Am. Sub. H. B. No. 416 As Passed by the House

Representatives Wagoner, Gilb, Coley, Seitz, Reidelbach, Ujvagi, Webster, Latta, Reinhard, Brown, Mason, Book, Core, Barrett, Blessing, Bubp, Carano, Cassell, Combs, DeBose, DeGeeter, Dolan, Domenick, Evans, C., Flowers, Harwood, Healy, Hughes, Key, Law, Martin, McGregor, R., Oelslager, Otterman, Patton, T., Perry, Sayre, Schaffer, Schlichter, Schneider, Willamowski, Yuko

A BILL

To amend sections 1111.13, 1111.15, 1151.191, 1
1161.24, 1319.12, 1339.01, 1339.02, 1339.03, 2
1339.04, 1339.08, 1339.09, 1339.10, 1339.11, 3
1339.12, 1339.13, 1339.15, 1339.151, 1339.16, 4
1339.17, 1339.31, 1339.32, 1339.33, 1339.34, 5
1339.35, 1339.36, 1339.37, 1339.38, 1339.39, 6
1339.42, 1339.44, 1339.52, 1339.53, 1339.54, 7
1339.55, 1339.56, 1339.57, 1339.58, 1339.59, 8
1339.60, 1339.61, 1339.62, 1339.64, 1339.65, 9
1339.71, 1339.72, 1339.73, 1339.74, 1339.76, 10
1339.77, 1339.78, 1340.31, 1340.32, 1340.33, 11
1340.34, 1340.35, 1340.36, 1340.37, 1340.40, 12
1340.41, 1340.42, 1340.46, 1340.47, 1340.52, 13
1340.57, 1340.58, 1340.59, 1340.63, 1340.65, 14
1340.66, 1340.70, 1340.71, 1340.72, 1340.73, 15
1340.74, 1340.75, 1340.76, 1340.77, 1340.81, 16
1340.82, 1340.83, 1340.84, 1340.90, 1340.91, 17
1775.03, 1775.14, 1775.15, 1775.17, 1775.33, 18
1782.24, 2101.24, 2107.33, 2109.24, 2109.37, 19
2109.62, 2109.68, 2111.131, 2113.861, 2305.121, 20
2305.22, 5111.15, 5111.151, 5119.01, 5119.17, 21
5121.04, 5121.10, 5121.30, 5121.52, 5123.04, 22
5123.28, and 5123.40; to amend, for the purpose of 23
adopting new section numbers as indicated in 24
parentheses, sections 1339.01 (5815.02), 1339.02 25
(5815.03), 1339.03 (5815.04), 1339.031 (5815.01), 26
1339.04 (5815.05), 1339.08 (5815.06), 1339.09 27
(5815.07), 1339.10 (5815.08), 1339.11 (5815.09), 28
1339.12 (5815.10), 1339.13 (5815.11), 1339.15 29
(5815.12), 1339.151 (5815.13), 1339.16 (5815.14), 30
1339.17 (5815.15), 1339.18 (5815.16), 1339.31 31
(5814.01), 1339.32 (5814.02), 1339.33 (5814.03), 32
1339.34 (5814.04), 1339.35 (5814.05), 1339.36 33
(5814.06), 1339.37 (5814.07), 1339.38 (5814.08), 34
1339.39 (5814.09), 1339.41 (5815.21), 1339.411 35
(5815.22), 1339.412 (5815.23), 1339.42 (5815.24), 36
1339.43 (5815.25), 1339.44 (5815.26), 1339.45 37
(5815.27), 1339.51 (5815.28), 1339.52 (5809.01), 38
1339.53 (5809.02), 1339.54 (5809.03), 1339.55 39
(5808.03), 1339.56 (5809.04), 1339.57 (5808.05), 40
1339.58 (5809.05), 1339.59 (5808.07), 1339.60 41
(5809.07), 1339.61 (5809.08), 1339.62 (5815.31), 42
1339.621 (5815.32), 1339.63 (5815.33), 1339.64 43
(5815.34), 1339.65 (5815.35), 1339.68 (5815.36), 44
1339.71 (5815.41), 1339.72 (5815.42), 1339.73 45
(5815.43), 1339.74 (5815.44), 1339.75 (5815.45), 46
1339.76 (5815.46), 1339.77 (5815.47), 1339.78 47
(5815.48), 1340.31 (5813.01), 1340.32 (5813.02), 48
1340.33 (5813.03), 1340.34 (5813.04), 1340.35 49
(5813.05), 1340.36 (5813.06), 1340.37 (5813.07), 50
1340.40 (5812.01), 1340.41 (5812.02), 1340.42 51
(5812.03), 1340.46 (5812.07), 1340.47 (5812.08), 52
1340.51 (5812.12), 1340.52 (5812.13), 1340.53 53
(5812.14), 1340.57 (5812.18), 1340.58 (5812.19), 54
1340.59 (5812.20), 1340.63 (5812.24), 1340.64 55
(5812.25), 1340.65 (5812.26), 1340.66 (5812.27), 56
1340.70 (5812.31), 1340.71 (5812.32), 1340.72 57
(5812.33), 1340.73 (5812.34), 1340.74 (5812.35), 58
1340.75 (5812.36), 1340.76 (5812.37), 1340.77 59
(5812.38), 1340.81 (5812.42), 1340.82 (5812.43), 60
1340.83 (5812.44), 1340.84 (5812.45), 1340.85 61
(5812.46), 1340.86 (5812.47), 1340.90 (5812.51), 62
1340.91 (5812.52), and 2305.121 (5806.04); to 63
enact sections 2109.69, 5801.01, 5801.011, 5801.02 64
to 5801.10, 5802.01 to 5802.03, 5803.01 to 65
5803.05, 5804.01 to 5804.18, 5805.01 to 5805.07, 66
5806.01 to 5806.03, 5807.01 to 5807.09, 5808.01, 67
5808.02, 5808.04, 5808.06, 5808.08 to 5808.17, 68
5809.06, 5810.01 to 5810.13, and 5811.01 to 69
5811.03; and to repeal sections 1335.01, 1339.14, 70
1339.66, 1339.67, 1339.69, 1340.21, 1340.22, and 71
1340.23 of the Revised Code to adopt an Ohio trust 72
code. 73

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

       Section 1. That sections 1111.13, 1111.15, 1151.191, 74
1161.24, 1319.12, 1339.01, 1339.02, 1339.03, 1339.04, 1339.08, 75
1339.09, 1339.10, 1339.11, 1339.12, 1339.13, 1339.15, 1339.151, 76
1339.16, 1339.17, 1339.31, 1339.32, 1339.33, 1339.34, 1339.35, 77
1339.36, 1339.37, 1339.38, 1339.39, 1339.42, 1339.44, 1339.52, 78
1339.53, 1339.54, 1339.55, 1339.56, 1339.57, 1339.58, 1339.59, 79
1339.60, 1339.61, 1339.62, 1339.64, 1339.65, 1339.71, 1339.72, 80
1339.73, 1339.74, 1339.76, 1339.77, 1339.78, 1340.31, 1340.32, 81
1340.33, 1340.34, 1340.35, 1340.36, 1340.37, 1340.40, 1340.41, 82
1340.42, 1340.46, 1340.47, 1340.52, 1340.57, 1340.58, 1340.59, 83
1340.63, 1340.65, 1340.66, 1340.70, 1340.71, 1340.72, 1340.73, 84
1340.74, 1340.75, 1340.76, 1340.77, 1340.81, 1340.82, 1340.83, 85
1340.84, 1340.90, 1340.91, 1775.03, 1775.14, 1775.15, 1775.17, 86
1775.33, 1782.24, 2101.24, 2107.33, 2109.24, 2109.37, 2109.62, 87
2109.68, 2111.131, 2113.861, 2305.121, 2305.22, 5111.15, 5111.151, 88
5119.01, 5119.17, 5121.04, 5121.10, 5121.30, 5121.52, 5123.04, 89
5123.28, and 5123.40 be amended; that sections 1339.01 (5815.02), 90
1339.02 (5815.03), 1339.03 (5815.04), 1339.031 (5815.01), 1339.04 91
(5815.05), 1339.08 (5815.06), 1339.09 (5815.07), 1339.10 92
(5815.08), 1339.11 (5815.09), 1339.12 (5815.10), 1339.13 93
(5815.11), 1339.15 (5815.12), 1339.151 (5815.13), 1339.16 94
(5815.14), 1339.17 (5815.15), 1339.18 (5815.16), 1339.31 95
(5814.01), 1339.32 (5814.02), 1339.33 (5814.03), 1339.34 96
(5814.04), 1339.35 (5814.05), 1339.36 (5814.06), 1339.37 97
(5814.07), 1339.38 (5814.08), 1339.39 (5814.09), 1339.41 98
(5815.21), 1339.411 (5815.22), 1339.412 (5815.23), 1339.42 99
(5815.24), 1339.43 (5815.25), 1339.44 (5815.26), 1339.45 100
(5815.27), 1339.51 (5815.28), 1339.52 (5809.01), 1339.53 101
(5809.02), 1339.54 (5809.03), 1339.55 (5808.03), 1339.56 102
(5809.04), 1339.57 (5808.05), 1339.58 (5809.05), 1339.59 103
(5808.07), 1339.60 (5809.07), 1339.61 (5809.08), 1339.62 104
(5815.31), 1339.621 (5815.32), 1339.63 (5815.33), 1339.64 105
(5815.34), 1339.65 (5815.35), 1339.68 (5815.36), 1339.71 106
(5815.41), 1339.72 (5815.42), 1339.73 (5815.43), 1339.74 107
(5815.44), 1339.75 (5815.45), 1339.76 (5815.46), 1339.77 108
(5815.47), 1339.78 (5815.48), 1340.31 (5813.01), 1340.32 109
(5813.02), 1340.33 (5813.03), 1340.34 (5813.04), 1340.35 110
(5813.05), 1340.36 (5813.06), 1340.37 (5813.07), 1340.40 111
(5812.01), 1340.41 (5812.02), 1340.42 (5812.03), 1340.46 112
(5812.07), 1340.47 (5812.08), 1340.51 (5812.12), 1340.52 113
(5812.13), 1340.53 (5812.14), 1340.57 (5812.18), 1340.58 114
(5812.19), 1340.59 (5812.20), 1340.63 (5812.24), 1340.64 115
(5812.25), 1340.65 (5812.26), 1340.66 (5812.27), 1340.70 116
(5812.31), 1340.71 (5812.32), 1340.72 (5812.33), 1340.73 117
(5812.34), 1340.74 (5812.35), 1340.75 (5812.36), 1340.76 118
(5812.37), 1340.77 (5812.38), 1340.81 (5812.42), 1340.82 119
(5812.43), 1340.83 (5812.44), 1340.84 (5812.45), 1340.85 120
(5812.46), 1340.86 (5812.47), 1340.90 (5812.51), 1340.91 121
(5812.52), and 2305.121 (5806.04) be amended for the purpose of 122
adopting new section numbers as indicated in parentheses; and that 123
sections 2109.69, 5801.01, 5801.011, 5801.02, 5801.03, 5801.04, 124
5801.05, 5801.06, 5801.07, 5801.08, 5801.09, 5801.10, 5802.01, 125
5802.02, 5802.03, 5803.01, 5803.02, 5803.03, 5803.04, 5803.05, 126
5804.01, 5804.02, 5804.03, 5804.04, 5804.05, 5804.06, 5804.07, 127
5804.08, 5804.09, 5804.10, 5804.11, 5804.12, 5804.13, 5804.14, 128
5804.15, 5804.16, 5804.17, 5804.18, 5805.01, 5805.02, 5805.03, 129
5805.04, 5805.05, 5805.06, 5805.07, 5806.01, 5806.02, 5806.03, 130
5807.01, 5807.02, 5807.03, 5807.04, 5807.05, 5807.06, 5807.07, 131
5807.08, 5807.09, 5808.01, 5808.02, 5808.04, 5808.06, 5808.08, 132
5808.09, 5808.10, 5808.11, 5808.12, 5808.13, 5808.14, 5808.15, 133
5808.16, 5808.17, 5809.06, 5810.01, 5810.02, 5810.03, 5810.04, 134
5810.05, 5810.06, 5810.07, 5810.08, 5810.09, 5810.10, 5810.11, 135
5810.12, 5810.13, 5811.01, 5811.02, and 5811.03 of the Revised 136
Code be enacted to read as follows: 137

       Sec. 1111.13. (A)(1) Except as provided in divisions (A)(2) 138
and (G) of this section or as otherwise provided by the instrument 139
creating the trust, a trust company acting as fiduciary under any 140
instrument and having funds of the trust which are to be invested 141
may, in addition to any other investments authorized to a trust 142
company by law, invest them in any of the following: 143

       (a) Forms of investments enumerated or described in, or made 144
eligible for investment by, the Ohio Uniform Prudent Investor Act 145
and sections ~~1339.44, 1339.52 to 1339.61,~~ 2109.37, 2109.371, ~~and~~ 146
2109.372, and 5815.26 of the Revised Code, including, but not 147
limited to, securities, stocks, bonds, or certificates of deposit 148
issued by the trust company or any bank owned or controlled by the 149
bank holding company that owns or controls the trust company. 150
Investment authority granted under division (A)(1)(a) of this 151
section is subject to the limitations on investments specified in 152
division (B) of section 2109.371 of the Revised Code. 153

       (b) Any collective investment fund established and maintained 154
by the trust company or by an affiliate of the trust company; 155

       (c) The securities of any investment company, including any 156
affiliated investment company, whether or not the trust company 157
has invested other funds held by it in an agency or other 158
nonfiduciary capacity in the securities of the same investment 159
company or affiliated investment company. 160

       (2) A trust company acting as fiduciary may not invest its 161
trust funds in stock issued by the fiduciary itself except under 162
one of the following circumstances: 163

       (a) In the case of a testamentary instrument, when expressly 164
permitted by the instrument creating the relationship and 165
authorized by court order; 166

       (b) In the case of an inter vivos instrument, when expressly 167
permitted by the instrument or authorized by court order and in 168
either case, only when directed to purchase or invest in the stock 169
by a cofiduciary or other person other than the trust company who 170
has the right under the terms of the instrument to direct the 171
investment; 172

