Written by: Matthew Woyak, CVA, Trust Officer – Real Estate Administrator
Real estate held in trust presents unique challenges for Wisconsin fiduciaries. Unlike liquid assets, property requires ongoing attention, expense management, and sound judgment – all while honoring the terms of the trust instrument and the interests of beneficiaries.
Under Wisconsin’s Uniform Trust Code (Wis. Stat. Ch. 701) and the Uniform Prudent Investor Act (Wis. Stat. § 881.01), trustees are held to an objective standard of care. When real estate is a trust asset, that standard demands more than passive ownership. A trustee must regularly evaluate whether retaining the property serves the trust’s purposes and the beneficiaries’ needs. Holding an underdeveloped parcel, a deteriorating rental property, or a piece of land generating little income may expose the trustee to liability if retention cannot be justified through prudent analysis.
Practical fiduciary duties include maintaining adequate property insurance, ensuring timely payment of taxes and assessments, overseeing necessary repairs, and engaging qualified professionals – appraisers, property managers, environmental consultants – when circumstances warrant. When the decision to sell arises, the trustee must pursue a competitive process, obtain a qualified appraisal, document the decision-making rationale, and act without undue delay.
Agricultural land, vacation property, and family homes often carry emotional significance for beneficiaries, which can complicate objective administration. Wisconsin fiduciaries must balance those sensitivities against their legal duty of impartiality – weighing the interests of current income beneficiaries against remainder beneficiaries, particularly where property produces little or no distributable income.
Thorough documentation throughout the administration process is essential. It demonstrates prudent process, supports fee reasonableness, and provides a defensible record should any trustee decision ever be questioned.
For more information, please visit PrairieTrust.com or reach out to me directly at (262) 574-4124 or mwoyak@prairietrust.com.