.
AB490,329 24Section 329. 853.17 (2) of the statutes is amended to read:
AB490,174,4
1853.17 (2) This section does not prevent the court from requiring the contract
2beneficiary to elect under s. 853.15 in order to take property under the will; nor does
3it apply to naming a testamentary trustee as designated by a life insurance policy
4under s. 701.09
.
AB490,330 5Section 330. 853.32 (3) of the statutes is amended to read:
AB490,174,86 853.32 (3) Transfers to living trusts. The validity and implementation of a
7will provision that purports to transfer or appoint property to a living trust are
8governed by s. 701.08 701.0419.
AB490,331 9Section 331. 853.34 (3) of the statutes is created to read:
AB490,174,1810 853.34 (3) Assets transferred to trusts created by will. If a trustee of a trust
11created by a testator's will is designated as the beneficiary of a transfer under
12another governing instrument, as defined in s. 854.01 (2), at the death of the testator
13or at the death of a 3rd party, the transfer of any assets under that other governing
14instrument to the trustee does not cause the transferred assets to be included in the
15property administered as part of the testator's estate. The transferred assets are not
16subject to taxes, debts, or charges enforceable against the testator's estate to any
17greater extent than if the proceeds were payable to a beneficiary other than the
18testator's estate.
AB490,332 19Section 332. 853.61 (2) (a) of the statutes is amended to read:
AB490,174,2120 853.61 (2) (a) In addition to any powers conferred upon trustees by law, the
21trustee shall have all the powers listed in s. 701.16 ss. 701.0815 and 701.0816.
AB490,333 22Section 333. 854.13 (1) (c), (2) (a) 2. and (d), (4) (e), (5) (b), (7) (a) and (10) (a)
23of the statutes are amended to read:
AB490,174,2524 854.13 (1) (c) "Power of appointment" has the meaning given in s. 702.01 (4)
25702.02 (6).
AB490,175,7
1(2) (a) 2. A person who is an heir, recipient of property, or beneficiary under a
2governing instrument, donee of a power of appointment created by a governing
3instrument, appointee under a power of appointment exercised by a governing
4instrument, taker in default under a power of appointment created by a governing
5instrument, or person succeeding to disclaimed property may disclaim any property,
6including contingent or future interests or the right to receive discretionary
7distributions, by delivering a written instrument of disclaimer under this section.
AB490,175,128 (d) Partial disclaimer. Property may be disclaimed in whole or in part, except
9that a partial disclaimer of property passing by a governing instrument or by the
10exercise of a power of appointment may not be made if partial disclaimer is expressly
11prohibited by the governing instrument or by the instrument exercising the power
12of appointment.
AB490,175,17 13(4) (e) Interests arising by disclaimer. Notwithstanding pars. (a) and (b), a
14person whose interest in property arises by disclaimer or by default of exercise of a
15power of appointment created by a governing instrument may disclaim at any time
16not later than 9 months after the day on which the prior instrument of disclaimer is
17delivered, or the date of death of the donee of the power of appointment.
AB490,175,20 18(5) (b) Delivery to trustee. If the trustee of any trust to which the interest or
19power of appointment relates does not receive the instrument of disclaimer under
20par. (a), a copy shall also be delivered to the trustee.
AB490,176,7 21(7) (a) In general. Subject to pars. (bm) and (c) and subs. (8), (9), and (10), unless
22the governing instrument provides otherwise, either expressly or as construed from
23extrinsic evidence, the disclaimed property devolves as if the disclaimant had died
24before the decedent. If the disclaimed interest is a remainder contingent on
25surviving to the time of distribution, the disclaimed interest passes as if the

1disclaimant had died immediately before the time for distribution. If the disclaimant
2is an appointee under a power of appointment exercised by a governing instrument,
3the disclaimed property devolves as if the disclaimant had died before the effective
4date of the exercise of the power of appointment. If the disclaimant is a taker in
5default under a power of appointment created by a governing instrument, the
6disclaimed property devolves as if the disclaimant had predeceased the donee of the
7power of appointment.
AB490,176,17 8(10) (a) Subsequent interest not held by disclaimant. Unless the governing
9instrument provides otherwise, either expressly or as construed from extrinsic
10evidence, upon the disclaimer of a preceding interest, a subsequent interest not held
11by the disclaimant and limited to take effect in possession or enjoyment after the
12termination of the interest that is disclaimed accelerates to take effect as if the
13disclaimant had died immediately before the time when the disclaimed interest
14would have taken effect in possession or enjoyment or, if the disclaimant is an
15appointee under a power of appointment and that power of appointment has been
16exercised by a power of appointment, as if the disclaimant had died before the
17effective date of the exercise of the power of appointment.
AB490,334 18Section 334. 854.23 (5) (b) of the statutes is amended to read:
AB490,177,219 854.23 (5) (b) Notwithstanding sub. (2), in addition to the protections afforded
20a financial institution under ss. 701.19 (11) 701.1012 and 710.05 and chs. 112 and
21705 a financial institution is not liable for having transferred an account to a
22beneficiary designated in a governing instrument who, under this chapter, is not
23entitled to the account, or for having taken any other action in reliance on the
24beneficiary's apparent entitlement under the terms of a governing instrument,

1regardless of whether the financial institution received written notice of a claimed
2lack of entitlement under this chapter.
AB490,335 3Section 335. 859.18 (5) (a) of the statutes is amended to read:
AB490,177,54 859.18 (5) (a) The availability of a trust described under s. 701.07 (3) 701.0505
5(1)
is subject to s. 701.07 (3) 701.0505 (1).
AB490,336 6Section 336. 859.18 (5) (b) of the statutes is amended to read:
AB490,177,87 859.18 (5) (b) The availability of a spendthrift trust described under s. 701.06
8subch. V of ch. 701 is subject to s. 701.06 subch. V of ch. 701.
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