       (c) When exercising rights to purchase its own stock or to 173
purchase or convert securities convertible into its own stock if 174
the rights were offered pro rata to the shareholders; 175

       (d) To complement fractional shares acquired when the 176
exercise of rights or receipt of a stock dividend results in 177
fractional shareholdings. 178

       (3) If the law or the instrument creating a trust expressly 179
permits investment in direct obligations of the United States or 180
an agency or instrumentality of the United States, unless 181
expressly prohibited by the instrument, a trust company also may 182
invest in no front end load money market mutual funds consisting 183
exclusively of obligations of the United States or an agency or 184
instrumentality of the United States and in repurchase agreements, 185
including those issued by the trust company itself, secured by 186
obligations of the United States or an agency or instrumentality 187
of the United States, or in securities of other no load money 188
market mutual funds whose portfolios are similarly restricted; and 189
in collective investment funds established in accordance with 190
section 1111.14 of the Revised Code or by an affiliate of the 191
trust company and consisting exclusively of any direct obligations 192
of the United States or an agency or instrumentality of the United 193
States, notwithstanding division (A)(1)(c) of that section. 194

       (B) A trust company acting in any fiduciary capacity or under 195
any instrument has the right to retain any part of the trust or 196
estate it receives, whether from the creator of the trust or the 197
estate, at its inception or by later addition, or by addition by 198
any other person who is authorized to make additions to the trust 199
or estate, and any investments the trust company makes. 200

       (C) Except as otherwise expressly provided by the instrument 201
creating the fiduciary relationship, any trust company may 202
exercise all voting, consenting, and dissenting rights, including 203
the right to vote for the election of directors, pertaining to 204
stocks, bonds, or other securities held by it in any fiduciary 205
capacity, including rights pertaining to stocks, bonds, or other 206
securities issued by the trust company in its individual corporate 207
capacity and held by it in any fiduciary capacity, provided: 208

       (1) In the case of any fiduciary relationship created prior 209
to January 1, 1968, voting rights pertaining to any shares of a 210
trust company's own stock held by it in a fiduciary relationship, 211
if exercised, shall be exercised with respect to the election of 212
directors, only in accordance with any provisions of law 213
applicable to that election and without regard to the first 214
paragraph of division (C) and divisions (C)(2)(a), (b), and (c) of 215
this section, and those portions of division (C) of this section 216
shall not be construed to be determinative of the voting rights or 217
to be declaratory of a public policy with respect to the voting 218
rights. 219

       (2) In the case of any fiduciary relationship created on or 220
after January 1, 1968, voting rights pertaining to any shares of a 221
trust company's own stock held by it in a fiduciary relationship 222
shall be exercised by it with respect to the election of 223
directors, only if and as directed in writing by any person 224
described in division (C)(2)(a), (b), or (c) of this section, 225
provided that the person may not be the trust company, or a 226
director, officer, or employee of the trust company except as to 227
fiduciary relationships in which the director, officer, or 228
employee is a settlor or beneficiary, or a nominee, agent, 229
attorney, or subsidiary of the trust company: 230

       (a) Any person, including a settlor or beneficiary, who has 231
the right under the terms of the instrument under which shares are 232
held to determine the manner in which shares shall be voted, or if 233
there is no such person; 234

       (b) Any person acting as cofiduciary under the instrument 235
under which such shares are held, or if there is no such person; 236

       (c) Any person, having the right of revocation or amendment 237
of the instrument under which the shares are held. 238

       (D) If there is more than one person having power to direct 239
voting under division (C)(2)(a), (b), or (c) of this section and 240
they fail to agree, each person shall have the right to direct 241
voting with respect to the election of directors as to an equal 242
number of shares. 243

       (E) As used in this section: 244

       (1) "Affiliated investment company" means any investment 245
company that is any of the following: 246

       (a) Sponsored by the trust company that is acting as 247
fiduciary or by a trust company, bank, bank subsidiary 248
corporation, or other corporation owned or controlled by the bank 249
holding company that owns or controls the trust company that is 250
acting as fiduciary; 251

       (b) The result of any agreement with a trust company, bank, 252
bank subsidiary corporation, or other corporation owned or 253
controlled by the bank holding company that owns or controls the 254
trust company that is acting as fiduciary; 255

       (c) Established exclusively for the customers or accounts of 256
the trust company that is acting as fiduciary or of a trust 257
company, bank, bank subsidiary corporation, or other corporation 258
owned or controlled by the bank holding company that owns or 259
controls the trust company that is acting as fiduciary; 260

       (d) Provided with investment advisory, brokerage, transfer 261
agency, registrar, management, shareholder servicing, custodian, 262
or any related services by the trust company that is acting as 263
fiduciary or by a trust company, bank, bank subsidiary 264
corporation, or other corporation owned or controlled by the bank 265
holding company that owns or controls the trust company that is 266
acting as fiduciary. 267

       (2) "Cofiduciary" includes, but is not limited to, a 268
cotrustee, coexecutor, coadministrator, coguardian, co-agent, and 269
any person who, under the terms of the instrument creating the 270
fiduciary relationship, has the right or power to direct, approve 271
or consent to, or be consulted with respect to, the making, 272
retention, or sale of investments under the instrument. 273

       (3) "Instrument" includes, but is not limited to, any will, 274
declaration of trust, agreement of trust, agency, or 275
custodianship, or court order creating a fiduciary relationship. 276

       (4) "Reasonable fee" means compensation or payment, the 277
receipt of which would not constitute a breach of fiduciary duty 278
under section 36 of the "Investment Company Act of 1940," 54 Stat. 279
789, 15 U.S.C.A. 80a-35. 280

       (F) Shares as to which the voting rights with respect to the 281
election of directors may not be exercised under this section 282
shall not be considered as outstanding for the purpose of 283
computing the voting power of the corporation or of its shares of 284
any class with respect to the election of directors. 285

       (G) This section does not authorize a trust company acting as 286
a probate fiduciary to perform any act prohibited by section 287
2109.44 of the Revised Code, unless the act is authorized by the 288
instrument creating the trust. 289

       (H) A trust company making an investment of trust funds in an 290
affiliated investment company, or a bank or other corporation 291
owned or controlled by the bank holding company that owns or 292
controls the trust company, may charge a reasonable fee for 293
investment advisory, brokerage, transfer agency, registrar, 294
management, shareholder servicing, custodian, or any related 295
services provided to an affiliated investment company. The fee may 296
be in addition to the compensation that the trust company is 297
otherwise entitled to receive from the trust, provided that the 298
fee is charged as a percentage of either asset value or income 299
earned or actual amount charged and is disclosed at least annually 300
by prospectus, account statement, or any other written means to 301
all persons entitled to receive statements of account activity. 302

       (I) A trust company making an investment of trust funds in 303
the securities of an affiliated investment company pursuant to 304
division (A)(1)(c) of this section shall, when providing any 305
periodic account statements to the trust fund, report the net 306
asset value of the shares comprising the investment of the trust 307
fund in the affiliated investment company. 308

       (J) If a trust company making an investment of trust funds in 309
the securities of an affiliated investment company pursuant to 310
division (A)(1)(c) of this section invests the funds in any mutual 311
fund, the trust company shall disclose, in at least ten-point 312
boldface type, by prospectus, account statement, or any other 313
written means to all persons entitled to receive statements of 314
account activity, that the mutual fund is not insured or 315
guaranteed by the federal deposit insurance corporation or by any 316
other government agency or government-sponsored agency of the 317
federal government or of this state. 318

       Sec. 1111.15. (A) A trust company acting in any fiduciary 319
capacity, including, but not limited to, the capacities described 320
in section 1111.11 of the Revised Code, may purchase any service 321
or product, including, but not limited to, insurance or securities 322
underwritten or otherwise distributed by the trust company or by 323
an affiliate, through or directly from the trust company or an 324
affiliate or from a syndicate or selling group that includes the 325
trust company or an affiliate, provided that the purchase is 326
otherwise prudent under ~~sections 1339.52 to 1339.61 of~~ the ~~Revised~~ 327
~~Code~~Ohio Uniform Prudent Investor Act and the compensation for 328
the service or product is reasonable and is not prohibited by the 329
instrument governing the fiduciary relationship. The compensation 330
for the service or product may be in addition to the compensation 331
that the trust company is otherwise entitled to receive from the 332
fiduciary account. 333

       (B) A trust company shall disclose at least annually any 334
purchase authorized by this section that was made by the trust 335
company during that reporting period. The disclosure shall be 336
given, in writing or electronically, to all persons entitled to 337
receive statements of account activity, and shall include any 338
capacities in which the trust company or an affiliate acts for the 339
issuer of the securities or the provider of the products or 340
services and the fact that the trust company or an affiliate may 341
have an interest in the products or services. 342

       (C) This section shall apply to the purchase of securities 343
made at the time of the initial offering of the securities or at 344
any time thereafter. 345

       Sec. 1151.191. (A) A building and loan association may serve 346
as trustee of any trust which qualifies, at the time the 347
association becomes trustee, for tax treatment under section 401 348
or 408 of the Internal Revenue Code. The association may invest 349
the funds of any such trust in savings accounts or deposits of a 350
domestic building and loan association or in equity or debt 351
securities issued by a domestic building and loan association. 352

       (B) Whenever any deposit or stock deposit is made in a 353
building and loan association by any person in trust for another 354
and no further notice of the existence and terms of a legal and 355
valid trust is given in writing to such association, such deposit 356
or stock deposit or any part thereof together with the dividends 357
or interest thereon may in the event of the death of the trustee 358
be paid to the person for whom the deposit or stock deposit was 359
made. 360

       ~~Whenever any deposit or stock deposit is made in the name of~~ 361
~~another as trustee for the depositor accompanied by a declaration~~ 362
~~of trust, any trust created thereby shall not be invalid by reason~~ 363
~~of section 1335.01 of the Revised Code.~~ 364

       (C) Any funds held in trust as authorized by division (A) or 365
(B) of this section may be commingled by the trustee association 366
in one or more accounts. Whenever individual trust funds are 367
commingled, separate records shall be maintained by the trustee 368
association for each trust account comprising the commingled fund. 369

       (D) Exercise of the limited trust power granted associations 370
by this section shall not be subject to regulation other than by 371
the superintendent of building and loan associations pursuant to 372
Chapters 1151., 1153., 1155., and 1157. of the Revised Code. 373

       Sec. 1161.24. (A) A savings bank may serve as trustee of any 374
trust that qualifies, at the time the savings bank becomes 375
trustee, for tax treatment under section 401 or 408 of the 376
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as 377
amended. The savings bank may invest the funds of any such trust 378
in savings accounts or deposits of a domestic savings bank or in 379
equity or debt securities issued by a domestic savings bank. 380

       (B)~~(1)~~ Whenever any deposit or stock deposit is made in a 381
savings bank by any person in trust for another and no further 382
notice of the existence and terms of a legal and valid trust is 383
given in writing to the savings bank, the deposit or stock deposit 384
or any part thereof together with the dividends or interest 385
thereon, in the event of the death of the trustee, may be paid to 386
the person for whom the deposit or stock deposit was made. 387

       ~~(2) Whenever any deposit or stock deposit is made in the name~~ 388
~~of another as trustee for the depositor accompanied by a~~ 389
~~declaration of trust, any trust created thereby shall not be~~ 390
~~invalid by reason of section 1335.01 of the Revised Code.~~ 391

       (C) Any funds held in trust as authorized by division (A) or 392
(B) of this section may be commingled by the trustee savings bank 393
in one or more accounts. Whenever individual trust funds are 394
commingled, separate records shall be maintained by the trustee 395
savings bank for each trust account comprising the commingled 396
fund. 397

       (D) Exercise of the limited trust power granted savings banks 398
by this section is not subject to regulation other than by the 399
superintendent of savings banks pursuant to this chapter and 400
Chapters 1163. and 1165. of the Revised Code. 401

       Sec. 1319.12. (A)(1) As used in this section, "collection 402
agency" means any person who, for compensation, contingent or 403
otherwise, or for other valuable consideration, offers services to 404
collect an alleged debt asserted to be owed to another. 405

       (2) "Collection agency" does not mean a person whose 406
collection activities are confined to and directly related to the 407
operation of another business, including, but not limited to, the 408
following: 409

       (a) Any bank, including the trust department of a bank, trust 410
company, savings and loan association, savings bank, credit union, 411
or fiduciary as defined in section ~~1339.03~~5815.04 of the Revised 412
Code, except those that own or operate a collection agency; 413

       (b) Any real estate broker or real estate salesperson, as 414
defined in section 4735.01 of the Revised Code; 415

       (c) Any retail seller collecting its own accounts; 416

       (d) Any insurance company authorized to do business in this 417
state under Title XXXIX of the Revised Code or a health insuring 418
corporation authorized to operate in this state under Chapter 419
1751. of the Revised Code; 420

       (e) Any public officer or judicial officer acting under order 421
of a court; 422

       (f) Any licensee as defined either in section 1321.01 or 423
1321.71 of the Revised Code, or any registrant as defined in 424
section 1321.51 of the Revised Code; 425

       (g) Any public utility; 426

       (h) Any person registered to sell interment rights under 427
section 4767.031 of the Revised Code. 428

       (B) A collection agency with a place of business in this 429
state may take assignment of another person's accounts, bills, or 430
other evidences of indebtedness in its own name for the purpose of 431
billing, collecting, or filing suit in its own name as the real 432
party in interest. 433

       (C) No collection agency shall commence litigation for the 434
collection of an assigned account, bill, or other evidence of 435
indebtedness unless it has taken the assignment in accordance with 436
all of the following requirements: 437

       (1) The assignment was voluntary, properly executed, and 438
acknowledged by the person transferring title to the collection 439
agency. 440

       (2) The collection agency did not require the assignment as a 441
condition to listing the account, bill, or other evidence of 442
indebtedness with the collection agency for collection. 443

