CHAPTER 854
transfers at death — general rules
854.03 Requirement of survival by 120 hours.
854.04 Representation; per stirpes; modified per stirpes; per capita at each generation; per capita.
854.05 No exoneration of encumbered property.
854.06 Predeceased transferee.
854.07 Failed transfer and residue.
854.08 Nonademption of specific gifts in certain cases.
854.09 Advancement; satisfaction.
854.11 Gift of securities.
854.14 Beneficiary who kills decedent.
854.15 Revocation of provisions in favor of former spouse.
854.17 Classification; how determined.
854.18 Order in which assets apportioned; abatement.
854.19 Penalty clause for contest.
854.20 Status of adopted persons.
854.21 Persons included in family groups or classes.
854.22 Form of distribution for transfers to family groups or classes.
854.23 Protection of payers and other 3rd parties.
854.24 Protection of buyers.
854.25 Personal liability of recipients not for value.
854.26 Effect of federal preemption.
854.01
854.01
Definition. In this chapter, "governing instrument" means a will; a deed; a trust instrument; an insurance or annuity policy; a contract; a pension, profit-sharing, retirement or similar benefit plan; a marital property agreement under
s. 766.58 (3) (f); a beneficiary designation under
s. 40.02 (8) (a); an instrument under
ch. 705; an instrument that creates or exercises a power of appointment or any other dispositive, appointive or nominative instrument that transfers property at death.
854.01 History
History: 1997 a. 188.
854.02
854.02
Scope. This chapter applies to all statutes and governing instruments that transfer property at death.
854.02 History
History: 1997 a. 188.
854.02 Annotation
Wisconsin's New Probate Code. Erlanger. Wis. Law. Oct. 1998.
854.03
854.03
Requirement of survival by 120 hours. 854.03(1)
(1)
Requirement of survival. Except as provided in
sub. (5), if property is transferred to an individual under a statute or under a provision in a governing instrument that requires the individual to survive an event and it is not established that the individual survived the event by at least 120 hours, the individual is considered to have predeceased the event.
854.03(2)
(2) Co-owners with right of survivorship. 854.03(2)(a)(a) In this subsection, "co-owners with right of survivorship" includes joint tenants, owners of survivorship marital property and other co-owners of property or accounts that are held under circumstances that entitle one or more persons to all of the property or account upon the death of one or more of the others.
854.03(2)(b)
(b) Except as provided in
sub. (5), if property is transferred under a governing instrument that establishes 2 or more co-owners with survivorship, and if it is not established that at least one of the co-owners survived the others by at least 120 hours, the property is transferred to the co-owners in proportion to their ownership interests.
854.03(3)
(3) Marital property. Except as provided in
subs. (4) and
(5), if a husband and wife die leaving marital property and it is not established that one survived the other by at least 120 hours, 50% of the marital property shall be distributed as if it were the husband's individual property and the husband had survived, and 50% of the marital property shall be distributed as if it were the wife's individual property and the wife had survived.
854.03(4)
(4) Life insurance. Except as provided in
sub. (5), if the insured and the beneficiary under a policy of life or accident insurance have both died and it is not established that one survived the other by at least 120 hours, the proceeds of the policy shall be distributed as if the insured had survived the beneficiary. If the policy is the marital property of the insured and of the insured's spouse and there is no alternative beneficiary except the estate or the personal representative of the estate, the proceeds shall be distributed as marital property in the manner provided in
sub. (3).
854.03(5)
(5) Exceptions. This section does not apply if any of the following conditions applies:
854.03(5)(a)
(a) The statute or governing instrument requires the individual to survive an event by a specified period.
854.03(5)(b)
(b) The statute or governing instrument indicates that the individual is not required to survive an event by any specified period.
854.03(5)(c)
(c) The statute or governing instrument deals with simultaneous deaths or deaths in a common disaster and the provision is relevant to the facts.
854.03(5)(d)
(d) The imposition of a 120-hour requirement would cause a nonvested property interest or a power of appointment to fail to be valid, or to be invalidated, under
s. 700.16 or under the rule against perpetuities of the applicable jurisdiction.
854.03(5)(e)
(e) The application of this section to more than one statute or governing instrument would result in an unintended failure or unintended duplication of a transfer.
854.03(5)(f)
(f) The application of this section would result in the escheat of an intestate estate under
s. 852.01 (3).
854.03(6)
(6) Evidentiary standard. Unless the statute or governing instrument provides otherwise, proof that an individual survived the period required under
subs. (1) to
(4) must be by clear and convincing evidence.
854.03(7)
(7) Extrinsic evidence. Extrinsic evidence may be used to construe a governing instrument affected by this section.
854.03 History
History: 1997 a. 188.
854.04
854.04
Representation; per stirpes; modified per stirpes; per capita at each generation; per capita. 854.04(1)
(1)
By representation or per stirpes. 854.04(1)(a)(a) Except as provided in
subs. (5) and
(6), if a statute or a governing instrument calls for property to be distributed to the issue or descendants of a designated person "by representation", "by right of representation" or "per stirpes", the property is divided into equal shares for the children of the designated person. Each surviving child and each deceased child who left surviving issue are allocated one share.
