reglab/statecodes huggingface dataset:
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.04 | Trust Purposes Must Be Legitimate.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trust may be created only to the extent that its purposes are lawful, not contrary to public policy, and possible to achieve. A trust exists, and its assets shall be held, for the benefit of its beneficiaries in accordance with the interests of the beneficiaries in the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.05 | Purposes of Charitable Trust - Enforcement.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
(B) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained.
(C) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.06 | Trust Induced by Fraud, Duress, or Undue Influence Void.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trust is void to the extent its creation was induced by fraud, duress, or undue influence. As used in this section, "fraud," "duress," and "undue influence" have the same meanings for trust validity purposes as they have for purposes of determining the validity of a will.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.07 | Written Instrument Not Required.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Except as required by any section of the Revised Code not in Chapters 5801. to 5811. of the Revised Code, a trust is not required to be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.08 | Trust to Provide for Care of Animal.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal.
(B) A person appointed in the terms of a trust or, if no person is so appointed, a person appointed by the court may enforce a trust authorized by this section. A person having an interest in the welfare of an animal that is provided care by a trust authorized by this section may request the court to appoint a person to enforce the trust or to remove a person appointed.
(C) The property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor if then living or to the settlor's successors in interest.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.09 | Trust Created for Noncharitable Purpose.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Except as otherwise provided in section 5804.08 of the Revised Code or any other section of the Revised Code:
(A) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. A trust created for a noncharitable purpose may not be enforced for more than twenty-one years.
(B) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
(C) The property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor if then living or to the settlor's successors in interest.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.10 | Termination of Trust by Revocation or by Terms.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) In addition to the methods of termination prescribed by sections 5804.11 to 5804.14 of the Revised Code, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, a court determines that no purpose of the trust remains to be achieved, or a court determines that the purposes of the trust have become unlawful or impossible to achieve.
(B) A trustee or beneficiary may commence a proceeding to approve or disapprove a proposed modification or termination under sections 5804.11 to 5804.16 of the Revised Code or to approve or disapprove a trust combination or division under section 5804.17 of the Revised Code. The settlor may commence a proceeding to approve or disapprove a proposed modification or termination under section 5804.11 of the Revised Code. The settlor of a charitable trust may maintain a proceeding to modify the trust under section 5804.13 of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.11 | Termination or Modification of Noncharitable Irrevocable Trust.

Effective:
August 17, 2021
Latest Legislation:
House Bill 7 - 134th General Assembly
(A) If upon petition the court finds that the settlor and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, that all consents, including any given by representatives under Chapter 5803. of the Revised Code, are valid, and that all parties giving consent are competent to do so, the court shall enter an order approving the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. An agent under a power of attorney may exercise a settlor's power to consent to a trust's modification or termination only to the extent expressly authorized by both the power of attorney and the terms of the trust. The settlor's guardian of the estate may exercise a settlor's power to consent to a trust's modification or termination with the approval of the court supervising the guardianship if an agent is not so authorized. The guardian of the settlor's person may exercise a settlor's power to consent to a trust's modification or termination with the approval of the court supervising the guardianship if an agent is not so authorized and a guardian of the estate has not been appointed. This division does not apply to a noncharitable irrevocable trust described in 42 U.S.C. 1396p(d)(4).
(B) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified, but not to remove or replace the currently serving trustee, upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust. A spendthrift provision in the terms of the trust may, but is not presumed to, constitute a material purpose of the trust. In determining what constitutes a material purpose of a trust, a court may but is not required to consider extrinsic evidence indicating a settlor's intent at the time the instrument was executed.
(C) Upon termination of a trust under division (A) or (B) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.
(D) If not all of the beneficiaries consent to a proposed modification or termination of the trust under division (A) or (B) of this section, the court may approve the modification or termination if the court is satisfied of both of the following:
(1) That if all of the beneficiaries had consented, the trust could have been modified or terminated under this section;
(2) That the interests of a beneficiary who does not consent will be adequately protected.
Last updated May 20, 2021 at 2:21 PM
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.12 | Judicial Action Due to Change of Circumstances.

Effective:
March 22, 2012
Latest Legislation:
Senate Bill 117 - 129th General Assembly
(A) The court may modify the administrative or dispositive terms of a trust or terminate the trust if because of circumstances not anticipated by the settlor modification or termination will further the purposes of the trust. To the extent practicable, the court shall make the modification in accordance with the settlor's probable intention.
(B) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or impair the trust's administration.
