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    Wisconsin Lawyer
    June 01, 2014

    Estate Planning Metamorphosis: Wisconsin’s New Trust Code

    The new Wisconsin Trust Code is transformative and makes Wisconsin a better place to administer trusts. It answers basic questions not covered in the previous trust code and provides new tools that add flexibility for estate planning attorneys and their clients. The new code takes effect July 1, 2014.

    Victor J. Schultz & Adam J. Wiensch

    ButterflyFor many people, a revocable trust has replaced the will as the principal estate planning document used to distribute a person’s estate upon death. Given trusts’ importance, attorneys might think Wis. Stat. chapter 701 on trusts would answer basic questions such as the following:

    • What is the legal capacity and what are the requirements to create or amend a revocable trust?

    • What is the time limit for challenging a revocable trust after the settlor dies?

    • What are the duties of a trustee?

    • Can a parent represent the interests of a minor trust beneficiary?

    • Who is entitled to receive trust account statements?

    • After the settlor dies, under what circumstances can the terms of an irrevocable trust be modified?

    • What is the statute of limitation for a beneficiary to contest an action of the trustee?

    These and many other questions are not addressed by existing Wisconsin chapter 701. The newly restated chapter 701 does address these questions and other issues that estate planning attorneys and trustees face when creating and administering revocable and irrevocable trusts.


    On Nov. 4, 2013, the new Wisconsin Trust Code legislation was introduced.1 It passed the Senate on Nov. 12 and the Assembly on Nov. 14. Gov. Scott Walker signed the bill on Dec. 13, making the new law effective July 1, 2014. The legislative process culminated a seven-year joint study group project of the State Bar Real Property, Probate and Trust Section, the State Bar Elder Law Section, and the Wisconsin Bankers Association Trust Section.2

    The goal of the study group was to modernize Wisconsin’s trust law by enacting a modified version of the Uniform Trust Code (UTC), as amended in 2005.3 The new law is a complete restatement of current Wis. Stat. chapter 701, along with revisions to chapter 881 (prudent investor act), chapter 702 (powers of appointment), and chapters 46 and 49 (correcting legislation included in the 2013 budget bill involving Medicaid estate recovery). Wisconsin is the 27th jurisdiction to enact a version of the UTC.4

    This article provides a broad overview of the new Wisconsin Trust Code (WTC). Some of the WTC provisions – especially those rules that are not part of the UTC, such as ones related to the trustee’s power to appoint assets to another trust, trust protectors, directed trusts, and life insurance contracts owned by trusts – are worthy of more in-depth discussion.

    The WTC is organized into 12 subchapters. The arrangement of sections is similar to the UTC, with two differences: 1) the uniform prudent investor act, as adopted in Wisconsin, is referred to in the WTC but otherwise remains outside the WTC; and 2) the Uniform Principal and Income Act, which previously was adopted as Wis. Stat. section 701.20, is included as subchapter 11, moving the miscellaneous provisions of the UTC to subchapter 12 of the WTC.

    The following is an overview of each subchapter of the WTC.

    Subchapter I: General Provisions and Definitions

    The WTC applies to all types of personal trusts. It does not apply to business trusts or employee benefits trusts.5 The WTC is primarily a default statute. Most of the provisions can be overridden in the terms of a trust. [Note: “terms of a trust” is a defined term in the WTC.] The provisions that cannot be overridden are described in Wis. Stat. section 701.0105(2). These include the duty of the trustee to act in good faith and in accordance with the trust’s purposes, the court’s authority to act in specified situations, the effect of a spendthrift provision, the rights of creditors to reach a trust, and the time limits for commencing a judicial proceeding.

    Wisconsin Statutes section 701.0103 includes 31 defined terms (as compared to eight defined terms in the current trust code.) Of particular interest are those definitions that define the parties involved in a trust.

