SB384,30,2
1(8) "Environmental law" means a federal, state, or local law, rule, regulation,
2or ordinance relating to protection or remediation of the environment.
SB384,30,3 3(9) "General power of appointment" has the meaning given in s. 702.02 (5).
SB384,30,5 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.
SB384,30,7 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.
SB384,30,10 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.
SB384,30,12 11(13) "Individual with a disability" means an individual who meets one of the
12following tests:
SB384,30,1513 (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.
SB384,30,2316 (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.
SB384,30,25 24(14) "Interests of the beneficiaries" means the beneficial interests provided in
25the terms of a trust.
SB384,31,3
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.
SB384,31,5 4(16) "Jurisdiction," with respect to a geographic area, includes a state or
5country.
SB384,31,9 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.
SB384,31,10 10(18) "Power of appointment" has the meaning given in s. 702.02 (6).
SB384,31,12   11(19) "Power of withdrawal" means a presently exercisable general power of
12appointment but does not include any of the following:
SB384,31,1313 (a) A power exercisable by a trustee and limited by an ascertainable standard.
SB384,31,1514 (b) A power exercisable by another person only upon consent of a trustee or of
15a person holding an adverse interest.
SB384,31,17 16(20) "Property" means anything that may be the subject of ownership, whether
17real or personal or legal or equitable, or any interest therein.
SB384,31,19 18(21) "Qualified beneficiary" means a beneficiary who, on the date on which the
19beneficiary's qualification is determined, satisfies any of the following:
SB384,31,2020 (a) Is a distributee or permissible distributee of trust income or principal.
SB384,31,2321 (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:
SB384,32,3
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.
SB384,32,54 2. A distributee or permissible distributee of trust income or principal if the
5trust terminated on that date.
SB384,32,8 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.
SB384,32,13   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.
SB384,32,14 14(24) "Special power of appointment " has the meaning given in s. 702.02 (7).
SB384,32,16 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.
SB384,32,20   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.
SB384,32,23 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.
SB384,32,25 24(28) "Trustee" includes an original, additional, and successor trustee, and a
25cotrustee.
SB384,33,5
1(29) "Trust for an individual with a disability" means a trust that is established
2for the benefit of an individual with a disability of any age, if the assets of the trust
3would not be counted as resources of the individual with a disability for purposes of
4eligibility for medical assistance under subch. IV of ch. 49, if he or she applied for
5medical assistance and was otherwise eligible.
SB384,33,10 6(30) "Trust instrument" means an instrument, including any amendments or
7modifications to the instrument under s. 701.0111 or subch. IV, that is executed by
8the settlor that contains terms of a trust or is created under a statute, judgment, or
9decree that orders property to be transferred to a trustee to be administered for the
10benefit of a beneficiary.
SB384,33,13 11(31) "Trust protector" means a person who, in a trust instrument or court order,
12is granted a power, other than a power of appointment, in a capacity other than as
13a trustee or a directing party.
SB384,52 14Section 52. 701.0104 of the statutes is created to read:
SB384,33,16 15701.0104 Knowledge. (1) Subject to sub. (2), a person has knowledge of a fact
16if any of the following applies:
SB384,33,1717 (a) The person has actual knowledge of the fact.
SB384,33,1818 (b) The person has received a notice or notification of the fact.
SB384,33,2019 (c) The person has reason to know the fact from all the facts and circumstances
20known to the person at the time in question.
SB384,34,6 21(2) An organization that conducts activities through employees has notice or
22knowledge of a fact involving a trust only from the time the information was received
23by an employee having responsibility to act for the trust, or would have been received
24by the employee if the organization had exercised reasonable diligence. An
25organization exercises reasonable diligence if it maintains reasonable routines for

1communicating significant information to the employee having responsibility to act
2for the trust and there is reasonable compliance with the routines. Reasonable
3diligence does not require an employee of the organization to communicate
4information unless the communication is part of the individual's regular duties or the
5individual knows a matter involving the trust would be materially affected by the
6information.
