SB384,117,15 14(2) To remedy a breach of trust that has occurred or may occur, a court may do
15any of the following:
SB384,117,1616 (a) Compel the trustee to perform the trustee's duties.
SB384,117,1717 (b) Enjoin the trustee from committing a breach of trust.
SB384,117,1918 (c) Compel the trustee to redress a breach of trust by paying money, restoring
19property, or other means.
SB384,117,2020 (d) Order a trustee to account.
SB384,117,2421 (e) Appoint an additional trustee, a directing party, or a trust protector having
22the duties and authority ordered by the court, including, in the case of an additional
23trustee, the authority to take possession of the trust property and administer the
24trust.
SB384,117,2525 (f) Suspend the trustee.
SB384,118,1
1(g) Remove the trustee as provided in s. 701.0706.
SB384,118,22 (h) Reduce the compensation of or deny compensation to the trustee.
SB384,118,53 (i) Subject to s. 701.1012, void an act of the trustee, impose a lien or a
4constructive trust on trust property, or trace trust property wrongfully disposed of
5and order recovery of the property or its proceeds.
SB384,118,76 (j) Order any other appropriate relief, whether provided elsewhere in this
7chapter, available at common law, or under equity principles.
SB384,162 8Section 162. 701.1002 of the statutes is created to read:
SB384,118,11 9701.1002 Damages for breach of trust; liability of successor trustee. (1)
10A trustee who commits a breach of trust is liable to an affected beneficiary for the
11greater of the following:
SB384,118,1312 (a) The amount required to restore the value of the trust property and trust
13distributions to what they would have been had the breach not occurred.
SB384,118,1414 (b) The profit the trustee made by reason of the breach.
SB384,118,22 15(2) Except as otherwise provided in this subsection, if more than one trustee
16is liable to a beneficiary for a breach of trust, a trustee is entitled to contribution from
17the other trustee or trustees. A trustee is not entitled to contribution if the trustee
18was substantially more at fault than another trustee or if the trustee committed the
19breach of trust in bad faith or with reckless indifference to the purposes of the trust
20or the interests of the beneficiary. A trustee who received a benefit from the breach
21of trust is not entitled to contribution from another trustee to the extent of the benefit
22received.
SB384,118,25 23(3) A successor trustee is not liable for the acts and omissions of a former
24trustee or for the acts or omissions of any directing party or trust protector that are
25taken before the appointment of the successor trustee.
SB384,163
1Section 163. 701.1003 of the statutes is created to read:
SB384,119,4 2701.1003 Damages in absence of breach. Absent a breach of trust, a trustee
3is not liable to a beneficiary for a loss or depreciation in the value of trust property
4or for not having made a profit.
SB384,164 5Section 164. 701.1004 of the statutes is created to read:
SB384,119,9 6701.1004 Attorney fees and costs. (1) In a judicial proceeding involving the
7administration of a trust, the court, as justice and equity may require, may award
8costs and expenses, including reasonable attorney fees, to any party, to be paid by
9another party or from the trust that is the subject of the controversy.
SB384,119,15 10(2) Subject to sub. (3), if a trustee, directing party, or trust protector defends
11or prosecutes any proceeding in good faith, whether successful or not, the trustee,
12directing party, or trust protector is entitled to receive from the trust the necessary
13expenses and disbursements, including reasonable attorney fees, incurred. This
14subsection does not preclude a court from ordering another party to reimburse the
15trust for these expenses and disbursements as provided in sub. (1).
SB384,119,18 16(3) (a) A trustee may pay costs or attorney fees incurred in any proceeding from
17the trust property without the approval of any person and without court
18authorization, unless the court orders otherwise as provided in par. (c).
SB384,120,519 (b) If a claim or defense based upon a breach of trust is made against a trustee,
20directing party, or trust protector in a proceeding, the trustee shall provide notice to
21each qualified beneficiary, directing party, and trust protector of the trustee's
22intention to pay costs or attorney fees incurred in the proceeding from the trust prior
23to making payment. The notice shall inform each qualified beneficiary, directing
24party, and trust protector of the right to apply to the court for an order prohibiting
25the trustee from paying attorney fees or costs from trust property. If a trustee is

1served with a motion for an order prohibiting the trustee from paying from the trust
2attorney fees or costs in the proceeding and the trustee pays attorney fees or costs
3from the trust before an order is entered on the motion, the trustee, directing party,
4or trust protector and their respective attorneys who have been paid attorney fees
5or costs from trust property are subject to the remedies in pars. (c) and (d).
