AB490: Bill Text

AB490,38,25 701.0109 Methods and waiver of notice. (1) Notice to a person under this chapter or the sending of a document to a person under this chapter shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include 1st class mail, personal delivery, delivery to the person's last known place of residence or place of business, or a properly directed electronic message.

AB490,39,3 (2) Notice otherwise required under this chapter or a document otherwise required to be sent under this chapter does not need to be provided to a person whose identity or location is unknown to and not reasonably ascertainable by a trustee.

AB490,39,5 (3) Notice under this chapter or the sending of a document under this chapter may be waived by the person to be notified or sent the document.

AB490,39,6 (4) Notice of a judicial proceeding shall be given as provided in s. 701.0205.

AB490,58 Section 58. 701.0110 of the statutes is created to read:

AB490,39,15 701.0110 Others treated as qualified beneficiaries. (1) A charitable organization that is expressly designated to receive distributions under the terms of a charitable trust and that is not subject to a right of substitution by the settlor or by any other party prior to the charitable organization becoming a distributee or permissible distributee of trust income or principal has the rights of a qualified beneficiary under this chapter if the charitable organization, on the date on which the charitable organization's qualification is being determined, satisfies one of the following:

AB490,39,17 (a) The charitable organization is a distributee or permissible distributee of trust income or principal.

AB490,39,21 (b) The charitable organization would be a distributee or permissible distributee of trust income or principal upon the termination of the interests of other distributees or permissible distributees then receiving or eligible to receive distributions.

AB490,39,23 (c) The charitable organization would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.

AB490,40,3 (2) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in s. 701.0408 or 701.0409 has the rights of a qualified beneficiary under this chapter.

AB490,40,8 (3) The attorney general of this state has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state only when the charitable interest to be represented would qualify under sub. (1) but no charitable organization has been expressly designated to receive distribution under the terms of a charitable trust.

AB490,59 Section 59. 701.0111 of the statutes is created to read:

AB490,40,12 701.0111 Nonjudicial settlement agreements. (1) In this section, "interested person" means a person whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.

AB490,40,14 (2) An interested person may be represented under this section as provided in subch. III.

AB490,40,17 (3) Except as provided in sub. (4), an interested person may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. A binding nonjudicial settlement agreement is considered part of the trust instrument.

AB490,40,20 (4) A nonjudicial settlement agreement is valid only to the extent it includes terms and conditions that could be properly approved by a court under this chapter or other applicable law.

AB490,40,22 (5) Except as provided in sub. (4), matters that may be addressed by a nonjudicial settlement agreement include any of the following:

AB490,40,23 (a) The interpretation or construction of the terms of the trust.

AB490,40,25 (b) The approval of a trustee's report or accounting or waiver of the preparation of a trustee's report or accounting.

AB490,41,2 (c) Direction to a trustee to perform or refrain from performing a particular act or the grant to a trustee of any necessary power.

AB490,41,3 (d) The resignation or appointment of a trustee.

AB490,41,4 (e) The determination of a trustee's compensation.

AB490,41,5 (f) The transfer of a trust's principal place of administration.

AB490,41,7 (g) The liability or release from liability of a trustee for an action relating to the trust.

AB490,41,9 (h) The criteria for distribution to a beneficiary where the trustee is given discretion.

AB490,41,11 (i) The resolution of disputes arising out of the administration or distribution of the trust.

AB490,41,12 (j) An investment action.

AB490,41,14 (k) The appointment of and powers granted to a directing party or a trust protector.

AB490,41,17 (L) Direction to a directing party or to a trust protector to perform or refrain from performing a particular act or the grant of a power to a directing party or trust protector.

AB490,41,21 (6) Any interested person may request a court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in subch. III was adequate, or to determine whether the agreement contains terms and conditions the court could have properly approved.

AB490,60 Section 60. 701.02 of the statutes is repealed.

AB490,61 Section 61. Subchapter II (title) of chapter 701 [precedes 701.0201] of the statutes is created to read:

AB490,41,25 chapter 701

AB490,42,2 subchapter ii Judicial proceedings

AB490,62 Section 62. 701.0201 of the statutes is created to read:

AB490,42,6 701.0201 Role of court in administration of trust. (1) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law.

AB490,42,9 (2) Unless ordered by the court upon a petition of a settlor, trustee, or qualified beneficiary requesting continuing judicial supervision, a trust is not subject to continuing judicial supervision.

AB490,42,11 (3) A judicial proceeding involving a trust or the trust's administration may involve any of the following:

AB490,42,12 (a) Determining the validity of all or any part of a trust.

AB490,42,13 (b) Appointing or removing a trustee, directing party, or trust protector.

AB490,42,16 (c) Appointing a representative or guardian ad litem, as provided in s. 701.0305, whether or not any other judicial proceeding concerning the trust is pending.

AB490,42,18 (d) Reviewing and approving a fee of a trustee, directing party, or trust protector.

AB490,42,19 (e) Approving interim or final accounts.

AB490,42,20 (f) Ascertaining trust beneficiaries.

AB490,42,22 (g) Determining the existence or nonexistence of any immunity, power, privilege, duty, or right.

AB490,42,23 (h) Requesting trustee instructions.

AB490,42,24 (i) Obtaining a declaratory judgment.

AB490,42,25 (j) Seeking reformation or other equitable relief with respect to a trust.

AB490,43,2 (k) Resolving a question arising in the administration of a trust, including a question of construction of a trust instrument.

AB490,43,4 (L) Determining any other matter involving a trustee, directing party, trust protector, or beneficiary.

