As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                                 H.B. No. 59     5            

      1999-2000                                                    6            


     REPRESENTATIVES WOMER BENJAMIN-MOTTLEY-PRINGLE-SALERNO        8            


                                                                   9            

                           A   B I L L                                          

             To amend sections 1340.01, 1340.02, 1340.03,          11           

                1340.09, 1340.12, 2103.041, 2107.26, 2107.33, and  13           

                5731.39, to enact new section 2131.01, and to                   

                repeal section 2131.01 of the Revised Code to      14           

                revise the Probate Laws.                           15           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        17           

      Section 1.  That sections 1340.01, 1340.02, 1340.03,         19           

1340.09, 1340.12, 2103.041, 2107.26, 2107.33, and 5731.39 be       21           

amended and new section 2131.01 of the Revised Code be enacted to  23           

read as follows:                                                                

      Sec. 1340.01.  As used in sections 1340.01 to 1340.13 of     32           

the Revised Code:                                                  33           

      (A)  "Income beneficiary" means the person to whom income    35           

is presently payable or for whom it is accumulated for             36           

distribution as income.                                            37           

      (B)  "Inventory value" means the cost of property purchased  39           

by the trustee and the market value of other property at the time  40           

it became subject to the trust, but, in the case of property       41           

which THAT passes or has passed to the trust as the result of a    43           

decedent's death, the trustee may use any value finally            44           

determined for the purposes of an estate or inheritance tax.       45           

      (C)  "Remainderman REMAINDERPERSON" means the person         47           

entitled to principal, including income which THAT has been        48           

accumulated and added to principal.                                50           

      (D)  "Trustee" means an inter vivos or testamentary trustee  52           

and includes an original trustee and any successor or added        53           

                                                          2      

                                                                 
trustee.                                                           54           

      Sec. 1340.02.  (A)  A trust shall be administered with due   63           

regard to the respective interests of income beneficiaries and     64           

remaindermen REMAINDERPERSONS.  A trust is so administered with    65           

respect to the allocation of receipts and expenditures if a        66           

receipt is credited or an expenditure is charged to income or      67           

principal or partly to each IN ONE OF THE FOLLOWING MANNERS:       68           

      (1)  In accordance with the terms of the trust instrument,   70           

notwithstanding contrary provisions of sections 1340.01 to         71           

1340.13 of the Revised Code;                                       72           

      (2)  In the absence of any contrary terms of the trust       74           

instrument, in accordance with sections 1340.01 to 1340.13 of the  75           

Revised Code;                                                      76           

      (3)  If neither of the preceding rules of administration is  78           

applicable,.                                                       79           

      (B)  IN EXERCISING A DISCRETIONARY POWER OF ADMINISTRATION   82           

REGARDING A MATTER WITHIN THE SCOPE OF SECTIONS 1340.01 TO         83           

1340.13 OF THE REVISED CODE, WHETHER GRANTED BY THE TERMS OF THE   86           

TRUST INSTRUMENT OR BY THOSE SECTIONS, A TRUSTEE SHALL ADMINISTER  87           

THE TRUST in accordance with what is reasonable and equitable in   89           

view of the interests of those entitled to income as well as                    

those entitled to principal, and in view of the manner in which    90           

men PERSONS of ordinary prudence, discretion, and judgment would   91           

act in the management of their own affairs.                        92           

      (B)(C)  If the trust instrument gives the trustee            94           

discretion in crediting a receipt or charging an expenditure to    95           

income or principal or partly to each, unless the terms of the     96           

trust instrument otherwise expressly provide, the trustee shall    97           

exercise such discretion in accordance with the principles of      98           

sections 1340.01 to 1340.13 of the Revised Code, but in the event  99           

of a bona fide doubt as to the applicability of sections 1340.01   100          

to 1340.13 of the Revised Code, any allocation made by the         101          

trustee in good faith shall be binding on all persons having any   102          

interest in the trust NO INFERENCE OF IMPRUDENCE OR PARTIALITY     103          

                                                          3      

                                                                 
ARISES FROM THE FACT THAT THE TRUSTEE HAS MADE AN ALLOCATION       105          

CONTRARY TO SECTIONS 1340.01 TO 1340.13 OF THE REVISED CODE.       108          

      (D)  A FIDUCIARY MAY CREDIT A RECEIPT OR CHARGE AN           111          

EXPENDITURE TO INCOME OR PRINCIPAL WITH RESPECT TO A TRUST, OR     112          

PROPERTY PASSING TO A TRUST, THAT IS ELIGIBLE FOR A FEDERAL OR     113          

OHIO ESTATE TAX MARITAL DEDUCTION OR ESTATE TAX CHARITABLE         114          

DEDUCTION ONLY TO THE EXTENT THAT THE CREDIT OF THE RECEIPT OR     116          

CHARGE OF THE EXPENDITURE WILL NOT CAUSE A MATERIAL REDUCTION OR   117          

LOSS OF THE DEDUCTION.                                                          

      (E)  AS USED IN THIS SECTION:                                120          

      (1)  "FEDERAL ESTATE TAX CHARITABLE DEDUCTION" MEANS THE     122          

ESTATE TAX CHARITABLE DEDUCTION ALLOWED BY SUBTITLE B, CHAPTER 11  125          

OF THE "INTERNAL REVENUE CODE OF 1986," 26 U.S.C.A. 2055, AS       130          

AMENDED.                                                                        

      (2)  "FEDERAL ESTATE TAX MARITAL DEDUCTION" MEANS THE        132          

ESTATE TAX MARITAL DEDUCTION ALLOWED BY SUBTITLE B, CHAPTER 11 OF  135          

THE "INTERNAL REVENUE CODE OF 1986," 26 U.S.C.A. 2056, AS          140          

AMENDED.                                                                        

      (3)  "OHIO ESTATE TAX CHARITABLE DEDUCTION" MEANS THE        143          

ESTATE TAX CHARITABLE DEDUCTION ALLOWED BY DIVISION (A) OF         144          

SECTION 5731.17 OF THE REVISED CODE.                               146          

      (4)  "OHIO ESTATE TAX MARITAL DEDUCTION" MEANS THE ESTATE    149          

TAX MARITAL DEDUCTION ALLOWED BY DIVISION (A) OF SECTION 5731.15   151          

OF THE REVISED CODE.                                               152          

      Sec. 1340.03.  (A)  Income is the return in money or         161          

property derived from the use of principal, including return as    162          

FOLLOWS:                                                           163          

      (1)  Rent of real or personal property, including sums       165          

received for cancellation or renewal of a lease;                   166          

      (2)  Interest on money lent, including sums received as      168          

consideration for the privilege of prepayment of principal except  169          

as provided in section 1340.06 of the Revised Code on bond         170          

premium and bond discount;                                         171          

      (3)  Income earned during administration of a decedent's     173          

                                                          4      

                                                                 
estate as provided in section 2109.67 of the Revised Code;         174          

      (4)  Corporate distributions as provided in section 1340.05  176          

of the Revised Code;                                               177          

      (5)  Accrued increment on bonds or other obligations issued  179          

at a discount as provided in section 1340.06 of the Revised Code;  180          

      (6)  Receipts from business and farming operations as        182          

provided in section 1340.07 of the Revised Code;                   183          

      (7)  Receipts from disposition of natural resources as       185          

provided in sections 1340.08 and 1340.09 of the Revised Code;      186          

      (8)  Receipts from other principal subject to depletion as   188          

provided in section 1340.10 of the Revised Code;                   189          

      (9)  Receipts from disposition of underproductive property   191          

as provided in section 1340.11 of the Revised Code.                192          

      (B)  Principal is the property that has been set aside by    194          

the owner or the person legally empowered so that it is held in    195          

trust eventually to be delivered to a remainderman                 196          

REMAINDERPERSON while the return or use of the principal is in     197          

the meantime taken or received by or held for accumulation for an  198          

income beneficiary.  Principal includes any of the following:      199          

      (1)  Consideration received by the trustee on the sale or    201          

other transfer of principal or on repayment of a loan or as a      202          

refund or replacement or change in the form of principal;          203          

      (2)  Proceeds of property taken on eminent domain            205          

proceedings;                                                       206          

      (3)  Proceeds of insurance upon property forming part of     208          

the principal except proceeds of insurance upon a separate         209          

interest of an income beneficiary;                                 210          

      (4)  Stock dividends, receipts on liquidation of a           212          

corporation, and other corporate distributions as provided in      213          

section 1340.05 of the Revised Code;                               214          

      (5)  Receipts from the disposition of corporate securities   216          

as provided in section 1340.06 of the Revised Code;                217          

      (6)  Royalties and other receipts from disposition of        219          

natural resources as provided in sections 1340.08 and 1340.09 of   220          

                                                          5      

                                                                 
the Revised Code;                                                  221          

      (7)  Receipts from other principal subject to depletion as   223          

provided in section 1340.10 of the Revised Code;                   224          

      (8)  Any profit resulting from any change in the form of     226          

principal except as provided in section 1340.11 of the Revised     227          

Code on underproductive property;                                  228          

      (9)  Receipts from disposition of underproductive property   230          

as provided in section 1340.11 of the Revised Code;                231          

      (10)  Any allowances for depreciation established under      233          

section 1340.07 and division (A)(2) of section 1340.12 of the      234          

Revised Code.                                                      235          

      (C)  After determining income and principal in accordance    237          

with the terms of the trust instrument or of sections 1340.01 to   238          

1340.13 of the Revised Code, the trustee shall charge to income    239          

or principal expenses and other charges as provided in section     240          

1340.12 of the Revised Code.                                       241          

      Sec. 1340.09.  If any part of the principal consists of      250          

land from which merchantable timber may be removed, the receipts   251          

from taking the timber from the land shall be allocated in         252          

accordance with division (A)(3)(B) of section 1340.02 of the       254          

Revised Code.                                                                   

      Sec. 1340.12.  (A)  The following charges shall be made      263          

against income:                                                    264          

      (1)  Ordinary expenses incurred in connection with the       266          

administration, management, or preservation of the trust           267          

property, including regularly recurring taxes assessed against     268          

any portion of the principal, water rates, premiums on insurance   269          

taken upon the interests of the income beneficiary, remainderman   270          

REMAINDERPERSON, or trustee, interest paid by the trustee, and     271          

ordinary repairs;                                                  272          

      (2)  A reasonable allowance for depreciation on property     274          

subject to depreciation under generally accepted accounting        275          

principles, but no allowance shall be made for depreciation of     276          

that portion of any real property used by a beneficiary as a       277          

                                                          6      

                                                                 
residence or for depreciation of any property held by the trustee  278          

on the effective date of this section OCTOBER 20, 1987, for which  280          

the trustee is not then making an allowance for depreciation;      281          

      (3)  Not less than half of court costs, attorney's fees,     283          

and other fees on periodic judicial accounting, unless the court   284          

directs otherwise;                                                 285          

      (4)  Court costs, attorney's fees, and other fees on other   287          

accountings or judicial proceedings if the matter primarily        288          

concerns the income interest, unless the court directs otherwise;  289          

      (5)  Not less than half of the trustee's regular             291          

compensation, whether based on a percentage of principal or        292          

income, and all expenses reasonably incurred for current           293          

management of principal and application of income, unless a court  294          

otherwise directs;                                                 295          

      (6)  Any tax levied upon receipts defined as income under    297          

sections 1340.01 to 1340.13 of the Revised Code or the trust       298          

instrument and payable by the trustee.                             299          

      (B)  If charges against income are of unusual amount, the    301          

trustee may, by means of reserves or other reasonable means, MAY   303          

charge them over a reasonable period of time and withhold from     304          

distribution sufficient sums to regularize distributions.          305          

      (C)  The following charges shall be made against principal:  307          

      (1)  Trustee's compensation not chargeable to income under   309          

divisions (A)(4) and (5) of this section, special compensation of  310          

trustees, expenses reasonably incurred in connection with          311          

principal, court costs and attorney's fees primarily concerning    312          

matters of principal, and trustee's compensation computed on       313          

principal as an acceptance, distribution, or termination fee;      314          

      (2)  Charges not provided for in division (A) of this        316          

section, including the cost of investing and reinvesting           317          

principal; the payment on principal of an indebtedness, including  318          

a mortgage amortized by periodic payments of principal; expenses   319          

for preparation of property for rental or sale; and, unless the    320          

court directs otherwise, expenses incurred in maintaining or       321          

                                                          7      

                                                                 
defending any action to construe the trust or, TO protect it THE   323          

TRUST or the TRUST property, or TO assure the title of any trust   324          

property;                                                          325          

      (3)  Extraordinary repairs or expenses incurred in making a  327          

capital improvement to principal, including special assessments,   328          

but a trustee may establish an allowance for depreciation out of   329          

income to the extent permitted by division (A)(2) of this section  330          

and by section 1340.07 of the Revised Code;                        331          

      (4)  Any tax levied upon profit, gain, or other receipts     333          

allocated to principal, notwithstanding denomination of the tax    334          

as an income tax by the taxing authority;                          335          

      (5)  If an estate or inheritance tax is levied in WITH       337          

respect of TO a trust in which both an income beneficiary and a    338          

remainderman REMAINDERPERSON have an interest, any amount          340          

apportioned to the trust, including penalties, even though the     342          

income beneficiary also has rights in the principal.               343          

      (D)  Regularly recurring charges payable from income shall   345          

be apportioned to the same extent and in the same manner that      346          

income is apportioned under section 1340.04 of the Revised Code.   347          

      Sec. 2103.041.  In any action involving the judicical        356          

JUDICIAL sale of real property for the purpose of satisfying the   357          

claims of creditors of an owner of an interest in the property,    358          

the spouse of the owner may be made a party to the action, and     359          

the dower interest of the spouse, whether inchoate or otherwise,   360          

may be subjected to the sale without the consent of the spouse.    361          

The court shall determine the present value and priority of the    362          

dower interest, using the American experience table of mortality   363          

as the basis for determining the value, IN ACCORDANCE WITH         364          

SECTION 2131.01 OF THE REVISED CODE and shall award the spouse a   365          

sum of money equal to the present value of the dower interest, to  366          

be paid out of the proceeds of the sale according to the priority  367          

of the interest.  To the extent that the owner and his THE         368          

OWNER'S spouse are both liable for the indebtedness, the dower     370          

interest of the spouse is subordinate to the claims of their       371          

                                                          8      

                                                                 
common creditors.                                                               

      Sec. 2107.26.  When an original will is lost, spoliated, or  380          

destroyed subsequent to BEFORE OR AFTER the death of a testator,   381          

or before the death of such testator if the testator's lack of     383          

knowledge of such loss, spoliation, or destruction can be proved   384          

by clear and convincing testimony, or after he became incapable                 

of making a will by reason of insanity, and such will cannot be    385          

produced in the probate court in as complete a manner as the       386          

originals of last wills and testaments which are actually          387          

produced therein for probate, the PROBATE court may SHALL admit    389          

such THE lost, spoliated, or destroyed will to probate, if such    390          

court is satisfied the will was executed according to the law in   391          

force at the time of its execution and not revoked at the death    392          

of the testator BOTH OF THE FOLLOWING APPLY:                       393          

      (A)  THE PROPONENT OF THE WILL ESTABLISHES BY CLEAR AND      396          

CONVINCING EVIDENCE BOTH OF THE FOLLOWING:                         397          

      (1)  THE WILL WAS EXECUTED WITH THE FORMALITIES REQUIRED AT  400          

THE TIME OF EXECUTION BY THE JURISDICTION IN WHICH IT WAS          401          

EXECUTED.                                                                       

      (2)  THE CONTENTS OF THE WILL.                               403          

      (B)  NO PERSON OPPOSING THE ADMISSION OF THE WILL TO         406          

PROBATE ESTABLISHES BY A PREPONDERANCE OF THE EVIDENCE THAT THE    407          

TESTATOR HAD REVOKED THE WILL.                                     408          

      Sec. 2107.33.  (A)  A will shall be revoked by IN THE        417          

FOLLOWING MANNERS:                                                 418          

      (1)  BY the testator by tearing, canceling, obliterating,    421          

or destroying it with the intention of revoking it, or by;         422          

      (2)  BY some person, AT THE REQUEST OF THE TESTATOR AND in   425          

the testator's presence, or by TEARING, CANCELING, OBLITERATING,   427          

OR DESTROYING IT WITH THE INTENTION OF REVOKING IT;                428          

      (3)  BY SOME PERSON TEARING, CANCELING, OBLITERATING, OR     430          

DESTROYING IT PURSUANT TO the testator's express written           432          

direction, or by;                                                               

      (4)  BY some other written will or codicil, executed as      435          

                                                          9      

                                                                 
prescribed by sections 2107.01 to 2107.62 of the Revised Code, or  436          

by THIS CHAPTER;                                                   437          

      (5)  BY some other writing that is signed, attested, and     440          

subscribed in the manner provided by those sections THIS CHAPTER.  441          

A                                                                               

      (B)  A will that has been declared valid and is in the       444          

possession of a probate judge may also MAY be revoked according    446          

to division (C) of section 2107.084 of the Revised Code.           447          

      (B)(C)  If a testator removes a will that has been declared  449          

valid and is in the possession of a probate judge pursuant to      450          

section 2107.084 of the Revised Code from the possession of the    451          

judge, the declaration of validity that was rendered no longer     452          

has any effect.                                                    453          

      (C)(D)  If after executing a will, a testator is divorced,   455          

obtains a dissolution of marriage, has his THE TESTATOR'S          456          

marriage annulled, or, upon actual separation from his THE         458          

TESTATOR'S spouse, enters into a separation agreement pursuant to  460          

which the parties intend to fully and finally settle their         461          

prospective property rights in the property of the other, whether  462          

by expected inheritance or otherwise, any disposition or           463          

appointment of property made by the will to the former spouse or   464          

to a trust with powers created by or available to the former       465          

spouse, any provision in the will conferring a general or special  466          

power of appointment on the former spouse, and any nomination in   467          

the will of the former spouse as executor, trustee, or guardian,   468          

shall be revoked unless the will expressly provides otherwise.     469          

      (D)(E)  Property prevented from passing to a former spouse   471          

or to a trust with powers created by or available to the former    472          

spouse because of revocation by this section shall pass as if the  473          

former spouse failed to survive the decedent, and other            474          

provisions conferring some power or office on the former spouse    475          

shall be interpreted as if the spouse failed to survive the        476          

decedent.  If provisions are revoked solely by this section, they  477          

shall be deemed to be revived by the testator's remarriage with    478          

                                                          10     

                                                                 
the former spouse or upon the termination of a separation          479          

agreement executed by them.                                        480          

      (E)(F)  A bond, agreement, or covenant made by a testator,   482          

for a valuable consideration, to convey property previously        483          

devised or bequeathed in a will, does not revoke the devise or     484          

bequest. The property passes by the devise or bequest, subject to  485          

the remedies on the bond, agreement, or covenant, for a specific   486          

performance or otherwise, against the devisees or legatees, that   487          

might be had by law against the heirs of the testator, or his THE  488          

TESTATOR'S next of kin, if the property had descended to them.     490          

      (F)(G)  A TESTATOR'S REVOCATION OF A WILL SHALL BE VALID     493          

ONLY IF THE TESTATOR, AT THE TIME OF THE REVOCATION, HAS THE SAME  494          

CAPACITY AS THE LAW REQUIRES FOR THE EXECUTION OF A WILL.          495          

      (H)  As used in this section:                                497          

      (1)  "Trust with powers created by or available to the       499          

former spouse" means a trust that is revocable by the former       500          

spouse, with respect to which the former spouse has a power of     501          

withdrawal, or with respect to which the former spouse may take a  502          

distribution that is not subject to an ascertainable standard but  503          

does not mean a trust in which those powers of the former spouse   504          

are revoked by section 1339.62 of the Revised Code or similar      505          

provisions in the law of another state.                            506          

      (2)  "Ascertainable standard" means a standard that is       508          

related to a trust beneficiary's health, maintenance, support, or  509          

education.                                                         510          

      Sec. 2131.01.  PRESENT VALUES FOR PROBATE MATTERS SHALL BE   512          

THE VALUES DETERMINED FOR OHIO ESTATE TAX PURPOSES PURSUANT TO     513          

DIVISION (B) OF SECTION 5731.01 OF THE REVISED CODE.               516          

      Sec. 5731.39.  (A)  No corporation organized or existing     525          

under the laws of this state shall transfer on its books or issue  526          

a new certificate for any share of its capital stock registered    527          

in the name of a decedent, or in trust for a decedent, or in the   528          

name of a decedent and another person or persons, without the      529          

GIVING written consent NOTICE of THE TRANSFER TO the tax           531          

                                                          11     

                                                                 
commissioner.                                                      532          

      (B)  No safe deposit company, trust company, financial       534          

institution as defined in division (A) of section 5725.01 of the   535          

Revised Code, or other corporation or person, having in            536          

possession, control, or custody a deposit standing in the name of  537          

a decedent, or in trust for a decedent, or in the name of a        538          

decedent and another person or persons, shall deliver or transfer  539          

an amount in excess of three-fourths of the total value of such    540          

THE deposit, including accrued interest and dividends, as of the   542          

date of THE decedent's death, without the GIVING written consent   544          

NOTICE of THE DELIVERY OR TRANSFER TO the tax commissioner.  The   546          

written consent of NOTICE TO the tax commissioner need not be      548          

obtained GIVEN prior to the delivery or transfer of amounts        549          

having a value of three-fourths or less of said THAT total value.  551          

      (C)  No life insurance company shall pay the proceeds of an  553          

annuity or matured endowment contract, or of a life insurance      554          

contract payable to the estate of a decedent, or of any other      555          

insurance contract taxable under Chapter 5731. of the Revised      556          

Code THIS CHAPTER, without the GIVING written consent NOTICE of    558          

THE PAYMENT TO the tax commissioner.  Any life insurance company   560          

may pay the proceeds of any insurance contract not specified in    561          

this division (C) without the GIVING written consent NOTICE of     563          

THE PAYMENT TO the tax commissioner.                                            

      (D)  No trust company or other corporation or person shall   565          

pay the proceeds of any death benefit, retirement, pension, or     566          

profit sharing plan in excess of two thousand dollars, without     567          

the GIVING written consent NOTICE of THE PAYMENT TO the tax        569          

commissioner.  Such THE trust company or other corporation or      570          

person, however, may pay the proceeds of any death benefit,        571          

retirement, pension, or profit-sharing plan which THAT consists    572          

of insurance on the life of the decedent payable to a beneficiary  574          

other than the estate of the insured without the GIVING written    576          

consent NOTICE of THE PAYMENT TO the tax commissioner.             577          

      (E)  No safe deposit company, trust company, financial       579          

                                                          12     

                                                                 
institution as defined in division (A) of section 5725.01 of the   580          

Revised Code, or other corporation or person, having in            581          

possession, control, or custody securities, assets, or other       582          

property (, including the shares of the capital stock of, or       583          

other interest in, such THAT safe deposit company, trust company,  585          

financial institution as defined in division (A) of section        587          

5725.01 of the Revised Code, or other corporation) OR PERSON,      588          

standing in the name of a decedent, or in trust for a decedent,    590          

or in the name of a decedent and another person or persons, and    591          

the transfer of which is taxable under Chapter 5731. of the        592          

Revised Code THIS CHAPTER, shall deliver or transfer any such OF   594          

THOSE securities, assets, or other property which THAT have a      597          

value as of the date of decedent's death in excess of                           

three-fourths of the total value thereof, without the GIVING       599          

written consent NOTICE of THE DELIVERY OR TRANSFER TO the tax      601          

commissioner.  The written consent of NOTICE NEED NOT BE GIVEN TO  603          

the tax commissioner need not be obtained prior to the delivery    604          

or transfer of any such OF THOSE securities, assets, or other      605          

property having a value of three-fourths or less of said THAT      607          

total value.                                                                    

      (F)  No safe deposit company, financial institution as       609          

defined in division (A) of section 5725.01 of the Revised Code,    610          

or other corporation or person having possession or control of a   611          

safe deposit box or similar receptacle standing in the name of a   612          

decedent or in the name of the decedent and another person or      613          

persons, or to which the decedent had a right of access, except    614          

when such THAT safe deposit box or other receptacle stands in the  616          

name of a corporation or partnership, or in the name of the        617          

decedent as guardian or executor, shall deliver any of the         618          

contents thereof OF THE SAFE DEPOSIT BOX OR SIMILAR RECEPTACLE     619          

unless the safe deposit box or similar receptacle has been opened  621          

and inventoried in the presence of the tax commissioner or the     622          

commissioner's agent, and a written consent to transfer issued;    624          

provided, however, that a safe deposit company, financial                       

                                                          13     

                                                                 
institution, or other corporation or person having possession or   625          

control of a safe deposit box may deliver wills, deeds to burial   626          

lots, and insurance policies to a representative of the decedent,  627          

but that a representative of the safe deposit company, financial   628          

institution, or other corporation or person must supervise the     629          

opening of the box and make a written record of the wills, deeds,  630          

and policies removed.  Such THE written record shall be included   631          

in the tax commissioner's inventory records.                       633          

      (G)  THE TAX COMMISSIONER SHALL ISSUE A WRITTEN              635          

ACKNOWLEDGMENT OF RECEIPT OF A WRITTEN NOTICE GIVEN TO THE TAX     636          

COMMISSIONER PURSUANT TO DIVISIONS (A) TO (E) OF THIS SECTION AND  638          

OF THE OPENING AND INVENTORY OF THE CONTENTS OF A SAFE DEPOSIT     639          

BOX OR SIMILAR RECEPTACLE IN THE PRESENCE OF THE TAX COMMISSIONER  640          

OR THE TAX COMMISSIONER'S AGENT PURSUANT TO DIVISION (F) OF THIS   642          

SECTION, SOLELY TO EVIDENCE THE RECEIPT OR PRESENCE.  THE TAX      643          

COMMISSIONER SHALL NOT CONDITION THE ISSUANCE OF THE WRITTEN       644          

ACKNOWLEDGMENT ON ANY REQUIREMENT STATED OUTSIDE THIS SECTION.     645          

      (H)  Notwithstanding any provision of this section:          647          

      (1)  The tax commissioner may authorize any delivery or      649          

transfer or waive any of the foregoing requirements OF DIVISIONS   650          

(A) TO (F) OF THIS SECTION under such terms and conditions as      652          

THAT the commissioner may prescribe;.                              653          

      (2)  An adult care facility, as defined in section 3722.01   655          

of the Revised Code, or a home, as defined in section 3721.10 of   657          

the Revised Code, may transfer or use the money in a personal      659          

needs allowance account in accordance with section 5111.112 of                  

the Revised Code without the written consent of the tax            661          

commissioner, and without the account having been opened and       663          

inventoried in the presence of the commissioner or the                          

commissioner's agent.                                              664          

      (I)  Failure to comply with this section shall render such   667          

A safe deposit company, trust company, life insurance company,     669          

financial institution as defined in division (A) of section        670          

5725.01 of the Revised Code, or other corporation or person        671          

                                                          14     

                                                                 
liable for the amount of the taxes and interest due under the      672          

provisions of Chapter 5731. of the Revised Code THIS CHAPTER on    673          

the DELIVERY OR transfer of such THE stock, deposit, proceeds of   674          

an annuity or matured endowment contract or, of a life insurance   675          

contract payable to the estate of a decedent, or other OF ANOTHER  676          

insurance contract taxable under Chapter 5731. of the Revised      678          

Code THIS CHAPTER, proceeds of any death benefit, retirement,      680          

pension, or profit sharing plan in excess of two thousand          681          

dollars, or securities, assets, or other property of any resident  682          

decedent, and in addition thereto, to a penalty of not less than   683          

five hundred or more than five thousand dollars.                   684          

      Section 2.  That existing sections 1340.01, 1340.02,         686          

1340.03, 1340.09, 1340.12, 2103.041, 2107.26, 2107.33, and         687          

5731.39 and section 2131.01 of the Revised Code are hereby         688          

repealed.                                                                       

      Section 3.  It is the intent of the General Assembly in      690          

amending section 1340.02 of the Revised Code in this act to limit  691          

the application of the holding of the Ohio Supreme Court in        692          

Sherman v. Sherman (1966), 5 Ohio St.2d 27.                        693