(C) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(D) The court may modify or interpret the terms of a trust, including, but not limited to, a charitable trust or a trust having as a beneficiary an organization with one or more purposes that are described in division (A) of section 5804.05 of the Revised Code, that refer to the federal estate tax, federal generation-skipping transfer tax, or Ohio estate tax, or that contain a division of property based on the imposition or amount of one or more of those taxes, to give effect to the intent of the settlor.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.13 | Judicial Action Where Charitable Purpose Frustrated.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
(A) Except as otherwise provided in division (B) of this section, if a particular charitable purpose becomes unlawful, impracticable, or impossible to achieve, all of the following apply:
(1) The trust does not fail in whole or in part.
(2) The trust property does not revert to the settlor or the settlor's successors in interest.
(3) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes. In accordance with section 109.25 of the Revised Code, the attorney general is a necessary party to a judicial proceeding brought under this section.
(B) A provision in the terms of a charitable trust for an alternative charitable purpose or for the distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under division (A) of this section to apply cy pres to modify or terminate the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.15 | Reformation to Conform to Settlor's Intention.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
The court may reform the terms of a trust, even if they are unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.16 | Modification to Achieve Settlor's Tax Objectives.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.17 | Combination or Division of Trusts.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts if the result does not substantially impair the rights of any beneficiary or have a materially adverse effect on the achievement of the purposes of the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5804 | Creation, Modification, Revocation, and Termination › Section 5804.18 | When Certain Trust Is Irrevocable.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trust described in 42 U.S.C. 1396p(d)(4) is irrevocable if the terms of the trust prohibit the settlor from revoking it, whether or not the settlor's estate or the settlor's heirs are named as the remainder beneficiary or beneficiaries of the trust upon the settlor's death.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.01 | Validity and Effect of Spendthrift Provisions.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
(A) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest or if it restrains involuntary transfer of a beneficiary's interest and permits voluntary transfer of a beneficiary's interest only with the consent of a trustee who is not the beneficiary.
(B) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.
(C) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this chapter and in section 5810.04 of the Revised Code, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary. Real property or tangible personal property that is owned by the trust but that is made available for a beneficiary's use or occupancy in accordance with the trustee's authority under the terms of the trust shall not be considered to have been distributed by the trustee or received by the beneficiary for purposes of allowing a creditor or assignee of the beneficiary to reach the property.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.02 | Enforceability and Enforcement of Spendthrift Provisions.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state.
(B) Subject to section 5805.03 of the Revised Code, a spendthrift provision is unenforceable against either of the following:
(1) The beneficiary's child or spouse who has a judgment or court order against the beneficiary for support, but only if distributions can be made for the beneficiary's support or the beneficiary is entitled to receive mandatory distributions under the terms of the trust;
(2) A claim of this state or the United States to the extent provided by the Revised Code or federal law.
(C) A spendthrift provision is enforceable against the beneficiary's former spouse.
(D) A claimant described in division (B) of this section may obtain from the court an order attaching present or future distributions to or for the benefit of the beneficiary. The court may limit the award to the relief that is appropriate under the circumstances, considering among any other factors determined appropriate by the court the support needs of the beneficiary, the beneficiary's spouse, and the beneficiary's dependent children or, with respect to a beneficiary who is the recipient of public benefits, the supplemental needs of the beneficiary if the trust was not intended to provide for the beneficiary's basic support.
(E) The only exceptions to the effectiveness of a spendthrift provision are those described in divisions (B) and (D) of this section, in division (B) of section 5805.05 of the Revised Code, and in sections 5805.06 and 5810.04 of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.03 | Creditors of Discretionary Trust Beneficiary May Not Reach Interest.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
Notwithstanding anything to the contrary in division (B) of section 5805.02 of the Revised Code, no creditor or assignee of a beneficiary of a wholly discretionary trust may reach the beneficiary's interest in the trust, or a distribution by the trustee before its receipt by the beneficiary, whether by attachment of present or future distributions to or for the benefit of the beneficiary, by judicial sale, by obtaining an order compelling the trustee to make distributions from the trust, or by any other means, regardless of whether the terms of the trust include a spendthrift provision.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.04 | Creditor May Not Compel Discretionary Distribution - Exceptions.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or any other state.
(B) Except as otherwise provided in divisions (C) and (D) of this section, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if the discretion is expressed in the form of a standard of distribution or the trustee has abused the discretion.
(C) Division (B) of this section does not apply to this state for any claim for support of a beneficiary in a state institution if the terms of the trust do not include a spendthrift provision and do include a standard for distributions to or for the beneficiary under which the trustee may make distributions for the beneficiary's support.
