reglab/statecodes huggingface dataset:
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.24 | Principal Receipts.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee shall allocate to principal all of the following:
(A) To the extent not allocated to income under sections 5812.01 to 5812.52 of the Revised Code, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(B) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to sections 5812.18 to 5812.38 of the Revised Code;
(C) Amounts recovered from third parties to reimburse the trust because of disbursements described in division (A)(7) of section 5812.43 of the Revised Code or for other reasons to the extent not based on the loss of income;
(D) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(E) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income;
(F) Other receipts as provided in sections 5812.31 to 5812.38 of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.25 | Rental Property.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and shall not be available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.26 | Obligation to Pay Money.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium.
(B) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after the date it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after the date it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust shall be allocated to income.
(C) This section does not apply to an obligation to which section 5812.32, 5812.33, 5812.34, 5812.35, 5812.37, or 5812.38 of the Revised Code applies.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.27 | Insurance Policies and Similar Contracts.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Except as otherwise provided in division (B) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
(B) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to section 5812.20 of the Revised Code, loss of profits from a business.
(C) This section does not apply to a contract to which section 5812.32 of the Revised Code applies.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.31 | Insubstantial Allocations Not Required.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
If a trustee determines that an allocation between principal and income required by section 5812.32, 5812.33, 5812.34, 5812.35, or 5812.38 of the Revised Code is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in division (C) of section 5812.03 of the Revised Code applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in division (D) of that section and may be released for the reasons and in the manner described in division (E) of the section. An allocation is presumed to be insubstantial if either of the following applies:
(A) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten per cent.
(B) The value of the asset producing the receipt for which the allocation would be made is less than ten per cent of the total value of the trust's assets at the beginning of the accounting period.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.33 | Liquidating Asset.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. "Liquidating asset" includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. "Liquidating asset" excludes a payment subject to section 5812.32 of the Revised Code, resources subject to section 5812.34 of the Revised Code, timber subject to section 5812.35 of the Revised Code, an activity subject to section 5812.37 of the Revised Code, an asset subject to section 5812.38 of the Revised Code, or any asset for which the trustee establishes a reserve for depreciation under section 5812.44 of the Revised Code.
(B) A trustee shall allocate to income ten per cent of the receipts from a liquidating asset and the balance to principal.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.34 | Minerals, Water and Other Natural Resources.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate the receipts in accordance with all of the following:
(1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income.
(2) If received from a production payment, a receipt shall be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance shall be allocated to principal.
(3) If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, ninety per cent shall be allocated to principal and the balance to income.
(4) If an amount is received from a working interest or any other interest not provided for in division (A)(1), (2), or (3) of this section, ninety per cent of the net amount received shall be allocated to principal and the balance to income.
(B) An amount received on account of an interest in water that is renewable shall be allocated to income. If the water is not renewable, ninety per cent of the amount shall be allocated to principal and the balance to income.
(C) This section applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.
(D) If a trust owns an interest in minerals, water, or other natural resources on January 1, 2003, the trustee may allocate receipts from the interest as provided in this section or in the manner used by the trustee before that date. If the trust acquires an interest in minerals, water, or other natural resources after January 1, 2003, the trustee shall allocate receipts from the interest as provided in this section.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.35 | Timber.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts in accordance with all of the following:
(1) To income, to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(2) To principal, to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(3) To or between income and principal, if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying divisions (A)(1) and (2) of this section;
(4) To principal, to the extent that advance payments, bonuses, and other payments are not allocated pursuant to division (A)(1), (2), or (3) of this section.
(B) In determining net receipts to be allocated pursuant to division (A) of this section, a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(C) This section applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
(D) If a trust owns an interest in timberland on January 1, 2003, the trustee may allocate net receipts from the sale of timber and related products as provided in this section or in the manner used by the trustee before that date. If the trust acquires an interest in timberland after January 1, 2003, the trustee shall allocate net receipts from the sale of timber and related products as provided in this section.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.36 | Property Not Productive of Income.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under section 5812.03 of the Revised Code and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by division (A) of that section. The trustee may decide which action or combination of actions to take.
(B) In cases not governed by division (A) of this section, proceeds from the sale or other disposition of an asset shall be principal without regard to the amount of income the asset produces during any accounting period.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.37 | Derivatives and Options.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.
(B) To the extent that a trustee does not account under section 5812.20 of the Revised Code for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
(C) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option shall be allocated to principal. An amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.38 | Asset-Backed Securities.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. "Asset-backed security" includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. "Asset-backed security" excludes an asset to which section 5812.18 or 5812.32 of the Revised Code applies.
