reglab/statecodes huggingface dataset:
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.14 | Judicial Standard of Review for Discretionary Trusts.

Effective:
March 22, 2012
Latest Legislation:
Senate Bill 117 - 129th General Assembly
(A) The judicial standard of review for discretionary trusts is that the trustee shall exercise a discretionary power reasonably, in good faith, and in accordance with the terms and purposes of the trust and the interests of the beneficiaries, except that with respect to distribution decisions a reasonableness standard shall not be applied to the exercise of discretion by the trustee of a wholly discretionary trust. The greater the grant of discretion by the settlor to the trustee, the broader the range of permissible conduct by the trustee in exercising it.
(B) Subject to division (D) of this section, and unless the terms of the trust expressly indicate that a rule in this division does not apply:
(1) A person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard.
(2) A trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
(C) A power whose exercise is limited or prohibited by division (B) of this section may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power.
(D) Division (B) of this section does not apply to any of the following:
(1) A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in section 2056(b)(5) or 2523(e) of the Internal Revenue Code, was previously allowed;
(2) Any trust during any period that the trust may be revoked or amended by its settlor;
(3) A trust if contributions to the trust qualify for the annual exclusion under section 2503(c) of the Internal Revenue Code.
(E) For purposes of division (A) of this section, a trustee who acts reasonably and in good faith in exercising the power to distribute trust income or principal to the trustee of a second trust in accordance with division (A) or (B) of section 5808.18 of the Revised Code is presumed to have acted in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.15 | General Powers of Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee, without authorization by the court, may exercise powers conferred by the terms of the trust and, except as limited by the terms of the trust, may exercise all of the following powers:
(1) All powers over the trust property that an unmarried competent owner has over individually owned property;
(2) Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property;
(3) Any other powers conferred by Chapters 5801. to 5811. of the Revised Code.
(B) The exercise of a power is subject to the fiduciary duties prescribed by Chapter 5808. of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.01 | Trustee Duty to Comply With Act.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A)(1) As used in the Revised Code, the "Ohio Uniform Prudent Investor Act" means sections 5809.01 to 5809.08, 5808.03, 5808.05, and 5808.06, division (A) of section 5808.02, and division (B) of section 5808.07 of the Revised Code, and those sections may be cited as the "Ohio Uniform Prudent Investor Act."
(2) As used in the Ohio Uniform Prudent Investor Act, "trustee" means a trustee under any testamentary, inter vivos, or other trust.
(B) Except as provided in division (C) or (D) of this section, a trustee who invests and manages trust assets under the Ohio Uniform Prudent Investor Act owes a duty to the beneficiaries of the trust to comply with the Ohio Uniform Prudent Investor Act.
(C) The Ohio Uniform Prudent Investor Act may be expanded, restricted, eliminated, or otherwise altered, without express reference by the instrument creating a trust to the Ohio Uniform Prudent Investor Act or any section of the Revised Code that is part of that act.
(D) A trustee is not liable to a beneficiary of a trust to the extent the trustee acted in reasonable reliance on the provisions of the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.02 | Standard of Care - Portfolio Strategy - Risk and Return Objectives.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this requirement, the trustee shall exercise reasonable care, skill, and caution.
(B) A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
(C) A trustee's investment and management decisions respecting individual trust assets shall not be evaluated in isolation but in the context of the trust portfolio as a whole and as part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
(D) Among circumstances that a trustee shall consider in investing and managing trust assets are the following as are relevant to the trust or its beneficiaries:
(1) The general economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected tax consequences of investment decisions or strategies;
(4) The role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;
(5) The expected total return from income and appreciation of capital;
(6) Other resources of the beneficiaries;
(7) Needs for liquidity, regularity of income, and preservation or appreciation of capital;
(8) An asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.03 | Investment Authority - Diversification.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee may invest in any kind of property or type of investment provided that the investment is consistent with the requirements and standards of the Ohio Uniform Prudent Investor Act.
(B) A trustee shall diversify the investments of a trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.031 | Duties of a Trustee With Respect to the Acquisition, Retention, or Ownership of a Life Insurance Policy.

