AB803,,310310701.0818 (2) (b) 2. h. Exercise a decanting power under subch. XIII or direct an authorized fiduciary, as defined in s. 701.1302 (1), to exercise a decanting power under subch. XIII.

AB803,,312312701.1005 (1) A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the earlier of either the date on which the beneficiary or a representative of the beneficiary waived the right to a report under s. 701.0813 (4) or the date on which the beneficiary or a representative of the beneficiary was sent a report or other record that adequately disclosed the existence of a potential claim for breach of trust.

AB803,,314314701.1005 (2) A report or other record adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.

AB803,,316316701.1009 (2) At the time of the consent, release, or ratification, the beneficiary did not have knowledge or a reasonable opportunity to obtain knowledge of the beneficiary’s rights or of the material facts relating to the breach.

AB803,,318318701.1105 (1) (b) Is given in the manner provided in ch. 879, except that notice by publication is not required s. 701.0109.

AB803,,320320701.1136 (1) Distribution of income. Except as otherwise determined by the trustee or a court under s. 701.1106 with respect to unitrust distributions, if a beneficiary is entitled to receive income from a trust, but the trust instrument fails to specify how frequently it is to be paid a current beneficiary is to receive income from the trust, the trustee shall distribute at least annually the income to which such the current beneficiary is entitled at least annually.

AB803,117321Section 117. Subchapter XIII of chapter 701 [precedes 701.1301] of the statutes is created to read:

AB803,,325325701.1301 Short title. This subchapter may be cited as the Uniform Trust Decanting Act.

AB803,,326326701.1302 Definitions. In this subchapter:

AB803,,327327(1) “Authorized fiduciary” means any of the following:

AB803,,328328(a) A trustee, a directing party, or another fiduciary, other than a settlor, that has discretion to distribute or direct a trustee to distribute part or all of the principal of the first trust to one or more current beneficiaries.

AB803,,329329(b) A special fiduciary appointed under s. 701.1309.

AB803,,330330(c) A special-needs fiduciary under s. 701.1313.

AB803,,331331(d) A trust protector who has been granted a decanting power, which may be exercised in a fiduciary or nonfiduciary capacity, under s. 701.0818 (2) (b) 2. h.

AB803,,332332(2) “Decanting power” means the power of an authorized fiduciary under this subchapter to distribute property of a first trust to one or more 2nd trusts or to modify the terms of the first trust.

AB803,,333333(3) “Expanded distributive discretion” means a discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.

AB803,,334334(4) “First trust” means a trust over which an authorized fiduciary may exercise the decanting power.

AB803,,335335(5) “First-trust instrument” means the trust instrument for a first trust.

AB803,,336336(6) “Reasonably definite standard” means a clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of section 674 (b) (5) (A) of the Internal Revenue Code and any applicable regulations.

AB803,,337337(7) “Second trust” means any of the following:

AB803,,338338(a) A first trust after modification under this subchapter.

AB803,,339339(b) A trust to which a distribution of property from a first trust is or may be made under this subchapter.