SB384,53 7Section 53. 701.0105 of the statutes is created to read:
SB384,34,11 8701.0105 Default and mandatory rules. (1) Except as otherwise provided
9in the terms of the trust, this chapter governs the duties and powers of trustees,
10directing parties, and trust protectors; relations among trustees, directing parties,
11and trust protectors; and the rights and interests of a beneficiaries.
SB384,34,13 12(2) The terms of a trust prevail over any provision of this chapter except for the
13following:
SB384,34,1414 (a) The requirements for creating a trust.
SB384,34,1715 (b) The duty of a trustee or a directing party to act in good faith and in
16accordance with the terms and purposes of a trust instrument and the interests of
17the beneficiaries.
SB384,34,1918 (c) The requirement that a trust and its terms be for the benefit of its
19beneficiaries, and that the trust have a purpose that is lawful.
SB384,34,2120 (d) The power of a court to modify or terminate a trust under ss. 701.0410 to
21701.0416.
SB384,34,2322 (e) The effect of a spendthrift provision and the rights of certain creditors and
23assignees to reach a trust as provided in ss. 701.0501 to 701.0508.
SB384,34,2424 (f) The power of the court under s. 701.0702.
SB384,35,2
1(g) The power of the court under s. 701.0708 (2) to adjust a trustee's, directing
2party's or trust protector's compensation specified in the terms of the trust.
SB384,35,33 (h) The effect of an exculpatory term under s. 701.1008.
SB384,35,54 (i) The rights under ss. 701.1010 to 701.1013 of a person other than a trustee
5or beneficiary.
SB384,35,66 (j) Periods of limitation for commencing a judicial proceeding.
SB384,35,87 (k) The power of the court to take such action and exercise such jurisdiction as
8may be necessary in the interests of justice.
SB384,35,109 (L) The jurisdiction of the court and venue for commencing a proceeding as
10provided in ss. 701.0202, 701.0203, and 701.0204.
SB384,35,1211 (m) The jurisdiction of the court under ss. 701.0807 (4), 701.0808 (9), and
12701.0818 (12).
SB384,35,1513 (n) The legal capacity under s. 701.0818 (2) (c) in which a trust protector who
14is also serving as a trustee or a directing party must exercise any power granted to
15the trust protector.
SB384,54 16Section 54. 701.0106 of the statutes is created to read:
SB384,35,19 17701.0106 Common law of trusts; principles of equity. The common law
18of trusts and principles of equity supplement this chapter, except to the extent
19modified by this chapter or another statute of this state.
SB384,55 20Section 55. 701.0107 of the statutes is created to read:
SB384,35,22 21701.0107 Governing law. The meaning and effect of the terms of a trust are
22determined by one of the following:
SB384,35,23   23(1) The law of the jurisdiction designated in the trust instrument.
SB384,35,25 24(2) In the absence of a controlling designation in the terms of a trust, the law
25of the jurisdiction having the most significant relationship to the matter at issue.
SB384,56
1Section 56. 701.0108 of the statutes is created to read:
SB384,36,3 2701.0108 Principal place of administration. (1) The principal place of
3administration of a trust is determined by any of the following:
SB384,36,44 (a) The designation in the trust instrument if any of the following applies:
SB384,36,65 1. A trustee's usual place of business is located in the jurisdiction designated
6in the trust instrument.
SB384,36,77 2. A trustee is a resident of the jurisdiction designated in the trust instrument.
SB384,36,98 3. All or part of the administration of the trust occurs in the jurisdiction
9designated in the trust instrument.
SB384,36,1110 4. The trust instrument designates the jurisdiction where the settlor is
11domiciled at the time the trust instrument is executed.
SB384,36,1512 (b) If the principal place of administration is not validly designated in the trust
13instrument under par. (a), the jurisdiction where the trustee's usual place of business
14is located or, if the trustee has no place of business, the jurisdiction where the
15trustee's residence is located.
SB384,36,1616 (c) The jurisdiction selected by the trustee under sub. (3).