       (3) The assignment was manifested by a written agreement 444
separate from and in addition to any document intended for the 445
purpose of listing the account, bill, or other evidence of 446
indebtedness with the collection agency. The written agreement 447
shall state the effective date of the assignment and the 448
consideration paid or given, if any, for the assignment and shall 449
expressly authorize the collection agency to refer the assigned 450
account, bill, or other evidence of indebtedness to an attorney 451
admitted to the practice of law in this state for the commencement 452
of litigation. The written agreement also shall disclose that the 453
collection agency may consolidate, for purposes of filing an 454
action, the assigned account, bill, or other evidence of 455
indebtedness with those of other creditors against an individual 456
debtor or co-debtors. 457

       (4) Upon the effective date of the assignment to the 458
collection agency, the creditor's account maintained by the 459
collection agency in connection with the assigned account, bill, 460
or other evidence of indebtedness was canceled. 461

       (D) A collection agency shall commence litigation for the 462
collection of an assigned account, bill, or other evidence of 463
indebtedness in a court of competent jurisdiction located in the 464
county in which the debtor resides, or in the case of co-debtors, 465
a county in which at least one of the co-debtors resides. 466

       (E) No collection agency shall commence any litigation 467
authorized by this section unless the agency appears by an 468
attorney admitted to the practice of law in this state. 469

       (F) This section does not affect the powers and duties of any 470
person described in division (A)(2) of this section. 471

       (G) Nothing in this section relieves a collection agency from 472
complying with the "Fair Debt Collection Practices Act," 91 Stat. 473
874 (1977), 15 U.S.C. 1692, as amended, or deprives any debtor of 474
the right to assert defenses as provided in section 1317.031 of 475
the Revised Code and 16 C.F.R. 433, as amended. 476

       (H) For purposes of filing an action, a collection agency 477
that has taken an assignment or assignments pursuant to this 478
section may consolidate the assigned accounts, bills, or other 479
evidences of indebtedness of one or more creditors against an 480
individual debtor or co-debtors. Each separate assigned account, 481
bill, or evidence of indebtedness must be separately identified 482
and pled in any consolidated action authorized by this section. If 483
a debtor or co-debtor raises a good faith dispute concerning any 484
account, bill, or other evidence of indebtedness, the court shall 485
separate each disputed account, bill, or other evidence of 486
indebtedness from the action and hear the disputed account, bill, 487
or other evidence of indebtedness on its own merits in a separate 488
action. The court shall charge the filing fee of the separate 489
action to the losing party. 490

       Sec. 1775.03. (A) The rule that statutes in derogation of 491
the common law are to be strictly construed has no application to 492
~~section~~sections 1775.01 to 1775.42 of the Revised Code. 493

       (B) The law of estoppel applies under such sections. 494

       (C) The law of agency applies under this chapter, but, if a 495
provision of section ~~1339.65~~5815.35 of the Revised Code conflicts 496
with that law, the provision of that section controls. 497

       (D) Such sections shall be interpreted and construed so as to 498
effectuate their general purpose to make the law of this state 499
uniform with the law of those states which enact similar 500
legislation. 501

       (E) Sections 1775.01 to 1775.42 of the Revised Code do not 502
impair the obligations of any contract existing on September 14, 503
1949, or affect any action or proceedings begun or right accrued 504
before such date. 505

       Sec. 1775.14. (A) Subject to section ~~1339.65~~5815.35 of the 506
Revised Code and except as provided in division (B) of this 507
section, all partners are liable as follows: 508

       (1) Jointly and severally for everything chargeable to the 509
partnership under sections 1775.12 and 1775.13 of the Revised 510
Code. This joint and several liability is not subject to section 511
2307.22 or 2315.36 of the Revised Code with respect to a tort 512
claim that otherwise is subject to either of those sections. 513

       (2) Jointly for all other debts and obligations of the 514
partnership, but any partner may enter into a separate obligation 515
to perform a partnership contract. 516

       (B) Subject to divisions (C)(1) and (2) of this section or as 517
otherwise provided in a written agreement between the partners of 518
a registered limited liability partnership, a partner in a 519
registered limited liability partnership is not liable, directly 520
or indirectly, by way of indemnification, contribution, 521
assessment, or otherwise, for debts, obligations, or other 522
liabilities of any kind of, or chargeable to, the partnership or 523
another partner or partners arising from negligence or from 524
wrongful acts, errors, omissions, or misconduct, whether or not 525
intentional or characterized as tort, contract, or otherwise, 526
committed or occurring while the partnership is a registered 527
limited liability partnership and committed or occurring in the 528
course of the partnership business by another partner or an 529
employee, agent, or representative of the partnership. 530

       (C)(1) Division (B) of this section does not affect the 531
liability of a partner in a registered limited liability 532
partnership for that partner's own negligence, wrongful acts, 533
errors, omissions, or misconduct, including that partner's own 534
negligence, wrongful acts, errors, omissions, or misconduct in 535
directly supervising any other partner or any employee, agent, or 536
representative of the partnership. 537

       (2) Division (B) of this section shall not affect the 538
liability of a partner for liabilities imposed by Chapters 5735., 539
5739., 5743., and 5747. and section 3734.908 of the Revised Code. 540

       (D) A partner in a registered limited liability partnership 541
is not a proper party to an action or proceeding by or against a 542
registered limited liability partnership with respect to any debt, 543
obligation, or other liability of any kind described in division 544
(B) of this section, unless the partner is liable under divisions 545
(C)(1) and (2) of this section. 546

       Sec. 1775.15. (A) Subject to section ~~1339.65~~5815.35 of the 547
Revised Code, when a person, by words spoken or written or by 548
conduct, represents ~~himself~~self, or consents to another 549
representing ~~him~~the person to anyone, as a partner in an existing 550
partnership or with one or more persons not actual partners, he 551
that person is liable to any such person to whom such 552
representation has been made, who has, on the faith of such 553
representation, given credit to the actual or apparent 554
partnership, and if hethe person has made such representation or 555
consented to its being made in a public manner hethe person is 556
liable to ~~such~~the person to whom such representation has been 557
made, whether the representation has or has not been made or 558
communicated to such person so giving credit by or with the 559
knowledge of the apparent partner making the representation or 560
consenting to its being made. 561

       (1) When a partnership liability results, hethe person who 562
represented self as a partner or consented to another's making 563
such representation is liable as though hethe person were an 564
actual member of the partnership. 565

       (2) When no partnership liability results, hethe person who 566
represented self as a partner or consented to another's making 567
such representation is liable jointly with the other persons, if 568
any, so consenting to the contract or representation as to incur 569
liability, otherwise separately. 570

       (B) When a person has been thus represented to be a partner 571
in an existing partnership, or with one or more persons not actual 572
partners, hethe person so represented is an agent of the persons 573
consenting to such representation to bind them to the same extent 574
and in the same manner as though hethe person so represented were 575
a partner in fact, with respect to persons who rely upon the 576
representation. Where all the members of the existing partnership 577
consent to the representation, a partnership act or obligation 578
results; but in all other cases it is the joint act or obligation 579
of the person acting and the persons consenting to the 580
representation. 581

       Sec. 1775.17. The rights and duties of the partners in 582
relation to the partnership shall be determined, subject to any 583
agreement between them, by the following rules: 584

       (A) Each partner shall be repaid the partner's contribution, 585
whether by way of capital or advances, to the partnership property 586
and share equally in the profits and surplus remaining after all 587
liabilities, including those to partners, are satisfied; and each 588
partner, subject to section ~~1339.65~~5815.35 of the Revised Code 589
and to division (B) of section 1775.14 of the Revised Code, must 590
contribute toward the losses, whether of capital or otherwise, 591
sustained by the partnership according to the partner's share in 592
the profits. 593

       (B) The partnership must indemnify every partner in respect 594
of payments made and personal liabilities reasonably incurred by 595
the partner in the ordinary and proper conduct of its business, or 596
for the preservation of its business or property. 597

       (C) A partner, who in aid of the partnership makes any 598
payment or advance beyond the amount of capital which the partner 599
agreed to contribute, shall be paid interest from the date of the 600
payment or advance. 601

       (D) A partner shall receive interest on the capital 602
contributed by the partner only from the date when repayment 603
should be made. 604

       (E) All partners have equal rights in the management and 605
conduct of the partnership business. 606

       (F) No partner is entitled to remuneration for acting in the 607
partnership business, except that a surviving partner is entitled 608
to reasonable compensation for the partner's services in winding 609
up the partnership affairs. 610

       (G) No person can become a member of a partnership without 611
the consent of all the partners. 612

       (H) Any difference arising as to ordinary matters connected 613
with the partnership business may be decided by a majority of the 614
partners; but no act in contravention of any agreement between the 615
partners may be done rightfully without the consent of all the 616
partners. 617

       Sec. 1775.33. Where the dissolution is caused by the act, 618
death, or bankruptcy of a partner, but subject to section ~~1339.65~~ 619
5815.35 of the Revised Code and to division (B) of section 1775.14 620
of the Revised Code, each partner is liable to the other partners 621
for the partner's share of any liability created by any partner 622
acting for the partnership as if the partnership had not been 623
dissolved unless: 624

       (A) The dissolution being by act of any partner, the partner 625
acting for the partnership had knowledge of the dissolution; 626

       (B) The dissolution being by the death or bankruptcy of a 627
partner, the partner acting for the partnership had knowledge or 628
notice of the death or bankruptcy. 629

       Sec. 1782.24. (A) Except as otherwise provided in this 630
chapter, the partnership agreement, or section ~~1339.65~~5815.35 of 631
the Revised Code, a general partner of a limited partnership shall 632
have all the rights and powers and be subject to all the 633
restrictions and liabilities of a partner in a partnership without 634
limited partners. 635

       (B) Except as otherwise provided in this chapter, a general 636
partner of a limited partnership has the liabilities of a partner 637
in a partnership without limited partners to persons other than 638
the partnership and the other partners. Except as otherwise 639
provided in this chapter or the partnership agreement, a general 640
partner of a limited partnership has the liabilities of a partner 641
in a partnership without limited partners to the partnership and 642
to the other partners. 643

       Sec. 2101.24. (A)(1) Except as otherwise provided by law, 644
the probate court has exclusive jurisdiction: 645

       (a) To take the proof of wills and to admit to record 646
authenticated copies of wills executed, proved, and allowed in the 647
courts of any other state, territory, or country. If the probate 648
judge is unavoidably absent, any judge of the court of common 649
pleas may take proof of wills and approve bonds to be given, but 650
the record of these acts shall be preserved in the usual records 651
of the probate court. 652

       (b) To grant and revoke letters testamentary and of 653
administration; 654

       (c) To direct and control the conduct and settle the accounts 655
of executors and administrators and order the distribution of 656
estates; 657

       (d) To appoint the attorney general to serve as the 658
administrator of an estate pursuant to section 2113.06 of the 659
Revised Code; 660

       (e) To appoint and remove guardians, conservators, and 661
testamentary trustees, direct and control their conduct, and 662
settle their accounts; 663

       (f) To grant marriage licenses; 664

       (g) To make inquests respecting persons who are so mentally 665
impaired as a result of a mental or physical illness or 666
disability, or mental retardation, or as a result of chronic 667
substance abuse, that they are unable to manage their property and 668
affairs effectively, subject to guardianship; 669

       (h) To qualify assignees, appoint and qualify trustees and 670
commissioners of insolvents, control their conduct, and settle 671
their accounts; 672

       (i) To authorize the sale of lands, equitable estates, or 673
interests in lands or equitable estates, and the assignments of 674
inchoate dower in such cases of sale, on petition by executors, 675
administrators, and guardians; 676

       (j) To authorize the completion of real estate contracts on 677
petition of executors and administrators; 678

       (k) To construe wills; 679

       (l) To render declaratory judgments, including, but not 680
limited to, those rendered pursuant to section 2107.084 of the 681
Revised Code; 682

       (m) To direct and control the conduct of fiduciaries and 683
settle their accounts; 684

       (n) To authorize the sale or lease of any estate created by 685
will if the estate is held in trust, on petition by the trustee; 686

       (o) To terminate a testamentary trust in any case in which a 687
court of equity may do so; 688

       (p) To hear and determine actions to contest the validity of 689
wills; 690

       (q) To make a determination of the presumption of death of 691
missing persons and to adjudicate the property rights and 692
obligations of all parties affected by the presumption; 693

       (r) To hear and determine an action commenced pursuant to 694
section 3107.41 of the Revised Code to obtain the release of 695
information pertaining to the birth name of the adopted person and 696
the identity of the adopted person's biological parents and 697
biological siblings; 698

       (s) To act for and issue orders regarding wards pursuant to 699
section 2111.50 of the Revised Code; 700

       (t) To hear and determine actions against sureties on the 701
bonds of fiduciaries appointed by the probate court; 702

       (u) To hear and determine actions involving informed consent 703
for medication of persons hospitalized pursuant to section 704
5122.141 or 5122.15 of the Revised Code; 705

       (v) To hear and determine actions relating to durable powers 706
of attorney for health care as described in division (D) of 707
section 1337.16 of the Revised Code; 708

       (w) To hear and determine actions commenced by objecting 709
individuals, in accordance with section 2133.05 of the Revised 710
Code; 711

       (x) To hear and determine complaints that pertain to the use 712
or continuation, or the withholding or withdrawal, of 713
life-sustaining treatment in connection with certain patients 714
allegedly in a terminal condition or in a permanently unconscious 715
state pursuant to division (E) of section 2133.08 of the Revised 716
Code, in accordance with that division; 717

       (y) To hear and determine applications that pertain to the 718
withholding or withdrawal of nutrition and hydration from certain 719
patients allegedly in a permanently unconscious state pursuant to 720
section 2133.09 of the Revised Code, in accordance with that 721
section; 722

       (z) To hear and determine applications of attending 723
physicians in accordance with division (B) of section 2133.15 of 724
the Revised Code; 725

       (aa) To hear and determine actions relative to the use or 726
continuation of comfort care in connection with certain principals 727
under durable powers of attorney for health care, declarants under 728
declarations, or patients in accordance with division (E) of 729
either section 1337.16 or 2133.12 of the Revised Code; 730

       (bb) To hear and determine applications for an order 731
relieving an estate from administration under section 2113.03 of 732
the Revised Code; 733