    Victor J. SchultzVictor J. Schultz, Marquette 1985, is senior vice president and head of the personal trust at Prairie Financial Group, a division of Waukesha State Bank. He is a director and the past chair of the Wisconsin Bankers Association Trust Banking Section and director of the WBA Government Relations Committee. Beginning in 2007, he co-chaired the study group to rewrite Wisconsin’s law on trusts. That work culminated in the passage of the new Wisconsin Trust Code in December 2013.

    Adam J. WienschAdam J. Wiensch, Georgetown 1991, is a partner and member of the estates and trusts practice and the sports industry team at Foley & Lardner LLP, Milwaukee. He concentrates his practice on advising clients on wealth transfer and protection techniques and advising fiduciaries on trust administration and litigation matters. He is the past chair of the State Bar Real Property, Probate and Trust Law Section. Beginning in 2007, he co-chaired the study group to rewrite Wisconsin’s law on trusts. That work culminated in the passage of the new Wisconsin Trust Code in December 2013.

    The settlor is the person who creates or contributes property to a trust. The trustee is the party responsible for collecting, administering, and distributing trust property; the definition includes the original, additional, and successor trustee and a cotrustee. A beneficiary is a person who has an interest in a trust, other than as trustee, directing party, trust protector, or holder of a power of appointment. Qualified beneficiary is an important new term that identifies beneficiaries who have enhanced rights to receive information and consent to actions about a trust. Essentially, a qualified beneficiary includes the current beneficiaries and the first level of remainder beneficiaries.

    Directing party is a new term that applies to a directed trust – a trust that splits the trustee responsibilities among multiple parties. A directing party is a person who is granted a power to direct a trustee’s investment or distribution decisions. Trust protector, another new term, applies to a person who is given a specified power over the trust in a capacity other than as a trustee or a directing party.

    Wisconsin Statutes sections 701.0106–.0108 address the laws that govern a trust. Section 701.0106 indicates the WTC is supplemented by the common law of trusts and principles of equity. Section 701.0107 identifies the law that governs the meaning and effect of the terms of a trust.6 The governing law typically is itself specified in the terms of a trust.

    Section 701.0108 identifies the principal place of administration, which determines which state’s courts have primary jurisdiction over a trust and which state’s laws govern administration of the trust.7 While the principal place of administration can be identified in the trust instrument, the trustee has the power to change the place of administration. Section 701.0108(4) allows this to be done by providing notice to the qualified beneficiaries.

    Wisconsin Statutes section 701.0111 ratifies the use of nonjudicial settlement agreements (NJSA). Although the WTC recognizes that a court may intervene in the administration of a trust, resolution of trust-related issues by nonjudicial means is encouraged. Interested persons may enter into a binding NJSA with respect to any matter involving a trust. An NJSA is valid to the extent it includes terms and conditions that a court could approve. A nonexclusive list of the matters that can be addressed by a NJSA is included in section 701.0111(5).

    Subchapter II: Judicial Proceedings

    The WTC eliminates the longstanding requirement that trustees of testamentary trusts file accounts with the probate court. This is an important change. Wisconsin Statutes section 701.0201 provides that “[u]nless ordered by the court upon a petition of a settlor, trustee, or qualified beneficiary requesting continuing judicial supervision, a trust is not subject to continuing judicial supervision.” The WTC intentionally does not give the court the power to order continuing judicial supervision in the absence of a request by an interested party.

    Subchapter II also addresses important jurisdictional issues. It is important for Wisconsin courts to have jurisdiction over all parties involved in the administration of a trust so as to address issues that might arise during the administration. Under Wis. Stat. section 701.0202, a trustee, trust protector, or directing party submits personally to the jurisdiction of Wisconsin courts regarding any matter involving the trust by accepting appointment of a trust having its principal place of administration in Wisconsin or by continuing to serve after the trust’s principal place of administration is moved to Wisconsin.

