REVOCABLE LIVING TRUST AGREEMENT
(Wisconsin)
[// GUIDANCE: This template is intentionally comprehensive yet flexible. Delete, add, or edit provisions to reflect the Settlor’s estate-planning objectives, family circumstances, and tax posture. Bracketed terms signal required customization.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Creation & Funding of Trust
- Revocation & Amendment
- Administration During Settlor’s Lifetime
- Administration Upon Settlor’s Disability
- Administration Upon Settlor’s Death
- Trustee Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Schedule A – Funding Schedule
1. DOCUMENT HEADER
1.1 Title and Parties
This Revocable Living Trust Agreement (the “Agreement”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
a. Settlor/Grantor: [FULL LEGAL NAME], of [ADDRESS] (“Settlor” or “Grantor”); and
b. Initial Trustee: [FULL LEGAL NAME], of [ADDRESS] (“Trustee”).
1.2 Recitals
A. Settlor desires to create a revocable inter-vivos trust to hold, manage, and distribute property for the benefit of Settlor and Settlor’s Beneficiaries.
B. Trustee is willing to accept the trust and administer it in accordance with the terms herein and the Wisconsin Trust Code, Wis. Stat. ch. 701 (2023).
C. Settlor hereby transfers to Trustee the property described in Schedule A, together with all additions and accretions (“Trust Estate”), to be held, administered, and distributed as provided below.
1.3 Governing Law & Jurisdiction
This Agreement, and all questions concerning its validity, construction, and administration, shall be governed by the laws of the State of Wisconsin, without regard to conflict-of-laws principles, and shall be subject to the exclusive jurisdiction of the state probate court of [COUNTY], Wisconsin.
2. DEFINITIONS
For ease of reference, capitalized terms used herein shall have the meanings set forth below.
“Accounting Period” – A calendar year or such shorter period ending on the Trust’s termination or partial distribution.
“Additional Property” – Any property, real or personal, later transferred to the Trust by Settlor or any other person with Trustee’s consent.
“Beneficiary” or “Beneficiaries” – Each person or entity entitled, presently or prospectively, to receive income or principal hereunder.
“Code” – The Internal Revenue Code of 1986, as amended.
“Disability” – Settlor’s inability to manage property or financial affairs, determined under Section 6.2.
“Qualified Trustee” – A trustee who meets the requirements of Wis. Stat. ch. 701 for exercising trustee powers under this Agreement.
“Revocation Notice” – A written instrument signed by Settlor and acknowledged before a notary public, delivered to Trustee, revoking or amending this Agreement.
“Successor Trustee” – A trustee designated or appointed to serve under Article 8 upon the resignation, removal, incapacity, or death of the then-acting Trustee.
“Trust” – The trust created by this Agreement, referred to as the “[SETTLOR NAME] Revocable Living Trust.”
“Trust Estate” – All property conveyed to or acquired by the Trust, plus earnings, replacements, and proceeds.
[// GUIDANCE: Insert additional defined terms as needed; maintain alphabetical order.]
3. CREATION & FUNDING OF TRUST
3.1 Establishment. Settlor hereby establishes the Trust as a revocable trust within the meaning of Wis. Stat. § 701.0601.
3.2 Funding. a. Initial Funding. Concurrently with execution, Settlor delivers to Trustee the property listed in Schedule A.
b. Additional Property. Trustee may accept Additional Property from Settlor or any other person at any time, and such property shall become part of the Trust Estate upon acceptance.
3.3 Character of Property. Unless expressly stated otherwise, all property transferred by Settlor retains its character (marital or separate) under applicable marital property law.
4. REVOCATION & AMENDMENT
4.1 General Power. Settlor reserves the unconditional right to revoke or amend this Agreement, in whole or in part, by delivering a Revocation Notice to Trustee during Settlor’s lifetime and capacity.
4.2 Partial Revocation. Settlor may withdraw all or any part of the Trust Estate by written direction to Trustee.
4.3 Effectiveness. Revocations or amendments shall be effective upon Trustee’s actual receipt thereof, unless a later date is stated. Trustee shall take all steps reasonably necessary to implement such changes.