(D) Unless the settlor has explicitly provided in the trust that the beneficiary's child or spouse or both are excluded from benefiting from the trust, to the extent a trustee of a trust that is not a wholly discretionary trust has not complied with a standard of distribution or has abused a discretion, both of the following apply:
(1) The court may order a distribution to satisfy a judgment or court order against the beneficiary for support of the beneficiary's child or spouse, provided that the court may order the distributions only if distributions can be made for the beneficiary's support under the terms of the trust and that the court may not order any distributions under this division to satisfy a judgment or court order against the beneficiary for support of the beneficiary's former spouse.
(2) The court shall direct the trustee to pay to the child or spouse the amount that is equitable under the circumstances but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion.
(E) Even if a trust does not contain a spendthrift provision, to the extent a beneficiary's interest in a trust is subject to the exercise of the trustee's discretion, whether or not such discretion is subject to one or more standards of distribution, the interest may not be ordered sold to satisfy or partially satisfy a claim of the beneficiary's creditor or assignee.
(F) If the trustee's or cotrustee's discretion to make distributions for the trustee's or cotrustee's own benefit is limited by an ascertainable standard, a creditor may not reach or compel distribution of the beneficial interest except to the extent the interest would be subject to the creditor's claim if the beneficiary were not acting as trustee or cotrustee.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.05 | Attachment of Mandatory Distributions Absent Spendthrift Provision.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) To the extent that a trust that gives a beneficiary the right to receive one or more mandatory distributions does not contain a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to attach present or future mandatory distributions to or for the benefit of the beneficiary or to reach the beneficiary's interest by other means. The court may limit an award under this section to the relief that is appropriate under the circumstances, considering among any other factors determined appropriate by the court, the support needs of the beneficiary, the beneficiary's spouse, and the beneficiary's dependent children or, with respect to a beneficiary who is the recipient of public benefits, the supplemental needs of the beneficiary if the trust was not intended to provide for the beneficiary's basic support. If in exercising its power under this section the court decides to order either a sale of a beneficiary's interest or that a lien be placed on the interest, in deciding between the two types of action, the court shall consider among any other factors it considers relevant the amount of the claim of the creditor or assignee and the proceeds a sale would produce relative to the potential value of the interest to the beneficiary.
(B) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution the beneficiary is entitled to receive if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.06 | Rights of Settlor's Creditors - Power of Withdrawal.

Effective:
August 17, 2021
Latest Legislation:
House Bill 7 - 134th General Assembly
(A) Whether or not the terms of a trust contain a spendthrift provision, all of the following apply:
(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.
(2) Except to the extent that a trust is established pursuant to, or otherwise is wholly or partially governed by or subject to Chapter 5816. of the Revised Code, with respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If an irrevocable trust has more than one settlor, the amount distributable to or for a settlor's benefit that the creditor or assignee of a particular settlor may reach may not exceed that settlor's interest in the portion of the trust attributable to that settlor's contribution. The right of a creditor or assignee to reach a settlor's interest in an irrevocable trust shall be subject to Chapter 5816. of the Revised Code to the extent that that chapter applies to that trust.
(3) With respect to a trust described in 42 U.S.C. section 1396p(d)(4)(A) or (C), the court may limit the award of a settlor's creditor under division (A)(1) or (2) of this section to the relief that is appropriate under the circumstances, considering among any other factors determined appropriate by the court, the supplemental needs of the beneficiary.
(B) For purposes of this section, all of the following apply:
(1) The holder of a power of withdrawal is treated in the same manner as the settlor of a revocable trust to the extent of the property subject to the power during the period the power may be exercised.
(2) None of the following shall be considered an amount that can be distributed to or for the benefit of the settlor:
(a) Trust property that could be, but has not yet been, distributed to or for the benefit of the settlor only as a result of the exercise of a power of appointment held in a nonfiduciary capacity by any person other than the settlor;
(b) Trust property that could be, but has not yet been, distributed to or for the benefit of the settlor of a trust pursuant to the power of the trustee to make distributions or pursuant to the power of another in a fiduciary capacity to direct distributions, if and to the extent that the distributions could be made from trust property the value of which was included in the gross estate of the settlor's spouse for federal estate tax purposes under section 2041 or 2044 of the Internal Revenue Code or that was treated as a transfer by the settlor's spouse under section 2514 or 2519 of the Internal Revenue Code;
(c) Trust property that, pursuant to the exercise of a discretionary power by a person other than the settlor, could be paid to a taxing authority or to reimburse the settlor for any income tax on trust income or principal that is payable by the settlor under the law imposing the tax.