    Section 701.0202 also addresses a jurisdictional issue arising under the prudent investor act. Under Wis. Stat. section 881.01(10), which was not amended by the WTC, if a trustee properly delegates investment and management functions to a third party, the third party must submit to the jurisdiction of Wisconsin courts. However, third parties often attempted to override that requirement in their contract with the trustees. Section 701.0202 provides that notwithstanding any agreement to the contrary between the trustee and the agent, by accepting the delegation of a trust function from the trustee of a trust having a principal place of administration in Wisconsin, the agent submits personally to the jurisdiction of Wisconsin courts regarding any matter involving the trust.

    Subchapter III: Representation

    Subchapter III of the WTC greatly expands the concept of “virtual representation.” Unlike current law, the representation rules in the WTC apply inside and outside of court. This is very helpful for addressing trust matters without having to appoint a guardian ad litem.

    The representation rules have numerous applications. They apply for purposes of dispute settlement, whether by a court or nonjudicially; the giving of required notices; and the giving of consents to certain actions. Under current law, a person may only virtually represent another person if the two individual’s interests are “substantially identical.”8

    The WTC adopts a broader standard, consistent with its goal of facilitating representation of others and expanding the ability to address trust matters without going to court or appointing a guardian ad litem. In most circumstances, one person can represent another to the extent there is no conflict of interest between the representative and the person being represented with respect to the particular question or dispute.9 Also, Wis. Stat. section 701.0303 contains an extensive set of provisions allowing representation by fiduciaries, specifically authorized agents under a financial power of attorney, parents, or a person appointed by a trustee.

    Subchapter IV: Creation, Validity, Modification, and Termination of Trust

    Subchapter IV establishes the requirements for creating, modifying, and terminating a trust. Generally, the WTC provides that a trust is created when a person transfers property to a trustee with the intent to create a trust relationship. This subchapter expands on the common law by specifically validating trusts for animals and for certain noncharitable purposes. This subchapter also recognizes oral trusts if the terms of the trust are established by clear and convincing evidence. No signature, witness, or notary is required to create a trust instrument.

    Subchapter IV also contains several important provisions that give trustees significant flexibility to modify, terminate, divide, combine, and decant irrevocable trusts.

    Wisconsin Statutes section 701.0411 provides several options for modifying or terminating an irrevocable trust with the consent of all beneficiaries and, depending on the reason for the modification or termination, with court approval.

    Section 701.0412 allows a court to modify the terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the trust’s purposes.

    Section 701.0414 authorizes the trustee of a trust containing property worth less than $100,000 (adjusted for inflation) to terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.

    Section 701.0415 authorizes a court to reform the terms of a trust to conform the terms to the settlor’s intent if both the settlor’s intent and the terms of a trust were affected by a mistake of fact or law.

    Section 701.0416 authorizes a court to modify the terms of a trust to achieve the settlor’s tax objectives.

    Section 701.0417 allows a trustee to combine two or more trusts into a single trust or divide a trust into two or more separate trusts after notice if doing so does not impair rights of any beneficiary or adversely affect achievement of any trust purposes.

    Section 701.0418 allows trustees to transfer assets from one trust to another trust with different terms, commonly referred to as decanting. The scope of the permissible differences between the trusts depends on the scope of the trustee’s power to distribute principal, and there are limitations on the use of the power to decant. Decanting can be done by trustee action or by court order. Section 701.0418 does not create or imply a duty of a trustee to decant assets, and a trustee who does not decant assets is not liable for the failure to do so. A trustee who does decant is not liable to any beneficiary for any loss related to the decanting unless the trustee did not decant the assets in good faith, whether the decanting occurred with or without a court order.

    Subchapter V: Creditor’s Claim; Spendthrift and Discretionary Trusts

    Subchapter V, which addresses creditors’ claims and spendthrift provisions, is generally consistent with existing Wisconsin law. However, two notable changes will facilitate planning with trusts and trust administration.

    Typically, a spendthrift provision prohibits voluntary and involuntary transfers of an interest in a trust. The WTC changes this rule in Wis. Stat. section 701.0103(25), which states that a settlor may prohibit involuntary transfers of an interest in a trust but allow voluntary transfers. This can facilitate gifts or sales of a beneficiary’s interest in a trust as part of the beneficiary’s estate planning without jeopardizing the protection against involuntary transfers.