854.04(1)(b)
(b) The share of each deceased child allocated a share under
par. (a) is divided among that person's issue in the same manner as under
par. (a), repeating until the property is fully allocated among surviving issue.
854.04(2)(a)(a) Except as provided in
subs. (5) and
(6), if a statute or a governing instrument calls for property to be distributed to the issue or descendants of a designated person by "modified per stirpes", the property is divided into equal shares at the generation nearest to the designated person that contains one or more surviving issue. Each survivor and each deceased person in that same generation who left surviving issue are allocated one share.
854.04(2)(b)
(b) The share of each deceased person allocated a share in
par. (a) is divided among that person's issue in the same manner as under
par. (a), repeating until the property is fully allocated.
854.04(3)(a)(a) Except as provided in
subs. (5) and
(6), if a statute or a governing instrument calls for property to be distributed to the issue or descendants of a designated person "per capita at each generation", the property is divided into equal shares at the generation nearest to the designated person that contains one or more surviving issue. Each survivor in that generation is allocated one share, and the shares of the deceased persons in that same generation who left surviving issue are combined for distribution under
par. (b).
854.04(3)(b)
(b) The combined share created under
par. (a) is divided among the surviving issue of the persons whose shares were combined in the same manner as under
par. (a), as though all of those issue were the issue of one person. The process is repeated until the property is fully allocated.
854.04(4)
(4) Per capita. Except as provided in
sub. (6), if a statute or governing instrument calls for property to be distributed to a group or class "per capita", the property is divided into as many shares as there are surviving members of the group or class, and each member receives one share.
854.04(5)
(5) Certain individuals disregarded. For the purposes of this section, all of the following apply:
854.04(5)(a)
(a) An individual who is deceased and who left no surviving issue is disregarded.
854.04(5)(b)
(b) An individual who has a surviving ancestor who is an issue of the designated person is not entitled to a share.
854.04(6)
(6) Contrary intent. This section does not apply if the transfer is made under a governing instrument and there is a finding of contrary intent of the person who executed the governing instrument. Extrinsic evidence may be used to construe that intent.
854.04 History
History: 1997 a. 188.
854.04 Annotation
A will clause providing for "equal shares to the then living issue of donor's three daughter-beneficiaries in this trust, and/or the then living issue of any deceased issue of donor's three daughter-beneficiaries, by right of representation" required distribution per capita among the grandchildren and by representation among their children. In re Bowler Trust,
56 Wis. 2d 171,
201 N.W.2d 573 (1972).
854.04 Note
NOTE: The preceding case was decided prior to the adoption of
1997 Wis. Act 188, which made extensive revisions to the Wisconsin Probate Code and does not relate directly to this section.
854.05
854.05
No exoneration of encumbered property. 854.05(1)(a)
(a) "Debt" includes accrued interest on the debt.
854.05(1)(b)
(b) "Encumbrance" includes mortgages, liens, pledges and other security agreements that are encumbrances on property.
854.05(2)(a)(a) Except as provided in
sub. (5), all property that is specifically transferred by a governing instrument shall be assigned to the transferee without exoneration of a debt that is secured by an encumbrance on the property.
854.05(2)(b)
(b) If the debt that is secured by the encumbrance on the property is paid in whole or in part out of other assets, the specifically transferred property shall be assigned to the transferee only if any of the following applies:
854.05(2)(b)1.
1. The transferee contributes to the person or entity that held the assets that were used to pay the debt an amount equal to the amount that was paid.
854.05(2)(b)2.
2. The person or entity secures the amount described in
subd. 1. through a new encumbrance on the property.
854.05(3)
(3) Joint tenancy; survivorship marital property. Except as provided in
sub. (5), if all or part of a debt that is secured by an encumbrance on property in which the decedent at the time of death had an interest as a joint tenant or as a holder of survivorship marital property is paid out of other assets as the result of a claim being allowed, the person or entity that makes the payment is subrogated to all rights that the claimant had against the property.
854.05(4)
(4) Insurance. Except as provided in
sub. (5), if all or part of a debt that is secured by an encumbrance on the proceeds payable under a life insurance policy in which the decedent was the named insured is paid out of other assets as the result of a claim being allowed, the person or entity that makes the payment is subrogated to all rights that the claimant had against the proceeds.
854.05(5)
(5) Contrary intent. This section does not apply to the extent that a governing instrument, either expressly or as construed from extrinsic evidence, provides otherwise. A general directive to pay debts does not give rise to a presumption of exoneration.
854.05 History
History: 1997 a. 188.
854.06
854.06
Predeceased transferee. 854.06(1)(a)
(a) "Provision in a governing instrument" includes all of the following:
854.06(1)(a)1.
1. A gift to an individual whether or not the individual is alive at the time of the execution of the instrument.
854.06(1)(a)2.
2. A share in a class gift only if a member of the class dies after the execution of the instrument.
854.06(1)(a)3.
3. An appointment by the decedent under any power of appointment, unless the issue who would take under this section could not have been appointees under the terms of the power.
854.06(1)(b)
(b) "Revocable provision" means a provision that the decedent had the power to change or revoke immediately before death.