       (cc) To hear and determine applications for an order granting 734
a summary release from administration under section 2113.031 of 735
the Revised Code. 736

       (2) In addition to the exclusive jurisdiction conferred upon 737
the probate court by division (A)(1) of this section, the probate 738
court shall have exclusive jurisdiction over a particular subject 739
matter if both of the following apply: 740

       (a) Another section of the Revised Code expressly confers 741
jurisdiction over that subject matter upon the probate court. 742

       (b) No section of the Revised Code expressly confers 743
jurisdiction over that subject matter upon any other court or 744
agency. 745

       (B)(1) The probate court has concurrent jurisdiction with, 746
and the same powers at law and in equity as, the general division 747
of the court of common pleas to issue writs and orders, and to 748
hear and determine actions as follows: 749

       (a) If jurisdiction relative to a particular subject matter 750
is stated to be concurrent in a section of the Revised Code or has 751
been construed by judicial decision to be concurrent, any action 752
that involves that subject matter; 753

       (b) Any action that involves an inter vivos trust; a trust 754
created pursuant to section ~~1339.51~~5815.28 of the Revised Code; a 755
charitable trust or foundation; subject to divisions (A)(1)(u) and 756
(z) of this section, a power of attorney, including, but not 757
limited to, a durable power of attorney; the medical treatment of 758
a competent adult; or a writ of habeas corpus. 759

       (2) Any action that involves a concurrent jurisdiction 760
subject matter and that is before the probate court may be 761
transferred by the probate court, on its order, to the general 762
division of the court of common pleas. 763

       (C) The probate court has plenary power at law and in equity 764
to dispose fully of any matter that is properly before the court, 765
unless the power is expressly otherwise limited or denied by a 766
section of the Revised Code. 767

       (D) The jurisdiction acquired by a probate court over a 768
matter or proceeding is exclusive of that of any other probate 769
court, except when otherwise provided by law. 770

       Sec. 2107.33. (A) A will shall be revoked in the following 771
manners: 772

       (1) By the testator by tearing, canceling, obliterating, or 773
destroying it with the intention of revoking it; 774

       (2) By some person, at the request of the testator and in the 775
testator's presence, by tearing, canceling, obliterating, or 776
destroying it with the intention of revoking it; 777

       (3) By some person tearing, canceling, obliterating, or 778
destroying it pursuant to the testator's express written 779
direction; 780

       (4) By some other written will or codicil, executed as 781
prescribed by this chapter; 782

       (5) By some other writing that is signed, attested, and 783
subscribed in the manner provided by this chapter. 784

       (B) A will that has been declared valid and is in the 785
possession of a probate judge also may be revoked according to 786
division (C) of section 2107.084 of the Revised Code. 787

       (C) If a testator removes a will that has been declared valid 788
and is in the possession of a probate judge pursuant to section 789
2107.084 of the Revised Code from the possession of the judge, the 790
declaration of validity that was rendered no longer has any 791
effect. 792

       (D) If after executing a will, a testator is divorced, 793
obtains a dissolution of marriage, has the testator's marriage 794
annulled, or, upon actual separation from the testator's spouse, 795
enters into a separation agreement pursuant to which the parties 796
intend to fully and finally settle their prospective property 797
rights in the property of the other, whether by expected 798
inheritance or otherwise, any disposition or appointment of 799
property made by the will to the former spouse or to a trust with 800
powers created by or available to the former spouse, any provision 801
in the will conferring a general or special power of appointment 802
on the former spouse, and any nomination in the will of the former 803
spouse as executor, trustee, or guardian shall be revoked unless 804
the will expressly provides otherwise. 805

       (E) Property prevented from passing to a former spouse or to 806
a trust with powers created by or available to the former spouse 807
because of revocation by this section shall pass as if the former 808
spouse failed to survive the decedent, and other provisions 809
conferring some power or office on the former spouse shall be 810
interpreted as if the spouse failed to survive the decedent. If 811
provisions are revoked solely by this section, they shall be 812
deemed to be revived by the testator's remarriage with the former 813
spouse or upon the termination of a separation agreement executed 814
by them. 815

       (F) A bond, agreement, or covenant made by a testator, for a 816
valuable consideration, to convey property previously devised or 817
bequeathed in a will does not revoke the devise or bequest. The 818
property passes by the devise or bequest, subject to the remedies 819
on the bond, agreement, or covenant, for a specific performance or 820
otherwise, against the devisees or legatees, that might be had by 821
law against the heirs of the testator, or the testator's next of 822
kin, if the property had descended to them. 823

       (G) A testator's revocation of a will shall be valid only if 824
the testator, at the time of the revocation, has the same capacity 825
as the law requires for the execution of a will. 826

       (H) As used in this section: 827

       (1) "Trust with powers created by or available to the former 828
spouse" means a trust that is revocable by the former spouse, with 829
respect to which the former spouse has a power of withdrawal, or 830
with respect to which the former spouse may take a distribution 831
that is not subject to an ascertainable standard but does not mean 832
a trust in which those powers of the former spouse are revoked by 833
section ~~1339.62~~5815.31 of the Revised Code or similar provisions 834
in the law of another state. 835

       (2) "Ascertainable standard" means a standard that is related 836
to a trust beneficiary's health, maintenance, support, or 837
education. 838

       Sec. 2109.24. The probate court at any time may accept the 839
resignation of any fiduciary upon the fiduciary's proper 840
accounting, if the fiduciary was appointed by, is under the 841
control of, or is accountable to the court. 842

       If a fiduciary fails to make and file an inventory as 843
required by sections 2109.58, 2111.14, and 2115.02 of the Revised 844
Code or to render a just and true account of the fiduciary's 845
administration at the times required by section 2109.301, 846
2109.302, or 2109.303 of the Revised Code, and if the failure 847
continues for thirty days after the fiduciary has been notified by 848
the court of the expiration of the relevant time, the fiduciary 849
forthwith may be removed by the court and shall receive no 850
allowance for the fiduciary's services unless the court enters 851
upon its journal its findings that the delay was necessary and 852
reasonable. 853

       The court may remove any ~~such~~ fiduciary, after giving the 854
fiduciary not less than ten days' notice, for habitual 855
drunkenness, neglect of duty, incompetency, or fraudulent conduct, 856
because the interest of the property, testamentary trust, or 857
estate that the fiduciary is responsible for administering demands 858
it, or for any other cause authorized by law. 859

       The court may remove a testamentary trustee upon the written 860
application of more than one-half of the persons having an 861
interest in the estate controlled by the testamentary trustee, but 862
the testamentary trustee is not to be considered as a person 863
having an interest in the estate under the proceedings; except 864
that no testamentary trustee appointed under a will shall be 865
removed upon such written application unless for a good cause. 866

       Sec. 2109.37. (A) Except as otherwise provided by law, 867
including division (D) of this section, or by the instrument 868
creating the trust, a fiduciary having funds belonging to a trust 869
which are to be invested may invest them in the following: 870

       (1) Bonds or other obligations of the United States or of 871
this state; 872

       (2) Bonds or other interest-bearing obligations of any 873
county, municipal corporation, school district, or other legally 874
constituted political taxing subdivision within the state, 875
provided that such county, municipal corporation, school district, 876
or other subdivision has not defaulted in the payment of the 877
interest on any of its bonds or interest-bearing obligations, for 878
more than one hundred twenty days during the ten years immediately 879
preceding the investment by the fiduciary in the bonds or other 880
obligations, and provided that such county, municipal corporation, 881
school district, or other subdivision, is not, at the time of the 882
investment, in default in the payment of principal or interest on 883
any of its bonds or other interest-bearing obligations; 884

       (3) Bonds or other interest-bearing obligations of any other 885
state of the United States which, within twenty years prior to the 886
making of such investment, has not defaulted for more than ninety 887
days in the payment of principal or interest on any of its bonds 888
or other interest-bearing obligations; 889

       (4) Any bonds issued by or for federal land banks and any 890
debentures issued by or for federal intermediate credit banks 891
under the "Federal Farm Loan Act of 1916," 39 Stat. 360, 12 892
U.S.C.A. 641, as amended; or any debentures issued by or for banks 893
for cooperatives under the "Farm Credit Act of 1933," 48 Stat. 894
257, 12 U.S.C.A. 131, as amended; 895

       (5) Notes which are: (a) secured by a first mortgage on real 896
estate held in fee and located in the state, improved by a unit 897
designed principally for residential use for not more than four 898
families or by a combination of such dwelling unit and business 899
property, the area designed or used for nonresidential purposes 900
not to exceed fifty per cent of the total floor area; (b) secured 901
by a first mortgage on real estate held in fee and located in the 902
state, improved with a building designed for residential use for 903
more than four families or with a building used primarily for 904
business purposes, if the unpaid principal of the notes secured by 905
such mortgage does not exceed ten per cent of the value of the 906
estate or trust or does not exceed five thousand dollars, 907
whichever is greater; or (c) secured by a first mortgage on an 908
improved farm held in fee and located in the state, provided that 909
such mortgage requires that the buildings on the mortgaged 910
property shall be well insured against loss by fire, and so kept, 911
for the benefit of the mortgagee, until the debt is paid, and 912
provided that the unpaid principal of the notes secured by the 913
mortgage shall not exceed fifty per cent of the fair value of the 914
mortgaged real estate at the time the investment is made, and the 915
notes shall be payable not more than five years after the date on 916
which the investment in them is made; except that the unpaid 917
principal of the notes may equal sixty per cent of the fair value 918
of the mortgaged real estate at the time the investment is made, 919
and may be payable over a period of fifteen years following the 920
date of the investment by the fiduciary if regular installment 921
payments are required sufficient to amortize four per cent or more 922
of the principal of the outstanding notes per annum and if the 923
unpaid principal and interest become due and payable at the option 924
of the holder upon any default in the payment of any installment 925
of interest or principal upon the notes, or of taxes, assessments, 926
or insurance premiums upon the mortgaged premises or upon the 927
failure to cure any such default within any grace period provided 928
therein not exceeding ninety days in duration; 929

       (6) Life, endowment, or annuity contracts of legal reserve 930
life insurance companies regulated by sections 3907.01 to 3907.21, 931
3909.01 to 3909.17, 3911.01 to 3911.24, 3913.01 to 3913.10, 932
3915.01 to 3915.15, and 3917.01 to 3917.05 of the Revised Code, 933
and licensed by the superintendent of insurance to transact 934
business within the state, provided that the purchase of contracts 935
authorized by this division shall be limited to executors or the 936
successors to their powers when specifically authorized by will 937
and to guardians and trustees, which contracts may be issued on 938
the life of a ward, a beneficiary of a trust fund, or according to 939
a will, or upon the life of a person in whom such ward or 940
beneficiary has an insurable interest and the contracts shall be 941
drawn by the insuring company so that the proceeds shall be the 942
sole property of the person whose funds are so invested; 943

       (7) Notes or bonds secured by mortgages and insured by the 944
federal housing administrator or debentures issued by such 945
administrator; 946

       (8) Obligations issued by a federal home loan bank created 947
under the "Federal Home Loan Bank Act of 1932," 47 Stat. 725, 12 948
U.S.C.A. 1421, as amended; 949

       (9) Shares and certificates or other evidences of deposits 950
issued by a federal savings and loan association organized and 951
incorporated under the "Home Owners' Loan Act of 1933," 48 Stat. 952
128, 12 U.S.C.A. 1461, as amended, to the extent and only to the 953
extent that those shares or certificates or other evidences of 954
deposits are insured pursuant to the "Financial Institutions 955
Reform, Recovery, and Enforcement Act of 1989," 103 Stat. 183, 12 956
U.S.C.A. 1811, as amended; 957

       (10) Bonds issued by the home owners' loan corporation 958
created under the "Home Owners' Act of 1933," 48 Stat. 128, 12 959
U.S.C.A. 1461, as amended; 960

       (11) Obligations issued by the national mortgage association 961
created under the "National Housing Act," 48 Stat. 1246 (1934), 12 962
U.S.C.A. 1701, as amended; 963

       (12) Shares and certificates or other evidences of deposits 964
issued by a domestic savings and loan association organized under 965
the laws of the state, which association has obtained insurance of 966
accounts pursuant to the "Financial Institutions Reform, Recovery, 967
and Enforcement Act of 1989," 103 Stat. 183, 12 U.S.C.A. 1811, as 968
amended, or as may be otherwise provided by law, only to the 969
extent that such evidences of deposits are insured under that act, 970
as amended; 971

       (13) Shares and certificates or other evidences of deposits 972
issued by a domestic savings and loan association organized under 973
the laws of the state, provided that no fiduciary may invest such 974
deposits except with the approval of the probate court, and then 975
in an amount not to exceed the amount which the fiduciary is 976
permitted to invest under division (A)(12) of this section; 977

       (14) In savings accounts in, or certificates or other 978
evidences of deposits issued by, a national bank located in the 979
state or a state bank located in and organized under the laws of 980
the state by depositing the funds in the bank, and such national 981
or state bank when itself acting in a fiduciary capacity may 982
deposit the funds in savings accounts in, or certificates or other 983
evidences of deposits issued by, its own savings department or any 984
bank subsidiary corporation owned or controlled by the bank 985
holding company that owns or controls such national or state bank; 986
provided that no deposit shall be made by any fiduciary, 987
individual, or corporate, unless the deposits of the depository 988
bank are insured by the federal deposit insurance corporation 989
created under the "Federal Deposit Insurance Corporation Act of 990
1933," 48 Stat. 162, 12 U.S.C. 264, as amended, and provided that 991
the deposit of the funds of any one trust in any such savings 992
accounts in, or certificates or other evidences of deposits issued 993
by, any one bank shall not exceed the sum insured under that act, 994
as amended; 995