    Under current law, it is unclear whether a trustee can allow a beneficiary to use property owned by the trust when a judgment creditor of the beneficiary has a court order directing the trustee to satisfy the judgment out of any distributions. Wisconsin Statutes section 701.0502(4) provides that real property or tangible personal property that is owned by a trust and used by, but not distributed to, a beneficiary may not be reached by a creditor of the beneficiary.

    Wisconsin Statutes section 701.0503 maintains the existing exceptions to spendthrift protection for child-support or public-support claims.

    Consistent with current law, Subchapter V does not allow a person to create a self-settled trust and protect the settlor’s interest in the trust from the settlor’s creditors using a spendthrift provision. The study group considered adding a self-settled trust provision in the WTC but decided that such a provision should be considered in legislation separate from the WTC.

    Subchapter VI: Revocable Trusts

    Current law addresses “living trusts” but does not cover revocable trusts. Subchapter VI of the WTC covers revocable trusts and contains several important provisions.

    Wisconsin Statutes section 701.0601 provides that the capacity required to create, amend, or revoke a revocable trust is the same as that required to make a will. Section 701.0602 addresses how to revoke or modify a revocable trust and, absent specific terms in the trust, requires evidence of clear and convincing intent to revoke or amend a revocable trust.

    Under current law, there are two big disadvantages to settling a client’s affairs through a funded revocable trust rather than a probate estate: 1) the longer period for challenging a revocable trust, and 2) the lack of protection given to a trustee who makes distributions before expiration of the statute of limitation for actions challenging the revocable trust. Wisconsin Statutes section 701.0604 addresses both disadvantages.

    First, a person must commence a judicial proceeding to contest the validity of a revocable trust within the earlier of one year after the settlor’s death or four months after receiving a copy of the trust instrument and a notice of the time allowed for challenging the revocable trust. This will give needed certainty to trustees and beneficiaries.

    Second, a trustee is not liable for distributing trust assets as provided in the trust, even if the trust is later determined to be invalid, unless the trustee knows of a pending judicial proceeding contesting the validity of the trust or a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days. Although a trustee might not be liable in this situation, a person who receives a trust distribution that it is later determined the person was not entitled to receive must return the distribution.

    Subchapter VII: Office of Trustee

    Subchapter VII contains default rules dealing with the office of trustee. Wisconsin Statutes sections 701.0701 and 701.0702 address how a trustee accepts or declines a trusteeship and whether bond will be required. Section 701.0703 addresses cotrustees, permitting the cotrustees to act by majority decision and specifying the extent to which one trustee can delegate to another. Sections 701.0704–.0707 address changes in the office of trustee, specifying how to fill a vacancy, resignation procedures, the grounds for removal, and the process for delivering property to a successor trustee.

    Wisconsin Statutes section 701.0706(2)(d) permits a court to remove a trustee if all the qualified beneficiaries request removal and the court finds that removal best serves the interests of all the beneficiaries [Note: “interests of the beneficiaries” is a defined term] and is not inconsistent with a material purpose of the trust, and that a suitable successor trustee is available. Sections 701.0708 and 701.0709 prescribe the standards for determining a trustee’s compensation and reimbursement of expenses that have been advanced. The WTC adds section 701.0710 to specify property is properly transferred to a trust by titling the property in the trustee’s name. However, if property is improperly titled in the trust’s name, such titling is deemed to place title in the name of the trustee of the named trust.

    Subchapter VIII: Duties and Powers of Trustees, Directing Parties, and Trust Protectors

    Subchapter VIII states the fundamental duties of a trustee and, in Wis. Stat. sections 701.0815, 701.0816, and 701.0817, lists the trustee’s general and specific powers. This includes the trustee’s power under section 701.0817(1) to send a proposal for distribution upon a partial or final distribution of a trust and limit to 30 days the time for a beneficiary to object to the proposal.