Effective:
March 22, 2013
Latest Legislation:
House Bill 247 - 129th General Assembly
(A) Notwithstanding any other provision of the Ohio Uniform Prudent Investor Act, unless otherwise provided by the terms of the trust, the duties of a trustee with respect to the acquisition, retention, or ownership of a life insurance policy as a trust asset do not include any of the following duties:
(1) To determine whether the policy is or remains a proper investment;
(2) To diversify the investment in the policy relative to any other life insurance policies or to any other trust assets;
(3) To exercise or not to exercise any option, right, or privilege available under the policy, including the payment of premiums unless there is sufficient cash or there are other readily marketable trust assets from which to pay the premiums or there are other trust assets that were designated by the settlor or any other person transferring those assets to the trust to be used for that purpose, regardless of whether that exercise or nonexercise results in the lapse or termination of the policy;
(4) To investigate the financial strength or changes in the financial strength of the life insurance company maintaining the policy;
(5) To inquire about changes in the health or financial condition of the insured or insureds under the policy.
(B) The trustee, the attorney who drafted a trust, or any person who was consulted with regard to the creation of a trust, in the absence of fraud, is not liable to the beneficiaries of the trust or to any other person for any loss arising from the absence of the duties specified in divisions (A)(1) to (5) of this section.
(C) Unless otherwise provided by the terms of the trust, this section applies to a trust established before, on, or after March 22, 2012, and to a life insurance policy acquired, retained, or owned by a trustee before, on, or after March 22, 2012.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.04 | Duties at Inception of Trusteeship.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of trust assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and in order to comply with the requirements and standards of the Ohio Uniform Prudent Investor Act.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.05 | Reviewing Compliance.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Compliance with the Ohio Uniform Prudent Investor Act shall be determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.06 | Delegation of Investment and Management Functions.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee may delegate investment and management functions of a trust that a prudent trustee having comparable skills could properly delegate under the circumstances. A trustee that exercises its delegation authority under this division shall comply with the requirements of division (A) of section 5808.07 of the Revised Code.
(B) In performing investment or management functions of a trust that are delegated to an agent, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(C) A trustee who delegates a function to an agent in compliance with division (A) of this section is not liable to the beneficiaries of the trust or to the trust for the decisions or actions of the agent to whom the function was delegated.
(D) By accepting the delegation of investment or management functions of a trust that is subject to the laws of this state, an agent submits to the jurisdiction of this state.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.07 | Language Invoking Standard of Act.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted by the Ohio Uniform Prudent Investor Act: "investments permissible by law for investment of trust funds"; "legal investments"; "authorized investments"; "using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds considering the probable income as well as the probable safety of their capital"; "prudent man rule"; "prudent trustee rule"; "prudent person rule"; and "prudent investor rule."
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5809 | Ohio Uniform Prudent Investor Act › Section 5809.08 | Application and Construction.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) The Ohio Uniform Prudent Investor Act shall be applied and construed to effectuate the general purpose to make uniform the law with respect to the subject of these sections among the states enacting it.
(B) The Ohio Uniform Prudent Investor Act applies to trusts existing on or created after March 22, 1999. As applied to trusts existing on March 22, 1999, the Ohio Uniform Prudent Investor Act governs only decisions or actions occurring after March 22, 1999.
(C) The temporary investment of cash or funds pursuant to section 5815.26 or 2109.372 of the Revised Code shall be considered a prudent investment in compliance with the Ohio Uniform Prudent Investor Act.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.01 | Breach of Trust Defined - Judicial Remedies.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
(B) To remedy a breach of trust that has occurred or may occur, the court may do any of the following:
(1) Compel the trustee to perform the trustee's duties;
(2) Enjoin the trustee from committing a breach of trust;
(3) Compel the trustee to redress a breach of trust by paying money, restoring property, or other means;
(4) Order a trustee to account;
(5) Appoint a special fiduciary to take possession of the trust property and administer the trust;
(6) Suspend the trustee;
(7) Remove the trustee as provided in section 5807.06 of the Revised Code;
(8) Reduce or deny compensation to the trustee;
(9) Subject to section 5810.12 of the Revised Code, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds;
(10) Order any other appropriate relief.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.02 | Liability to Beneficiaries for Breach - Contribution.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of the following:
(1) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred;
(2) The profit the trustee made by reason of the breach.
