SB759: Bill Text

SB759,,77 701.0103 (30) “Trust instrument” means an instrument, including any amendments or modifications to the instrument under s. 701.0111 or subch. IV, that is executed a record signed by the settlor that contains terms of to create a trust or is created under a statute, judgment, or decree that orders property to be transferred to a trustee to be administered for the benefit of a beneficiary, or by any person to create a 2nd trust as provided under subch. XIII, that contains some or all of the terms of the trust, and includes any amendments or modifications.

SB759,32 Section 32. 701.0109 (title) of the statutes is amended to read:

SB759,,79 701.0109 (title) Methods and waiver of notice; waiver.

SB759,33 Section 33. 701.0109 (3) of the statutes is amended to read:

SB759,,81 701.0109 (3) Notice under this chapter or, the sending of a document, or the right to object granted under this chapter may be waived by the person to be notified or, sent the document, or who has the right to object.

SB759,34 Section 34. 701.0109 (5) of the statutes is created to read:

SB759,,83 701.0109 (5) If notice is given to a trustee and more than one person is serving as trustee, notice given to any trustee is considered to be given to all persons serving as trustee, except that if a corporate trustee or an attorney licensed to practice in this state is serving as a trustee, notice must be given to all such corporate trustees and attorney trustees.

SB759,35 Section 35. 701.0110 (1) (intro.) of the statutes is renumbered 701.0110 (1) and amended to read:

SB759,,85 701.0110 (1) A An identified charitable organization that is expressly designated to receive distributions under the terms of a charitable trust and that is not subject to a right of substitution by the settlor or by any other party prior to the charitable organization becoming a distributee or permissible distributee of trust income or principal has the rights of a qualified beneficiary under this chapter if the identified charitable organization, on the date on which the identified charitable organization’s qualification is being determined, satisfies one of the following: is a current beneficiary or a presumptive remainder beneficiary.

SB759,36 Section 36. 701.0110 (1) (a), (b) and (c) of the statutes are repealed.

SB759,37 Section 37. 701.0110 (2) of the statutes is amended to read:

SB759,,88 701.0110 (2) A An animal protector or a person appointed to enforce a trust created for the care of an animal or another a noncharitable purpose without an ascertainable beneficiary as provided in either s. 701.0408 or 701.0409 has the rights of a qualified beneficiary under this chapter.

SB759,38 Section 38. 701.0110 (3) of the statutes is amended to read:

SB759,,90 701.0110 (3) The attorney general of this state has the rights of a qualified beneficiary under this chapter with respect to a charitable trust having its principal place of administration in this state only when the charitable interest to be represented would qualify under sub. (1) but there is no identified charitable organization has been expressly designated to receive distribution under the terms of a charitable trust that would qualify under sub. (1).

SB759,39 Section 39. 701.0111 (4) of the statutes is amended to read:

SB759,,92 701.0111 (4) A nonjudicial settlement agreement is valid only to the extent it includes terms and conditions that could be properly approved, ordered, directed, or otherwise determined by a court under this chapter or other applicable law.

SB759,40 Section 40. 701.0111 (5) (d) of the statutes is amended to read:

SB759,,94 701.0111 (5) (d) The resignation or appointment of a trustee or the removal of a trustee and replacement with a suitable successor trustee.

SB759,41 Section 41. 701.0111 (5) (m) of the statutes is created to read:

SB759,,96 701.0111 (5) (m) The modification or termination of a trust.

SB759,42 Section 42. 701.0111 (6) of the statutes is amended to read:

SB759,,98 701.0111 (6) Any interested person or other person affected may request a court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in subch. III was adequate, or to determine whether the agreement contains terms and conditions the court could have properly approved, ordered, directed, or otherwise determined.

SB759,43 Section 43. 701.0111 (7) of the statutes is created to read:

SB759,,100 701.0111 (7) Notice of any nonjudicial settlement agreement shall be given to the settlor, if living, the trustee, each trust protector, and each directing party at least 30 days before the proposed effective date of the nonjudicial settlement agreement. Notice is considered to be waived by any person who is a party to the agreement.

SB759,44 Section 44. 701.0113 of the statutes is created to read:

SB759,,102 701.0113 Insurable interest of trustee. (1) In this section:

SB759,,103 (a) “Relative” means a spouse or individual related within the 1st, 2nd, or 3rd degree of kinship under s. 990.001 (16).

SB759,,104 (b) “Settlor” means a person that executes a trust instrument and includes a person for whom a fiduciary or agent is acting.

SB759,,105 (2) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the owner if, on the date the policy is issued, all of the following apply:

SB759,,106 (a) The insured is any of the following:

SB759,,107 1. A settlor of the trust.