(B) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment that the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.
(C) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate ten per cent of the payment to income and the balance to principal.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.42 | Disbursements From Income.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee shall make all of the following disbursements from income to the extent that they are not disbursements to which division (B)(2) or (3) of section 5812.07 of the Revised Code applies:
(A) One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;
(B) One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(C) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest;
(D) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.43 | Disbursements From Principal.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee shall make all of the following disbursements from principal:
(1) The remaining one-half of the disbursements described in divisions (A) and (B) of section 5812.42 of the Revised Code;
(2) All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;
(3) Payments on the principal of a trust debt;
(4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;
(5) Premiums paid on a policy of insurance not described in division (D) of section 5812.42 of the Revised Code of which the trust is the owner and beneficiary;
(6) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust;
(7) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.
(B) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.44 | Transfers From Income to Principal for Depreciation.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.
(B) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but shall not transfer any amount for depreciation under any of the following circumstances:
(1) Any amount for depreciation of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;
(2) Any amount for depreciation during the administration of a decedent's estate;
(3) Any amount for depreciation under this section if the trustee is accounting under section 5812.20 of the Revised Code for the business or activity in which the asset is used.
(C) An amount transferred to principal need not be held as a separate fund.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.45 | Transfers From Income to Reimburse Principal.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.
(B) Principal disbursements to which division (A) of this section applies include all of the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:
(1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;
(2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;
(3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;
(4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments;
(5) Disbursements described in division (A)(7) of section 5812.43 of the Revised Code.
(C) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in division (A) of this section.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.46 | Income Taxes.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.
(B) A tax required to be paid by a trustee based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority.
(C) A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid as follows:
(1) From income, to the extent that receipts from the entity are allocated only to income;
(2) From principal, to the extent that receipts from the entity are allocated only to principal;
(3) Proportionately from principal and income, to the extent that receipts from the entity are allocated to both income and principal;
(4) From principal, to the extent that the tax exceeds the total receipts from the entity.
(D) After applying divisions (A) to (C) of this section, the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.47 | Adjustments Between Principal and Income Because of Taxes.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from any of the following:
(1) Elections and decisions, other than those described in division (B) of this section, that the fiduciary makes from time to time regarding tax matters;
(2) An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust;
(3) The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or beneficiary.
(B) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement shall equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced shall be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.51 | Citing Chapter.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) Sections 5812.01 to 5812.52 of the Revised Code may be cited as the "uniform principal and income act."
(B) In applying and construing the "uniform principal and income act," consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact the "uniform principal and income act."
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5812 | Uniform Principal and Income Act › Section 5812.52 | Application to Existing Trusts and Estates.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Sections 5812.01 to 5812.51 of the Revised Code apply to every trust or decedent's estate existing on January 1, 2003, except as otherwise expressly provided in the will or terms of the trust or in sections 5812.01 to 5812.51 of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.01 | Institutional Trust Funds Act Definitions.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
As used in sections 5813.01 to 5813.07 of the Revised Code:
(A) "Institution" means an incorporated or unincorporated organization that is organized and operated exclusively for educational, religious, charitable, or other eleemosynary purposes or a governmental organization to the extent that it holds funds exclusively for any of those purposes.
(B) "Governing board" means the body responsible for the management of an institution.
(C) "Institutional trust fund" means a trust fund, or a part of a trust fund, that is held by a trustee for the exclusive use, benefit, or purposes of one or more institutions and that is not wholly distributable to the institution or institutions on a current basis under the terms of the applicable trust instrument. "Institutional trust fund" does not include a fund in which a beneficiary that is not an institution has an interest other than a right that may arise upon a violation of a covenant under the terms of the applicable trust instrument or upon a violation of or the failure of the purposes of the fund.
(D) "Applicable fund value" means for any particular fiscal year the sum of the month-end values of the net assets of an institutional trust fund for the prior fiscal year for those months in which the institutional trust fund has been in existence during such prior fiscal year divided by the number of those months. The month-end values shall be determined by the trustee in accordance with the trustee's records, and any such determination made by a trustee in good faith is conclusive.
(E) "Trust instrument" means a testamentary or inter vivos trust under which the trustee of the trust holds an institutional trust fund.
