Chapter 701, TRUSTS

701.0101 Short title. This chapter may be cited as the Wisconsin Trust Code. History: 2013 a. 92. Estate Planning Metamorphosis: Wisconsin’s New Trust Code. Schultz & Wiensch. Wis. Law. June 2014.

701.0102 Scope. This chapter applies to express, charitable or noncharitable, and testamentary or living trusts, and any trust created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. This chapter does not ap…

701.0103 Definitions. In this chapter: (1) “Action,” with respect to an act of a trustee, directing party, or trust protector, includes a failure to act. (1m) “Animal protector” means a person appointed in an animal trust to enforce the trust on behalf of the animal or, if no suc…

701.0104 Knowledge. (1) Subject to sub. (2), a person has knowledge of a fact if any of the following applies: (a) The person has actual knowledge of the fact. (b) The person has received a notice or notification of the fact. (c) The person has reason to know the fact from all th…

701.0105 Default and mandatory rules. (1) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of trustees, directing parties, and trust protectors; relations among trustees, directing parties, and trust protectors; and the rights and…

701.0106 Common law of trusts; principles of equity. The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state. History: 2013 a. 92.

701.0107 Governing law. The meaning and effect of the terms of a trust are determined by one of the following: (1) The law of the jurisdiction designated in the trust instrument. (2) In the absence of a controlling designation in the terms of a trust, the law of the jurisdiction …

701.0108 Principal place of administration. (1) The principal place of administration of a trust is determined by any of the following: (a) The designation in the trust instrument if any of the following applies: 1. A trustee’s usual place of business is located in the jurisdicti…

701.0109 Methods of notice; waiver. (1) Notice to a person under this chapter or the sending of a document to a person under this chapter shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permi…

701.0110 Others treated as qualified beneficiaries. (1) An identified charitable organization 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 bei…

701.0111 Nonjudicial settlement agreements. (1) In this section, “interested person” means a person whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court. (2) An interested person may be represented under this sec…

701.0113 Insurable interest of trustee. (1) In this section: (a) “Relative” means a spouse or individual related within the 1st, 2nd, or 3rd degree of kinship under s. 990.001 (16). (b) “Settlor” means a person that executes a trust instrument and includes a person for whom a fid…

701.0201 Role of court in administration of trust. (1) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. (2) Unless ordered by the court upon a petition of a settlor, trustee, or quali…

701.0202 Personal jurisdiction. (1) A trustee, trust protector, or directing party submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust by accepting an appointment as a trustee, trust protector, or directing party of a trust …

701.0203 Subject matter jurisdiction. (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. (2) This …

701.0204 Venue. (1) Except as provided in sub. (2), venue for a judicial proceeding involving a trust may be in the county of this state in which the trust’s principal place of administration is or will be located or, if the trust is a testamentary trust and the decedent’s estate…

701.0205 Notice. If notice of a judicial proceeding involving a trust to an interested person, to the person’s representative or guardian ad litem, or to other persons, is required by law or deemed necessary by the court, the court shall order such notice to be given as prescribe…

701.0206 Attorney for person in military service. At the time of filing a petition for a judicial proceeding involving a trust, the petitioner shall file an affidavit setting forth the name of 701.0303

701.0301 Representation: basic effect. (1) Notice, information, an accounting, or a report given to a person who may represent and bind another person under this subchapter is a substitute for and has the same effect as notice, information, an accounting, or a report given direct…

701.0302 Representation by powerholder of certain powers of appointment. (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…

701.0303 Representation by fiduciaries, parents, or a person appointed by a trustee. Except as provided in s. 701.0411, to the extent there is no conflict of interest between a representative and the person represented or among those being represented with respect to a particular…

701.0304 Representation by person having substantially identical interest. (1) Unless otherwise represented with respect to a particular question or dispute, a minor, incapacitated, or unborn individual or a person whose identity or location is unknown and not reasonably ascertai…

701.0305 Appointment of representative by a court. If the court determines that an interest is not represented under this subchapter, or that the otherwise available representation might be inadequate, the court may appoint a representative or guardian ad litem to receive notice,…

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…

701.0307 Role of a representative or guardian ad litem. (1) A representative or guardian ad litem may act on behalf of the individual represented with respect to any matter arising under this chapter, whether or not a judicial proceeding concerning the trust is pending. (2) In ma…

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. History: 2023 a. 127. SUBCHAPTER IV C…

701.0401 Methods of creating a trust. A trust may be created by any of the following: (1) A transfer of property to another person as trustee during the settlor’s lifetime, by will, or by other disposition taking effect upon the settlor’s death. (2) A declaration by an owner of p…