SB384,37,5 17(2) (a) If a corporate trustee is designated as the trustee of a trust and the
18corporate trustee has offices in multiple states and performs administrative
19functions for the trust in multiple states, the corporate trustee may designate the
20corporate trustee's usual place of business by providing notice to the qualified
21beneficiaries, trust protectors, and directing parties. The notice is valid and
22controlling if the corporate trustee has a connection to the jurisdiction designated in
23the notice, including an office where trustee services are performed and the actual
24performance of some administrative functions for that particular trust in that
25particular jurisdiction. The subsequent transfer of some of the administrative

1functions of the corporate trustee to another state or states does not transfer the
2usual place of business as long as the corporate trustee continues to maintain an
3office and perform some administrative functions in the jurisdiction designated in
4the notice and the corporate trustee does not transfer the principal place of
5administration pursuant to sub. (4).
SB384,37,76 (b) If there are cotrustees, the trustee's usual place of business is determined
7by any of the following:
SB384,37,98 1. If there is only one corporate trustee, the jurisdiction where the usual place
9of business of the corporate trustee is located.
SB384,37,1210 2. The jurisdiction where the usual place of business or the residence of any of
11the cotrustees is located as agreed to by all of the cotrustees with notice to the
12qualified beneficiaries, trust protectors, and directing parties.
SB384,37,1413 3. If the cotrustees cannot agree on a jurisdiction under subd. 2., and subd. 1.
14does not apply, by a court.
SB384,37,18 15(3) Without precluding the right of the court to approve or disapprove a transfer
16and subject to sub. (5), a trustee may, but has no affirmative duty to, transfer a trust's
17principal place of administration to another state or to a jurisdiction outside of the
18United States.
SB384,37,22 19(4) A trustee shall notify the qualified beneficiaries, trust protectors, and
20directing parties of a proposed transfer of a trust's principal place of administration
21not less than 30 days before initiating the transfer. The trustee shall include in the
22notice of proposed transfer all of the following:
SB384,37,2423 (a) The name of the jurisdiction to which the principal place of administration
24is to be transferred.
SB384,38,2
1(b) The mailing address, electronic mail address, if available, and telephone
2number at the new location at which the trustee can be contacted.
SB384,38,33 (c) An explanation of the reasons for the proposed transfer.
SB384,38,44 (d) The date on which the proposed transfer is anticipated to occur.
SB384,38,75 (e) The date, not less than 30 days after the giving of the notice, by which a
6qualified beneficiary, trust protector, or directing party must notify the trustee of an
7objection to the proposed transfer.
SB384,38,12 8(5) If a qualified beneficiary, trust protector, or directing party commences a
9judicial proceeding objecting to the proposed transfer on or before the date specified
10in the notice, a trustee may not act under sub. (3) without court approval to transfer
11a trust's principal place of administration until the judicial proceeding is resolved or
12withdrawn.
SB384,38,15 13(6) In connection with a transfer of a trust's principal place of administration,
14the trustee may transfer some or all of the trust property to a successor trustee
15designated in the terms of the trust or appointed pursuant to s. 701.0704.
SB384,38,17 16(7) The law of the trust's principal place of administration governs
17administrative matters related to the trust.
SB384,57 18Section 57. 701.0109 of the statutes is created to read:
SB384,38,25 19701.0109 Methods and waiver of notice. (1) Notice to a person under this
20chapter or the sending of a document to a person under this chapter shall be
21accomplished in a manner reasonably suitable under the circumstances and likely
22to result in receipt of the notice or document. Permissible methods of notice or for
23sending a document include 1st class mail, personal delivery, delivery to the person's
24last known place of residence or place of business, or a properly directed electronic
25message.
SB384,39,3
1(2) Notice otherwise required under this chapter or a document otherwise
2required to be sent under this chapter does not need to be provided to a person whose
3identity or location is unknown to and not reasonably ascertainable by a trustee.
SB384,39,5 4(3) Notice under this chapter or the sending of a document under this chapter
5may be waived by the person to be notified or sent the document.
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