Can an executor live in another state, ex. the will is in wis. but dtr lives in colorado

Yes, you can name your daughter, or any other person, who is a resident of another state to be the personal representative (executor) of your estate. There is no specific requirement that any personal representative be a resident of Wisconsin to "probate" an estate.

I would recommend that any non-resident of Wisconsin obtain local counsel in Wisconsin to assist in the filing of paperwork and in the overall administration of the estate as it goes through the Court system.