5. ADMINISTRATION DURING SETTLOR’S LIFETIME
5.1 Beneficial Interest. During Settlor’s lifetime and while not Disabled, Trustee shall distribute to or for the benefit of Settlor such amounts of net income and principal as Settlor requests, and, in the absence of request, as Trustee deems necessary for Settlor’s health, education, maintenance, and support (“HEMS Standard”).
5.2 Tax Reporting. While the Trust remains revocable and Settlor is living, the Trust is a grantor trust for federal and Wisconsin income tax purposes; all items of income, deduction, and credit shall be reported on Settlor’s individual returns. Trustee shall furnish Settlor with all information necessary for such reporting.
6. ADMINISTRATION UPON SETTLOR’S DISABILITY
6.1 Definition of Disability. Settlor is “Disabled” if:
a. Settlor is determined to be incapacitated under Wis. Stat. § 54.10; or
b. Two licensed physicians certify in writing that Settlor is unable to manage property and financial affairs; or
c. Settlor voluntarily delivers a written declaration to Trustee stating Settlor’s own Disability.
6.2 Effect of Disability. a. Revocation Power Suspended. During Disability, Settlor’s power to revoke or amend this Trust may be exercised only by a court-appointed guardian or agent under a valid power of attorney expressly authorizing same.
b. Distributions. Trustee shall apply income and principal for Settlor’s HEMS needs and, to the extent funds are available, for the HEMS needs of Settlor’s spouse and any dependents.
c. Restoration of Capacity. Upon written certification by Settlor and one licensed physician that Settlor’s capacity has been restored, administration shall revert to Article 5.
7. ADMINISTRATION UPON SETTLOR’S DEATH
7.1 Termination of Revocability. Settlor’s death renders the Trust irrevocable.
7.2 Payment of Expenses & Taxes. Trustee may pay from the Trust Estate:
a. Settlor’s legally enforceable debts (excluding obligations secured by non-trust property unless directed otherwise);
b. Reasonable funeral and last illness expenses;
c. Estate and inheritance taxes attributable to the Trust Estate, without apportionment, unless otherwise directed by Settlor’s Last Will.
7.3 Distribution of Tangible Personal Property. Trustee shall distribute Settlor’s tangible personal property in accordance with any valid written memorandum referenced herein, or, absent such memorandum, in Trustee’s discretion among the residuary Beneficiaries.
7.4 Residuary Disposition. After satisfying Sections 7.2 and 7.3, Trustee shall distribute the balance of the Trust Estate as follows:
[INSERT CUSTOM SCHEME – e.g., outright to spouse if living, otherwise to children per stirpes, continuing trusts for minors, charitable bequests, etc.]
7.5 Continuing Trusts for Minors or Incapacitated Beneficiaries.
a. Creation. Any share distributable to a Beneficiary who is under age [AGE] or otherwise lacks capacity shall be held in trust until the earlier of (i) attainment of age [AGE]; (ii) written request after age [AGE]; or (iii) determination of capacity.
b. Distributions. Trustee may make distributions for such Beneficiary’s HEMS needs and may apply funds for education expenses, including tuition, books, and reasonable living costs.
c. Termination. Upon termination, Trustee shall distribute the remaining principal and undistributed income outright to the Beneficiary.
7.6 Ultimate Takers. In default of any living Beneficiary, the Trust Estate shall pass to [DESCENDANTS OF SETTLOR’S PARENTS / CHARITY / “Heirs at law”] per Wisconsin intestacy statutes.
8. TRUSTEE PROVISIONS
8.1 Acceptance & Standard of Care. Trustee accepts the trusteeship and shall administer the Trust in good faith, in accordance with this Agreement and Wis. Stat. ch. 701, applying the prudent investor rule.
8.2 Powers of Trustee. Except as limited herein, Trustee shall have all powers granted to trustees under Wis. Stat. § 701.0815, including but not limited to the power to:
a. Retain, sell, or exchange any Trust asset;
b. Engage agents, advisors, and custodians;
c. Make tax elections and settlements;
d. Distribute in cash or in kind and make non-pro rata distributions;
e. Execute documents in Trustee’s fiduciary capacity.