SB759,,108 2. An individual in whom a settlor of the trust has, or would have had if living at the time the policy was issued, an insurable interest.

SB759,,109 (b) The life insurance proceeds are primarily for the benefit of one or more trust beneficiaries who have any of the following:

SB759,,110 1. An insurable interest in the life of the insured.

SB759,,111 2. A substantial interest engendered by love or affection in the continuation of the life of the insured and, if not included under subd. 1., the beneficiary is a relative or stepchild of the insured.

SB759,45 Section 45. 701.0201 (3) (km) of the statutes is created to read:

SB759,,113 701.0201 (3) (km) Releasing a trustee, directing party, trust protector, or other person acting in a fiduciary capacity from liability for an action relating to the trust.

SB759,46 Section 46. 701.0201 (4) of the statutes is created to read:

SB759,,115 701.0201 (4) Except as otherwise provided in this chapter, and as applicable, the probate procedure described in ch. 879 applies to a proceeding brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust.

SB759,47 Section 47. 701.0203 (1) of the statutes is amended to read:

SB759,,117 701.0203 (1) The circuit court assigned to exercise probate jurisdiction has exclusive jurisdiction of proceedings in this state brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust. Except as otherwise provided in this chapter, and as applicable, the probate procedure described in ch. 879 applies to a proceeding brought by a trustee, trust protector, directing party, or beneficiary concerning the administration of a trust.

SB759,48 Section 48. 701.0302 (title) of the statutes is amended to read:

SB759,,119 701.0302 (title) Representation by holder of general power of appointment powerholder of certain powers of appointment.

SB759,49 Section 49. 701.0302 of the statutes is renumbered 701.0302 (2) and amended to read:

SB759,,121 701.0302 (2) To the extent there is no conflict of interest between a holder of a general power of appointment powerholder and a person the persons represented with respect to the particular question or dispute, the holder powerholder of a nongeneral power of appointment other than a broad limited power of appointment may represent and bind the person all persons or all members of a class of persons, including permissible appointees and takers in default, whose interests, as a permissible appointee, a taker in default, or otherwise, are subject to may be limited by the exercise or nonexercise of the power.

SB759,50 Section 50. 701.0302 (1) of the statutes is created to read:

SB759,,123 701.0302 (1) The powerholder of a general power of appointment exercisable in favor of the powerholder or the powerholder’s estate or the powerholder of a broad limited power of appointment may represent and bind all persons, including permissible appointees and takers in default, whose interests may be eliminated by the exercise or nonexercise of the power. For purposes of this subsection, a general power of appointment does not include powers of appointment exercisable only in favor of the creditors of the powerholder, the creditors of the powerholder’s estate, or both.

SB759,51 Section 51. 701.0303 (4) of the statutes is amended to read:

SB759,,125 701.0303 (4) A trustee may represent and bind the beneficiaries of the trust, except as to matters relating to the administration or distribution of the trust.

SB759,52 Section 52. 701.0303 (5) of the statutes is amended to read:

SB759,,127 701.0303 (5) A personal representative of a decedent’s estate may represent and bind a person interested in the estate, except as to matters relating to the administration or distribution of the estate.

SB759,53 Section 53. 701.0303 (6) (intro.) of the statutes is amended to read:

SB759,,129 701.0303 (6) (intro.) A parent may represent and bind the parent’s minor or unborn child, such child’s minor and unborn issue, and the minor and unborn issue of a then deceased child. If a disagreement arises between parents seeking to represent the same minor child or unborn child individual, representation is determined as follows:

SB759,54 Section 54. 701.0303 (6) (a) of the statutes is amended to read:

SB759,,131 701.0303 (6) (a) If only one parent is a beneficiary of the trust that is the subject of the representation, that parent may represent and bind the minor child or unborn child, such child’s minor and unborn issue, and the minor and unborn issue of a then deceased child.

SB759,55 Section 55. 701.0303 (6) (b) of the statutes is amended to read:

SB759,,133 701.0303 (6) (b) If both parents are beneficiaries of the trust that is the subject of the representation, the parent who is related to the settlor, other than by reason of being married to the other parent, may represent and bind the minor child or unborn child, such child’s minor and unborn issue, and the minor and unborn issue of a then deceased child.

SB759,56 Section 56. 701.0303 (6) (c) of the statutes is amended to read:

SB759,,135 701.0303 (6) (c) Subject to s. 701.0301 (4), if neither parent is a beneficiary of the trust that is the subject of the representation, the parent who is the settlor of the trust that is the subject of the representation may represent and bind the minor child or unborn child, such child’s minor and unborn issue, and the minor and unborn issue of a then deceased child.