(F) "Trustee" means an individual, corporation, institution, or organization, including, but not limited to, a bank, trust company, or other financial institution, serving as a trustee or as sole trustee under a trust instrument. "Trustee" includes an original trustee and any successor or added trustee.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.02 | Maximum Annual Distribution From Institutional Trust Fund.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Subject to division (D) of this section and section 5813.03 of the Revised Code, during any fiscal year in which income may be or is required to be distributed to an institution from an institutional trust fund, income means the greater of the following:
(1) The income from the assets of the institutional trust fund for the fiscal year as determined in accordance with the applicable trust instrument and applicable law without regard to sections 5813.01 to 5813.07 of the Revised Code;
(2) The amount requested by the institution's governing board for the fiscal year pursuant to division (B) of this section.
(B) An institution's governing board may request that an amount be distributed to the institution for the fiscal year, and that amount shall not exceed the sum of both of the following:
(1) Five per cent of the applicable fund value for the institutional trust fund for the fiscal year;
(2) If, in any prior fiscal year that is after September 15, 1999, the governing board requested less than five per cent of the applicable fund value for that prior fiscal year and if the amount the institution actually received from the institutional trust fund pursuant to division (A) of this section was less than five per cent for that prior fiscal year, the aggregate difference between five per cent of the applicable fund value with respect to each such prior fiscal year and the amount the institution actually received pursuant to division (A) of this section for each prior fiscal year.
(C) If, under a trust instrument, more than one institution is a beneficiary of an institutional trust fund, the trustee shall take such actions that the trustee determines appropriate or necessary to allow for the distributions of income as contemplated by division (A) of this section, which actions may include dividing the institutional trust fund into separate shares according to the interest that each institution has in the total institutional trust fund held under the trust instrument.
(D) This section does not limit the authority or obligation of a trustee to distribute, or the authority of a governing board to request, funds as permitted or required under the terms of the applicable trust instrument.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.03 | Settlor's Intention That Income Be Otherwise Determined.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Division (A) of section 5813.02 of the Revised Code does not apply if the applicable trust instrument expressly indicates the settlor's intention that income is to be otherwise than as defined in division (A) of section 5813.02 of the Revised Code.
(B) A restriction upon the definition of income in division (A) of section 5813.02 of the Revised Code may not be inferred from a designation of an institutional trust fund as an endowment; a direction or authorization in the applicable trust instrument to use only "income," "interest," "dividends," or "rents, issues, or profits," or "to preserve the principal intact," or a direction that contains other words of a similar import; a direction in a trust instrument that income and principal are to be determined by reference to certain statutory provisions; or, subject to division (A) of this section, the inclusion of specified provisions in a trust instrument setting forth the way in which income and principal are to be determined.
(C) The rule of construction set forth in division (B) of this section applies to trust instruments executed or in effect before, on, or after September 15, 1999.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.04 | Standard of Care.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) In administering the powers to request amounts from a trustee of an institutional trust fund in accordance with divisions (A) and (B) of section 5813.02 of the Revised Code, members of a governing board of an institution shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision and shall make requests for amounts under divisions (A) and (B) of section 5813.02 of the Revised Code only as is prudent under this standard. In so doing, the governing board shall consider the long- and short-term needs of the institution in carrying out its educational, religious, charitable, or other eleemosynary purposes; the institution's present and anticipated financial requirements; the expected total return on the investments held by the institution and held by the trustee under the applicable trust instrument; price level trends; and general economic conditions.
(B) In determining the expected total return on the investments held by a trustee of an institutional trust fund under the applicable trust instrument, the members of the governing board of an institution may follow, and are not required to examine independently, the determination of the trustee regarding the expected total return on the investments held by the trustee.
(C) A trustee of an institutional trust fund has no duty to inquire or ascertain whether the governing board of an institution has satisfied the standards set forth in divisions (A) and (B) of this section, and the trustee does not have any liability for the failure of the governing board to satisfy those standards.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.05 | Exemption.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Nothing in sections 5812.01 to 5812.52, or any other section of the Revised Code limits or restricts the definition of income in division (A) of section 5813.02 of the Revised Code or limits or restricts a governing board of an institution from requesting, or a trustee from making, distributions from an institutional trust fund in accordance with sections 5813.01 to 5813.07 of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.06 | Relationship of Chapter to Uniform Management of Institutional Funds Act.

Effective:
June 1, 2009
Latest Legislation:
House Bill 522 - 127th General Assembly
(A) Nothing in sections 5813.01 to 5813.05 of the Revised Code affects the construction or interpretation of sections 1715.51 to 1715.59 of the Revised Code relating to the uniform prudent management of institutional funds act. Specifically, neither the percentage set forth in division (B) of section 5813.02 of the Revised Code nor the amount actually requested by a governing board pursuant to that section shall be construed or interpreted to limit or expand what is a prudent amount that can be expended by a governing board of an institution under sections 1715.51 to 1715.59 of the Revised Code.