701.0402 Requirements for creation. (1) A trust is created only if all of the following are satisfied: (a) The settlor of the trust has capacity, as defined in sub. (4), to create the trust, unless the trust is created by court order or by an agent, guardian of the estate, conser…

701.0403 Trusts created in other jurisdictions. A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation, any of the follow…

701.0404 Trust purposes. A trust may be created only to the extent its purposes are lawful and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries or for a noncharitable, but otherwise valid, purpose as described in s. 701.0409. History: 2013 a…

701.0405 Charitable purposes; enforcement. (2) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, or designate persons or procedures for selecting charitable purposes or beneficiaries, the court may select one or more charitable pur…

701.0406 Creation of trust induced by fraud, duress, or undue influence. A trust is void to the extent its creation was induced by fraud, duress, or undue influence. History: 2013 a. 92.

701.0407 Evidence of oral trust. Except as required by a statute other than this chapter, a trust does not need to be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence. History: 2013 a. 92.

701.0408 Trust for care of animal. (1) An animal trust may be created to provide for the care of an animal alive during the settlor’s lifetime. The animal trust terminates upon the death of the animal or, if the animal trust was created to provide for the care of more than one an…

701.0409 Noncharitable trust without ascertainable beneficiary. Except as otherwise provided in s. 701.0408 or by another statute, the following rules apply: (1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a…

701.0410 Modification or termination of trust; proceedings for approval or disapproval. (1) In addition to the methods of termination prescribed by ss. 701.0411 to 701.0414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the …

701.0411 Modification or termination of noncharitable irrevocable trust by consent. (1) Except as provided in sub. (1m), a noncharitable irrevocable trust may be modified or terminated, with or without court approval, upon consent of the settlor and all beneficiaries, even if the…

701.0412 Modification or termination because of unanticipated circumstances or inability to administer trust effectively. (1) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor…

701.0413 Cy pres. (1) The purpose of this section is to broaden the power of the courts to make charitable gifts more effective. The court shall liberally apply the cy pres doctrine. (2) Except as provided in sub. (3), if a particular charitable purpose becomes unlawful, impracti…

701.0414 Modification or termination of uneconomic trust. (1) In this section: (a) “Adjustment reference number” means the consumer price index for all urban consumers, as published by the United States bureau of labor statistics, in effect on January 1 of the year in which an ad…

701.0415 Reformation to correct mistakes. The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor’s intention if it is proved by clear and convincing evidence what the settlor’s intention was and that the terms of the trust were affecte…

701.0416 Modification or termination to achieve settlor’s tax objectives. To achieve the settlor’s tax objectives, the court may modify the terms of a trust or terminate a trust in a manner that is not contrary to the settlor’s probable intent. The court may provide that the modi…

701.0417 Combination and division of trusts. (1) After notice to each trust protector, each directing party, and the qualified beneficiaries, a trustee may do any of the following if the result does not impair rights of any beneficiary or adversely affect achievement of any trust…

701.0419 Transfers to trusts. (1) VALIDITY AND EFFECT. The order of execution of a trust instrument and a will or other instrument purporting to transfer or appoint property to the trust evidenced by the trust instrument shall be disregarded in determining the validity of the tra…

701.0501 Rights of beneficiary’s creditor or assignee. (1) (a) To the extent a beneficiary’s interest is not protected by a spendthrift provision, the court may authorize a judgment creditor or an assignee of the beneficiary to reach the beneficiary’s interest by attachment of pr…

701.0502 Spendthrift provision. (1) A spendthrift provision is valid only if any of the following applies: (a) The beneficiary is a person other than the settlor and is not treated as the settlor under s. 701.0505 (2). (b) The trust is a trust for an individual with a disability.…

701.0503 Exceptions to spendthrift provision. (1) CLAIMS FOR CHILD SUPPORT. Notwithstanding s. 701.0502, upon application of a person having a valid order directing a beneficiary to make payment for support of the beneficiary’s child, the court may do any of the following: (a) If…

701.0504 Discretionary trusts; effect of standard. (1) For purposes of this subchapter, and except as provided in sub. (3), a beneficiary’s interest in a trust that is subject to the trustee’s discretion does not constitute an interest in property or an enforceable right even if …

701.0505 Creditor’s claim against settlor. (1) (a) Whether or not the terms of a trust include a spendthrift provision and except as provided in par. (b), the following rules apply to claims of a settlor’s creditors: 1. During the lifetime of the settlor, the property of a revoca…

701.0506 Overdue distribution. (1) In this section, “mandatory distribution” means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. “Mandatory distribu…