Last updated May 20, 2021 at 2:22 PM
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5805 | Spendthrift Trust Provisions › Section 5805.07 | Trust Property Not Subject to Personal Obligations of Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5806 | Powers of Settlor › Section 5806.01 | Capacity of Settlor Same as Testator.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
The capacity of a settlor required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5806 | Powers of Settlor › Section 5806.02 | Revocation or Amendment of Trust.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
(A) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This division does not apply to a trust created under an instrument executed before January 1, 2007.
(B) If a revocable trust is created or funded by more than one settlor, all of the following apply:
(1) To the extent the trust consists of community property, either spouse acting alone may revoke the trust, but the trust may be amended only by joint action of both spouses.
(2) To the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor's contribution.
(3) Upon the revocation or amendment of the trust by less than all of the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.
(C) The settlor may revoke or amend a revocable trust by substantial compliance with a method provided in the terms of the trust or, if the terms of the trust do not provide a method, by any method manifesting clear and convincing evidence of the settlor's intent, provided that a revocable trust may not be revoked or amended by a will or codicil, regardless of whether it refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust unless the terms of the trust expressly allow it to be revoked or amended by a will or codicil.
(D) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.
(E) An agent under a power of attorney may exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property only to the extent expressly authorized by both the terms of the trust and the power.
(F) A guardian of the estate of the settlor or, if no guardian of the estate has been appointed, a guardian of the person of the settlor may exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the guardianship.
(G) A trustee who does not know that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5806 | Powers of Settlor › Section 5806.03 | Control of Rights of Beneficiaries and Duties of Trustees.

Effective:
September 12, 2008
Latest Legislation:
House Bill 499 - 127th General Assembly
(A) During the lifetime of the settlor of a revocable trust, whether or not the settlor has capacity to revoke the trust, the rights of the beneficiaries are subject to the control of the settlor, and the duties of the trustee, including the duties to inform and report under section 5808.13 of the Revised Code, are owed exclusively to the settlor. If the trustee breaches its duty during the lifetime of the settlor, any recovery obtained from the trustee after the settlor becomes incapacitated or dies shall be apportioned by the court. If the settlor is living when the recovery is obtained, the court shall apportion the recovery between the settlor and the trust, or allocate the entire recovery to the settlor or the trust, as it determines to be equitable under the circumstances. If the settlor is not living when the recovery is obtained, the court shall apportion the recovery between the settlor's estate and the trust, or allocate the entire recovery to the settlor's estate or the trust, as it determines to be equitable under the circumstances.
(B) During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.01 | Acceptance or Rejection of Trusteeship.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Except as otherwise provided in division (C) of this section, a person designated as trustee accepts the trusteeship by substantially complying with a method of acceptance provided in the terms of the trust or, if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(B) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(C) A person designated as trustee, without accepting the trusteeship, may do either or both of the following:
(1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary;
(2) Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.02 | Bond of Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(B) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(C) A regulated financial-service institution qualified to do trust business in this state need not give bond, even if required by the terms of the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.03 | Cotrustees - Delegation - Liability.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) If there are three or more cotrustees serving, the cotrustees may act by majority decision.
(B) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(C) A cotrustee must participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(D) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(E) A trustee may delegate to a cotrustee duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. A delegation made under this division shall be governed by section 5808.07 of the Revised Code. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
(F) Except as otherwise provided in division (G) of this section, and subject to divisions (C) and (E) of this section, a trustee who does not join in an action of another trustee is not liable for the action.
(G) Except as otherwise provided in this division, each trustee shall exercise reasonable care to prevent a cotrustee from committing a serious breach of trust and to compel a cotrustee to redress a serious breach of trust. A trustee is not required to exercise reasonable care of that nature under this division, and a trustee is not liable for resulting losses, when section 5815.25 of the Revised Code is applicable or there is more than one other trustee and the other trustees act by majority vote.
(H) A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.04 | Vacancy Defined - Priority in Filling - Additional Trustees.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A vacancy in a trusteeship occurs under any of the following circumstances:
(1) A person designated as trustee rejects the trusteeship;
(2) A person designated as trustee cannot be identified or does not exist;
(3) A trustee resigns;
(4) A trustee is disqualified or removed;
(5) A trustee dies;
(6) A guardian of the estate or person is appointed for an individual serving as trustee.
(B) If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.
(C) A vacancy in a trusteeship of a noncharitable trust that is required to be filled must be filled in the following order of priority:
(1) By a person designated in the terms of the trust to act as successor trustee;
(2) By a person appointed by someone designated in the terms of the trust to appoint a successor trustee;
(3) By a person appointed by unanimous agreement of the qualified beneficiaries;
(4) By a person appointed by the court.
