702.502(1)(1)
Except as otherwise provided in sub.
(2), appointive property subject to a general power of appointment created by a person other than the powerholder is subject to a claim of a creditor of any of the following:
702.502(1)(a)
(a) If the power of appointment is a presently exercisable power of appointment, the powerholder to the extent the powerholder's property is insufficient.
702.502(1)(b)
(b) If the power of appointment is exercisable at the powerholder's death, the powerholder's estate or revocable trust, subject to the right of a decedent to direct the source from which liabilities are paid, but only to the extent of the powerholder's exercise of that general power of appointment and only to the extent that the claim of the creditor has been filed and allowed in the powerholder's estate or filed with and approved by the trustee of a revocable trust but not paid because the assets of the estate or revocable trust are insufficient. For purposes of this paragraph, a revocable trust is a trust that is revocable, as defined in s.
701.0103 (22), by the powerholder or jointly by the powerholder and the powerholder's spouse.
702.502(2)
(2) Subject to s.
702.504 (3), a power of appointment created by a person other than the powerholder that is subject to an ascertainable standard relating to an individual's health, education, support, or maintenance within the meaning of
26 USC 2041 (b) (1) (A) or
2514 (c) (1), is considered for purposes of this subchapter as a nongeneral power of appointment.
702.502(3)
(3) If during the powerholder's lifetime, the powerholder exercises a general power of appointment created by a person other than the powerholder, a creditor of the powerholder can reach the appointed interests to the same extent that under the law relating to fraudulent conveyances the creditor could reach property that the powerholder has owned and transferred during the powerholder's lifetime.
702.502 History
History: 2023 a. 127.
702.503(1)(1)
For purposes of this subchapter, and except as otherwise provided in sub.
(2), a power to withdraw property from a trust is considered, during the time the power may be exercised, as a presently exercisable general power of appointment to the extent of the property subject to the power to withdraw.
702.503(2)
(2) On the lapse, release, or waiver of a power to withdraw property from a trust, the power is treated as a presently exercisable general power of appointment only to the extent the value of the property affected by the lapse, release, or waiver exceeds the greater of the following:
702.503(2)(a)
(a) The amount referenced in section
2041 (b) (2) or
2514 (e) of the Internal Revenue Code.
702.503(2)(b)
(b) The amount referenced in section
2503 (b) of the Internal Revenue Code for each individual other than the beneficiary who makes a transfer to the trust or who is considered to make a transfer to the trust pursuant to an election to split gifts under section
2513 (a) of the Internal Revenue Code.
702.503 History
History: 2023 a. 127.
702.504
702.504
Creditor claim: nongeneral power of appointment. 702.504(1)(1)
Except as otherwise provided in subs.
(2) and
(3), appointive property subject to a nongeneral power of appointment is exempt from a claim of a creditor of the powerholder or the powerholder's estate.
702.504(2)
(2) Appointive property subject to a nongeneral power of appointment is subject to a claim of a creditor of the powerholder or the powerholder's estate to the extent that the powerholder owned the property and, reserving the nongeneral power, transferred the property in violation of the law relating to fraudulent conveyances.
702.504(3)
(3) For purposes of this subchapter, if the initial gift in default of appointment is to the powerholder or the powerholder's estate, a nongeneral power of appointment is treated as a general power of appointment.
702.504 History
History: 2023 a. 127.
702.505
702.505
Third parties in good faith protected. Any person acting without actual notice of claims of creditors under this subchapter incurs no liability to those creditors for transferring property that is subject to a power of appointment or that has been appointed. A purchaser without actual notice and for a valuable consideration takes an interest in property, legal or equitable, and takes the interest free of any rights that a powerholder's creditor may have under this subchapter.
702.505 History
History: 2023 a. 127.
MISCELLANEOUS PROVISIONS
702.601
702.601
Recording instruments relating to a power of appointment. 702.601(1)(1)
Each of the following instruments relating to a power of appointment is entitled to be recorded as a conveyance upon compliance with s.
706.05 (1):
702.601(1)(a)
(a) An instrument, other than a will, exercising a power of appointment.
702.601(1)(b)
(b) An instrument expressing consent to exercise a power of appointment.
702.601(2)
(2) If a power of appointment is exercised by a will, a certified copy of the will and of the certificate of probate thereof may be recorded.
702.601 History
History: 2023 a. 127.
702.602
702.602
Uniformity of application and construction. In applying and construing this section, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
702.602 History
History: 2023 a. 127.
702.603
702.603
Relation to electronic signatures in global and national commerce act. 702.603(1)(1)
Except as provided in sub.
(2), this chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act,
15 USC 7001, et seq.
702.603(2)
(2) This chapter does not modify, limit, or supersede
15 USC 7001 (c) or authorize electronic delivery of any of the notices described in
15 USC 7003 (b).
702.603 History
History: 2023 a. 127.
702.604(1)(a)
(a) This chapter applies to a power of appointment created before, on, or after March 23, 2024.
702.604(1)(b)
(b) This chapter applies to a judicial proceeding concerning a power of appointment commenced on or after March 23, 2024.
702.604(1)(c)
(c) This chapter applies to a judicial proceeding concerning a power of appointment commenced before March 23, 2024, unless the court finds that application of a particular provision of this chapter would interfere substantially with the effective conduct of the judicial proceeding or prejudice a right of a party, in which case the particular provision of this chapter does not apply and the superseded law applies.
702.604(1)(d)
(d) A rule of construction or presumption in this chapter applies to an instrument executed before March 23, 2024, unless there is a clear indication of a contrary intent in the terms of the instrument.
702.604(1)(e)
(e) Except as otherwise provided in pars.
(a) to
(d), this chapter does not apply to an action taken before March 23, 2024.
702.604(2)
(2) If a right is acquired, extinguished, or barred on the expiration of a prescribed period that commenced under a law of this state other than this chapter before March 23, 2024, the law continues to apply to the right.
702.604 History
History: 2023 a. 127.