(B) Except as otherwise provided in this division, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.03 | Trustee Not Accountable or Liable for Profit or Loss Absent Breach.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Absent a breach of trust, a trustee is not accountable to a beneficiary for any profit made by the trustee arising from the administration of the trust.
(B) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.04 | Award of Costs, Expenses, and Attorney Fees From Trust.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
In a judicial proceeding involving the administration of a trust, including a trust that contains a spendthrift provision, the court, as justice and equity may require, may award costs, expenses, and reasonable attorney's fees to any party, to be paid by another party, from the trust that is the subject of the controversy, or from a party's interest in the trust that is the subject of the controversy.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.05 | Limitations Period for Action Against Trustee.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
(A) A beneficiary may not commence a proceeding against a trustee for breach of trust more than two years after the date the beneficiary, a representative of the beneficiary, or a beneficiary surrogate is sent a report that adequately discloses the existence of a potential claim for breach of trust and informs the beneficiary, the representative of the beneficiary, or the beneficiary surrogate of the time allowed for commencing a proceeding against a trustee.
(B) A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or the representative of the beneficiary knows of the potential claim or should know of the existence of the potential claim.
(C) If division (A) of this section does not apply, notwithstanding section 2305.09 of the Revised Code, a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within four years after the first of the following to occur:
(1) The removal, resignation, or death of the trustee;
(2) The termination of the beneficiary's interest in the trust;
(3) The termination of the trust;
(4) The time at which the beneficiary knew or should have known of the breach of trust.
(D) Nothing in Chapters 5801. to 5811. of the Revised Code limits the operation of any principle of law or equity, including the doctrines of laches, unclean hands, estoppel, and waiver, that can bar claims.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.06 | Trustee Reliance on Terms of Trust.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.07 | Reasonable Care to Ascertain Material Event.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.08 | Enforceability of Exculpatory Trust Term.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries or was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.09 | Beneficiary or Representative's Consent to Conduct Constituting Breach.

Effective:
March 22, 2012
Latest Legislation:
Senate Bill 117 - 129th General Assembly
A trustee is not liable to a beneficiary for breach of trust if the beneficiary or the beneficiary's representative under the representation provisions of Chapter 5803. of the Revised Code consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless the consent, release, or ratification of the beneficiary or representative was induced by improper conduct of the trustee or, at the time of the consent, release, or ratification, the beneficiary or representative did not know of the beneficiary's rights or of the material facts relating to the breach.
This section applies regardless of whether the conduct being consented to, released, or ratified constitutes one or more breaches of fiduciary duty, violates one or more provisions of the Revised Code, or is taken without required court approval.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.10 | Personal Contract and Tort Liability of Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Except as otherwise provided in the contract, for contracts entered into on or after March 22, 1984, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity. The words "trustee," "as trustee," "fiduciary," or "as fiduciary," or other words that indicate one's trustee capacity, following the name or signature of a trustee are sufficient disclosure for purposes of this division.
(B) A trustee is personally liable for torts committed in the course of administering a trust or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.
(C) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.12 | Person Assisting or Dealing With Trustee in Good Faith.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(B) A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
(C) A person who in good faith delivers assets to a trustee is not required to ensure their proper application.
(D) A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(E) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.13 | Certification of Trust Furnished to Person Not Beneficiary.

Effective:
March 22, 2012
Latest Legislation:
Senate Bill 117 - 129th General Assembly
(A) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing all of the following information:
(1) A statement that the trust exists and the date the trust instrument was executed;
(2) The identity of the settlor;
(3) The identity and address of the currently acting trustee;
(4) The powers of the trustee;
(5) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust;
(6) The authority of cotrustees to sign or otherwise authenticate and whether all or less than all are required in order to exercise powers of the trustee.