SB384,120,86 (c) 1. If a claim or defense based upon breach of trust is made against a trustee,
7directing party, or trust protector in a proceeding, a party may move the court for an
8order to prohibit the trustee from paying costs or attorney fees from trust property.
SB384,120,169 2. Except as provided in subd. 3., if the moving party demonstrates to the court
10that there is a reasonable basis for the court to find that a breach of trust occurred,
11the court shall enter an order prohibiting the payment of further attorney fees and
12costs from trust property and shall order attorney fees or costs previously paid from
13trust property in such proceeding to be refunded, unless the court finds good cause
14to allow attorney fees and costs to be paid from the trust. A trustee, directing party,
15or trust protector may offer evidence to rebut the evidence submitted to the court by
16the moving party.
SB384,120,1817 3. The court may defer ruling on a motion to prohibit a trustee from paying costs
18or attorney fees from trust property until discovery is taken by the parties.
SB384,121,319 4. An order entered under this paragraph does not limit a trustee's, directing
20party's, or trust protector's right to seek an order allowing the payment of some or
21all of the attorneys fees or costs incurred in the proceeding from trust property,
22including any fees required to be refunded, after the claim or defense is finally
23determined by the court. If a claim or defense based upon a breach of trust is
24withdrawn, dismissed, or resolved without a determination by the court that the
25trustee committed a breach of trust, after the entry of an order prohibiting payment

1of attorney fees and costs pursuant to this paragraph, the trustee may pay costs or
2attorney fees incurred in the proceeding from the trust property without further
3court authorization.
SB384,121,84 (d) If the court orders a refund under par. (c), the court may enter sanctions as
5are appropriate if a refund is not made as directed by the court, including striking
6defenses or pleadings filed by the trustee, directing party, or trust protector. Nothing
7in this paragraph limits other remedies and sanctions the court may employ for the
8failure to refund the trust in a timely manner.
SB384,121,119 (e) Subject to s. 701.1005, nothing in this subsection limits the power of the
10court to review fees and costs or the right of any interested persons to challenge fees
11and costs after payment, after an accounting, or after conclusion of the litigation.
SB384,121,1512 (f) Notice under par. (b) is not required if the action or defense is later
13withdrawn or dismissed by the party that is alleging a breach of trust or resolved
14without a determination by the court that the trustee has not committed a breach
15of trust.
SB384,121,23 16(4) A provision of a trust instrument drafted or caused to be drafted by a
17trustee, directing party, or trust protector that modifies the application of this section
18in a manner favorable to the trustee, directing party, or trust protector and
19potentially detrimental to a beneficiary is invalid with respect to the trustee,
20directing party, or trust protector unless the trustee, directing party, or trust
21protector proves that the provision was fair under the circumstances existing at the
22time the trust instrument was signed and that the existence and contents of the
23provision were adequately communicated to the settlor.
SB384,165 24Section 165. 701.1005 of the statutes is created to read:
SB384,122,4
1701.1005 Limitation of action against trustee. (1) A beneficiary may not
2commence a proceeding against a trustee for breach of trust more than one year after
3the date on which the beneficiary or a representative of the beneficiary was sent a
4report that adequately disclosed the existence of a potential claim for breach of trust.
SB384,122,7 5(2) A report adequately discloses the existence of a potential claim for breach
6of trust if it provides sufficient information so that the beneficiary or representative
7knows of the potential claim or should have inquired into its existence.
SB384,122,10 8(3) If sub. (1) does not apply, a proceeding by a beneficiary against a trustee for
9breach of trust must be commenced within 5 years after the first to occur of the
10following:
SB384,122,1111 (a) The removal, resignation, or death of the trustee.
SB384,122,1212 (b) The termination of the beneficiary's interest in the trust.
SB384,122,1313 (c) The termination of the trust.
SB384,122,15 14(4) Subsections (1) and (3) do not apply to a claim for fraud. The time for
15asserting a claim for fraud is governed by applicable law.
SB384,166 16Section 166. 701.1006 of the statutes is created to read:
SB384,122,20 17701.1006 Reliance on trust instrument. A trustee who acts in reasonable
18reliance on the terms of the trust as expressed in the trust instrument is not liable
19to a beneficiary for a breach of trust to the extent the breach resulted from the
20reliance.
