AB803,,328 (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,,329 (b) A special fiduciary appointed under s. 701.1309.

AB803,,330 (c) A special-needs fiduciary under s. 701.1313.

AB803,,331 (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,,332 (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,,333 (3) “Expanded distributive discretion” means a discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.

AB803,,334 (4) “First trust” means a trust over which an authorized fiduciary may exercise the decanting power.

AB803,,335 (5) “First-trust instrument” means the trust instrument for a first trust.

AB803,,336 (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,,337 (7) “Second trust” means any of the following:

AB803,,338 (a) A first trust after modification under this subchapter.

AB803,,339 (b) A trust to which a distribution of property from a first trust is or may be made under this subchapter.

AB803,,340 (8) “Second-trust instrument” means the trust instrument for a 2nd trust.

AB803,,341 701.1303 Scope. (1) Except as otherwise provided in subs. (2) and (3), this subchapter applies to an express trust that is irrevocable or revocable by the settlor only with the consent of the trustee or a person holding an adverse interest.

AB803,,342 (2) This subchapter does not apply to a trust held solely for charitable purposes.

AB803,,343 (3) Subject to s. 701.1315, a trust instrument may restrict or prohibit exercise of the decanting power.

AB803,,344 (4) This subchapter does not limit the power of an authorized fiduciary or other person to distribute or appoint property in further trust or to modify a trust under the trust instrument, law of this state other than this subchapter, common law, a court order, or a nonjudicial settlement agreement.

AB803,,345 (5) This subchapter does not affect the ability of a settlor to provide in a trust instrument for the distribution of the trust property or appointment in further trust of the trust property or for modification of the trust instrument.

AB803,,346 701.1304 Fiduciary duty. (1) In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust. If a trustee or other authorized fiduciary is directed by another authorized fiduciary to exercise the decanting power, the trustee or other directed authorized fiduciary shall act to comply with the exercise of the decanting power and the trustee or other directed authorized fiduciary shall not be liable for the action regardless of any fiduciary duty that the trustee or other directed authorized fiduciary might otherwise have.

AB803,,347 (2) This subchapter does not create or imply a duty to exercise the decanting power or to inform beneficiaries about the applicability of this subchapter.

AB803,,348 (3) Except as otherwise provided in a first-trust instrument, for purposes of this subchapter and ss. 701.0801 and 701.0802 (2), the terms of the first trust are deemed to include the decanting power.

AB803,,349 701.1305 Application; governing law. This subchapter applies to a trust created before, on, or after the effective date of this section .... [LRB inserts date], if any of the following applies:

AB803,,350 (1) The trust has its principal place of administration in this state, including a trust whose principal place of administration has been changed to this state.

AB803,,351 (2) The trust provides by its trust instrument that it is governed by the law of this state or is governed by the law of this state for the purpose of any of the following:

AB803,,352 (a) Administration, including administration of a trust whose governing law for purposes of administration has been changed to the law of this state.

AB803,,353 (b) Construction of terms of the trust.

AB803,,354 (c) Determining the meaning or effect of terms of the trust.

AB803,,355 701.1306 Reasonable reliance. A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under this subchapter, law of this state other than this subchapter, or the law of another jurisdiction is not liable to any person for any action or failure to act as a result of the reliance.

AB803,,356 701.1307 Notice; exercise of decanting power. (1) In this section, a notice period begins on the day notice is given under sub. (3) and ends 30 days after the day notice is given.