(B) If an institutional trust fund is also an institutional fund as defined in division (C) of section 1715.51 of the Revised Code with the result that sections 1715.51 to 1715.59 of the Revised Code also are applicable to the institutional trust fund, then sections 1715.51 to 1715.59 of the Revised Code apply to the institutional trust fund, and sections 5813.01 to 5813.07 of the Revised Code do not apply to the institutional trust fund.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5813 | Institutional Trust Funds Act › Section 5813.07 | Citing Act.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Sections 5813.01 to 5813.07 of the Revised Code may be cited as the "institutional trust funds act."
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5814 | Ohio Transfers to Minors Act › Section 5814.03 | Effect of Gift or Transfer.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) A gift or transfer made in a manner prescribed in sections 5814.01 to 5814.10 of the Revised Code, is irrevocable and conveys to the minor indefeasibly vested legal title to the security, money, life or endowment insurance policy, annuity contract, benefit plan, real estate, tangible or intangible personal property, or other property given or, subject to the right of the owner of the policy, contract, or benefit plan to change the beneficiary if the custodian is not the owner, to the proceeds of a life or endowment insurance policy, an annuity contract, or a benefit plan given, but no guardian of the minor has any right, power, duty, or authority with respect to the custodial property except as provided in sections 5814.01 to 5814.10 of the Revised Code.
(B) By making a gift or transfer in a manner prescribed in sections 5814.01 to 5814.10 of the Revised Code, the donor or transferor incorporates in the gift or transfer all the provisions of these sections and grants to the custodian, and to any issuer, transfer agent, financial institution, broker, or third person dealing with a person or trust company designated as custodian, the respective powers, rights, and immunities provided in these sections.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5814 | Ohio Transfers to Minors Act › Section 5814.05 | Fees and Compensation of Custodian.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) A custodian is entitled to reimbursement from the custodial property for reasonable expenses incurred in the performance of the custodian's duties.
(B) A custodian may act without compensation for the custodian's services.
(C) Unless the custodian is a donor or transferor, the custodian may receive from custodial property reasonable compensation for the custodian's services determined by one of the following standards in the order stated:
(1) A direction by the donor or transferor when the gift or transfer is made;
(2) A statute of this state applicable to custodians;
(3) The statute of this state applicable to guardians;
(4) An order of the court.
(D) Except as otherwise provided in sections 5814.01 to 5814.10 of the Revised Code, a custodian shall not be required to give a bond for the performance of the custodian's duties.
(E) A custodian not compensated for the custodian's services is not liable for losses to the custodial property unless they result from the custodian's bad faith, intentional wrongdoing, or gross negligence or from the custodian's failure to maintain the standard of prudence in investing the custodial property provided in sections 5814.01 to 5814.10 of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5814 | Ohio Transfers to Minors Act › Section 5814.06 | Responsibility of Issuer, Transfer Agent, Financial Institution, Broker, or Life Insurance Company.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
An issuer, transfer agent, financial institution, broker, life insurance company, or other person acting on the instructions of or otherwise dealing with any person purporting to act as a donor or transferor or dealing with any person or trust company purporting to act as a custodian is not required to do any of the following:
(A) Determine either of the following:
(1) Whether the person or trust company designated by the purported donor or transferor, or the person or trust company purporting to act as a custodian, has been duly designated;
(2) Whether any purchase, sale, or transfer to or by, or any other act of, any person or trust company purporting to act as a custodian is in accordance with or authorized by sections 5814.01 to 5814.10 of the Revised Code.
(B) Inquire into the validity or propriety under sections 5814.01 to 5814.10 of the Revised Code of any instrument or instructions executed or given by a person purporting to act as a donor or transferor or by a person or trust company purporting to act as a custodian;
(C) See to the application by any person or trust company purporting to act as a custodian of any money or other property paid or delivered to the person or trust company.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5814 | Ohio Transfers to Minors Act › Section 5814.08 | Accounting by and Determination of Liability of Custodian.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) The minor, if the minor has attained the age of fourteen years, or the legal representative of the minor, a member of the minor's family who is eighteen years of age or older, or a donor or transferor or the donor's or transferor's legal representative may petition the court for an accounting by the custodian or the custodian's legal representative. A successor custodian may petition the court for an accounting by the custodian that the successor custodian succeeded.