SB384,167 21Section 167. 701.1007 of the statutes is created to read:
SB384,123,2 22701.1007 Event affecting administration or distribution. If the
23happening of an event, including marriage, divorce, performance of educational
24requirements, or death, affects the administration or distribution of a trust, a trustee

1who has exercised reasonable care to ascertain the happening of the event is not
2liable for a loss resulting from the trustee's lack of knowledge.
SB384,168 3Section 168. 701.1008 of the statutes is created to read:
SB384,123,6 4701.1008 Exculpation of trustee. (1) A term of a trust relieving a trustee
5of liability for breach of trust is unenforceable to the extent that it does any of the
6following:
SB384,123,97 (a) Relieves the trustee of liability for breach of trust committed in bad faith
8or with reckless indifference to the purposes of the trust or the interests of a
9beneficiary.
SB384,123,1110 (b) Was inserted as the result of an abuse by the trustee of a fiduciary or
11confidential relationship with the settlor.
SB384,123,16 12(2) An exculpatory term drafted or caused to be drafted by the trustee is invalid
13as an abuse of a fiduciary or confidential relationship unless the trustee proves that
14the exculpatory term was fair under the circumstances existing at the time the trust
15instrument was signed and that the existence and contents of the exculpatory term
16were adequately communicated to the settlor.
SB384,169 17Section 169. 701.1009 of the statutes is created to read:
SB384,123,21 18701.1009 Beneficiary's consent, release, or ratification. A trustee is not
19liable to a beneficiary for breach of trust if the beneficiary consented to the conduct
20constituting the breach, released the trustee from liability for the breach, or ratified
21the transaction constituting the breach, unless any of the following applies:
SB384,123,23 22(1) The consent, release, or ratification of the beneficiary was induced by
23improper conduct of the trustee.
SB384,124,3
1(2) At the time of the consent, release, or ratification, the beneficiary did not
2have knowledge of the beneficiary's rights or of the material facts relating to the
3breach.
SB384,170 4Section 170. 701.1010 of the statutes is created to read:
SB384,124,8 5701.1010 Limitation on personal liability of trustee. (1) Except as
6otherwise provided in the contract, a trustee is not personally liable on a contract
7properly entered into in the trustee's fiduciary capacity in the course of
8administering the trust if the trustee in the contract disclosed the fiduciary capacity.
SB384,124,12 9(2) A trustee is personally liable for torts committed in the course of
10administering a trust, or for obligations arising from ownership or control of trust
11property, including liability for violation of environmental law, only if the trustee is
12personally at fault.
SB384,171 13Section 171. 701.1011 of the statutes is created to read:
SB384,124,18 14701.1011 Interest as general partner. (1) Unless personal liability is
15imposed in the contract, a trustee who holds an interest as a general partner in a
16general or limited partnership is not personally liable on a contract entered into by
17the partnership after the trust's acquisition of the interest if the fiduciary capacity
18was disclosed in the contract.
SB384,124,21 19(2) A trustee who holds an interest as a general partner is not personally liable
20for torts committed by the partnership or for obligations arising from ownership or
21control of the interest unless the trustee is personally at fault.
SB384,124,24 22(3) If the trustee of a revocable trust holds an interest as a general partner, the
23settlor is personally liable for contracts and other obligations of the partnership as
24if the settlor were a general partner.
SB384,172 25Section 172. 701.1012 of the statutes is created to read:
SB384,125,5
1701.1012 Protection of person dealing with trustee. (1) A person other
2than a beneficiary who in good faith assists a trustee, or who in good faith and for
3value deals with a trustee, without knowledge that the trustee is exceeding or
4improperly exercising the trustee's powers is protected from liability as if the trustee
5properly exercised the power.
SB384,125,8 6(2) A person other than a beneficiary who in good faith deals with a trustee is
7not required to inquire into the extent of the trustee's powers or the propriety of their
8exercise.
SB384,125,10 9(3) A person who in good faith delivers assets to a trustee does not need to
10ensure their proper application.
SB384,125,14 11(4) A person other than a beneficiary who in good faith assists a former trustee,
12or who in good faith and for value deals with a former trustee, without knowledge
13that the trusteeship has terminated is protected from liability as if the former trustee
14were still a trustee.
SB384,125,17 15(5) Comparable protective provisions of other laws relating to commercial
16transactions or transfer of securities by fiduciaries prevail over the protection
17provided by this section.