SB759,57 Section 57. 701.0303 (6) (d) of the statutes is amended to read:

SB759,,137 701.0303 (6) (d) If neither parent is a beneficiary or settlor of the trust that is the subject of the representation, the parent who is related to the settlor, other than by reason of being married to the other parent, may represent and bind the minor child or unborn child, such child’s minor and unborn issue, and the minor and unborn issue of a then deceased child.

SB759,58 Section 58. 701.0303 (6) (e) of the statutes is created to read:

SB759,,139 701.0303 (6) (e) If an individual that is the subject of the representation is eligible to be represented by more than one ancestor under this subsection, the individual’s nearest ancestor may represent and bind such individual.

SB759,59 Section 59. 701.0304 of the statutes is renumbered 701.0304 (1).

SB759,60 Section 60. 701.0304 (2) of the statutes is created to read:

SB759,,142 701.0304 (2) (a) In this subsection:

SB759,,143 1. “Contingent successor remainder beneficiary” means a beneficiary who would succeed to the interest of a presumptive remainder beneficiary if the presumptive remainder beneficiary and all of the current beneficiaries failed to take such interest.

SB759,,144 2. “More remote contingent successor remainder beneficiary” means any contingent successor remainder beneficiary whose interest arises only upon the failure of the interest of another contingent successor remainder beneficiary.

SB759,,145 (b) A presumptive remainder beneficiary or a person authorized to represent the presumptive remainder beneficiary under sub. (1) may represent and bind a contingent successor remainder beneficiary or a more remote contingent successor remainder beneficiary for the same purposes, in the same circumstances, and to the same extent as an ascertainable beneficiary may represent and bind a minor or person who is incapacitated, unborn, or not reasonably ascertainable.

SB759,,146 (c) If a presumptive remainder beneficiary does not represent a more remote contingent successor remainder beneficiary, a contingent successor remainder beneficiary may represent and bind a more remote contingent successor remainder beneficiary for the same purposes, in the same circumstances, and to the same extent as an ascertainable beneficiary may represent and bind a minor or person who is incapacitated, unborn, or not reasonably ascertainable.

SB759,,147 (d) A contingent successor remainder beneficiary or a more remote contingent successor remainder beneficiary may be represented under pars. (b) and (c) whether or not the contingent successor remainder beneficiary or more remote contingent successor remainder beneficiary lacks capacity.

SB759,,148 (e) Under pars. (b) and (c), the difference between a beneficiary’s interest as a presumptive remainder beneficiary or contingent successor remainder beneficiary does not constitute a conflict of interest as to any more remote contingent successor remainder beneficiary.

SB759,61 Section 61. 701.0305 (1) of the statutes is renumbered 701.0305.

SB759,62 Section 62. 701.0305 (2) of the statutes is renumbered 701.0307 (1).

SB759,63 Section 63. 701.0305 (3) of the statutes is renumbered 701.0307 (2).

SB759,64 Section 64. 701.0306 of the statutes is created to read:

SB759,,153 701.0306 Designated representative. (1) If specifically nominated in the trust instrument, one or more persons may be designated to represent and bind a beneficiary and receive any notice, information, accounting, or report. The trust instrument may also authorize any one or more persons to designate one or more persons to represent and bind a beneficiary and receive any notice, information, accounting, or report.

SB759,,154 (2) Except as otherwise provided in this chapter, a person designated in sub. (1) may not represent and bind a beneficiary while that person is serving as trustee.

SB759,,155 (3) Except as otherwise provided in this chapter, a person designated in sub. (1) may not represent and bind another beneficiary if the person designated also is a beneficiary, unless one of the following applies:

SB759,,156 (a) That person was named by the settlor.

SB759,,157 (b) That person is one of the following:

SB759,,158 1. The beneficiary’s spouse.

SB759,,159 2. A grandparent or descendant of a grandparent of the beneficiary.

SB759,,160 3. A grandparent or descendant of a grandparent of the beneficiary’s spouse.

SB759,65 Section 65. 701.0307 (title) of the statutes is created to read:

SB759,,162 701.0307 (title) Role of a representative or guardian ad litem.

SB759,66 Section 66. 701.0308 of the statutes is created to read:

SB759,,164 701.0308 Liability of representative. No representative or guardian ad litem is liable to the beneficiary whose interests are represented, or to anyone claiming through that beneficiary, for any actions or omissions to act made in good faith.

SB759,67 Section 67. 701.0401 (5m) of the statutes is created to read: