What Are the Legal Requirements for a Trust in Wisconsin?

In Wisconsin, the creation and administration of trusts are governed by Chapter 701 of the Wisconsin Statutes, known as the Wisconsin Trust Code. Below are the legal requirements for a valid trust in Wisconsin, along with the corresponding statutory references.

1. Intent to Create a Trust

The settlor (person creating the trust) must have a clear intention to create a trust.

A trust is created only if the settlor has capacity and indicates an intention to create the trust. Wis. Stat. § 701.0402(1)(a)

2. Trust Property (Res)

A trust must have identifiable property to be held in trust.

A trust is created only if the settlor has capacity … and the trust has a definite or definitely ascertainable property interest. Wis. Stat. § 701.0402(1)(b)

3. Lawful Purpose

The trust must have a legal, valid purpose that is not against public policy.

A trust is created only if the trust has a purpose that is lawful, not contrary to public policy, and possible to achieve. Wis. Stat. § 701.0402(1)(c)

4. Beneficiary

A trust must have a definite beneficiary, unless it meets an exception (such as a charitable trust).

A trust is created only if the trust has a beneficiary that is definite or definitely ascertainable. Wis. Stat. § 701.0402(1)(d)

5. Trustee

A trustee must be designated to manage the trust.

A trust must have one or more trustees to carry out the terms of the trust and fulfill its purposes. Wis. Stat. § 701.0701

6. Proper Execution (Formalities)

For a revocable living trust, the trust document must generally be in writing and signed by the settlor.

A trust may be created by a transfer of property, declaration by the owner, exercise of a power of appointment, or a promise enforceable in equity. Wis. Stat. § 701.0402(2)

7. Revocable vs. Irrevocable

A trust is revocable unless expressly made irrevocable.

Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. Wis. Stat. § 701.0602(1)

Getting each of these elements right — and making sure your trust is actually funded correctly — is where an experienced Wisconsin trust attorney earns their keep. Have questions about creating a trust in Wisconsin? Reach out today.