       (15) Obligations consisting of notes, bonds, debentures, or 996
equipment trust certificates issued under an indenture, which are 997
the direct obligations, or in the case of equipment trust 998
certificates are secured by direct obligations, of a railroad or 999
industrial corporation, or a corporation engaged directly and 1000
primarily in the production, transportation, distribution, or sale 1001
of electricity or gas, or the operation of telephone or telegraph 1002
systems or waterworks, or in some combination of them; provided 1003
that the obligor corporation is one which is incorporated under 1004
the laws of the United States, any state, or the District of 1005
Columbia, and the obligations are rated at the time of purchase in 1006
the highest or next highest classification established by at least 1007
two standard rating services selected from a list of the standard 1008
rating services which shall be prescribed by the superintendent of 1009
financial institutions; provided that every such list shall be 1010
certified by the superintendent to the clerk of each probate court 1011
in the state, and shall continue in effect until a different list 1012
is prescribed and certified as provided in this division; 1013

       (16) Obligations issued, assumed, or guaranteed by the 1014
international finance corporation or by the international bank for 1015
reconstruction and development, the Asian development bank, the 1016
inter-American development bank, the African development bank, or 1017
other similar development bank in which the president, as 1018
authorized by congress and on behalf of the United States, has 1019
accepted membership, provided that the obligations are rated at 1020
the time of purchase in the highest or next highest classification 1021
established by at least one standard rating service selected from 1022
a list of standard rating services which shall be prescribed by 1023
the superintendent of financial institutions; 1024

       (17) Securities of any investment company, as defined in and 1025
registered under sections 3 and 8 of the "Investment Company Act 1026
of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-3 and 80a-8, that are 1027
invested exclusively in forms of investment or in instruments that 1028
are fully collateralized by forms of investment in which the 1029
fiduciary is permitted to invest pursuant to divisions (A)(1) to 1030
(16) of this section, provided that, in addition to such forms of 1031
investment, the investment company may, for the purpose of 1032
reducing risk of loss or of stabilizing investment returns, engage 1033
in hedging transactions. 1034

       (B) No administrator or executor may invest funds belonging 1035
to an estate in any asset other than a direct obligation of the 1036
United States that has a maturity date not exceeding one year from 1037
the date of investment, or other than in a short-term investment 1038
fund that is invested exclusively in obligations of the United 1039
States or of its agencies, or primarily in such obligations and 1040
otherwise only in variable demand notes, corporate money market 1041
instruments including, but not limited to, commercial paper, or 1042
fully collateralized repurchase agreements or other evidences of 1043
indebtedness that are payable on demand or generally have a 1044
maturity date not exceeding ninety-one days from the date of 1045
investment, except with the approval of the probate court or with 1046
the permission of the instruments creating the trust. 1047

       (C)(1) In addition to the investments allowed by this 1048
section, a guardian or trustee, with the approval of the court, 1049
may invest funds belonging to the trust in productive real estate 1050
located within the state, provided that neither the guardian nor 1051
the trustee nor any member of the family of either has any 1052
interest in such real estate or in the proceeds of the purchase 1053
price. The title to any real estate so purchased by a guardian 1054
must be taken in the name of the ward. 1055

       (2) Notwithstanding the provisions of division (C)(1) of this 1056
section, the court may permit the funds to be used to purchase or 1057
acquire a home for the ward or an interest in a home for the ward 1058
in which a member of the ward's family may have an interest. 1059

       (D) If the fiduciary is a trustee appointed by and 1060
accountable to the probate court, the fiduciary shall invest the 1061
trust's assets pursuant to the requirements and standards set 1062
forth in ~~sections 1339.52 to 1339.61 of~~ the ~~Revised Code~~Ohio 1063
Uniform Prudent Investor Act. 1064

       Sec. 2109.62. (A)(1) Upon the filing of a motion by a 1065
trustee with the court that has jurisdiction over the trust, upon 1066
the provision of reasonable notice to all beneficiaries who are 1067
known and in being and who have vested or contingent interests in 1068
the trust, and after holding a hearing, the court may terminate 1069
the trust, in whole or in part, if it determines that all of the 1070
following apply: 1071

       (a) It is no longer economically feasible to continue the 1072
trust. 1073

       (b) The termination of the trust is for the benefit of the 1074
beneficiaries. 1075

       (c) The termination of the trust is equitable and practical. 1076

       (d) The current value of the trust is less than one hundred 1077
thousand dollars. 1078

       (2) The existence of a spendthrift or similar provision in a 1079
trust instrument or will does not preclude the termination of a 1080
trust pursuant to this section. 1081

       (B) If property is to be distributed from an estate being 1082
probated to a trust and the termination of the trust pursuant to 1083
this section does not clearly defeat the intent of the testator, 1084
the probate court has jurisdiction to order the outright 1085
distribution of the property or to make the property custodial 1086
property under sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the 1087
Revised Code. A probate court may so order whether the application 1088
for the order is made by an inter vivos trustee named in the will 1089
of the decedent or by a testamentary trustee. 1090

       (C) Upon the termination of a trust pursuant to this section, 1091
the probate court shall order the distribution of the trust estate 1092
in accordance with any provision specified in the trust instrument 1093
for the premature termination of the trust. If there is no 1094
provision of that nature in the trust instrument, the probate 1095
court shall order the distribution of the trust estate among the 1096
beneficiaries of the trust in accordance with their respective 1097
beneficial interests and in a manner that the court determines to 1098
be equitable. For purposes of ordering the distribution of the 1099
trust estate among the beneficiaries of the trust under this 1100
division, the court shall consider all of the following: 1101

       (1) The existence of any agreement among the beneficiaries 1102
with respect to their beneficial interests; 1103

       (2) The actuarial values of the separate beneficial interests 1104
of the beneficiaries; 1105

       (3) Any expression of preference of the beneficiaries that is 1106
contained in the trust instrument. 1107

       ~~(D) Unless otherwise represented or bound, a minor, an~~ 1108
~~incapacitated or unborn person, or a person whose identity or~~ 1109
~~location is unknown and is not reasonably ascertainable may be~~ 1110
~~represented by or bound by another person who has a substantially~~ 1111
~~identical interest in the trust as that minor, incapacitated or~~ 1112
~~unborn person, or person whose identity or location is unknown and~~ 1113
~~is not reasonably ascertainable, but only to the extent that there~~ 1114
~~is no conflict of interest between the person who is represented~~ 1115
~~or bound and the person who represents or binds that person. As~~ 1116
~~used in this division, "minor" means a person who is under~~ 1117
~~eighteen years of age.~~ 1118

       Sec. 2109.68. Allocation of receipts and expenditures 1119
between principal and income by an executor, administrator, or 1120
testamentary trustee shall be as prescribed in sections ~~1340.40~~ 1121
5812.01 to ~~1340.91~~5812.52 of the Revised Code. 1122

       Sec. 2109.69. (A) Subject to division (B) of this section, 1123
the provisions of Chapters 5801. to 5811. of the Revised Code 1124
apply to testamentary trusts except to the extent that any 1125
provision of those chapters conflicts with any provision of 1126
Chapter 2109. of the Revised Code, or with any other provision of 1127
the Revised Code, that applies specifically to testamentary trusts 1128
and except to the extent that any provision of Chapters 5801. to 1129
5811. of the Revised Code is clearly inapplicable to testamentary 1130
trusts. 1131

       (B) Section 5808.13 of the Revised Code applies to 1132
testamentary trusts whether or not that section conflicts with any 1133
provision of Chapter 2109. of the Revised Code or any other 1134
provision of the Revised Code that applies specifically to 1135
testamentary trusts. 1136

       Sec. 2111.131. (A) The probate court may enter an order that 1137
authorizes a person under a duty to pay or deliver money or 1138
personal property to a minor who does not have a guardian of the 1139
person and estate or a guardian of the estate, to perform that 1140
duty in amounts not exceeding five thousand dollars annually, by 1141
paying or delivering the money or property to any of the 1142
following: 1143

       (1) The guardian of the person only of the minor; 1144

       (2) The minor's natural guardians, if any, as determined 1145
pursuant to section 2111.08 of the Revised Code; 1146

       (3) The ~~minor himself~~minor's own self; 1147

       (4) Any person who has the care and custody of the minor and 1148
with whom the minor resides, other than a guardian of the person 1149
only or a natural guardian; 1150

       (5) A financial institution incident to a deposit in a 1151
federally insured savings account in the sole name of the minor; 1152

       (6) A custodian designated by the court in its order, for the 1153
minor under sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the 1154
Revised Code. 1155

       (B) An order entered pursuant to division (A) of this section 1156
authorizes the person or entity specified in it, to receive the 1157
money or personal property on behalf of the minor from the person 1158
under the duty to pay or deliver it, in amounts not exceeding five 1159
thousand dollars annually. Money or personal property so received 1160
by guardians of the person only, natural guardians, and custodians 1161
as described in division (A)(4) of this section may be used by 1162
them only for the support, maintenance, or education of the minor 1163
involved. The order of the court is prima-facie evidence that a 1164
guardian of the person only, a natural guardian, or a custodian as 1165
described in division (A)(4) of this section has the authority to 1166
use the money or personal property received. 1167

       (C) A person who pays or delivers moneys or personal property 1168
in accordance with a court order entered pursuant to division (A) 1169
of this section is not responsible for the proper application of 1170
the moneys or property by the recipient. 1171

       Sec. 2113.861. Except as provided in section ~~1339.45~~5815.27 1172
of the Revised Code, the generation-skipping transfer tax imposed 1173
by Chapter 13 of subtitle B of the Internal Revenue Code of 1986, 1174
100 Stat. 2718, 26 U.S.C. 2601-2624, as amended, and the 1175
generation-skipping tax levied by division (B) of section 5731.181 1176
of the Revised Code shall be apportioned in the manner described 1177
in section 2113.86 of the Revised Code. 1178

       Sec. 2305.22. Sections 2305.03 to 2305.21, 1302.98, and 1179
1304.35 of the Revised Code, respecting lapse of time as a bar to 1180
suit, do not apply in the case of ~~a continuing and subsisting~~ 1181
~~trust, nor to~~ an action by a vendee of real property, in 1182
possession thereof, to obtain a conveyance of itthe real 1183
property. 1184

       Sec. 5111.15. If a recipient of medical assistance is the 1185
beneficiary of a trust created pursuant to section ~~1339.51~~5815.28 1186
of the Revised Code, then, notwithstanding any contrary provision 1187
of this chapter or of a rule adopted pursuant to this chapter, 1188
divisions (C) and (D) of that section shall apply in determining 1189
the assets or resources of the recipient, the recipient's estate, 1190
the settlor, or the settlor's estate and to claims arising under 1191
this chapter against the recipient, the recipient's estate, the 1192
settlor, or the settlor's estate. 1193

       Sec. 5111.151. (A) This section applies to eligibility 1194
determinations for all cases involving medical assistance provided 1195
pursuant to this chapter, qualified medicare beneficiaries, 1196
specified low-income medicare beneficiaries, qualifying 1197
individuals-1, qualifying individuals-2, and medical assistance 1198
for covered families and children. 1199

        (B) As used in this section: 1200

        (1) "Trust" means any arrangement in which a grantor 1201
transfers real or personal property to a trust with the intention 1202
that it be held, managed, or administered by at least one trustee 1203
for the benefit of the grantor or beneficiaries. "Trust" includes 1204
any legal instrument or device similar to a trust. 1205

        (2) "Legal instrument or device similar to a trust" includes, 1206
but is not limited to, escrow accounts, investment accounts, 1207
partnerships, contracts, and other similar arrangements that are 1208
not called trusts under state law but are similar to a trust and 1209
to which all of the following apply: 1210

        (a) The property in the trust is held, managed, retained, or 1211
administered by a trustee. 1212

        (b) The trustee has an equitable, legal, or fiduciary duty to 1213
hold, manage, retain, or administer the property for the benefit 1214
of the beneficiary. 1215

        (c) The trustee holds identifiable property for the 1216
beneficiary. 1217

        (3) "Grantor" is a person who creates a trust, including all 1218
of the following: 1219

        (a) An individual; 1220

        (b) An individual's spouse; 1221

        (c) A person, including a court or administrative body, with 1222
legal authority to act in place of or on behalf of an individual 1223
or an individual's spouse; 1224

        (d) A person, including a court or administrative body, that 1225
acts at the direction or on request of an individual or the 1226
individual's spouse. 1227

        (4) "Beneficiary" is a person or persons, including a 1228
grantor, who benefits in some way from a trust. 1229

        (5) "Trustee" is a person who manages a trust's principal and 1230
income for the benefit of the beneficiaries. 1231

        (6) "Person" has the same meaning as in section 1.59 of the 1232
Revised Code and includes an individual, corporation, business 1233
trust, estate, trust, partnership, and association. 1234

        (7) "Applicant" is an individual who applies for medical 1235
assistance benefits or the individual's spouse. 1236

        (8) "Recipient" is an individual who receives medical 1237
assistance benefits or the individual's spouse. 1238

        (9) "Revocable trust" is a trust that can be revoked by the 1239
grantor or the beneficiary, including all of the following, even 1240
if the terms of the trust state that it is irrevocable: 1241

        (a) A trust that provides that the trust can be terminated 1242
only by a court; 1243

        (b) A trust that terminates on the happening of an event, but 1244
only if the event occurs at the direction or control of the 1245
grantor, beneficiary, or trustee. 1246

        (10) "Irrevocable trust" is a trust that cannot be revoked by 1247
the grantor or terminated by a court and that terminates only on 1248
the occurrence of an event outside of the control or direction of 1249
the beneficiary or grantor. 1250

        (11) "Payment" is any disbursal from the principal or income 1251
of the trust, including actual cash, noncash or property 1252
disbursements, or the right to use and occupy real property. 1253

        (12) "Payments to or for the benefit of the applicant or 1254
recipient" is a payment to any person resulting in a direct or 1255
indirect benefit to the applicant or recipient. 1256

        (13) "Testamentary trust" is a trust that is established by a 1257
will and does not take effect until after the death of the person 1258
who created the trust. 1259

        (C) If an applicant or recipient is a beneficiary of a trust, 1260
the county department of job and family services shall determine 1261
what type of trust it is and shall treat the trust in accordance 1262
with the appropriate provisions of this section and rules adopted 1263
by the department of job and family services governing trusts. The 1264
county department of job and family services may determine that 1265
the trust or portion of the trust is one of the following: 1266

        (1) A countable resource; 1267

        (2) Countable income; 1268

        (3) A countable resource and countable income; 1269

        (4) Not a countable resource or countable income. 1270

        (D)(1) A trust or legal instrument or device similar to a 1271
trust shall be considered a medicaid qualifying trust if all of 1272
the following apply: 1273

       (a) The trust was established on or prior to August 10, 1993. 1274

       (b) The trust was not established by a will. 1275

       (c) The trust was established by an applicant or recipient. 1276

       (d) The applicant or recipient is or may become the 1277
beneficiary of all or part of the trust. 1278

       (e) Payment from the trust is determined by one or more 1279
trustees who are permitted to exercise any discretion with respect 1280
to the distribution to the applicant or recipient. 1281

       (2) If a trust meets the requirement of division (D)(1) of 1282
this section, the amount of the trust that is considered by the 1283
county department of job and family services as an available 1284
resource to the applicant or recipient shall be the maximum amount 1285
of payments permitted under the terms of the trust to be 1286
distributed to the applicant or recipient, assuming the full 1287
exercise of discretion by the trustee or trustees. The maximum 1288
amount shall include only amounts that are permitted to be 1289
distributed but are not distributed from either the income or 1290
principal of the trust. 1291

       (3) Amounts that are actually distributed from a ~~Medicaid~~ 1292
medicaid qualifying trust to a beneficiary for any purpose shall 1293
be treated in accordance with rules adopted by the department of 1294
job and family services governing income. 1295

       (4) Availability of a medicaid qualifying trust shall be 1296
considered without regard to any of the following: 1297

       (a) Whether or not the trust is irrevocable or was 1298
established for purposes other than to enable a grantor to qualify 1299
for medicaid, medical assistance for covered families and 1300
children, or as a qualified medicare beneficiary, specified 1301
low-income medicare beneficiary, qualifying individual-1, or 1302
qualifying individual-2; 1303

       (b) Whether or not the trustee actually exercises discretion. 1304

       (5) If any real or personal property is transferred to a 1305
medicaid qualifying trust that is not distributable to the 1306
applicant or recipient, the transfer shall be considered an 1307
improper transfer of resources and shall be subject to rules 1308
adopted by the department of job and family services governing 1309
improper transfers of resources. 1310

       (6) The baseline date for the look-back period for transfers 1311
of assets involving a medicaid qualifying trust shall be the date 1312
on which the applicant or recipient is both institutionalized and 1313
first applies for medical assistance. The following conditions 1314
also apply to look-back periods for transfers of assets involving 1315
medicaid qualifying trusts: 1316

       (a) If a medicaid qualifying trust is a revocable trust and a 1317
portion of the trust is distributed to someone other than the 1318
applicant or recipient for the benefit of someone other than the 1319
applicant or recipient, the distribution shall be considered an 1320
improper transfer of resources. The look-back period shall be 1321
sixty months from the baseline date. The transfer shall be 1322
considered to have taken place on the date on which the payment to 1323
someone other than the applicant or recipient was made. 1324

       (b) If a medicaid qualifying trust is an irrevocable trust 1325
and a portion of the trust is not distributable to the applicant 1326
or recipient, the trust shall be treated as an improper transfer 1327
of resources. The look-back period shall be sixty months from the 1328
baseline date. The transfer is considered to have been made as of 1329
the later of the date the trust was established or the date on 1330
which payment to the applicant or recipient was foreclosed. The 1331
value of the assets shall not be reduced by any payments from the 1332
trust that may be made from these unavailable assets at a later 1333
date. 1334

       (c) If a medicaid qualifying trust is an irrevocable trust 1335
and a portion or all of the trust may be disbursed to or for the 1336
benefit of the applicant or recipient, any payment that is made to 1337
another person other than the applicant or recipient shall be 1338
considered an improper transfer of resources. The look-back period 1339
shall be thirty-six months from the baseline date. The transfer 1340
shall be considered to have been made as of the date of payment to 1341
the other person. 1342

       (E)(1) A trust or legal instrument or device similar to a 1343
trust shall be considered a self-settled trust if all of the 1344
following apply: 1345

        (a) The trust was established on or after August 11, 1993. 1346

        (b) The trust was not established by a will. 1347

        (c) The trust was established by an applicant or recipient, 1348
spouse of an applicant or recipient, or a person, including a 1349
court or administrative body, with legal authority to act in place 1350
of or on behalf of an applicant, recipient, or spouse, or acting 1351
at the direction or on request of an applicant, recipient, or 1352
spouse. 1353

        (2) A trust that meets the requirements of division (E)(1) of 1354
this section and is a revocable trust shall be treated by the 1355
county department of job and family services as follows: 1356

        (a) The corpus of the trust shall be considered a resource 1357
available to the applicant or recipient. 1358

        (b) Payments from the trust to or for the benefit of the 1359
applicant or recipient shall be considered unearned income of the 1360
applicant or recipient. 1361

        (c) Any other payments from the trust shall be considered an 1362
improper transfer of resources and shall be subject to rules 1363
adopted by the department of job and family services governing 1364
improper transfers of resources. 1365

        (3) A trust that meets the requirements of division (E)(1) of 1366
this section and is an irrevocable trust shall be treated by the 1367
county department of job and family services as follows: 1368

        (a) If there are any circumstances under which payment from 1369
the trust could be made to or for the benefit of the applicant or 1370
recipient, including a payment that can be made only in the 1371
future, the portion from which payments could be made shall be 1372
considered a resource available to the applicant or recipient. The 1373
county department of job and family services shall not take into 1374
account when payments can be made. 1375

        (b) Any payment that is actually made to or for the benefit 1376
of the applicant or recipient from either the corpus or income 1377
shall be considered unearned income. 1378

        (c) If a payment is made to someone other than to the 1379
applicant or recipient and the payment is not for the benefit of 1380
the applicant or recipient, the payment shall be considered an 1381
improper transfer of resources and shall be subject to rules 1382
adopted by the department of job and family services governing 1383
improper transfers of resources. 1384

        (d) The date of the transfer shall be the later of the date 1385
of establishment of the trust or the date of the occurrence of the 1386
event. 1387

        (e) When determining the value of the transferred resource 1388
under this provision, the value of the trust shall be its value on 1389
the date payment to the applicant or recipient was foreclosed. 1390

        (f) Any income earned or other resources added subsequent to 1391
the foreclosure date shall be added to the total value of the 1392
trust. 1393

        (g) Any payments to or for the benefit of the applicant or 1394
recipient after the foreclosure date but prior to the application 1395
date shall be subtracted from the total value. Any other payments 1396
shall not be subtracted from the value. 1397

        (h) Any addition of resources after the foreclosure date 1398
shall be considered a separate transfer. 1399

        (4) If a trust is funded with assets of another person or 1400
persons in addition to assets of the applicant or recipient, the 1401
applicable provisions of this section and rules adopted by the 1402
department of job and family services governing trusts shall apply 1403
only to the portion of the trust attributable to the applicant or 1404
recipient. 1405

        (5) The availability of a self-settled trust shall be 1406
considered without regard to any of the following: 1407

        (a) The purpose for which the trust is established; 1408

        (b) Whether the trustees have exercised or may exercise 1409
discretion under the trust; 1410

        (c) Any restrictions on when or whether distributions may be 1411
made from the trust; 1412

        (d) Any restrictions on the use of distributions from the 1413
trust. 1414

        (6) The baseline date for the look-back period for transfers 1415
of assets involving a self-settled trust shall be the date on 1416
which the applicant or recipient is both institutionalized and 1417
first applies for medical assistance. The following conditions 1418
also apply to look-back periods for transfers of assets involving 1419
self-settled trusts: 1420

        (a) If a self-settled trust is a revocable trust and a 1421
portion of the trust is distributed to someone other than the 1422
applicant or recipient for the benefit of someone other than the 1423
applicant or recipient, the distribution shall be considered an 1424
improper transfer of resources. The look-back period shall be 1425
sixty months from the baseline date. The transfer shall be 1426
considered to have taken place on the date on which the payment to 1427
someone other than the applicant or recipient was made. 1428

        (b) If a self-settled trust is an irrevocable trust and a 1429
portion of the trust is not distributable to the applicant or 1430
recipient, the trust shall be treated as an improper transfer of 1431
resources. The look-back period shall be sixty months from the 1432
baseline date. The transfer is considered to have been made as of 1433
the later of the date the trust was established or the date on 1434
which payment to the applicant or recipient was foreclosed. The 1435
value of these assets shall not be reduced by any payments from 1436
the trust that may be made from these unavailable assets at a 1437
later date. 1438

        (c) If a self-settled trust is an irrevocable trust and a 1439
portion or all of the trust may be disbursed to or for the benefit 1440
of the applicant or recipient, any payment that is made to another 1441
person other than the applicant or recipient shall be considered 1442
an improper transfer of resources. The look-back period shall be 1443
thirty-six months from the baseline date. The transfer shall be 1444
considered to have been made as of the date of payment to the 1445
other person. 1446

        (F) The principal or income from any of the following shall 1447
be exempt from being counted as a resource by a county department 1448
of job and family services: 1449

        (1)(a) A special needs trust that meets all of the following 1450
requirements: 1451

        (i) The trust contains assets of an applicant or recipient 1452
under sixty-five years of age and may contain the assets of other 1453
individuals. 1454

        (ii) The applicant or recipient is disabled as defined in 1455
rules adopted by the department of job and family services. 1456

        (iii) The trust is established for the benefit of the 1457
applicant or recipient by a parent, grandparent, legal guardian, 1458
or a court. 1459

        (iv) The trust requires that on the death of the applicant or 1460
recipient the state will receive all amounts remaining in the 1461
trust up to an amount equal to the total amount of medical 1462
assistance paid on behalf of the applicant or recipient. 1463

        (b) If a special needs trust meets the requirements of 1464
division (F)(1)(a) of this section and has been established for a 1465
disabled applicant or recipient under sixty-five years of age, the 1466
exemption for the trust granted pursuant to division (F) of this 1467
section shall continue after the disabled applicant or recipient 1468
becomes sixty-five years of age if the applicant or recipient 1469
continues to be disabled as defined in rules adopted by the 1470
department of job and family services. Except for income earned by 1471
the trust, the grantor shall not add to or otherwise augment the 1472
trust after the applicant or recipient attains sixty-five years of 1473
age. An addition or augmentation of the trust by the applicant or 1474
recipient with the applicant's own assets after the applicant or 1475
recipient attains sixty-five years of age shall be treated as an 1476
improper transfer of resources. 1477

        (c) Cash distributions to the applicant or recipient shall be 1478
counted as unearned income. All other distributions from the trust 1479
shall be treated as provided in rules adopted by the department of 1480
job and family services governing in-kind income. 1481

        (d) Transfers of assets to a special needs trust shall not be 1482
treated as an improper transfer of resources. Assets held prior to 1483
the transfer to the trust shall be considered as countable assets 1484
or countable income or countable assets and income. 1485

        (2)(a) A qualifying income trust that meets all of the 1486
following requirements: 1487

        (i) The trust is composed only of pension, social security, 1488
and other income to the applicant or recipient, including 1489
accumulated interest in the trust. 1490

        (ii) The income is received by the individual and the right 1491
to receive the income is not assigned or transferred to the trust. 1492

        (iii) The trust requires that on the death of the applicant 1493
or recipient the state will receive all amounts remaining in the 1494
trust up to an amount equal to the total amount of medical 1495
assistance paid on behalf of the applicant or recipient. 1496

        (b) No resources shall be used to establish or augment the 1497
trust. 1498

        (c) If an applicant or recipient has irrevocably transferred 1499
or assigned the applicant's or recipient's right to receive income 1500
to the trust, the trust shall not be considered a qualifying 1501
income trust by the county department of job and family services. 1502

        (d) Income placed in a qualifying income trust shall not be 1503
counted in determining an applicant's or recipient's eligibility 1504
for medical assistance. The recipient of the funds may place any 1505
income directly into a qualifying income trust without those funds 1506
adversely affecting the applicant's or recipient's eligibility for 1507
medical assistance. Income generated by the trust that remains in 1508
the trust shall not be considered as income to the applicant or 1509
recipient. 1510

        (e) All income placed in a qualifying income trust shall be 1511
combined with any countable income not placed in the trust to 1512
arrive at a base income figure to be used for spend down 1513
calculations. 1514

        (f) The base income figure shall be used for post-eligibility 1515
deductions, including personal needs allowance, monthly income 1516
allowance, family allowance, and medical expenses not subject to 1517
third party payment. Any income remaining shall be used toward 1518
payment of patient liability. Payments made from a qualifying 1519
income trust shall not be combined with the base income figure for 1520
post-eligibility calculations. 1521

        (g) The base income figure shall be used when determining the 1522
spend down budget for the applicant or recipient. Any income 1523
remaining after allowable deductions are permitted as provided 1524
under rules adopted by the department of job and family services 1525
shall be considered the applicant's or recipient's spend down 1526
liability. 1527

        (3)(a) A pooled trust that meets all of the following 1528
requirements: 1529

        (i) The trust contains the assets of the applicant or 1530
recipient of any age who is disabled as defined in rules adopted 1531
by the department of job and family services. 1532

        (ii) The trust is established and managed by a nonprofit 1533
association. 1534

        (iii) A separate account is maintained for each beneficiary 1535
of the trust but, for purposes of investment and management of 1536
funds, the trust pools the funds in these accounts. 1537

        (iv) Accounts in the trust are established by the applicant 1538
or recipient, the applicant's or recipient's parent, grandparent, 1539
or legal guardian, or a court solely for the benefit of 1540
individuals who are disabled. 1541

        (v) The trust requires that, to the extent that any amounts 1542
remaining in the beneficiary's account on the death of the 1543
beneficiary are not retained by the trust, the trust pay to the 1544
state the amounts remaining in the trust up to an amount equal to 1545
the total amount of medical assistance paid on behalf of the 1546
beneficiary. 1547

        (b) Cash distributions to the applicant or recipient shall be 1548
counted as unearned income. All other distributions from the trust 1549
shall be treated as provided in rules adopted by the department of 1550
job and family services governing in-kind income. 1551

        (c) Transfers of assets to a pooled trust shall not be 1552
treated as an improper transfer of resources. Assets held prior to 1553
the transfer to the trust shall be considered as countable assets, 1554
countable income, or countable assets and income. 1555

