Wisconsin Statutes & Annotations
Chapter 701 - Trusts.
701.1107 - Express unitrusts.

701.1107 Express unitrusts.
(1) In this section, “express unitrust" means any trust that by its trust instrument requires the distribution at least annually of a unitrust amount equal to a fixed percentage of the net fair market value of the trust's assets, valued at least annually, other than a trust solely for charitable purposes or a charitable split-interest trust under section 664 (d) or 170 (f) (2) (B) of the Internal Revenue Code.
(2) The following apply to an express unitrust:
(a) To the extent not otherwise provided for in the trust instrument, the unitrust amount of not less than 3 percent nor more than 5 percent may be determined by reference to the net fair market value of the trust's assets averaged over a preceding period determined by the trustee, which is at least 3 years but not more than 5 years.
(b) Distribution of such a fixed percentage unitrust amount of not less than 3 percent nor more than 5 percent is a distribution of all of the income of the unitrust and is an income interest.
(c) Such a distribution of a fixed percentage of not less than 3 percent nor more than 5 percent is a reasonable apportionment of the total return of the trust.
(d) A trust that provides for a fixed annual percentage payout in excess of 5 percent per year of the net fair market value of the trust is considered to be a 5 percent express unitrust, paying out all of the income of the unitrust, and to have paid out principal of the trust to the extent that the fixed percentage payout exceeds 5 percent per year.
(e) The trust instrument may grant discretion to the trustee to adopt a consistent practice of treating capital gains as part of the unitrust distribution, to the extent that the unitrust distribution exceeds the income determined as if the trust were not a unitrust, or it may specify the ordering of such classes of income.
(f) Unless the terms of the trust specifically provide otherwise, a distribution of the unitrust amount is considered to have been made from the following sources in the following order of priority:
1. Net income determined as if the trust were not a unitrust.
2. Ordinary income for federal income tax purposes that is not net income under subd. 1.
3. Net realized short-term capital gains for federal income tax purposes.
4. Net realized long-term capital gains for federal income tax purposes.
5. Principal.
(g) The trust instrument may provide that assets used by the trust beneficiary, such as a residence or tangible personal property, may be excluded from the net fair market value for computing the unitrust amount. Such use may be considered equivalent to the income or unitrust amount.
(h) In the absence of contrary provisions in the trust instrument of an express unitrust, the provisions of s. 701.1106 (3) (a), (d), and (e) apply.
History: 2013 a. 92 s. 243.

Structure Wisconsin Statutes & Annotations

Wisconsin Statutes & Annotations

Chapter 701 - Trusts.

701.0101 - Short title.

701.0102 - Scope.

701.0103 - Definitions.

701.0104 - Knowledge.

701.0105 - Default and mandatory rules.

701.0106 - Common law of trusts; principles of equity.

701.0107 - Governing law.

701.0108 - Principal place of administration.

701.0109 - Methods and waiver of notice.

701.0110 - Others treated as qualified beneficiaries.

701.0111 - Nonjudicial settlement agreements.

701.0201 - Role of court in administration of trust.

701.0202 - Personal jurisdiction.

701.0203 - Subject matter jurisdiction.

701.0204 - Venue.

701.0205 - Notice.

701.0206 - Attorney for person in military service.

701.0301 - Representation: basic effect.

701.0302 - Representation by holder of general power of appointment.

701.0303 - Representation by fiduciaries, parents, or a person appointed by a trustee.

701.0304 - Representation by person having substantially identical interest.

701.0305 - Appointment of representative by a court.

701.0401 - Methods of creating a trust.

701.0402 - Requirements for creation.

701.0403 - Trusts created in other jurisdictions.

701.0404 - Trust purposes.

701.0405 - Charitable purposes; enforcement.

701.0406 - Creation of trust induced by fraud, duress, or undue influence.

701.0407 - Evidence of oral trust.

701.0408 - Trust for care of animal.

701.0409 - Noncharitable trust without ascertainable beneficiary.

701.0410 - Modification or termination of trust; proceedings for approval or disapproval.

701.0411 - Modification or termination of noncharitable irrevocable trust by consent.

701.0412 - Modification or termination because of unanticipated circumstances or inability to administer trust effectively.

701.0413 - Cy pres.

701.0414 - Modification or termination of uneconomic trust.

701.0415 - Reformation to correct mistakes.

701.0416 - Modification to achieve settlor's tax objectives.

701.0417 - Combination and division of trusts.

701.0418 - Trustee's power to appoint assets to new trust.

701.0419 - Transfers to trusts.