(D) A vacancy in a trusteeship of a charitable trust that is required to be filled must be filled in the following order of priority:
(1) By a person designated in the terms of the trust to act as successor trustee;
(2) By a person appointed by someone designated in the terms of the trust to appoint a successor trustee;
(3) By a person selected by the charitable organizations expressly designated to receive distributions under the terms of the trust;
(4) By a person appointed by the court.
(E) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.05 | Resignation of Trustee - Notice - Approval.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee may resign upon at least thirty days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees or with the approval of the court.
(B) In approving a resignation of a trustee, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(C) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.06 | Removal of Trustee - Grounds - Protective Measures.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or the court may remove a trustee on its own initiative.
(B) The court may remove a trustee for any of the following reasons:
(1) The trustee has committed a serious breach of trust;
(2) Lack of cooperation among cotrustees substantially impairs the administration of the trust;
(3) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries.
(C) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order any appropriate relief under division (B) of section 5810.01 of the Revised Code that is necessary to protect the trust property or the interests of the beneficiaries.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.07 | Powers and Duties of Removed or Resigned Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(B) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.08 | Compensation of Trustee.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
(B) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if the duties of the trustee are substantially different from those contemplated when the trust was created or the compensation specified by the terms of the trust would be unreasonably low or high.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5807 | Trustees › Section 5807.09 | Reimbursement of Trustee for Administrative Expenses.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for expenses that were properly incurred in the administration of the trust and, to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(B) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.01 | Duties of Trustee Generally.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with Chapters 5801. to 5811. of the Revised Code.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.03 | Multiple Beneficiaries - Duty of Impartiality.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.04 | Duty to Act as Prudent Person.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee shall administer the trust as a prudent person would and shall consider the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.05 | Reasonable Administrative Costs Allowed.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
Except as otherwise permitted by law, in administering a trust, a trustee may incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.06 | Trustee to Use Any Special Skills or Expertise.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.07 | Delegation of Powers and Duties.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee may delegate duties and powers that a prudent trustee having comparable skills could properly delegate under the circumstances. In accordance with this division, a trustee shall exercise reasonable care, skill, and caution in doing all of the following:
(1) Selecting an agent, cotrustee, or other fiduciary to whom the delegation is made;
(2) Establishing the scope and terms of the delegation consistent with the purposes and terms of the trust;
(3) Periodically reviewing the agent's, cotrustee's, or other fiduciary's actions in order to monitor the agent's, cotrustee's, or other fiduciary's performance and compliance with the terms of the delegation.
(B) In performing a delegated function, an agent, cotrustee, or other fiduciary owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(C) A trustee who complies 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, cotrustee, or other fiduciary to whom the function was delegated.
(D) By accepting the delegation of powers or duties from the trustee of a trust that is subject to the laws of this state, an agent, cotrustee, or other fiduciary submits to the jurisdiction of this state.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.08 | Direction of Settlor Contrary to Terms - Power of Modification.

Effective:
March 27, 2013
Latest Legislation:
House Bill 479 - 129th General Assembly
(A) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.
(B) As provided in section 5815.25 of the Revised Code, a trustee is not liable for losses resulting from certain actions or failures to act when other persons are granted certain powers with respect to the administration of the trust.
(C) The terms of a trust may confer upon a trustee or other person a power to direct the modification or termination of the trust.
(D) Except to the extent otherwise provided by the terms of a trust, a person other than a beneficiary who holds a power to direct, including, but not limited to, a power to direct the modification or termination of a trust, is presumptively a fiduciary who, as a fiduciary, is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from breach of a fiduciary duty.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.10 | Adequate Records of Administration.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
(A) A trustee shall keep adequate records of the administration of the trust.
(B) A trustee shall keep trust property separate from the trustee's own property.
(C) Except as otherwise provided in division (D) of this section and in section 2131.21 of the Revised Code, a trustee not subject to federal or state banking regulation shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
(D) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts.
2023 Ohio Revised Code › Title 58 | Trusts › Chapter 5808 | Trust Administration › Section 5808.12 | Collection of Trust Property - Successor Trustees.

Effective:
January 1, 2007
Latest Legislation:
House Bill 416 - 126th General Assembly
A trustee shall take reasonable steps to collect trust property held by third persons. The responsibility of a successor trustee with respect to the administration of the trust by a prior trustee shall be governed by section 5815.24 of the Revised Code.