8.3 Removal & Resignation.
a. Resignation. Trustee may resign upon [30] days’ written notice to Settlor (or, after Settlor’s death, to the adult income Beneficiaries) and any Successor Trustee.
b. Removal. Settlor (if not Disabled) or a majority of the adult income Beneficiaries may remove Trustee by written notice, effective upon the appointment and acceptance of a Successor Trustee.
8.4 Successor Trustee.
a. Designation. The following are designated in order of priority as Successor Trustees: i. [FIRST SUCCESSOR TRUSTEE]; ii. [SECOND SUCCESSOR TRUSTEE]; iii. [TRUST COMPANY].
b. Appointment Mechanism. If no designated Successor Trustee is willing and able, a Successor Trustee shall be appointed by the adult Beneficiaries by majority vote, or, failing agreement, by the state probate court of [COUNTY], Wisconsin.
c. Multiple Trustees. When two or more Trustees serve, action may be taken by majority vote. A dissenting Trustee shall not be liable for acts of the majority if the dissent is expressed in writing and delivered to the co-Trustees.
8.5 Trustee Compensation & Expenses. Trustee is entitled to reasonable compensation consistent with fiduciary fee schedules customary in Wisconsin and to reimbursement of properly incurred expenses.
9. REPRESENTATIONS & WARRANTIES
9.1 Settlor. Settlor represents and warrants that:
a. Settlor has full legal capacity and authority to establish this Trust and transfer assets thereto;
b. All property listed on Schedule A is, to Settlor’s knowledge, free of undisclosed liens or adverse claims;
c. Execution and performance of this Agreement violate no court order or contract binding on Settlor.
9.2 Trustee. Trustee represents and warrants that:
a. Trustee is not disqualified from acting as fiduciary under applicable law;
b. Trustee shall exercise the duties of loyalty and impartiality owed to all Beneficiaries;
c. Trustee has reviewed and understands the terms of this Agreement and applicable fiduciary law.
The foregoing representations shall survive acceptance of the trusteeship and funding of the Trust.
10. COVENANTS & RESTRICTIONS
10.1 Trustee Accounting. Trustee shall maintain accurate books and records and deliver at least annual statements to Settlor (during Settlor’s life) and to the Beneficiaries otherwise entitled to current or remainder interests per Wis. Stat. § 701.0813.
10.2 Notice & Information Rights. a. Trustee shall promptly notify qualified Beneficiaries of any change in trusteeship.
b. Trustee shall furnish a copy of this Agreement to any qualified Beneficiary upon written request.
10.3 Investment Restrictions. Unless Settlor directs otherwise in writing, Trustee shall invest and reinvest Trust assets in a diversified manner consistent with the prudent investor rule.
10.4 Non-Contest Provision. If any Beneficiary directly or indirectly contests this Agreement or any trust created hereunder, that Beneficiary’s interest shall be forfeited and added to the residuary shares of the non-contesting Beneficiaries.
[// GUIDANCE: Consider whether a no-contest clause aligns with client objectives and Wisconsin public policy.]
11. DEFAULT & REMEDIES
11.1 Events of Default. The following constitute default by Trustee:
a. Willful misconduct or gross negligence in administration;
b. Failure to render required accountings within [60] days after written demand;
c. Breach of duty of loyalty resulting in material harm to the Trust Estate.
11.2 Cure Period. Trustee shall have [30] days after written notice specifying the default to cure, except where the default is incapable of cure or is a breach of the duty of loyalty.
11.3 Remedies. If default is uncured:
a. Removal of Trustee and appointment of a Successor Trustee;
b. Surcharge of Trustee’s compensation;
c. Recovery of damages from Trustee to the extent not limited under Article 12;
d. Injunctive relief to prevent further harm to the Trust Estate.
11.4 Attorneys’ Fees. In any action to enforce this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, payable from (i) the Trust Estate if Trustee prevails, or (ii) the contesting Beneficiary’s interest if such Beneficiary does not prevail.
12. RISK ALLOCATION
12.1 Trustee Indemnification. Trustee shall be indemnified and held harmless out of the Trust Estate against all claims, liabilities, and expenses (including attorneys’ fees) arising from Trustee’s administration, except for breaches arising from Trustee’s bad faith, intentional wrongdoing, or gross negligence.
