AB803,67,9 (2) To the extent that property of a 2nd trust is attributable to property of the first trust, the property of the 2nd trust is subject to any rules governing maximum perpetuity, accumulation, or suspension of the power of alienation that apply to property of the first trust.

AB803,67,13 701.1321 Need to distribute not required. An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of the exercise.

AB803,67,18 701.1322 Saving provision. (1) If exercise of the decanting power would be effective under this subchapter except that the 2nd-trust instrument in part does not comply with this subchapter, the exercise of the power is effective and the following rules apply with respect to the principal of the 2nd trust attributable to the exercise of the power:

AB803,67,20 (a) A provision in the 2nd-trust instrument that is not permitted under this subchapter is void to the extent necessary to comply with this subchapter.

AB803,67,23 (b) A provision required by this subchapter to be in the 2nd-trust instrument that is not contained in the instrument is deemed to be included in the instrument to the extent necessary to comply with this subchapter.

AB803,68,3 (2) If a trustee or other fiduciary of a 2nd trust determines that sub. (1) applies to a prior exercise of the decanting power, the fiduciary shall take corrective action consistent with the fiduciary's duties.

AB803,68,8 701.1323 Trust for care of animal. (1) The decanting power may be exercised over an animal trust that has an animal protector to the extent the trust could be decanted under this subchapter if each animal that benefits from the trust were an individual, if the animal protector consents in a signed record to the exercise of the power.

AB803,68,10 (2) An animal protector has the rights under this subchapter of a qualified beneficiary.

AB803,68,14 (3) Notwithstanding any other provision of this subchapter, if a first trust is an animal trust, in an exercise of the decanting power, the 2nd trust must provide that trust property may be applied only to its intended purpose for the period the first trust benefitted the animal.

AB803,68,17 701.1324 Terms of 2nd trust. A reference in this chapter to a trust instrument or terms of the trust includes a 2nd-trust instrument and the terms of the 2nd trust.

AB803,68,21 701.1325 Settlor. (1) For purposes of law of this state other than this subchapter and subject to sub. (2), a settlor of a first trust is deemed to be the settlor of the 2nd trust with respect to the portion of the principal of the first trust subject to the exercise of the decanting power.

AB803,68,24 (2) In determining settlor intent with respect to a 2nd trust, the intent of a settlor of the first trust, a settlor of the 2nd trust, and the authorized fiduciary may be considered.

AB803,69,5 701.1326 Later-discovered property. (1) Except as otherwise provided in sub. (3), if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more 2nd trusts, later-discovered property belonging to the first trust and property paid to or acquired by the first trust after the exercise of the power is part of the trust estate of the 2nd trust or trusts.

AB803,69,10 (2) Except as otherwise provided in sub. (3), if exercise of the decanting power was intended to distribute less than all the principal of the first trust to one or more 2nd trusts, later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power remains part of the trust estate of the first trust.

AB803,69,14 (3) An authorized fiduciary may provide in an exercise of the decanting power or by the terms of a 2nd trust for disposition of later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power.

AB803,69,17 701.1327 Obligations. A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the 2nd trust after exercise of the decanting power.

AB803,118 Section 118 . Chapter 702 of the statutes is repealed and recreated to read:

AB803,69,19 CHAPTER 702

AB803,69,20 UNIFORM POWERS OF APPOINTMENT ACT

AB803,69,21 SUBCHAPTER I

AB803,69,22 GENERAL PROVISIONS

AB803,69,24 702.101 Short title. This act may be cited as the Uniform Powers of Appointment Act.

AB803,69,25 702.102 Definitions. In this chapter:

AB803,70,2 (1) “Appointee” means a person to which a powerholder makes an appointment of appointive property.

AB803,70,4 (2) “Appointive property” means the property or property interest subject to a power of appointment.

AB803,70,7 (3) “Blanket-exercise clause” means a clause in an instrument that exercises a power of appointment and is not a specific-exercise clause. “Blanket-exercise clause” includes a clause that does any of the following:

AB803,70,9 (a) Expressly uses the words “any power” in exercising a power of appointment the powerholder has.

AB803,70,11 (b) Expressly uses the words “any property” in appointing any property over which a powerholder has a power of appointment.

AB803,70,12 (c) Disposes of all property subject to disposition by the powerholder.