Trustees and fiduciaries in Wisconsin

Accepting and removing a trustee

A person named as trustee in Wisconsin may decline the role. A named person who has not accepted is considered to have rejected the trusteeship if they do not accept within a reasonable time after learning of the designation.

Removal of a trustee in Wisconsin comes from a court. The court may act after a substantial change of circumstances or at the request of all qualified beneficiaries. The court weighs whether removal fits the trust's material purpose and whether a suitable successor exists.

Delegation and directed trusts

Wisconsin lets a trustee delegate duties and powers that a trustee of comparable skills could properly delegate. The trustee must exercise reasonable care in the delegation.

A directing party is treated as a fiduciary in Wisconsin. The directing party must act in good faith and is liable for losses from its own breach of fiduciary duty.

A Wisconsin trust company acting in any fiduciary capacity for a trust may purchase any service or product. That includes insurance or securities underwritten or distributed by the trust company or an affiliate.

Information and reports for beneficiaries

Trustees in Wisconsin must keep current beneficiaries and requesting presumptive remainder beneficiaries reasonably informed. Trustees must also promptly respond to a qualified beneficiary's information requests unless the requests are unreasonable.

Reports go to current beneficiaries at least annually and on termination of the trust. Presumptive remainder beneficiaries who request them receive them as well.

The trust instrument may expand, restrict or eliminate beneficiaries' rights to information, for any period including a beneficiary's lifetime. A qualified beneficiary may also waive trustee reports and other required information and may withdraw the waiver for future reports.

A Wisconsin presumptive remainder beneficiary, or a person authorized to represent them, may represent and bind a contingent successor remainder beneficiary or a more remote contingent successor remainder beneficiary.

Discretion, cotrustees and distributions

A discretionary power in Wisconsin must be exercised in good faith and in accordance with the trust's terms and purposes and the beneficiaries' interests. A court may not find abuse of discretion merely because it would have decided differently.

Wisconsin trustees must take reasonable steps to compel former trustees to deliver trust property. Trustees must also take reasonable steps to redress known breaches by trustees, former trustees or trust protectors.

Upon the death of a Wisconsin settlor whose trust was revocable immediately before death, the trustee may distribute trust property per the trust's terms.

Once the claims deadline has passed, a qualified beneficiary or claimant in Wisconsin may make a written request that the trustee list all claims filed against the trust.

Guardians

A guardian's compensation and expense reimbursement need court approval before payment. Approval is not needed before the charges are incurred.

Common questions