701.0414 Modification or termination of uneconomic trust.

(1) In this section:

(a) “Adjustment reference number" means the consumer price index for all urban consumers, as published by the United States bureau of labor statistics, in effect on January 1 of the year in which an adjustment is to be made in accordance with sub. (3).

(b) “Base reference number" means the consumer price index for all urban consumers, as published by the United States bureau of labor statistics, in effect on January 1 of the base year.

(c) “Base year" means 2014.

(2) After notice to the settlor, if living, each trust protector, each directing party, and the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $100,000 or a revised applicable figure, as determined under sub. (3), may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.

(3) The dollar amount specified in sub. (2) shall be adjusted to a revised applicable figure on July 1, 2019, and every 5 years thereafter. The revised applicable figure shall be determined as follows:

(a) Calculate the percentage change between the base reference number and the adjustment reference number for the year in which the adjustment is being made.

(b)

1. If the percentage change determined in par. (a) is a positive number, determine the revised applicable figure as follows:

a. Multiply $100,000 by the percentage change determined in par. (a), expressed as a decimal.

b. Round the product under subd. 1. a. to the nearest $1,000.

c. Add the value determined under subd. 1. b. to $100,000.

2. If the percentage change determined in par. (a) is a negative number, determine the revised applicable figure as follows:

a. Multiply $100,000 by the absolute value of the percentage change determined in par. (a), expressed as a decimal.

b. Round the product under subd. 2. a. to the nearest $1,000.

c. Subtract the value determined under subd. 2. b. from $100,000.

(4) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration even if the trust property has a total value in excess of the amount described in sub. (2).

(5) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

(6) This section does not apply to an easement for conservation or preservation.

(7) A party petitioning the court for action under this section shall give notice of the proceeding to the settlor, if living, the trustee, each trust protector, each directing party, and the qualified beneficiaries.

History: 2013 a. 92.