    The duties are not new, but previously they were provided under common law. The duties specified in the WTC require a trustee to administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries; act solely in the interests of the beneficiaries; act impartially and prudently; incur only reasonable costs; and use any special skills or expertise the trustee may have.10

    A trustee must take reasonable steps to control and protect trust property, maintain adequate records that clearly identify separate trust interests, enforce claims of and defend claims against the trust, collect trust property and redress breaches of former trustees, and exercise discretion in good faith and in accordance with the terms of a trust and purposes and the interests of the beneficiaries.11

    The trustee’s duty to inform and report to beneficiaries, a duty of particular interest to attorneys, is described in Wis. Stat. section 701.0813. The trustee’s fundamental duty to keep qualified beneficiaries reasonably informed about the administration of the trust applies to both existing trusts and trusts that become irrevocable after June 30, 2014. In theory, this could allow a trustee to remain silent about a trust to certain beneficiaries if lack of disclosure is reasonable under the circumstances.

    New statutory duties to inform qualified beneficiaries that a trustee has begun to act as trustee or that a trust has become irrevocable do not apply to a trusteeship that was accepted before July 1, 2014, to an irrevocable trust created before July 1, 2014, or to a revocable trust that becomes irrevocable before July 1. 2014. The trustee must prepare an accounting at least annually and send it to the current beneficiaries and any other qualified beneficiary who requests the accounting, but this requirement only applies to trusts that become irrevocable after June 30, 2014.

    Under the WTC and similar to the rules under the prudent investor act, a trustee may delegate certain duties and powers but must exercise reasonable care, skill, and caution when selecting an agent, establishing the delegation’s scope and terms, and periodically reviewing the agent’s actions. An agent who accepts a delegation of duty or power from a trustee has a duty to exercise reasonable care to comply with the delegation’s terms. A trustee who properly delegates a duty or power to an agent is not liable to the beneficiaries for the agent’s actions.

    In Wis. Stat. section 701.0808, the WTC recognizes the concept of a directed trust. A trust’s settlor or beneficiaries may want a directed trust in situations in which the trust holds special assets that they do not want managed by the trustee, they want to employ an outside investment manager to manage the trust assets, or they do not want the trustee to make certain distribution decisions. A settlor, the court, or interested persons of a trust may appoint a directing party in a trust instrument to direct the trustee on investment or distribution decisions. A directing party is a fiduciary and is obligated to act in good faith, consistent with the terms of a trust and the interests of the beneficiaries.

    A trustee has no duty to monitor the directing party, and a trustee who follows a directing party’s directions is not liable for any resulting losses, unless the loss is a result of the trustee’s willful misconduct. Wisconsin Statutes section 701.0902 provides further guidance on the responsibilities of a directing party and trustee over directed trust property. [Note: “directed trust property” is a defined term under the new statute.]

    The WTC recognizes the concept of a trust protector in Wis. Stat. section 701.0818 and describes the trust protector’s duties and powers. A nonexclusive list of the possible powers that might be given to a trust protector appears in section 701.0818(2), which also describes the default rules that apply to the legal capacity of each power. A trustee is obligated to follow the directions of a trust protector unless the direction is manifestly contrary to the power granted or exercise of the direction would result in a serious breach of fiduciary duty.

    Subchapter IX: Investment Management of Trusts

    Subchapter IX provides that, subject to certain exceptions, the investment management of trust property is governed by Wis. Stat. chapter 881 (the uniform prudent investor act.)

    The WTC limits application of the uniform prudent investor act to life insurance contracts owned by irrevocable life insurance trusts. If a principal purpose of a trust is to hold a life insurance contract, a trustee does not have a duty to determine whether the life insurance contract is, or remains, a proper investment. This applies to all trusts executed after June 30, 2014, and to trusts executed before that date if the trustee provides a notice to the qualified beneficiaries.12

    Subchapter X: Liability of Trustees and Rights of Persons Dealing with Trustee

    Subchapter X identifies the remedies for breach of trust, provides how damages are determined for a breach of trust, reaffirms the court’s power to award costs and attorney fees, specifies statutes of limitation and potential defenses to breach-of-duty claims, and addresses trustee relations with and liability to persons other than beneficiaries. The following are the most significant changes in the WTC from current law.

