AB490,71,10 8(2) Subject to sub. (1), a term of a trust providing that the interest of a
9beneficiary is held subject to a spendthrift trust, or words of similar import, restrains
10both a voluntary and involuntary transfer of the beneficiary's interest.

AB490,71,14 11(3) A beneficiary may not transfer an interest in a trust in violation of a valid
12spendthrift provision and, except as otherwise provided in this subchapter, a creditor
13or assignee of the beneficiary may not attach, garnish, execute on, or otherwise reach
14the interest or a distribution by the trustee before its receipt by the beneficiary.

AB490,71,19 15(4) Real property or tangible personal property that is owned by the trust but
16that is made available for a beneficiary's occupancy or use in accordance with the
17trustee's authority under the trust instrument may not be considered to have been
18distributed by the trustee or received by the beneficiary for purposes of allowing a
19creditor or assignee of the beneficiary to reach the property.

AB490,71,21 21701.0503 (title) Exceptions to spendthrift provision.

AB490,72,2 23701.0504 Discretionary trusts; effect of standard. (1) For purposes of this
24subchapter, and except as provided in sub. (3), a beneficiary's interest in a trust that
25is subject to the trustee's discretion does not constitute an interest in property or an

1enforceable right even if the discretion is expressed in the form of a standard of
2distribution or the beneficiary is then serving as sole trustee or cotrustee.

AB490,72,7 3(2) Except as provided in this subchapter, a creditor or other claimant may not
4attach present or future distributions from a beneficiary's interest in property or an
5enforceable right, obtain an order from a court forcing the judicial sale of the interest
6or compelling the trustee to make distributions, or reach the interest or right by any
7other means, even if the trustee has abused the trustee's discretion.

AB490,72,11 8(3) Subsections (1) and (2) do not apply if a beneficiary is acting as sole trustee
9of a trust for his or her benefit and his or her discretion to make distributions to
10himself or herself is not limited by an ascertainable standard or the consent of a party
11holding an adverse interest to the beneficiary.

AB490,72,14 12(4) (a) Except as provided in par. (b), this section does not limit the right of a
13beneficiary to maintain a judicial proceeding against a trustee for an abuse of
14discretion or failure to comply with a standard for distribution.

AB490,72,1615 (b) The right of a beneficiary described in par. (a) may not be exercised by a
16creditor.

AB490,72,20 18701.0505 Creditor's claim against settlor. (1) (a) Whether or not the terms
19of a trust include a spendthrift provision and except as provided in par. (b), the
20following rules apply to claims of a settlor's creditors:

AB490,72,2221 1. During the lifetime of the settlor, the property of a revocable trust is subject
22to claims of the settlor's creditors.

AB490,73,523 2. With respect to an irrevocable trust that is not a trust for an individual with
24a disability, upon application of a judgment creditor of the settlor, the court may, if
25the trust instrument requires or authorizes the trustee to make payments of income

1or principal to or for the settlor, order the trustee to satisfy part or all of the judgment
2out of part or all of the payments of income or principal as they are due, presently
3or in the future, or which are payable in the trustee's discretion. If a trust has more
4than one settlor, the amount the judgment creditor of a particular settlor may reach
5may not exceed the settlor's interest in the trust.

AB490,73,126 3. After the death of a settlor, and subject to the settlor's right to direct the
7source from which liabilities will be paid, the property of a trust that was revocable
8at the settlor's death is subject to claims of the settlor's creditors, costs of
9administration of the settlor's estate, the expenses of the settlor's funeral and
10disposal of remains, and statutory allowances to a surviving spouse and children to
11the extent the settlor's probate estate is inadequate to satisfy those claims, costs,
12expenses, and allowances.

AB490,73,1413 (b) Assets of a trust that are exempt from claims of creditors under other
14statutes are not subject to par. (a).

AB490,73,15 15(2) For purposes of this subchapter, all of the following apply:

AB490,73,1816 (a) During the period the power may be exercised, the holder of a power of
17withdrawal is treated in the same manner as the settlor of a revocable trust to the
18extent of the property subject to the power.

AB490,73,2019 (e) 1. Contributions to the following trusts are not considered to have been
20contributed by the settlor:

AB490,73,2421 a. An irrevocable marital trust that is treated as qualified terminable interest
22property under section 2523 (f) of the Internal Revenue Code if after the death of the
23settlor's spouse the settlor is a beneficiary of the trust or an irrevocable trust that
24receives property from the trust.

AB490,74,4

1b. An irrevocable marital trust that is treated as a general power of
2appointment trust under section 2523 (e) of the Internal Revenue Code if after the
3death of the settlor's spouse the settlor is a beneficiary of the trust or an irrevocable
4trust that receives property from the trust.

AB490,74,75 c. An irrevocable trust for the settlor's spouse if after the death of the settlor's
6spouse the settlor is a beneficiary of the trust or an irrevocable trust that receives
7property from the trust.

AB490,74,108 d. An irrevocable trust for the benefit of a person, the settlor of which is the
9person's spouse, regardless of whether or when the person was the settlor of an
10irrevocable trust for the benefit of that spouse.