(B) Any trustee may sign or otherwise authenticate a certification of trust.
(C) A certification of trust shall state that the trust has not been revoked, modified, or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.
(D) A certification of trust is not required to contain the dispositive terms of a trust.
(E) A certification of trust may establish the identity of the trustee and any succession of trustees under division (B) or (C) of section 5810.14 of the Revised Code.
(F) A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments that designate the trustee and confer upon the trustee the power to act in the pending transaction.
(G) A person who acts in reliance upon a certification of trust without knowledge that the representations contained in the certification are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying upon the certification.
(H) A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.
(I) This section does not affect the use or validity of a memorandum of trust under section 5301.255 of the Revised Code.
(J) This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5810 | Breach of Trust › Section 5810.14 | Transfer of Personal Property to Trustee.

Effective:
March 22, 2012
Latest Legislation:
Senate Bill 117 - 129th General Assembly
(A) Personal property may be transferred to a trustee as authorized by section 5804.01 of the Revised Code by executing the necessary written instrument that identifies the personal property transferred and identifies the trustee by name followed by the designation "trustee."
(B) The future transfer of personal property to a trustee as a designated beneficiary, including, but not limited to, a transfer on death designation or payable on death designation, participation in a joint ownership arrangement, or any other contractual transfer arrangement, that is made by executing the necessary written instrument identifying the trustee by name followed by the designation "trustee" shall be considered a transfer of the personal property to the trustee serving at the time of the future transfer. A certification of trust under section 5810.13 of the Revised Code may establish the identity of the trustee and any succession of trustees.
(C) A written instrument transferring personal property to a trust or a written instrument providing for the future transfer of personal property to a trust, by identifying the trust without identifying the trustee, shall be considered a transfer of the personal property to the trustee serving at the time of transfer. A certification of trust under section 5810.13 of the Revised Code may establish the identity of the trustee and any succession of trustees.
(D) An instrument of transfer under this section may, but is not required to, contain any additional identifying information, including the trust name, the name of the settlor, the date of trust creation, and the date of applicable trust amendments.
(E) Nothing in this section is intended to affect the operation of section 5301.03 of the Revised Code.
(F) Nothing in this section is intended to affect or be in conflict with division (E) of section 5301.071 of the Revised Code that addresses transfers of real property to or from trusts and trustees.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5811 | Application and Construction of Code › Section 5811.01 | Promotion of Uniformity of Law.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
In applying and construing Chapters 5801. to 5811. of the Revised Code, a court may consider the need to promote uniformity of the law with respect to the subject matter of those chapters among states that enact the uniform trust code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5811 | Application and Construction of Code › Section 5811.02 | Electronic Signatures in Global and National Commerce Act.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
The provisions of Chapters 5801. to 5811. of the Revised Code governing the legal effect, validity, or enforceability of electronic records or electronic signatures and of contracts formed or performed with the use of electronic records or electronic signatures conform to the requirements of section 102 of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7002, 114 Stat. 467, and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5811 | Application and Construction of Code › Section 5811.03 | Temporal Application of Provisions of Code.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Except as otherwise provided in Chapters 5801. to 5811. of the Revised Code, all of the following apply:
(1) Chapters 5801. to 5811. of the Revised Code apply to all trusts created before, on, or after their effective date.
(2) Chapters 5801. to 5811. of the Revised Code apply to all judicial proceedings concerning trusts commenced on or after their effective date.
(3) Chapters 5801. to 5811. of the Revised Code apply to judicial proceedings concerning trusts commenced before the effective date of those chapters unless the court finds that application of a particular provision of those chapters would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision does not apply, and the superseded law applies.
(4) Any rule of construction or presumption provided in Chapters 5801. to 5811. of the Revised Code applies to trust instruments executed before the effective date of those chapters unless there is a clear indication of a contrary intent in the terms of the trust.
(5) Chapters 5801. to 5811. of the Revised Code do not affect an act done before the effective date of those chapters.