    Wisconsin Statutes section 701.1004 confirms that a trustee is entitled to payment from the trust for attorney fees incurred in good faith. However, if a claim against the trustee is based on a breach of trust, the trustee must provide notice to qualified beneficiaries of the trustee’s intention to pay attorney fees from the trust. Any party to the action may seek a court order prohibiting payment of attorney fees from the trust by demonstrating to the court that there is a reasonable basis for the court to find that a breach of trust occurred.

    Current statutory law does not define the period in which a beneficiary must act to make a claim against the trustee. The WTC specifies that a beneficiary must commence a proceeding against a trustee for breach of trust within five years after the first to occur of the following: the termination of the trust; the termination of the interest of the beneficiary; or the trustee’s removal, resignation, or death.13 A one-year statute of limitation for commencing such a proceeding applies if the beneficiary received a report that adequately disclosed the existence of a potential claim. Frequently such information is provided in the trust accounting, which suggests a trustee may want to send accountings to as many beneficiaries as possible to trigger the one-year statute of limitation.

    Wisconsin Statutes section 701.1009 can further limit the ability of a beneficiary to make a claim against a trustee if the beneficiary signs a consent, release, or ratification agreement that adequately discloses the material facts that relate to a potential claim against the trustee.

    A third party dealing with a trust is not liable for any breach of the trustee’s obligations to the beneficiaries resulting from a transaction, unless the third party has knowledge of an actual breach by the trustee.14 In addition, a third party may rely on a certification of trust that sets out certain required information, including a statement that the trust has not been revoked, modified, or amended in any manner that would cause the representations in the certificate to be incorrect. A third party who receives a certification of trust and continues to demand a complete copy of a trust instrument may be liable for damages if the demand is not in good faith.15

    Subchapter XI: Uniform Principal and Income Act

    The Uniform Principal and Income Act (the Act) exists under current law as Wis. Stat. section 701.20. The Act is incorporated into the new law with only a few minor changes. The term “sui juris beneficiary” has been replaced with “qualified beneficiary,” and recent changes recommended by the Uniform Law Commission related to deferred compensation, annuities, and other similar payments are included in the WTC.

    Subchapter XII: Miscellaneous Provisions

    Wisconsin Statutes section 701.1205 contains the WTC’s effective-date provisions. The WTC applies to trusts created before, on, or after July 1, 2014, except for the following:

    1) The presumption, contained in Wis. Stat. section 701.0602, that a trust is revocable if the trust instrument is silent. The WTC changes current law to be consistent with the UTC but is not effective for trusts created before July 1, 2014, to avoid making trusts that were irrevocable under prior law revocable.

    2) The duty to inform and report, contained in Wis. Stat. section 701.0813(2)(b) and (c) and (3). There is uncertainty under current law regarding the exact scope of a trustee’s duties to inform beneficiaries about administration of the trust and to provide them with accounts. There is also a wide variety of practice under current law. The provisions in section 701.0813(2)(b) and (c) and (3) represent a significant expansion of these duties of a trustee and a change to current practice, and many settlors likely will want to modify them for newly created trusts. Therefore, these provisions do not apply to a trustee who accepts a trusteeship before July 1, 2014; an irrevocable trust created before July 1, 2014; or a revocable trust that becomes irrevocable before July 1, 2014.

    3) The inapplicability of the prudent investor rule to life insurance policies16 applies only to trusts executed before July 1, 2014, unless the trustee notifies the qualified beneficiaries that the trustee elects to be governed by section 701.0903 and provides the qualified beneficiaries with a copy of the section.

    4) The WTC applies to all judicial proceedings commenced before July 1, 2014, unless the court determines that application of a particular provision of the WTC will substantially interfere with the effective conduct of the judicial proceedings or prejudice the parties’ rights. In such situations, the particular WTC provision will not apply to that judicial proceeding, and the court must apply prior law as the court finds necessary to prevent interference with the effective conduct of the judicial proceeding and to avoid prejudicing the parties’ rights.


