CHAPTER 701
TRUSTS
701.01 Definitions.
701.02 Purposes for which trusts may be created.
701.03 Passive trusts abolished.
701.04 Purchase money resulting trusts abolished.
701.05 Title of trustee; interest of beneficiaries.
701.06 Spendthrift provisions and rights of creditors of beneficiaries.
701.07 Living trusts.
701.08 Transfers to living trusts.
701.09 Transfers to testamentary trusts.
701.10 Charitable trusts.
701.105 Private foundations.
701.11 Honorary trusts; cemetery trusts.
701.12 Revocation, modification and termination of trusts with consent of settlor.
701.13 Modification and termination of trusts by court action.
701.14 Circuit court procedure in trust proceedings.
701.15 Representation of others.
701.16 Testamentary trustees.
701.17 Successor and added trustees.
701.18 Resignation and removal of trustees.
701.19 Powers of trustees.
701.20 Principal and income.
701.21 Income payments and accumulations.
701.22 Distributions in kind by trustees; marital bequests.
701.23 Removal of trusts.
701.24 Applicability of ss. 701.01 to 701.23.
701.27 Disclaimer of transfers under nontestamentary instruments.
701.01 701.01 Definitions. As used in this chapter, unless the context indicates otherwise:
701.01(1) (1)Beneficiary. "Beneficiary" means a person who has a beneficial interest in a trust.
701.01(2) (2)Charitable and private trust. To the extent that trust income or principal presently or in the future must be used by the trustee exclusively for a charitable purpose as defined in s. 701.10 (1), the trust is a "charitable trust"; any other trust is a "private trust", provided it is for the benefit of a person sufficiently identifiable to enforce the trust.
701.01(3) (3)Court. "Court" means the court having jurisdiction.
701.01(4) (4)Property. "Property" means an interest in real or personal property.
701.01(5) (5)Settlor. "Settlor" means a person who directly or indirectly creates a living or testamentary trust or adds property to an existing trust.
701.01(6) (6)Testamentary and living trust. "Testamentary trust" means a trust subject to the continuing jurisdiction of the court assigned to exercise probate jurisdiction; "living trust" means any other trust, including a testamentary trust removed to this state from another state.
701.01(7) (7)Trust. "Trust" means an express living or testamentary, private or charitable trust in property which arises as a result of a manifestation of intention to create it.
701.01(8) (8)Trustee. "Trustee" means a person holding in trust title to or holding in trust a power over property. "Trustee" includes an original, added or successor trustee.
701.01 History History: 1971 c. 66; 1977 c. 187 s. 135; 1977 c. 449; 1983 a. 189.
701.01 Annotation See note to 801.05, citing Norton v. Bridges, 712 F (2d) 1156 (1983).
701.02 701.02 Purposes for which trusts may be created. A trust may be created for any lawful purpose.
701.02 History History: 1993 a. 16, 437.
701.02 Cross-reference Cross-reference: See s. 701.10 (1) which lists the purposes for which a charitable trust may be created.
701.02 Annotation Advantages of the revocable trust estate plan. Keydel, 1975 WBB No. 3.
701.03 701.03 Passive trusts abolished. Except as provided in s. 706.08 (4), every trust, to the extent it is private and passive, vests no title or power in the trustee, but the beneficiary takes a title corresponding in extent to the beneficial interest given the beneficiary. A trust is passive if the title or power given the trustee is merely nominal and the creating instrument neither expressly nor by implication from its terms imposes active management duties on the trustee.
701.03 History History: 1989 a. 231.
701.03 Annotation When a trustee has the duty of paying taxes and insurance, the trust is an active one. Kinzer v. Bidwill, 55 W (2d) 749, 201 NW (2d) 9.
701.03 Annotation This statute does not apply to living trusts. Section 701.07 which provides that a living trust cannot be deemed passive controls. McMahon v. Standard Bank & Trust Co. 202 W (2d) 565, 550 NW (2d) 727 (Ct. App. 1996).
701.04 701.04 Purchase money resulting trusts abolished.
701.04(1)(1) If title to property is transferred to one person and all or part of the purchase price is furnished by another, the latter may not enforce a purchase money resulting trust.
701.04(2) (2) Creditors of the person furnishing all or part of the purchase price may enforce a resulting trust, in proportion to the amount of purchase price furnished, to the extent necessary to satisfy their demands, unless an intent to defraud creditors is disproved.
701.04(3) (3) Nothing in this section shall affect the right to enforce a valid express trust or to establish a constructive trust based on fraud, undue influence, breach of confidential relationship or other appropriate grounds.
701.05 701.05 Title of trustee; interest of beneficiaries.
701.05(1)(1) Unless the creating instrument expressly limits the trustee to a lesser title or to a power, the trustee takes all title of the settlor or other transferor and holds such title subject to the trustee's fiduciary duties as trustee.
701.05(2) (2) If a trustee of a private trust has title to the trust property, a beneficiary has both a right to have the trustee perform the trustee's fiduciary duties and an equitable interest, present or future, in the trust property. If a trustee of a private trust holds only a power over property, a beneficiary has a right to have such trustee perform the trustee's fiduciary duties.
701.05(3) (3) In a private or charitable trust where the trustee takes all title of the settlor or other transferor and holds such title subject to the trustee's fiduciary duties as trustee, any interest expressly retained by the settlor or not effectively disposed of to others remains in the settlor, or the settlor's successors in interest, as an equitable reversionary interest and to this extent the settlor, or the settlor's successors, are beneficiaries of the trust. In a private trust where the trustee takes all title of the settlor or other transferor and holds such title subject to the trustee's fiduciary duties as trustee, any interest, present or future, created by the settlor in any other person is an equitable interest and such person is a beneficiary of the trust.
701.05 History History: 1971 c. 66; 1991 a. 316.
701.06 701.06 Spendthrift provisions and rights of creditors of beneficiaries.
701.06(1)(1)Income beneficiaries. A settlor may expressly provide in the creating instrument that the interest in income of a beneficiary other than the settlor is not subject to voluntary or involuntary alienation. The income interest of such a beneficiary cannot be assigned and is exempt from claims against the beneficiary until paid over to the beneficiary pursuant to the terms of the trust.
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This is an archival version of the Wis. Stats. database for 1995. See Are the Statutes on this Website Official?