12.2 Limitation of Liability. The liability of Trustee, in any capacity, shall be limited to the value of the Trust Estate; no Trustee shall be personally liable for any obligation arising from administration of the Trust, except for acts of bad faith, intentional wrongdoing, or gross negligence.
12.3 Insurance. Trustee may obtain and pay from the Trust Estate fiduciary liability insurance and such other coverage as Trustee deems prudent.
12.4 Force Majeure. Trustee shall not be liable for delays or failures in performance due to acts of God, war, terrorism, cyber-attack, governmental action, pandemic, or other events beyond Trustee’s reasonable control.
13. DISPUTE RESOLUTION
13.1 Governing Law. Wisconsin law governs all matters arising hereunder.
13.2 Forum Selection. Exclusive venue for judicial proceedings relating to the Trust shall be the state probate court of [COUNTY], Wisconsin.
13.3 Optional Arbitration. Settlor elects: [ ] Yes [ ] No
If “Yes,” any dispute not resolved by agreement shall be submitted to binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, with venue in [CITY], Wisconsin. Judgment on the award may be entered in any court of competent jurisdiction. Pending arbitration, the parties may seek provisional injunctive relief in the designated state probate court.
13.4 Jury Waiver. To the extent permitted by law, the parties waive any right to a jury trial in proceedings concerning the Trust. Nothing herein shall preclude the probate court’s equitable powers or issuance of injunctive relief to enforce trust terms.
13.5 Injunctive Relief. The probate court shall retain concurrent jurisdiction to grant temporary, preliminary, and permanent injunctive relief to protect the Trust Estate and enforce fiduciary duties.
14. GENERAL PROVISIONS
14.1 Amendment & Waiver. Except as otherwise provided, no amendment or waiver of any provision shall be effective unless in writing and signed by the party against whom enforcement is sought. A waiver of any breach shall not operate as a waiver of any subsequent breach.
14.2 Assignment. No Beneficiary may assign, pledge, or encumber any interest hereunder, voluntarily or involuntarily, and such interests shall be subject to a spendthrift trust within the meaning of Wis. Stat. § 701.0502.
14.3 Successors & Assigns. This Agreement shall bind and benefit the parties hereto and their respective heirs, personal representatives, successors, and assigns.
14.4 Severability. If any provision is held unenforceable, the remaining provisions shall be given effect to the maximum extent permitted by law.
14.5 Entire Agreement. This Agreement constitutes the entire understanding between the parties regarding the subject matter herein and supersedes all prior agreements.
14.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original. Signatures in electronic form or transmitted by PDF shall be deemed originals.
15. EXECUTION BLOCK
IN WITNESS WHEREOF, the Settlor and Trustee have executed this Agreement as of the Effective Date.
| Settlor | Trustee |
|---|---|
| _________ | _________ |
| [SETTLOR NAME] | [TRUSTEE NAME] |
Notary Acknowledgment – Settlor
State of Wisconsin )
County of [__] ) ss.
On this _ day of _, 20__, before me, a notary public, personally appeared [SETTLOR NAME], known to me or satisfactorily proven to be the person whose name is subscribed to the foregoing instrument and acknowledged executing the same for the purposes therein contained.
Notary Public, State of Wisconsin
My commission expires: ____
Notary Acknowledgment – Trustee (Optional)
[Duplicate acknowledgment block]
[// GUIDANCE: Wisconsin law does not require witnesses, but institutional trustees may prefer separate acknowledgments. Verify any recording or title requirements for real property transfers.]
16. SCHEDULE A – FUNDING SCHEDULE
[Insert detailed description of property being transferred, e.g.:
- Cash in the amount of $__ deposited to [Bank], Account No. [____].
- 100 shares of [Company] common stock, Certificate No. [____].
- Real property located at [Legal Description], Tax Parcel No. [____].
• Conveyed by separate deed recorded concurrently herewith. - Life insurance policy issued by [Carrier], Policy No. [____], with ownership and beneficiary designation changed to the Trust.
- Any and all household goods, automobiles, and other tangible personal property of Settlor not otherwise specifically disposed of.]
[// GUIDANCE: For Wisconsin real estate, record a Warranty Deed or Transfer on Death Deed naming the Trustee to ensure completion of transfer. Attach copies of deed filings to this Schedule when available.]
End of Document