    The WTC is transformative and makes Wisconsin a better place to administer trusts. Estate planning attorneys should review and revise their standard trust forms to address the new law. Discussions with clients about trusts should emphasize the issues of who should get information about a trust and who should invest the trust property.

    Trustees and attorneys who advise trustees need to be aware of the new tools that add flexibility in modifying or terminating an irrevocable trust. Specific duties and powers of a trustee are now specified in the statute and provide more clarity on the trustee’s role. The ability to split a trustee’s duties and powers between a directing party and a trust protector is specifically authorized by statute. The law specifies statutes of limitation and provides trustees with guidance on how to limit their exposure.


    1 2013 Senate Bill 384 and 2013 Assembly Bill 490 were introduced concurrently. SB 384 was sponsored by Sen. Paul Farrow and Sen. Fred Risser. AB 490 was sponsored by Rep. Joe Sanfelippo. Ultimately, SB 384 was passed by both the Senate and the Assembly. The authors thank the bill sponsors for their support and the lobbyists for the State Bar of Wisconsin and the Wisconsin Bankers Association, who did a tremendous job in ushering the bill to passage in just 11 days.

    2 The authors thank all the attorneys who participated in the Study Group project. We especially thank those who were able to participate all the way to the end: State Bar Real Property, Probate and Trust Section: J. Gardner Govan, Philip J. Halley, Elizabeth A. Heiner, Randy S. Nelson, Catherine M. Priebe, and Mark A. Shiller; WBA Trust Section: Douglas E. Barnes, Mark J. Chamberlain, Susan L. Collins, Stephen R. White, and Peter Wolters; State Bar Elder Law Section: Angela E. Canellos and Roy W. Froemming; Assistant: Christina L. Olson; Legislative Reference Bureau drafter: Fern F. Knepp.

    3 The UTC was initially promulgated in 2000 and has been amended several times. Detailed information on the UTC, including a prefatory note and extensive comments, can be found at

    4 Other jurisdictions that have adopted the UTC are (in order of passage) the following: Kansas, Wyoming, New Mexico, District of Columbia, Tennessee, Utah, New Hampshire, Nebraska, Missouri, Oregon, Maine, Arkansas, South Carolina, North Carolina, Virginia, Pennsylvania, Alabama, Florida, North Dakota, Ohio, Arizona, Vermont, Michigan, West Virginia, Massachusetts, and Montana.

    5 Wis. Stat. § 701.0102.

    6 The meaning and effect are matters of construction and deal with questions such as the following: Who are the beneficiaries? What is the extent of each beneficiary’s interest? When is a beneficiary entitled to receive a distribution? How does a trustee allocate income and principal between each beneficiary? How does a trustee allocate receipts and expenditures between income and principal? What is the alienability of a beneficiary’s interest? When can a creditor reach a beneficiary’s interest? See Austin Scott & William Fratcher, The Law on Trusts § 604.

    7 Matters of administration that are determined by the law of the principal place of administration include the following: duties and power of the trustee, including the duty to inform and report to beneficiaries; duties and powers of a directing party and a trust protector; court control over a trustee’s discretionary powers; relationships between cotrustees; liability for breach of trust; proper trust investments; trustee compensation and expense reimbursement; removal and replacement of a trustee; and trust termination. Scott & Fratcher, supra note 6, § 604.

    8 Wis. Stat. § 701.15(2).

    9 Wis. Stat. § 701.0304.

    10 Wis. Stat. §§ 701.0801–.0806.

    11 Wis. Stat. §§ 701.0809–.0814.

    12 Wis. Stat. § 701.0903.

    13 Wis. Stat. § 701.1005.

    14 Wis. Stat. § 701.1012.

    15 Wis. Stat. § 701.1013.

    16 Wis. Stat. § 701.0903(4).

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