(B) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before the effective date of Chapters 5801. to 5811. of the Revised Code, that statute continues to apply to the right even if it has been repealed or superseded.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.01 | Uniform Principal and Income Act Definitions.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
As used in sections 5812.01 to 5812.52 of the Revised Code:
(A) "Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. "Accounting period" includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends.
(B) "Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary.
(C) "Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function.
(D) "Income" means money or property that a fiduciary receives as current return from a principal asset. "Income" includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in sections 5812.18 to 5812.38 of the Revised Code.
(E) "Income beneficiary" means a person to whom net income of a trust is or may be payable.
(F) "Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require or authorize it to be distributed in the trustee's discretion.
(G) "Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute.
(H) "Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under sections 5812.01 to 5812.52 of the Revised Code to or from income during the period.
(I) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, or government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity.
(J) "Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates.
(K) "Remainder beneficiary" means a person entitled to receive principal when an income interest ends.
(L) "Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct.
(M) "Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.08 | Distribution to Residuary and Remainder Beneficiaries.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Each beneficiary described in division (D) of section 5812.07 of the Revised Code is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one that does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of the decedent's death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(B) In determining a beneficiary's share of net income for the purpose of this section, all of the following apply:
(1) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations.
(2) The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust.
(3) The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.
(4) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
(C) If a fiduciary does not distribute all of the collected but undistributed net income described in divisions (A) and (B) of this section to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each.
(D) To the extent that a fiduciary considers it appropriate, the fiduciary may apply the provisions of divisions (A) to (C) of this section to any net gain or loss, realized after the date of the decedent's death or an income interest termination or earlier distribution date, from the disposition of a principal asset to which such provisions apply.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.12 | When Right to Income Begins and Ends.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(B) An asset becomes subject to a trust on any of the following dates:
(1) The date it is transferred to the trust, in the case of an asset that is transferred to a trust during the transferor's life;
(2) The date of a testator's death, in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate;
(3) The date of an individual's death, in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(C) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under division (D) of this section, even if there is an intervening period of administration to wind up the preceding income interest.
(D) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.13 | Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee shall allocate to principal an income receipt or disbursement other than one to which division (A) of section 5812.07 of the Revised Code applies, if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(B) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and if it is a periodic due date. An income receipt or disbursement shall be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins shall be allocated to principal, and the balance shall be allocated to income.
(C) For the purposes of this section, an item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date. Distributions to shareholders or other owners from an entity to which section 5812.18 of the Revised Code applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.14 | Apportionment When Income Interest Ends.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "undistributed income" means net income received before the date on which an income interest ends. "Undistributed income" excludes an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.
(B) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary that survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust, unless the beneficiary has an unqualified power to revoke more than five per cent of the trust immediately before the income interest ends. If the beneficiary has such power, the undistributed income from the portion of the trust that may be revoked shall be added to principal.
(C) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.18 | Character of Receipts.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which section 5812.19 of the Revised Code applies, a business or activity to which section 5812.20 of the Revised Code applies, or an asset-backed security to which section 5812.38 of the Revised Code applies.
(B) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
(C) A trustee shall allocate all of the following receipts from an entity to principal:
(1) Property other than money;
(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(3) Money received in total or partial liquidation of the entity;
(4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(D) Money is received in partial liquidation in either of the following circumstances:
(1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation;
(2) If the total amount of money and property received in a distribution or series of related distributions is greater than twenty per cent of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.
(E) Money is not received in partial liquidation, nor shall it be taken into account under division (D)(2) of this section, to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.
(F) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.19 | Distribution From Trust or Estate.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 5812.18 or 5812.38 of the Revised Code applies to a receipt from the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.20 | Business and Other Activities Conducted by Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) If a trust that conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
(B) A trustee that accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.
(C) Activities for which a trustee may maintain separate accounting records under this section include all of the following:
(1) Retail, manufacturing, service, and other traditional business activities;
(2) Farming;
(3) Raising and selling livestock and other animals;
(4) Management of rental properties;
(5) Extraction of minerals and other natural resources;
(6) Timber operations;
(7) Activities to which section 5812.37 of the Revised Code applies.