        (4) A supplemental services trust that meets the requirements 1556
of section ~~1339.51~~5815.28 of the Revised Code and to which all of 1557
the following apply: 1558

        (a) A person may establish a supplemental services trust 1559
pursuant to section ~~1339.51~~5815.28 of the Revised Code only for 1560
another person who is eligible to receive services through one of 1561
the following agencies: 1562

        (i) The department of mental retardation and developmental 1563
disabilities; 1564

        (ii) A county board of mental retardation and developmental 1565
disabilities; 1566

        (iii) The department of mental health; 1567

        (iv) A board of alcohol, drug addiction, and mental health 1568
services. 1569

        (b) A county department of job and family services shall not 1570
determine eligibility for another agency's program. An applicant 1571
or recipient shall do one of the following: 1572

        (i) Provide documentation from one of the agencies listed in 1573
division (F)(4)(a) of this section that establishes that the 1574
applicant or recipient was determined to be eligible for services 1575
from the agency at the time of the creation of the trust; 1576

        (ii) Provide an order from a court of competent jurisdiction 1577
that states that the applicant or recipient was eligible for 1578
services from one of the agencies listed in division (F)(4)(a) of 1579
this section at the time of the creation of the trust. 1580

        (c) At the time the trust is created, the trust principal 1581
does not exceed the maximum amount permitted. The maximum amount 1582
permitted in calendar year 2002 is two hundred fourteen thousand 1583
dollars. Each year thereafter, the maximum amount permitted is the 1584
prior year's amount plus two thousand dollars. 1585

        (d) A county department of job and family services shall 1586
review the trust to determine whether it complies with the 1587
provisions of section ~~1339.51~~5815.28 of the Revised Code. 1588

        (e) Payments from supplemental services trusts shall be 1589
exempt as long as the payments are for supplemental services as 1590
defined in rules adopted by the department of job and family 1591
services. All supplemental services shall be purchased by the 1592
trustee and shall not be purchased through direct cash payments to 1593
the beneficiary. 1594

        (f) If a trust is represented as a supplemental services 1595
trust and a county department of job and family services 1596
determines that the trust does not meet the requirements provided 1597
in division (F)(4) of this section and section ~~1339.51~~5815.28 of 1598
the Revised Code, the county department of job and family services 1599
shall not consider it an exempt trust. 1600

        (G)(1) A trust or legal instrument or device similar to a 1601
trust shall be considered a trust established by an individual for 1602
the benefit of the applicant or recipient if all of the following 1603
apply: 1604

        (a) The trust is created by a person other than the applicant 1605
or recipient. 1606

        (b) The trust names the applicant or recipient as a 1607
beneficiary. 1608

        (c) The trust is funded with assets or property in which the 1609
applicant or recipient has never held an ownership interest prior 1610
to the establishment of the trust. 1611

        (2) Any portion of a trust that meets the requirements of 1612
division (G)(1) of this section shall be an available resource 1613
only if the trust permits the trustee to expend principal, corpus, 1614
or assets of the trust for the applicant's or recipient's medical 1615
care, care, comfort, maintenance, health, welfare, general well 1616
being, or any combination of these purposes. 1617

        (3) A trust that meets the requirements of division (G)(1) of 1618
this section shall be considered an available resource even if the 1619
trust contains any of the following types of provisions: 1620

        (a) A provision that prohibits the trustee from making 1621
payments that would supplant or replace medical assistance or 1622
other public assistance; 1623

        (b) A provision that prohibits the trustee from making 1624
payments that would impact or have an effect on the applicant's or 1625
recipient's right, ability, or opportunity to receive medical 1626
assistance or other public assistance; 1627

        (c) A provision that attempts to prevent the trust or its 1628
corpus or principal from being counted as an available resource. 1629

        (4) A trust that meets the requirements of division (G)(1) of 1630
this section shall not be counted as an available resource if at 1631
least one of the following circumstances applies: 1632

        (a) If a trust contains a clear statement requiring the 1633
trustee to preserve a portion of the trust for another beneficiary 1634
or remainderman, that portion of the trust shall not be counted as 1635
an available resource. Terms of a trust that grant discretion to 1636
preserve a portion of the trust shall not qualify as a clear 1637
statement requiring the trustee to preserve a portion of the 1638
trust. 1639

        (b) If a trust contains a clear statement requiring the 1640
trustee to use a portion of the trust for a purpose other than 1641
medical care, care, comfort, maintenance, welfare, or general well 1642
being of the applicant or recipient, that portion of the trust 1643
shall not be counted as an available resource. Terms of a trust 1644
that grant discretion to limit the use of a portion of the trust 1645
shall not qualify as a clear statement requiring the trustee to 1646
use a portion of the trust for a particular purpose. 1647

        (c) If a trust contains a clear statement limiting the 1648
trustee to making fixed periodic payments, the trust shall not be 1649
counted as an available resource and payments shall be treated in 1650
accordance with rules adopted by the department of job and family 1651
services governing income. Terms of a trust that grant discretion 1652
to limit payments shall not qualify as a clear statement requiring 1653
the trustee to make fixed periodic payments. 1654

        (d) If a trust contains a clear statement that requires the 1655
trustee to terminate the trust if it is counted as an available 1656
resource, the trust shall not be counted as an available resource. 1657
Terms of a trust that grant discretion to terminate the trust do 1658
not qualify as a clear statement requiring the trustee to 1659
terminate the trust. 1660

        (e) If a person obtains a judgment from a court of competent 1661
jurisdiction that expressly prevents the trustee from using part 1662
or all of the trust for the medical care, care, comfort, 1663
maintenance, welfare, or general well being of the applicant or 1664
recipient, the trust or that portion of the trust subject to the 1665
court order shall not be counted as a resource. 1666

        (f) If a trust is specifically exempt from being counted as 1667
an available resource by a provision of the Revised Code, rules, 1668
or federal law, the trust shall not be counted as a resource. 1669

        (g) If an applicant or recipient presents a final judgment 1670
from a court demonstrating that the applicant or recipient was 1671
unsuccessful in a civil action against the trustee to compel 1672
payments from the trust, the trust shall not be counted as an 1673
available resource. 1674

        (h) If an applicant or recipient presents a final judgment 1675
from a court demonstrating that in a civil action against the 1676
trustee the applicant or recipient was only able to compel limited 1677
or periodic payments, the trust shall not be counted as an 1678
available resource and payments shall be treated in accordance 1679
with rules adopted by the department of job and family services 1680
governing income. 1681

        (i) If an applicant or recipient provides written 1682
documentation showing that the cost of a civil action brought to 1683
compel payments from the trust would be cost prohibitive, the 1684
trust shall not be counted as an available resource. 1685

        (5) Any actual payments to the applicant or recipient from a 1686
trust that meet the requirements of division (G)(1) of this 1687
section, including trusts that are not counted as an available 1688
resource, shall be treated as provided in rules adopted by the 1689
department of job and family services governing income. Payments 1690
to any person other than the applicant or recipient shall not be 1691
considered income to the applicant or recipient. Payments from the 1692
trust to a person other than the applicant or recipient shall not 1693
be considered an improper transfer of assets. 1694

       Sec. 5119.01. The director of mental health is the chief 1695
executive and administrative officer of the department of mental 1696
health. The director may establish procedures for the governance 1697
of the department, conduct of its employees and officers, 1698
performance of its business, and custody, use, and preservation of 1699
departmental records, papers, books, documents, and property. 1700
Whenever the Revised Code imposes a duty upon or requires an 1701
action of the department or any of its institutions, the director 1702
shall perform the action or duty in the name of the department, 1703
except that the medical director appointed pursuant to section 1704
5119.07 of the Revised Code shall be responsible for decisions 1705
relating to medical diagnosis, treatment, rehabilitation, quality 1706
assurance, and the clinical aspects of the following: licensure of 1707
hospitals and residential facilities, research, community mental 1708
health plans, and delivery of mental health services. 1709

       The director shall: 1710

       (A) Adopt rules for the proper execution of the powers and 1711
duties of the department with respect to the institutions under 1712
its control, and require the performance of additional duties by 1713
the officers of the institutions as necessary to fully meet the 1714
requirements, intents, and purposes of this chapter. In case of an 1715
apparent conflict between the powers conferred upon any managing 1716
officer and those conferred by such sections upon the department, 1717
the presumption shall be conclusive in favor of the department. 1718

       (B) Adopt rules for the nonpartisan management of the 1719
institutions under the department's control. An officer or 1720
employee of the department or any officer or employee of any 1721
institution under its control who, by solicitation or otherwise, 1722
exerts influence directly or indirectly to induce any other 1723
officer or employee of the department or any of its institutions 1724
to adopt the exerting officer's or employee's political views or 1725
to favor any particular person, issue, or candidate for office 1726
shall be removed from the exerting officer's or employee's office 1727
or position, by the department in case of an officer or employee, 1728
and by the governor in case of the director. 1729

       (C) Appoint such employees, including the medical director, 1730
as are necessary for the efficient conduct of the department, and 1731
prescribe their titles and duties; 1732

       (D) Prescribe the forms of affidavits, applications, medical 1733
certificates, orders of hospitalization and release, and all other 1734
forms, reports, and records that are required in the 1735
hospitalization or admission and release of all persons to the 1736
institutions under the control of the department, or are otherwise 1737
required under this chapter or Chapter 5122. of the Revised Code; 1738

       (E) Contract with hospitals licensed by the department under 1739
section 5119.20 of the Revised Code for the care and treatment of 1740
mentally ill patients, or with persons, organizations, or agencies 1741
for the custody, supervision, care, or treatment of mentally ill 1742
persons receiving services elsewhere than within the enclosure of 1743
a hospital operated under section 5119.02 of the Revised Code; 1744

       (F) Exercise the powers and perform the duties relating to 1745
community mental health facilities and services that are assigned 1746
to the director under this chapter and Chapter 340. of the Revised 1747
Code; 1748

       (G) Develop and implement clinical evaluation and monitoring 1749
of services that are operated by the department; 1750

       (H) At the director's discretion, adopt rules establishing 1751
standards for the adequacy of services provided by community 1752
mental health facilities, and certify the compliance of such 1753
facilities with the standards for the purpose of authorizing their 1754
participation in the health care plans of health insuring 1755
corporations under Chapter 1751. and sickness and accident 1756
insurance policies issued under Chapter 3923. of the Revised Code. 1757
The director shall cease to certify such compliance two years 1758
after ~~the effective date of this amendment~~June 6, 2001. The 1759
director shall rescind the rules after the date the director 1760
ceases to certify such compliance. 1761

       (I) Adopt rules establishing standards for the performance of 1762
evaluations by a forensic center or other psychiatric program or 1763
facility of the mental condition of defendants ordered by the 1764
court under section 2919.271, or 2945.371 of the Revised Code, and 1765
for the treatment of defendants who have been found incompetent to 1766
stand trial and ordered by the court under section 2945.38, 1767
2945.39, 2945.401, or 2945.402 of the Revised Code to receive 1768
treatment in facilities; 1769

       (J) On behalf of the department, have the authority and 1770
responsibility for entering into contracts and other agreements; 1771

       (K) Prepare and publish regularly a state mental health plan 1772
that describes the department's philosophy, current activities, 1773
and long-term and short-term goals and activities; 1774

       (L) Adopt rules in accordance with Chapter 119. of the 1775
Revised Code specifying the supplemental services that may be 1776
provided through a trust authorized by section ~~1339.51~~5815.28 of 1777
the Revised Code; 1778

       (M) Adopt rules in accordance with Chapter 119. of the 1779
Revised Code establishing standards for the maintenance and 1780
distribution to a beneficiary of assets of a trust authorized by 1781
section ~~1339.51~~5815.28 of the Revised Code. 1782

       Sec. 5119.17. (A) As used in this section, "supplemental 1783
services" has the same meaning as in section ~~1339.51~~5815.28 of 1784
the Revised Code. 1785

       (B) There is hereby created in the state treasury the 1786
services fund for individuals with mental illness. On the death of 1787
the beneficiary of a trust created pursuant to section ~~1339.51~~ 1788
5815.28 of the Revised Code, the portion of the remaining assets 1789
of the trust specified in the trust instrument shall be deposited 1790
to the credit of the fund. Money credited to the fund shall be 1791
used for individuals with mental illness. 1792

       Supplemental services may be provided through the department 1793
or boards of alcohol, drug addiction, and mental health services. 1794
In accordance with Chapter 119. of the Revised Code, the 1795
department of mental health may adopt any rules necessary to 1796
implement this section. 1797

       Sec. 5121.04. (A) The department of mental retardation and 1798
developmental disabilities shall investigate the financial 1799
condition of the residents in institutions, residents whose care 1800
or treatment is being paid for in a private facility or home under 1801
the control of the department, and of the relatives named in 1802
section 5121.06 of the Revised Code as liable for the support of 1803
such residents, in order to determine the ability of any resident 1804
or liable relatives to pay for the support of the resident and to 1805
provide suitable clothing as required by the superintendent of the 1806
institution. 1807

       (B) The department shall follow the provisions of this 1808
division in determining the ability to pay of a resident or the 1809
resident's liable relatives and the amount to be charged such 1810
resident or liable relatives. 1811

       (1) Subject to divisions (B)(10) and (11) of this section, a 1812
resident without dependents shall be liable for the full 1813
applicable cost. A resident without dependents who has a gross 1814
annual income equal to or exceeding the sum of the full applicable 1815
cost, plus fifty dollars per month, regardless of the source of 1816
such income, shall pay currently the full amount of the applicable 1817
cost; if the resident's gross annual income is less than such sum, 1818
not more than fifty dollars per month shall be kept for personal 1819
use by or on behalf of the resident, except as permitted in the 1820
state plan for providing medical assistance under Title XIX of the 1821
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as 1822
amended, and the balance shall be paid currently on the resident's 1823
support. Subject to divisions (B)(10) and (11) of this section, 1824
the estate of a resident without dependents shall pay currently 1825
any remaining difference between the applicable cost and the 1826
amounts prescribed in this section, or shall execute an agreement 1827
with the department for payment to be made at some future date 1828
under terms suitable to the department. However, no security 1829
interest, mortgage, or lien shall be taken, granted, or charged 1830
against any principal residence of a resident without dependents 1831
under an agreement or otherwise to secure support payments, and no 1832
foreclosure actions shall be taken on security interests, 1833
mortgages, or liens taken, granted, or charged against principal 1834
residences of residents prior to October 7, 1977. 1835

