700.16 Perpetuities and suspension of power of alienation. - Wisconsin Statutes

700.16

700.16 Perpetuities and suspension of power of alienation.

700.16(1)

(1)

700.16(1)(a)

(a) A future interest or trust is void if it suspends the power of alienation for longer than the permissible period. The permissible period is a life or lives in being plus a period of 30 years.

700.16(1)(b)

(b) If the settlor of a living trust has an unlimited power to revoke, the permissible period is computed from termination of such power.

700.16(1)(c)

(c) If a future interest or trust is created by exercise of a power of appointment, the permissible period is computed from the time the power is exercised if the power is a general power as defined in s. 702.01 (3) even if the power is exercisable only by will; in the case of other powers the permissible period is computed from the time the power is created but facts at the time the power is exercised are considered in determining whether the power of alienation is suspended beyond a life or lives in being at the time of creation of the power plus 30 years.

700.16(2)

(2) The power of alienation is suspended when there are no persons in being who, alone or in combination with others, can convey an absolute fee in possession of land, or full ownership of personalty.

700.16(3)

(3) There is no suspension of the power of alienation by a trust or by equitable interests under a trust if the trustee has power to sell, either expressed or implied, or if there is an unlimited power to terminate in one or more persons in being.

700.16(4)

(4) This section does not apply to limit any of the following:

700.16(4)(a)

(a) Transfers, outright or in trust, for charitable purposes;

700.16(4)(b)

(b) Transfers to literary or charitable corporations;

700.16(4)(bm)

(bm) Transfers to a veteran's memorial organization under s. 84.09 (5r);

700.16(4)(c)

(c) Transfers to any cemetery corporation, society or association;

700.16(4)(d)

(d) Transfers, outright or in trust, to the state society of physicians and surgeons incorporated under the law of this state, when the transfer is for the advancement of medical science;

700.16(4)(e)

(e) Transfers to any person pursuant to ch. 703; or

700.16(4)(f)

(f) Employees' trusts created as part of a plan or contract as described in s. 815.18 (3) (j).

700.16(5)

(5) The common-law rule against perpetuities is not in force in this state.

700.16 - ANNOT.

History: Sup. Ct. Order, 67 Wis. 2d 585, 777 (1975); 1983 a. 189 s. 329 (26); 1989 a. 278; 1995 a. 406.