SB384,173 18Section 173. 701.1013 of the statutes is created to read:
SB384,125,21 19701.1013 Certification of trust. (1) Instead of furnishing a copy of the trust
20instrument to a person other than a beneficiary, the trustee may furnish to the
21person a certification of trust containing the following information:
SB384,125,2322 (a) That the trust exists and the date on which the trust instrument was
23executed.
SB384,125,2424 (b) The identity of the settlor.
SB384,125,2525 (c) The identity and address of the currently acting trustee.
SB384,126,1
1(d) The powers of the trustee.
SB384,126,32 (e) The revocability or irrevocability of the trust and the identity of any person
3holding a power to revoke the trust.
SB384,126,64 (f) The authority of a cotrustee to sign or otherwise authenticate and whether
5all cotrustees or less than all cotrustees are required to sign or otherwise
6authenticate in order to exercise powers of the trustee.
SB384,126,77 (g) The manner in which title to trust property may be taken.
SB384,126,9 8(2) A certification of trust may be signed or otherwise authenticated by any
9trustee.
SB384,126,12 10(3) A trustee shall include in a certification of trust that the trust has not been
11revoked, modified, or amended in any manner that would cause the representations
12contained in the certification of trust to be incorrect.
SB384,126,14 13(4) A certification of trust does not need to contain the dispositive terms of a
14trust.
SB384,126,18 15(5) A recipient of a certification of trust may require the trustee to furnish
16copies of those excerpts from the original trust instrument and later amendments
17that designate the trustee and confer upon the trustee the power to act in the pending
18transaction.
SB384,126,24 19(6) A person who acts in reliance upon a certification of trust without
20knowledge that the representations contained therein are incorrect is not liable to
21any person for so acting and may assume without inquiry the existence of the facts
22contained in the certification. Knowledge of the terms of the trust may not be
23inferred solely from the fact that a copy of all or part of the trust instrument is held
24by the person relying upon the certification.
SB384,127,3
1(7) A person who in good faith enters into a transaction in reliance upon a
2certification of trust may enforce the transaction against the trust property as if the
3representations contained in the certification were correct.
SB384,127,8 4(8) A person making a demand for copies of the trust instrument or excerpts
5from the trust instrument, other than those excerpts described in sub. (5), in addition
6to a certification of trust is liable for costs, expenses, reasonable attorney fees and
7damages if the court determines that the person did not act in good faith in
8demanding the copies.
SB384,127,10 9(9) This section does not limit the right of a person to obtain a copy of the trust
10instrument in a judicial proceeding concerning the trust.
SB384,174 11Section 174. 701.105 (title), (1), (2) and (3) of the statutes are renumbered
12701.1201 (title), (1), (2) and (3), and 701.1201 (1), (2) and (3), as renumbered, are
13amended to read:
SB384,127,1914 701.1201 (1) (a) In the administration of any trust which that is a private
15foundation, as defined in section 509 of the internal revenue code Internal Revenue
16Code
, a charitable trust, as defined described in section 4947 (a) (1) of the internal
17revenue code
Internal Revenue Code, or a split-interest trust as defined described
18in section 4947 (a) (2) of the internal revenue code Internal Revenue Code, all of the
19following acts shall be prohibited:
SB384,127,2320 1. Engaging in any act of self-dealing, as defined in section 4941 (d) of the
21internal revenue code, which Internal Revenue Code, that would give rise to any
22liability for the tax imposed by section 4941 (a) of the internal revenue code Internal
23Revenue Code
.
SB384,128,224 2. Retaining any excess business holdings, as defined in section 4943 (c) of the
25internal revenue code, which Internal Revenue Code, that would give rise to any

1liability for the tax imposed by section 4943 (a) of the internal revenue code Internal
2Revenue Code
.
SB384,128,63 3. Making any investments which that would jeopardize the carrying out of any
4of the exempt purposes of the trust, within the meaning of section 4944 of the internal
5revenue code
Internal Revenue Code, so as to give rise to any liability for the tax
6imposed by section 4944 (a) of the internal revenue code Internal Revenue Code.
SB384,128,107 4. Making any taxable expenditures, as defined in section 4945 (d) of the
8internal revenue code, which Internal Revenue Code, that would give rise to any
9liability for the tax imposed by section 4945 (a) of the internal revenue code Internal
10Revenue Code
.
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