AB648,,53 699.03 Implied power to revoke or to transfer an interest in a legacy trust. None of the following is considered to be, including in combination, a power to revoke a legacy trust or to voluntarily or involuntarily transfer an interest in the legacy trust:

AB648,,54 (1) A transferor’s power to veto a distribution of income or principal from the legacy trust.

AB648,,55 (2) A special power of appointment, as defined in s. 702.02 (7), exercisable by a transferor by will or another written document that is effective during the lifetime of the transferor or upon the death of the transferor.

AB648,,56 (3) The right of a transferor to receive income from the legacy trust in accordance with the terms of the legacy trust.

AB648,,57 (4) That a transferor is a beneficiary of the legacy trust regardless of whether the trust qualifies as a charitable remainder annuity trust under 26 USC 664 (d) (1) or as a charitable remainder unitrust under 26 USC 664 (d) (2), even if the transferor has the right to release the transferor’s retained interest, in whole or in part, in the charitable remainder annuity trust or charitable remainder unitrust at any time in favor of one or more of the remainder beneficiaries of the legacy trust.

AB648,,58 (5) A transferor’s annual receipt of a percentage of the value of the legacy trust assets, as determined in accordance with the terms of the trust, as long as the amount the transferor receives in a year is not more than the amount defined as the income of the legacy trust under 26 USC 643 (b) or, for any qualified retirement plan or eligible deferred compensation plan that is an asset of the legacy trust, the minimum required distribution, as defined in 26 USC 4974 (b).

AB648,,59 (6) A transferor’s potential or actual receipt or use of principal or income of the legacy trust if the potential or actual receipt or use is the result of any of the following:

AB648,,60 (a) A qualified trustee’s discretion. For purposes of this paragraph, a qualified trustee has discretion with respect to the distribution and use of the principal and income of a legacy trust unless the terms of the legacy trust expressly provide otherwise.

AB648,,61 (b) A qualified trustee applying a standard that governs the distribution or use of principal or income of the legacy trust.

AB648,,62 (c) A qualified trustee acting at the direction of an advisor if the advisor’s direction is discretionary or pursuant to a standard that governs the distribution or use of principal or income under the terms of the legacy trust. For purposes of this paragraph, an advisor’s direction is discretionary unless the terms of the legacy trust expressly provide otherwise.

AB648,,63 (7) A transferor’s potential or actual right to use real or tangible personal property owned by the legacy trust.

AB648,,64 (8) A transferor’s right to possess and enjoy a qualified interest, as defined in 26 USC 2702 (b), or property held under a qualified personal residence trust, as described in 26 USC 2702 (c).

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.