AB490,63 Section 63. 701.0202 of the statutes is created to read:

AB490,43,11 701.0202 Personal jurisdiction. (1) A trustee, trust protector, or directing party submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust by accepting an appointment as a trustee, trust protector, or directing party of a trust having its principal place of administration in this state or by continuing to serve as the trustee, trust protector, or directing party of a trust after the principal place of administration of the trust is moved to this state.

AB490,43,17 (2) With respect to a beneficiary's interest in a trust, the beneficiary of a trust having its principal place of administration in this state is subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from a trust having its principal place of administration in this state, a recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

AB490,43,23 (3) Notwithstanding any contractual provision or other agreement between the trustee and the agent to the contrary, by accepting the delegation of a trust function pursuant to s. 701.0807 or 881.01 (10), or otherwise, from the trustee of a trust having a principal place of administration in this state, the agent submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

AB490,44,3 (4) This section does not preclude other methods of obtaining jurisdiction over a trustee, directing party, trust protector, beneficiary, or other person receiving property from the trust.

AB490,64 Section 64. 701.0203 of the statutes is created to read:

AB490,44,11 701.0203 Subject matter jurisdiction. (1) The circuit court assigned to exercise probate jurisdiction has exclusive jurisdiction of proceedings in this state brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust. Except as otherwise provided in this chapter, and as applicable, the probate procedure described in ch. 879 applies to a proceeding brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust.

AB490,44,13 (2) This section does not preclude judicial or nonjudicial alternative dispute resolution, including nonjudicial settlement agreements described in s. 701.0111.

AB490,65 Section 65. 701.0204 of the statutes is created to read:

AB490,44,19 701.0204 Venue. (1) Except as provided in sub. (2), venue for a judicial proceeding involving a trust may be in the county of this state in which the trust's principal place of administration is or will be located or, if the trust is a testamentary trust and the decedent's estate is not yet closed, in the county of this state in which the decedent's estate is being administered.

AB490,44,21 (2) If a trust has no trustee, venue for a judicial proceeding for the appointment of a trustee is in any of the following:

AB490,44,22 (a) A county of this state in which a beneficiary resides.

AB490,44,23 (b) A county of this state in which any trust property is located.

AB490,44,25 (c) A county of this state in which the holder of trust property maintains an office.

AB490,45,3 (d) If the trust is a testamentary trust and the decedent's estate is not yet closed, in the county of this state in which the decedent's estate is being administered.

AB490,45,6 (3) Venue for a judicial proceeding involving a trust is also governed by ss. 801.50 to 801.62, as applicable, and the proceeding is regarded as a civil action for that purpose.

AB490,66 Section 66. 701.03 of the statutes is repealed.

AB490,67 Section 67. Subchapter III (title) of chapter 701 [precedes 701.0301] of the statutes is created to read:

AB490,45,10 chapter 701

AB490,45,11 subchapter iii

AB490,45,12 Representation

AB490,68 Section 68. 701.0301 of the statutes is created to read:

AB490,45,17 701.0301 Representation: basic effect. (1) Notice, information, an accounting, or a report given to a person who may represent and bind another person under this subchapter is a substitute for and has the same effect as notice, information, an accounting, or a report given directly to the other person.

AB490,45,21 (2) The consent of a person who may represent and bind another person under this subchapter is binding on the person represented unless the person represented objects to the representation by notifying the trustee or the representative in writing before the consent would otherwise have become effective.

AB490,45,24 (3) Except as provided in ss. 701.0411 and 701.0602, a person who under this subchapter may represent a settlor who lacks capacity may receive notice and may give a binding consent on the settlor's behalf.

AB490,46,2 (4) A settlor may not represent and bind a beneficiary under this subchapter with respect to the termination or modification of a trust under s. 701.0411 (1).

AB490,46,6 (5) A trustee is not liable for giving notice, information, an accounting, or a report to a beneficiary who is represented by another person under this subchapter and nothing in this subchapter prohibits the trustee from giving notice, information, an accounting, or a report to the person represented.

AB490,69 Section 69. 701.0302 of the statutes is created to read:

AB490,46,12 701.0302 Representation by holder of general power of appointment. To the extent there is no conflict of interest between a holder of a general power of appointment and a person represented with respect to the particular question or dispute, the holder may represent and bind the person whose interests, as a permissible appointee, a taker in default, or otherwise, are subject to the power.

AB490,70 Section 70. 701.0303 of the statutes is created to read:

AB490,46,18 701.0303 Representation by fiduciaries, parents, or a person appointed by a trustee. Except as provided in s. 701.0411, to the extent there is no conflict of interest between a representative and the person represented or among those being represented with respect to a particular question or dispute, all of the following apply:

AB490,46,20 (1) A conservator may represent and bind the estate that the conservator controls.

AB490,46,23 (2) Notwithstanding ss. 54.20 (2) and 54.25 (2), a guardian of the estate may represent and bind the ward and a guardian of the person may represent and bind the ward if a guardian of the estate of the ward has not been appointed.

AB490,46,25 (3) An agent having authority to act with respect to the particular question or dispute may represent and bind the principal.

AB490,47,2 (4) A trustee may represent and bind the beneficiaries of the trust, except as to matters relating to the administration or distribution of the trust.

AB490,47,5 (5) A personal representative of a decedent's estate may represent and bind a person interested in the estate, except as to matters relating to the administration or distribution of the estate.

AB490,47,8 (6) A parent may represent and bind the parent's minor or unborn child. If a disagreement arises between parents seeking to represent the same minor child or unborn child, representation is determined as follows:

AB490,47,10 (a) If only one parent is a beneficiary of the trust that is the subject of the representation, that parent may represent the minor child or unborn child.

AB490,47,13 (b) If both parents are beneficiaries of the trust that is the subject of the representation, the parent who is related to the settlor, other than by reason of being married to the other parent, may represent the minor child or unborn child.