AB648,,65 (9) A qualified trustee’s mandatory or discretionary power to use the income or principal of the legacy trust to pay, in whole or in part, income taxes due on the income of the legacy trust.

AB648,,66 (10) That a qualified trustee, whether pursuant to the qualified trustee’s discretion, the terms of the legacy trust, or the direction of an advisor pays any of the following:

AB648,,67 (a) A transferor’s debt that is outstanding at the time of the transferor’s death.

AB648,,68 (b) The expenses of administering the transferor’s estate.

AB648,,69 (c) Any estate, gift, generation-skipping transfer, or inheritance tax on behalf of the transferor or the transferor’s estate.

AB648,,70 (11) A provision in the legacy trust that transfers all or part of the trust assets to the transferor’s estate or revocable trust.

AB648,,71 (12) A transferor is a beneficiary of the legacy trust and is authorized to receive a payment of income or principal from a qualified annuity interest, as defined in 26 CFR 25.2702-3 (b), or a qualified unitrust interest, as defined in 26 CFR 25.2702-3 (c).

AB648,,72 699.04 Transferor’s powers. (1) A transferor of a legacy trust has only the powers and rights that are granted to the transferor by the trust instrument. An agreement or understanding, express or implied, between the transferor and a trustee that attempts to grant or permit the retention of greater rights or authority than is stated in the trust instrument is void.

AB648,,73 (2) Notwithstanding s. 699.03, the terms of a legacy trust may grant a transferor, whether or not the transferor is a trustee, the power to do any of the following:

AB648,,74 (a) Remove and replace a trustee.

AB648,,75 (b) Remove and replace an advisor.

AB648,,76 (c) Direct trust investments.

AB648,,77 (d) Execute any other managerial duties.

AB648,,78 699.05 Limitations on actions, remedies, and claims. (1) In this section:

AB648,,79 (a) “Cash” means the coins or currency of the United States or any other nation.

AB648,,80 (b) “Cash equivalent” means a monetary instrument or device that is commonly or routinely accepted instead of cash, including a certified or uncertified check; money order; bank draft; electronic transfer of funds; negotiable instrument or an instrument endorsed in blank or in bearer form; securities issued or guaranteed by the United States, a state, or a state or federal agency; funds on deposit in a savings or checking account or any similar account; funds on deposit in a money market account or similar account; or demand deposit account, time deposit account, or savings deposit account at any bank, savings and loan association, brokerage house, or similar institution.

AB648,,81 (c) “Fungible asset” means an asset other than money that is interchangeable for commercial purposes and the properties of which are essentially identical.

AB648,,82 (d) “Money” means cash or a cash equivalent.

AB648,,83 (2) Subject to sub. (3) and s. 699.10 (4), a creditor may not bring an action of any kind, including an action to enforce a judgment, an action at law or in equity, or an action for an attachment or other final or provisional remedy, against a person who made or received a qualified disposition, against a trustee of a legacy trust, or against or involving any property that is the subject of a qualified disposition or is otherwise held by a legacy trust, except that, subject to s. 699.06, a creditor may bring an action against a qualified disposition of an asset if the transferor made the qualified disposition with the intent to hinder, delay, or defraud the creditor.

AB648,,84 (3) A creditor may bring an action against a qualified disposition under sub. (2) only if the creditor satisfies one of the following:

AB648,,85 (a) The creditor was a creditor of the transferor when the qualified disposition was made and the creditor commences the action within the later of the following:

AB648,,86 1. Eighteen months after the qualified disposition.

AB648,,87 2. Six months after the creditor discovers or reasonably should have discovered the qualified disposition. For purposes of this subdivision, a creditor is considered to have discovered a transfer at the time a public record is made of the transfer.

AB648,,88 (b) The creditor becomes a creditor after the qualified disposition is made, and the creditor commences the action no later than 18 months after the qualified disposition.

AB648,,89 (4) In an action against a qualified disposition under sub. (2), each creditor has the burden of proving by clear and convincing evidence that the transferor made the qualified disposition with the intent to hinder, delay, or defraud the creditor. Proof by one creditor that a transferor made a qualified disposition with the intent to hinder, delay, or defraud that creditor is not proof that the transferor made a qualified disposition with the intent to hinder, delay, or defraud any other creditor and does not invalidate any other transfer of property to the legacy trust.

AB648,,90 (5) Subject to s. 699.10 (4), with respect to a qualified disposition, a creditor has only the rights and remedies that are provided in this section and s. 699.06.

AB648,,91 (6) Subject to sub. (8), an advisor may not be found liable for damages a person suffers in connection with a legacy trust unless the person demonstrates by clear and convincing evidence that the advisor’s actions violated the laws of this state, that the advisor acted knowingly and in bad faith, and that the advisor’s actions directly caused the damages suffered by the person.

AB648,,92 (7) Subject to sub. (8), a trustee of a legacy trust may not be found liable to a person who is not a beneficiary or a transferor of the legacy trust unless the person demonstrates by clear and convincing evidence that the trustee’s actions violated the laws of this state, that the trustee acted knowingly and in bad faith, and that the trustee’s actions directly caused the damages suffered by the person.

AB648,,93 (8) (a) Subject to s. 699.10 (4), no person may bring an action of any kind related to a qualified disposition if the period under sub. (3) in which a creditor may bring an action against the qualified disposition that is the basis of the action has expired.