AB490,35 11Section 35. 49.849 (4) (c) 2. b. of the statutes is created to read:
AB490,21,1812 49.849 (4) (c) 2. b. The recipient's surviving spouse or child who is under age
1321 or disabled transfers the property for less than fair market value, as described in
14sub. (5c) (d), during the spouse's or child's lifetime, the transferee sells the property
15during the spouse's or child's lifetime and places proceeds equal to the lesser of the
16department's lien or the sale proceeds due to the seller in a trust or bond, and the
17department is paid the secured amount upon the death of the recipient's spouse or
18disabled child or when the recipient's child who is not disabled reaches age 21.
AB490,36 19Section 36. 49.849 (4) (c) 2. c. of the statutes is created to read:
AB490,22,220 49.849 (4) (c) 2. c. The surviving owner or transferee of the property, who is not
21the recipient's surviving spouse or child who is under age 21 or disabled, sells the
22property during the lifetime of the recipient's surviving spouse or child who is under
23age 21 or disabled and places proceeds equal to the lesser of the department's lien or
24the sale proceeds due to the seller in a trust or bond, and the department is paid the

1secured amount upon the death of the recipient's spouse or disabled child or when
2the recipient's child who is not disabled reaches age 21.
AB490,37 3Section 37. 49.849 (7) of the statutes, as affected by 2013 Wisconsin Act 20,
4is amended to read:
AB490,22,115 49.849 (7) Rules for hardship waiver. The department shall promulgate rules
6establishing standards to determine whether the application of this section would
7work an undue hardship in individual cases. If the department determines that the
8application of this section would work an undue hardship in a particular case, the
9department shall waive the application of this section in that case. This subsection
10does not apply with respect to collecting from the property of a decedent if the
11decedent is a deceased nonrecipient surviving spouse.
AB490,38 12Section 38. 59.43 (1) (w) of the statutes, as created by 2013 Wisconsin Act 20,
13is repealed.
AB490,39 14Section 39. 223.07 (3) of the statutes is amended to read:
AB490,23,2015 223.07 (3) If the depository institution at which a trust service office is to be
16established has exercised trust powers, the trust company bank and the depository
17institution shall enter into an agreement respecting those fiduciary powers to which
18the trust company bank shall succeed and shall file the agreement with the division.
19The trust company bank shall cause a notice of the filing, in a form prescribed by the
20division, to be published as a class 1 notice, under ch. 985, in the city, village or town
21where the depository institution is located. After filing and publication, the trust
22company bank establishing the office shall, as of the date the office first opens for
23business, without further authorization of any kind, succeed to and be substituted
24for the depository institution as to all fiduciary powers, rights, duties, privileges, and
25liabilities of the depository institution in its capacity as fiduciary for all estates,

1trusts, guardianships, and other fiduciary relationships of which the depository
2institution is then serving as fiduciary, except as may be otherwise specified in the
3agreement between the trust company bank and the depository institution. The
4trust company bank shall also be deemed named as fiduciary in all writings,
5including, but not limited to, wills, trusts, court orders, and similar documents and
6instruments naming the depository institution as fiduciary, signed before the date
7the trust office first opens for business, unless expressly negated by the writing or
8otherwise specified in the agreement between the trust company bank and the
9depository institution. On the effective date of the substitution, the depository
10institution shall be released and absolved from all fiduciary duties and obligations
11under such writings and shall discontinue its exercise of trust powers on all matters
12not specifically retained by the agreement. This subsection does not effect a
13discharge in the manner of s. 701.16 (6) if required by a court under s. 701.0201 (1)
14or other applicable statutes and does not absolve a depository institution exercising
15trust powers from liabilities arising out of any breach of fiduciary duty or obligation
16occurring prior to the date the trust service office first opens for business at the
17depository institution. This subsection does not affect the authority, duties, or
18obligations of a depository institution with respect to relationships which may be
19established without trust powers, including escrow arrangements, whether the
20relationships arise before or after the establishment of the trust service office.
AB490,40 21Section 40. 223.105 (1) (c) of the statutes is amended to read:
AB490,23,2322 223.105 (1) (c) "Trustee" has the meaning designated in s. 701.01 (8) 701.0103
23(28)
.
AB490,41 24Section 41. 445.125 (1) (a) 1. of the statutes is amended to read:
AB490,24,14
1445.125 (1) (a) 1. Except as provided in sub. (3m), whenever a person, referred
2to in this subsection as the depositor, makes an agreement with another person
3selling or offering for sale funeral or burial merchandise or services, referred to in
4this subsection as the beneficiary, for the purchase of a casket, outer burial container
5not preplaced into the burial excavation of a grave, combination casket-outer burial
6container or other receptacle not described in sub. (4) (b) (a) 2. for the burial or other
7disposition of human remains or for the furnishing of funeral or burial services,
8either of which is intended to be provided for the final disposition of the body of a
9person, referred to in this subsection as the potential decedent, wherein the use of
10such personal property or the furnishing of such services is not immediately
11required, all payments made under the agreement shall be and remain trust funds,
12including interest and dividends if any, until occurrence of the death of the potential
13decedent, unless the funds are sooner released upon demand to the depositor, after
14written notice to the beneficiary.
AB490,42 15Section 42. 445.125 (1) (a) 2. of the statutes is amended to read:
AB490,24,1816 445.125 (1) (a) 2. Notwithstanding s. 701.12 (1), such Such agreements may be
17made irrevocable as to the first $3,000 of the funds paid under the agreement by each
18depositor.
AB490,43 19Section 43. 445.125 (4) of the statutes is renumbered 445.125 (4) (a).
AB490,44 20Section 44. 445.125 (4) (bn) of the statutes is created to read:
AB490,24,2221 445.125 (4) (bn) Sections 701.0410 to 701.0418 do not apply to an agreement,
22interest, or dividend that is made irrevocable under sub. (1) (a) 2. to 4.
AB490,45 23Section 45. 700.16 (1) (c) of the statutes is amended to read:
AB490,25,824 700.16 (1) (c) If a future interest or trust is created by exercise of a power of
25appointment, the permissible period is computed from the time the power of

1appointment
is exercised if the power of appointment is a general power of
2appointment
as defined in s. 702.01 (3) 702.02 (5) even if the general power of
3appointment
is exercisable only by will; in. In the case of other powers of
4appointment
the permissible period is computed from the time the power of
5appointment
is created but facts at the time the power of appointment is exercised
6are considered in determining whether the power of alienation is suspended beyond
7a life or lives in being at the time of creation of the power of appointment plus 30
8years.
AB490,46 9Section 46. 700.27 (1) (d), (2) (a) 2. and (b), (4) (e), (5) (b), (7) (a) and (8) (a) of
10the statutes are amended to read:
AB490,25,1211 700.27 (1) (d) "Power of appointment" has the meaning given in s. 702.01 (4)
12702.02 (6).
AB490,25,20 13(2) (a) 2. A person who is a recipient of property or beneficiary under an inter
14vivos governing instrument, donee of a power of appointment created by an inter
15vivos governing instrument, appointee under a power of appointment exercised by
16an inter vivos governing instrument, taker in default under a power of appointment
17created by an inter vivos governing instrument, or person succeeding to disclaimed
18property created by an inter vivos governing instrument may disclaim any property,
19including contingent or future interests or the right to receive discretionary
20distributions, by delivering a written instrument of disclaimer under this section.
AB490,26,221 (b) Partial disclaimer. Property transferred under an inter vivos governing
22instrument may be disclaimed in whole or in part, except that a partial disclaimer
23of property passing by an inter vivos governing instrument or by the exercise of a
24power of appointment may not be made if partial disclaimer is expressly prohibited

1by the inter vivos governing instrument or by the instrument exercising the power
2of appointment.
AB490,26,7 3(4) (e) Interests arising by disclaimer. Notwithstanding pars. (a) and (b), a
4person whose interest in property arises by disclaimer or by default of exercise of a
5power of appointment created by an inter vivos governing instrument may disclaim
6at any time not later than 9 months after the day on which the prior instrument of
7disclaimer is delivered, or the date on which the donee's power of appointment lapses.
AB490,26,12 8(5) (b) Delivery to trustee. If the trustee of any trust to which the interest or
9power of appointment relates does not receive the instrument of disclaimer under
10par. (a), a copy shall also be delivered to the trustee. Failure to deliver a copy of the
11instrument of disclaimer to the trustee within the time specified under sub. (4) does
12not affect the validity of any disclaimer.
AB490,26,25 13(7) (a) In general. Subject to sub. (8), unless the inter vivos governing
14instrument provides otherwise, either expressly or as construed from extrinsic
15evidence, the disclaimed property devolves as if the disclaimant had died before the
16effective date of the transfer under the inter vivos governing instrument. If the
17disclaimed interest is a remainder contingent on surviving to the time of
18distribution, the disclaimed interest passes as if the disclaimant had died
19immediately before the time for distribution. If the disclaimant is an appointee
20under a power of appointment exercised by an inter vivos governing instrument, the
21disclaimed property devolves as if the disclaimant had died before the effective date
22of the exercise of the power of appointment. If the disclaimant is a taker in default
23under a power of appointment created by an inter vivos governing instrument, the
24disclaimed property devolves as if the disclaimant had predeceased the donee of the
25power of appointment.
AB490,27,10
1(8) (a) Subsequent interest not held by disclaimant. Unless the inter vivos
2governing instrument provides otherwise, either expressly or as construed from
3extrinsic evidence, upon the disclaimer of a preceding interest, a subsequent interest
4not held by the disclaimant and limited to take effect in possession or enjoyment after
5the termination of the interest that is disclaimed accelerates to take effect as if the
6disclaimant had died immediately before the time when the disclaimed interest
7would have taken effect in possession or enjoyment or, if the disclaimant is an
8appointee under a power of appointment and that power of appointment has been
9exercised by a power of appointment, as if the disclaimant had died before the
10effective date of the exercise of the power of appointment.
AB490,47 11Section 47. 701.01 of the statutes is repealed.
AB490,48 12Section 48. Subchapter I (title) of chapter 701 [precedes 701.0101] of the
13statutes is created to read:
AB490,27,1414 chapter 701
AB490,27,1515 subchapter i
AB490,27,1716 GENERAL PROVISIONS AND
17 DEFINITIONS
AB490,49 18Section 49. 701.0101 of the statutes is created to read:
AB490,27,19 19701.0101 Short title. This chapter may be cited as the Wisconsin Trust Code.
AB490,50 20Section 50. 701.0102 of the statutes is created to read:
AB490,27,24 21701.0102 Scope. This chapter applies to express, charitable or noncharitable,
22and testamentary or living trusts, and any trust created pursuant to a statute,
23judgment, or decree that requires the trust to be administered in the manner of an
24express trust. This chapter does not apply to any of the following:
AB490,27,25 25(1) A constructive or resulting trust.
AB490,28,1
1(2) A guardianship.
AB490,28,2 2(3) A conservatorship.
AB490,28,5 3(4) A custodial arrangement made pursuant to the Uniform Transfers to
4Minors Act under ss. 54.854 to 54.898 or the Uniform Custodial Trust Act under ss.
554.950 to 54.988.
AB490,28,6 6(5) A common trust or a collective investment fund.
AB490,28,7 7(6) A trust created by a depository agreement with a financial institution.
AB490,28,11 8(7) A trust made in connection with a business transaction, including a trust
9created under a bond indenture or collateral trust agreement or in connection with
10a structured finance transaction, a common law trust under s. 226.14, or a business
11trust.
AB490,28,12 12(8) A voting trust.
AB490,28,14 13(9)   A fund maintained pursuant to court order in conjunction with a
14bankruptcy proceeding, business liquidation, or class action lawsuit.
AB490,28,16 15(10)   A trust that is part of an employee benefit arrangement or an individual
16retirement account.
AB490,28,18 17(11)   A trust established under a qualified tuition savings program or
18education savings account.
AB490,28,21 19(12)   A trust account maintained on behalf of a client or customer by a licensed
20service professional, including a trust account maintained by an attorney or by a real
21estate broker.
AB490,28,23 22(13) Any other arrangement under which a person is a nominee or escrowee
23for another.
AB490,51 24Section 51. 701.0103 of the statutes is created to read:
AB490,28,25 25701.0103 Definitions. In this chapter:
AB490,29,2
1(1) "Action," with respect to an act of a trustee, directing party, or trust
2protector, includes a failure to act.
AB490,29,5 3(2) "Ascertainable standard" means a standard relating to an individual's
4health, education, support, or maintenance within the meaning of section 2041 (b)
5(1) (A) or 2514 (c) (1) of the Internal Revenue Code.
AB490,29,6 6(3) "Beneficiary" means a person that satisfies any of the following:
AB490,29,77 (a) Has a present or future beneficial interest in a trust, vested or contingent.
AB490,29,98 (b) In a capacity other than that of trustee, trust protector, or a directing party,
9holds a power of appointment over trust property.
AB490,29,12 10(4) "Charitable trust" means a trust, or portion of a trust, created for a
11charitable purpose described in s. 701.0405 (1). This subsection does not apply in s.
12701.1201.
AB490,29,13 13(5) "Conservator" means a person appointed by a court pursuant to s. 54.76.
AB490,29,17 14(6) "Directed trust property" means all or any portion of the property of a trust
15that is invested or managed by a directing party or is invested or managed at the
16direction of a directing party and for which the trustee has no investment or
17management responsibility.
AB490,29,24 18(7) "Directing party" means a person who, in a trust instrument or court order,
19is granted a power to direct a trustee's investment or distribution decisions or a
20power to make investment or distribution decisions regarding trust property and the
21power is granted to the person in a capacity other than as a trustee or a trust
22protector. For purposes of this subsection, a power of appointment is not a power to
23direct a trustee's investment or distribution decisions or a power to make investment
24or distribution decisions regarding trust property.
AB490,30,2
1(8) "Environmental law" means a federal, state, or local law, rule, regulation,
2or ordinance relating to protection or remediation of the environment.
AB490,30,3 3(9) "General power of appointment" has the meaning given in s. 702.02 (5).
AB490,30,5 4(10) "Guardian of the estate" means a person appointed by a court under s.
554.10 as a guardian of the estate of a minor or adult individual.
AB490,30,7 6(11) "Guardian of the person" means a person appointed by a court under s.
754.10 as a guardian of the person of a minor or adult individual.
AB490,30,10 8(12) "Incapacitated" means unable to receive and evaluate information
9effectively or to communicate decisions to such an extent that the individual lacks
10the capacity to manage his or her decisions.
AB490,30,12 11(13) "Individual with a disability" means an individual who meets one of the
12following tests:
AB490,30,1513 (a) The individual receives social security, supplemental security income, or
14medical assistance benefits on the basis of being an individual who is disabled, as
15defined by the applicable program.
AB490,30,2316 (b) The individual has a mental or physical impairment of a type and severity
17that would cause the individual to be considered an individual who is disabled for
18purposes of participating in the social security, supplemental security income, or
19medical assistance program, if the individual applied to be eligible for one of those
20programs based on disability, and if the individual's education, work record, and
21engagement in substantial gainful activity were disregarded. The fact that the
22individual is age 65 or older does not bar the individual from being considered an
23individual with a disability.
AB490,30,25 24(14) "Interests of the beneficiaries" means the beneficial interests provided in
25the terms of a trust.
AB490,31,3
1(15) "Internal Revenue Code" means the Internal Revenue Code of 1986, as
2amended, or such subsequent federal revenue law as may be in effect from time to
3time.
AB490,31,5 4(16) "Jurisdiction," with respect to a geographic area, includes a state or
5country.
AB490,31,9 6(17) "Person" means an individual, corporation, business trust, estate, trust,
7partnership, limited liability company, association, joint venture, government;
8governmental subdivision, agency, or instrumentality; public corporation; or any
9other legal or commercial entity.
AB490,31,10 10(18) "Power of appointment" has the meaning given in s. 702.02 (6).
AB490,31,12   11(19) "Power of withdrawal" means a presently exercisable general power of
12appointment but does not include any of the following:
AB490,31,1313 (a) A power exercisable by a trustee and limited by an ascertainable standard.
AB490,31,1514 (b) A power exercisable by another person only upon consent of a trustee or of
15a person holding an adverse interest.
AB490,31,17 16(20) "Property" means anything that may be the subject of ownership, whether
17real or personal or legal or equitable, or any interest therein.
AB490,31,19 18(21) "Qualified beneficiary" means a beneficiary who, on the date on which the
19beneficiary's qualification is determined, satisfies any of the following:
AB490,31,2020 (a) Is a distributee or permissible distributee of trust income or principal.
AB490,31,2321 (b) Without considering the existence or exercise of a power of appointment,
22other than a power of appointment that has been irrevocably exercised and notice of
23the exercise has been given to the trustee, would be any of the following:
AB490,32,3
11. A distributee or permissible distributee of trust income or principal if the
2interests of the distributees described in par. (a) terminated on that date without
3causing the trust to terminate.
AB490,32,54 2. A distributee or permissible distributee of trust income or principal if the
5trust terminated on that date.
AB490,32,8 6(22) "Revocable," as applied to a trust, means that the trust can be revoked by
7the settlor without the consent of the trustee or a person holding an adverse interest,
8regardless of whether the settlor is incapacitated.
AB490,32,13   9(23) "Settlor" means a person, including a testator, who creates or contributes
10property to a trust. If more than one person creates or contributes property to a trust,
11each person is a settlor of the portion of the trust property attributable to that
12person's contribution except to the extent another person has the power to revoke the
13trust or withdraw that portion.
AB490,32,14 14(24) "Special power of appointment " has the meaning given in s. 702.02 (7).
AB490,32,16 15(25) "Spendthrift provision" means a term of a trust that restrains either or
16both of a voluntary or involuntary transfer of a beneficiary's interest.
AB490,32,20   17(26) "State" means a state of the United States, the District of Columbia,
18Puerto Rico, the United States Virgin Islands, any territory or insular possession
19subject to the jurisdiction of the United States, and an Indian tribe, band, or nation
20recognized by federal law or formally acknowledged by a state.
AB490,32,23 21(27) "Terms of a trust" means the manifestation of the settlor's intent regarding
22a trust's provisions as expressed in the trust instrument or as may be established by
23other evidence that would be admissible in a judicial proceeding.
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