701.0501 - Rights of beneficiary's creditor or assignee.

701.0502 - Spendthrift provision.

701.0503 - Exceptions to spendthrift provision.

701.0504 - Discretionary trusts; effect of standard.

701.0505 - Creditor's claim against settlor.

701.0506 - Overdue distribution.

701.0507 - Personal obligations of trustee.

701.0508 - Debts of decedents.

701.0601 - Capacity of settlor of revocable trust.

701.0602 - Revocation or amendment of revocable trust.

701.0603 - Settlor's powers; powers of withdrawal.

701.0604 - Limitation on action contesting validity of revocable trust; distribution of trust property.

701.0701 - Accepting or declining trusteeship.

701.0702 - Trustee's bond.

701.0703 - Cotrustees.

701.0704 - Vacancy in trusteeship; appointment of successor.

701.0705 - Resignation of trustee.

701.0706 - Removal of trustee.

701.0707 - Delivery of property by former trustee.

701.0708 - Compensation of trustee.

701.0709 - Reimbursement of expenses.

701.0710 - Title of trust property.

701.0801 - Duty to administer trust.

701.0802 - Duty of loyalty.

701.0803 - Impartiality.

701.0804 - Prudent administration.

701.0805 - Costs of administration.

701.0806 - Trustee's skills.

701.0807 - Delegation by trustee.

701.0808 - Powers to direct; directing parties.

701.0809 - Control and protection of trust property.

701.0810 - Record keeping and identification of trust property.

701.0811 - Enforcement and defense of claims.

701.0812 - Collecting trust property; duties of successor trustees.

701.0813 - Duty to inform and report.

701.0814 - Discretionary powers; tax savings.

701.0815 - General powers of trustee.

701.0816 - Specific powers of trustee.

701.0817 - Distribution upon termination.

701.0818 - Trust protectors.

701.0819 - Marital deduction transfers.

701.0901 - Application of the Wisconsin Prudent Investor Act.

701.0902 - Directed trust property.

701.0903 - Nonapplication of prudent investor rule to life insurance contracts owned by trusts.

701.1001 - Remedies for breach of trust.

701.1002 - Damages for breach of trust; liability of successor trustee.

701.1003 - Damages in absence of breach.

701.1004 - Attorney fees and costs.

701.1005 - Limitation of action against trustee.

701.1006 - Reliance on trust instrument.

701.1007 - Event affecting administration or distribution.

701.1008 - Exculpation of trustee.

701.1009 - Beneficiary's consent, release, or ratification.

701.1010 - Limitation on personal liability of trustee.

701.1011 - Interest as general partner.

701.1012 - Protection of person dealing with trustee.

701.1013 - Certification of trust.

701.1101 - Short title and scope.

701.1102 - Definitions.

701.1103 - Fiduciary duties; general principles.

701.1104 - Trustee's power to adjust.

701.1105 - Notice to beneficiaries of proposed action.

701.1106 - Conversion to unitrust.

701.1107 - Express unitrusts.

701.1108 - Power to treat capital gains as part of a distribution.

701.1109 - Judicial review of discretionary power.

701.1110 - Determination and distribution of net income.

701.1111 - Distribution to residuary and remainder beneficiaries.

701.1112 - When right to income begins and ends.

701.1113 - Apportionment of receipts and disbursements when decedent dies or income interest begins.

701.1114 - Apportionment when income interest ends.

701.1115 - Character of receipts.

701.1116 - Distribution from trust or estate.

701.1117 - Business and other activities conducted by trustee.

701.1118 - Principal receipts.

701.1119 - Rental property.

701.1120 - Obligation to pay money.

701.1121 - Insurance policies and similar contracts.

701.1122 - Insubstantial allocations not required.

701.1123 - Deferred compensation, annuities, and similar payments.

701.1124 - Liquidating asset.

701.1125 - Minerals, water, and other natural resources.

701.1126 - Timber.

701.1127 - Property not productive of income.

701.1128 - Derivatives and options.

701.1129 - Asset-backed securities.

701.1130 - Disbursements from income.

701.1131 - Disbursements from principal.

701.1132 - Transfers from income to principal for depreciation.

701.1133 - Transfers from income to reimburse principal.

701.1134 - Income taxes.

701.1135 - Adjustments between principal and income because of taxes.

701.1136 - Income payments and accumulations.

701.1201 - Private foundations.

701.1202 - Electronic records and signatures.

701.1203 - Uniformity of application and construction.

701.1204 - Applicability of general transfers at death provisions.

701.1205 - Applicability.