Sunday, August 31, 2014
As I have previously discussed, newly enacted Wisconsin Trust Code created changes in the state’s default rules for trusts that those with Wisconsin trusts should be aware of. Here are 10 considerations to keep in mind regarding the new code:
- The changes do not invalidate existing trust, but do apply to them.
- With some exceptions, most of the changes codify previous law for Wisconsin trusts.
- The WTC is based on the Uniform Trust Code with some state specific modifications.
- The WTC added flexibility for changing circumstances, and court appearances can now be avoided through a nonjudicial settlement agreement.
- The Code lists out duties and responsibilities of trustees and rights of beneficiaries.
- Special situations can be handled with more flexibility through a Directing Party in a Directed Trust.
- There is no change to the prudent investor rule.
- Trustees can now give third parties a certification of trust rather than the trust document, to maintain privacy of the trust terms.
- Trust Protectors may be appointed and may intervene in trustee and beneficiary disputes.
- The underlying purposes of using a trust have not changed
See John A. Herbers, Ten Things You Should Know About Wisconsin’s New Trust Code, Mondaq, Aug. 28, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.