(1) DEADLINE ON CLAIMS. A claimant must assert a claim for payment of a debt of a deceased settlor within the time for such claims under applicable law. For purposes of this section, a debt incurred by a trustee of a revocable trust before the death of a settlor of the revocable trust shall be treated in the same manner as a debt of the settlor. A trustee of a trust that was revocable at the settlor’s death may shorten the time period and set a deadline for filing claims with the trustee by doing any of the following: (a) Publishing a legal notice as a class 3 notice under ch. 985 in the county in which the deceased settlor resided. The legal notice shall identify the name, address, and any other contact information of the trustee or other person with whom claims must be filed. The deadline for a claim by any claimant who is not known by the trustee shall be the earlier of the date that is 4 months after the date of the first insertion of the legal notice or, if sub. (6) is applicable, the deadline prescribed under s. 859.01. (b) Giving notice to a potential claimant. The notice shall include a copy of the legal notice, if published, and shall identify the name, address, and any other contact information of the trustee or other person with whom claims must be filed and shall state that any claim by the potential claimant must be filed not later than the date that is 30 days from the date notice is given to the potential claimant or the deadline specified in the legal notice. If a legal notice has not been published, the deadline shall be 4 months from the date the trustee provides notice to the potential claimant. (c) Publishing a legal notice and not giving a separate notice to a potential claimant who is known to the trustee. The deadline for a claim when a legal notice has been published but notice is not given to a known potential claimant is the later of the date that is one year from the date of the settlor’s death or the deadline specified in the legal notice. (2) EXCEPTIONS TO DEADLINES ON CLAIMS. A claim that is not filed on or before an applicable deadline specified under sub. (1) is not barred if the claim is a claim based on tort, a marital property agreement that is subject to the time limitations under s. 766.58 (13) (b) or (c), Wisconsin income, franchise, sales, withholding, gift, or death taxes, unemployment compensation contributions due or benefits overpaid, funeral or administrative expenses, a claim of this state under s. 46.27 (7g), 2017 stats., or s. 49.496, 49.682, or 49.849, or a claim of the United States. (3) FILING OF CLAIMS. (a) A claim is considered filed if the claimant provides notice of the claim to the trustee or other person with whom claims must be filed as prescribed under sub. (1) (a) or (b). (b) A claim is considered filed if the deceased settlor is subject to a probate proceeding in this state and a claim is filed with the court under ch. 859. (c) If an action is pending against a deceased settlor at the time of the settlor’s death and the action survives, the plaintiff in that action may serve a notice of substitution of party defendant on the trustee and file proof of service of notice in the court. Filing of proof of service on or before the deadline for filing a claim under sub. (1) gives the plaintiff the same rights against the trust as the filing of a claim. (4) EFFECT OF STATUTE OF LIMITATIONS. (a) A claim that was barred by a statute of limitations at the time of the deceased settlor’s death is barred and the claimant may not pursue a claim against the trustee, the trust property, or recipients with respect to trust property. (b) A claim not barred by a statute of limitations at the time of the settlor’s death shall not be barred thereafter by a statute of limitations if the claim is filed on or before the deadline for filing a claim under sub. (1). (c) A claim that is not filed or is filed after the deadline for filing a claim under sub. (1) is barred and the claimant may not pursue a claim against the trustee, the trust property, or recipients with respect to trust property. (d) The deadlines established under sub. (1) do not extend the time for commencement of a claim beyond the time provided by any statute of limitations applicable to that claim. (5) SATISFACTION OF CLAIM FROM OTHER PROPERTY. Failure of a claimant timely to file a claim as provided in this section does not bar the claimant from satisfying the claim, if not otherwise barred, from property other than trust property. (6) COORDINATION WITH PROBATE. If a legal notice has been published with respect to the estate of a deceased settlor who died domiciled in this state, property of a trust that was revocable at the settlor’s death shall be treated as property of the estate solely for purposes of administering claims under ch. 859. The trustee shall be subject to the jurisdiction of the court in which the estate administration is pending. A personal representative, as defined in s. 851.23, shall provide notice to the trustee regarding claims filed against the estate. A claim barred under ch. 859 may not be satisfied from property of a trust that was revocable at the settlor’s death. The trustee and qualified beneficiaries shall have standing to file an objection, offset, or counterclaim with respect to claims filed against the estate. Nothing in this subsection causes property of the trust that otherwise would be exempt from claims to be subject to claims filed against the settlor’s estate. If the trust is not referenced in a deceased settlor’s will, the trustee of a trust that was revocable at the settlor’s death shall provide notice to a personal representative of the settlor’s estate, if any, of the existence of such trust.
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