(B) The court, in a proceeding under sections 5814.01 to 5814.10 of the Revised Code, or otherwise, may require or permit the custodian or the custodian's legal representative to account and, if the custodian is removed, shall so require and order delivery of all custodial property to the successor custodian and the execution of all instruments required for the transfer of the custodial property.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5814 | Ohio Transfers to Minors Act › Section 5814.09 | Delayed Time for Delivery of Custodial Property.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) Subject to the requirements and limitations of this section, the time for delivery to the minor of custodial property transferred under or pursuant to division (A) of section 5814.02 of the Revised Code may be delayed until a specified time after the minor attains the age of twenty-one years, which time shall be specified in the written instrument that makes or provides for the gift or transfer pursuant to divisions (A)(1) to (9) of section 5814.02 of the Revised Code.
(B) To specify a delayed time for delivery to the minor of the custodial property, the words "as custodian for __________________ (name of minor) until age _______________ (age of delivery of property to minor) under the Ohio Transfers to Minors Act," shall be substituted in substance for the words "as custodian for __________________ (name of minor) under the Ohio Transfers to Minors Act."
(C) The time for delivery to the minor of custodial property transferred under a will, trust instrument, or irrevocable exercise of a testamentary power of appointment may be delayed under this section only if the governing will, trust, or exercise of the power of appointment provides in substance that the custodianship is to continue until the time the minor attains a specified age, which time shall not be later than the date the minor attains the age of twenty-five years.
(D) If the custodial property is transferred by inter vivos gift and the time for delivery of the custodial property to the minor is delayed beyond the time the minor attains the age of twenty-one years, the custodian, nevertheless, shall deliver the custodial property to the minor if requested in writing by the minor within sixty days of the minor attaining the age of twenty-one years, unless the donor or transferor, in the written instrument of gift or transfer pursuant to divisions (A)(1) to (9) of section 5814.02 of the Revised Code, provides that the custodial property may not be delivered to the minor prior to attaining the specified age of delivery, which time shall not be later than the date the minor attains the age of twenty-five years.
(E) If the time for delivery to the minor of custodial property is delayed until a specified time after the minor attains the age of twenty-one years and the minor dies prior to attaining that age, the custodian shall, upon the minor's death, deliver the custodial property to the estate of the minor.
(F) A custodian may not commingle the assets of custodial property that have different delivery dates.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5814 | Ohio Transfers to Minors Act › Section 5814.10 | Applicability and Construction.

Effective:
April 6, 2017
Latest Legislation:
House Bill 432 - 131st General Assembly
(A) Sections 5814.01 to 5814.10 of the Revised Code shall be construed to effectuate their general purpose to make uniform the law of those states that enact similar provisions.
(B) Sections 5814.01 to 5814.10 of the Revised Code shall not be construed as providing an exclusive method for making gifts or transfers to minors.
(C) Nothing in sections 5814.01 to 5814.10 of the Revised Code shall affect gifts made under former sections 1339.19 to 1339.28 of the Revised Code, nor the powers, duties, and immunities conferred by gifts in such manner upon custodians and persons dealing with custodians. Sections 5814.01 to 5814.10 of the Revised Code henceforth apply, however, to all gifts made in a manner and form prescribed in former sections 1339.19 to 1339.28 of the Revised Code, except insofar as the application impairs constitutionally vested rights. Sections 5814.01 to 5814.10 of the Revised Code shall be construed as a continuation of the provisions of former sections 1339.19 to 1339.28 of the Revised Code, according to the language employed, and not as a new enactment.
(D) Nothing in sections 5814.01 to 5814.10 of the Revised Code, as of May 7, 1986, shall affect gifts made under those sections as they existed prior to May 7, 1986, or the powers, duties, and immunities conferred by the gifts in any manner upon custodians and persons dealing with custodians. Sections 5814.01 to 5814.10 of the Revised Code, as of May 7, 1986, hereafter apply to all gifts made in a manner and form prescribed in those sections as they existed prior to May 7, 1986, except to the extent that the application of those sections, as of May 7, 1986, would impair constitutionally vested rights.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5815 | Miscellaneous Provisions › Section 5815.01 | Inheritance and Bequest Defined.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Except when the intent of the settlor clearly is to the contrary, the following rules of construction shall apply in interpreting the terms "inheritance" and "bequest":
(A) The term "inheritance," in addition to its meaning at common law or under any other section or sections of the Revised Code, includes any change of title to real property by reason of the death of the owner of that real property, regardless of whether the owner died testate or intestate.
(B) The term "bequest," in addition to its meaning at common law or under any other section or sections of the Revised Code, includes any disposition of real property that occurs as a result of the death of the settlor.