       (2) The ability to pay of a resident with dependents, or of a 1836
liable relative of a resident either with or without dependents, 1837
shall be determined in accordance with the resident's or liable 1838
relative's income or other assets, the needs of others who are 1839
dependent on such income and other assets for support, and, if 1840
applicable, divisions (B)(10) and (11) of this section. 1841

       For the first thirty days of care and treatment of each 1842
admission, but in no event for more than thirty days in any 1843
calendar year, the resident with dependents or the liable 1844
relative of a resident either with or without dependents shall be 1845
charged an amount equal to the percentage of the average 1846
applicable cost determined in accordance with the schedule of 1847
adjusted gross annual income contained after this paragraph. After 1848
such first thirty days of care and treatment, such resident or 1849
such liable relative shall be charged an amount equal to the 1850
percentage of a base support rate of four dollars per day for 1851
residents, as determined in accordance with the schedule of gross 1852
annual income contained after this paragraph, or in accordance 1853
with division (B)(5) of this section. Beginning January 1, 1978, 1854
the department shall increase the base rate when the consumer 1855
price index average is more than 4.0 for the preceding calendar 1856
year by not more than the average for such calendar year. 1857

Adjusted Gross Annual 1858
Income of Resident 1859
or Liable Relative (FN a) Number of Dependents (FN b) 1860

8 or 1861
1 2 3 4 5 6 7 more 1862

Rate of Support (In Percentages) 1863
$15,000 or less -- -- -- -- -- -- -- -- 1864

15,001 to 17,500 20 -- -- -- -- -- -- -- 1865

17,501 to 20,000 25 20 -- -- -- -- -- -- 1866

20,001 to 21,000 30 25 20 -- -- -- -- -- 1867

21,001 to 22,000 35 30 25 20 -- -- -- -- 1868

22,001 to 23,000 40 35 30 25 20 -- -- -- 1869

23,001 to 24,000 45 40 35 30 25 20 -- -- 1870

24,001 to 25,000 50 45 40 35 30 25 20 -- 1871

25,001 to 26,000 55 50 45 40 35 30 25 20 1872

26,001 to 27,000 60 55 50 45 40 35 30 25 1873

27,001 to 28,000 70 60 55 50 45 40 35 30 1874

28,001 to 30,000 80 70 60 55 50 45 40 35 1875

30,001 to 40,000 90 80 70 60 55 50 45 40 1876

40,001 and over 100 90 80 70 60 55 50 45 1877

       Footnote a. The resident or relative shall furnish a copy of 1878
the resident's or relative's federal income tax return as evidence 1879
of gross annual income. 1880

       Footnote b. The number of dependents includes the liable 1881
relative but excludes a resident in an institution. "Dependent" 1882
includes any person who receives more than half the person's 1883
support from the resident or the resident's liable relative. 1884

       (3) A resident or liable relative having medical, funeral, or 1885
related expenses in excess of four per cent of the adjusted gross 1886
annual income, which expenses were not covered by insurance, may 1887
adjust such gross annual income by reducing the adjusted gross 1888
annual income by the full amount of such expenses. Proof of such 1889
expenses satisfactory to the department must be furnished. 1890

       (4) Additional dependencies may be claimed if: 1891

       (a) The liable relative is blind; 1892

       (b) The liable relative is over sixty-five; 1893

       (c) A child is a college student with expenses in excess of 1894
fifty dollars per month; 1895

       (d) The services of a housekeeper, costing in excess of fifty 1896
dollars per month, are required if the person who normally keeps 1897
house for minor children is the resident. 1898

       (5) If with respect to any resident with dependents there is 1899
chargeable under division (B)(2) of this section less than fifty 1900
per cent of the applicable cost or, if the base support rate was 1901
used, less than fifty per cent of the amount determined by use of 1902
the base support rate, and if with respect to such resident there 1903
is a liable relative who has an estate having a value in excess of 1904
fifteen thousand dollars or if such resident has a dependent and 1905
an estate having a value in excess of fifteen thousand dollars, 1906
there shall be paid with respect to such resident a total of fifty 1907
per cent of the applicable cost or the base support rate amount, 1908
as the case may be, on a current basis or there shall be executed 1909
with respect to such resident an agreement with the department for 1910
payment to be made at some future date under terms suitable to the 1911
department. 1912

       (6) When a person has been a resident for fifteen years and 1913
the support charges for which a relative is liable have been paid 1914
for the fifteen-year period, the liable relative shall be relieved 1915
of any further support charges. 1916

       (7) The department shall accept voluntary payments from 1917
residents or liable relatives whose incomes are below the minimum 1918
shown in the schedule set forth in this division. The department 1919
also shall accept voluntary payments in excess of required amounts 1920
from both liable and nonliable relatives. 1921

       (8) If a resident is covered by an insurance policy, or other 1922
contract that provides for payment of expenses for care and 1923
treatment for mental retardation or other developmental disability 1924
at or from an institution or facility (including a community 1925
service unit under the jurisdiction of the department), the other 1926
provisions of this section, except divisions (B)(8), (10), and 1927
(11) of this section, and of section 5121.01 of the Revised Code 1928
shall be suspended to the extent that such insurance policy or 1929
other contract is in force, and such resident shall be charged the 1930
full amount of the applicable cost. Any insurance carrier or other 1931
third party payor providing coverage for such care and treatment 1932
shall pay for this support obligation in an amount equal to the 1933
lesser of either the applicable cost or the benefits provided 1934
under the policy or other contract. Whether or not an insured, 1935
owner of, or other person having an interest in such policy or 1936
other contract is liable for support payments under other 1937
provisions of this chapter, the insured, policy owner, or other 1938
person shall assign payment directly to the department of all 1939
assignable benefits under the policy or other contract and shall 1940
pay over to the department, within ten days of receipt, all 1941
insurance or other benefits received as reimbursement or payment 1942
for expenses incurred by the resident or for any other reason. If 1943
the insured, policy owner, or other person refuses to assign such 1944
payment to the department or refuses to pay such received 1945
reimbursements or payments over to the department within ten days 1946
of receipt, the insured's, policy owners', or other person's total 1947
liability for the services equals the applicable statutory 1948
liability for payment for the services as determined under other 1949
provisions of this chapter, plus the amounts payable under the 1950
terms of the policy or other contract. In no event shall this 1951
total liability exceed the full amount of the applicable cost. 1952
Upon its request, the department is entitled to a court order that 1953
compels the insured, owner of, or other person having an interest 1954
in the policy or other contract to comply with the assignment 1955
requirements of this division or that itself serves as a legally 1956
sufficient assignment in compliance with such requirements. 1957
Notwithstanding section 5123.89 of the Revised Code and any other 1958
law relating to confidentiality of records, the managing officer 1959
of the institution or facility where a person is or has been a 1960
resident shall disclose pertinent medical information concerning 1961
the resident to the insurance carrier or other third party payor 1962
in question, in order to effect collection from the carrier or 1963
payor of the state's claim for care and treatment under this 1964
division. For such disclosure, the managing officer is not subject 1965
to any civil or criminal liability. 1966

       (9) The rate to be charged for pre-admission care, 1967
after-care, day-care, or routine consultation and treatment 1968
services shall be based upon the ability of the resident or the 1969
resident's liable relatives to pay. When it is determined by the 1970
department that a charge shall be made, such charge shall be 1971
computed as provided in divisions (B)(1) and (2) of this section. 1972

       (10) If a resident with or without dependents is the 1973
beneficiary of a trust created pursuant to section ~~1339.51~~5815.28 1974
of the Revised Code, then, notwithstanding any contrary provision 1975
of this chapter or of a rule adopted pursuant to this chapter, 1976
divisions (C) and (D) of that section shall apply in determining 1977
the assets or resources of the resident, the resident's estate, 1978
the settlor, or the settlor's estate and to claims arising under 1979
this chapter against the resident, the resident's estate, the 1980
settlor, or the settlor's estate. 1981

       (11) If the department waives the liability of an individual 1982
and the individual's liable relatives pursuant to section 5123.194 1983
of the Revised Code, the liability of the individual and relative 1984
ceases in accordance with the waiver's terms. 1985

       (C) The department may enter into agreements with a resident 1986
or a liable relative for support payments to be made in the 1987
future. However, no security interest, mortgage, or lien shall be 1988
taken, granted, or charged against any principal family residence 1989
of a resident with dependents or a liable relative under an 1990
agreement or otherwise to secure support payments, and no 1991
foreclosure actions shall be taken on security interests, 1992
mortgages or liens taken, granted, or charged against principal 1993
residences of residents or liable relatives prior to October 7, 1994
1977. 1995

       (D) The department shall make all investigations and 1996
determinations required by this section within ninety days after a 1997
resident is admitted to an institution under the department's 1998
control and immediately shall notify by mail the persons liable of 1999
the amount to be charged. 2000

       (E) All actions to enforce the collection of payments agreed 2001
upon or charged by the department shall be commenced within six 2002
years after the date of default of an agreement to pay support 2003
charges or the date such payment becomes delinquent. If a payment 2004
is made pursuant to an agreement which is in default, a new 2005
six-year period for actions to enforce the collection of payments 2006
under such agreement shall be computed from the date of such 2007
payment. For purposes of this division an agreement is in default 2008
or a payment is delinquent if a payment is not made within thirty 2009
days after it is incurred or a payment, pursuant to an agreement, 2010
is not made within thirty days after the date specified for such 2011
payment. In all actions to enforce the collection of payment for 2012
the liability for support, every court of record shall receive 2013
into evidence the proof of claim made by the state together with 2014
all debts and credits, and it shall be prima-facie evidence of the 2015
facts contained in it. 2016

       Sec. 5121.10. Upon the death of a resident or former 2017
resident of any institution under the jurisdiction of the 2018
department of mental retardation and developmental disabilities, 2019
or upon the death of a person responsible under section 5121.06 of 2020
the Revised Code for the support of a resident, the department may 2021
waive the presentation of any claim for support against the estate 2022
of such decedent, when in its judgment an otherwise dependent 2023
person will be directly benefited by the estate. Claims against an 2024
estate for support of a resident are subject to section ~~1339.51~~ 2025
5815.28 and Chapter 2117. of the Revised Code, and shall be 2026
treated, and may be barred, the same as the claims of other 2027
creditors of the estate, pursuant to that section or chapter. 2028

       The department may accept from a guardian or trustee of a 2029
resident a contract agreeing to pay to the state from the property 2030
of the guardian's or trustee's ward before or at the death of the 2031
ward a fixed annual amount for the support of the ward while the 2032
ward is a resident, with interest at four per cent per annum. A 2033
copy of the contract shall be filed in the probate court of the 2034
proper county and duly entered as a part of the records concerning 2035
the ward. 2036

       Sec. 5121.30. As used in sections 5121.30 to 5121.56 of the 2037
Revised Code: 2038

       (A) "Community mental health services client" or "client" 2039
means a person receiving state-operated community mental health 2040
services. 2041

        (B) "Countable assets" means all of the following: 2042

       (1) Cash; 2043

       (2) Bank deposits; 2044

       (3) Securities; 2045

       (4) Individual retirement accounts; 2046

       (5) Qualified employer plans, including 401(k) and Keogh 2047
plans; 2048

       (6) Annuities; 2049

       (7) Funds in a trust created under section ~~1339.51~~5815.28 of 2050
the Revised Code; 2051

       (8) Investment property and income; 2052

       (9) The cash surrender values of life insurance policies; 2053

       (10) Assets acquired by gift, bequest, devise, or 2054
inheritance; 2055

       (11) Any other asset determined by the department of mental 2056
health to be equivalent to the assets enumerated in this division. 2057

       (C) "Federal poverty level" or "FPL" means the income level 2058
represented by the poverty guidelines as revised annually by the 2059
United States department of health and human services in 2060
accordance with section 673(2) of the "Omnibus Reconciliation Act 2061
of 1981," 95 Stat. 511, 42 U.S.C. 9902, as amended, for a family 2062
size equal to the size of the family of the person whose income is 2063
being determined. 2064

       (D) "Federal poverty guidelines" means the poverty guidelines 2065
as revised annually by the United States department of health and 2066
human services in accordance with section 673(2) of the "Omnibus 2067
Budget Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, 2068
as amended, for a family size equal to the size of the family of 2069
the person whose income is being determined. 2070

       (E) "Hospital" means an institution, hospital, or other place 2071
established, controlled, or supervised by the department of mental 2072
health under Chapter 5119. of the Revised Code. 2073

       (F) "Liable relative" means all of the following: 2074

       (1) A patient's spouse; 2075

       (2) A patient's mother or father, or both, if the patient is 2076
under eighteen years of age; 2077

       (3) A patient's guardian. 2078

       (G) "Patient" means a person admitted to a hospital for 2079
inpatient care or treatment, including a person transferred to a 2080
hospital from a state correctional institution or a person under 2081
indictment or conviction who has been transferred to a hospital. 2082

       Sec. 5121.52. On the death of a person who is a patient, or 2083
has been a patient in a hospital, or on the death of a person 2084
responsible under section 5121.34 of the Revised Code for the 2085
support of a patient, the department of mental health may waive 2086
the presentation of any claim for support against the estate of 2087
such decedent, when in its judgment an otherwise dependent person 2088
will be directly benefited by the estate. Claims against an estate 2089
for support of a patient are subject to section ~~1339.51~~5815.28 2090
and Chapter 2117. of the Revised Code, and shall be treated, and 2091
may be barred, the same as the claims of other creditors of the 2092
estate, pursuant to that section or chapter. 2093

       The department of mental health may accept from a guardian or 2094
trustee of a patient a contract agreeing to pay to the state from 2095
the property of the guardian's or trustee's ward before or at the 2096
death of the ward a fixed annual amount for the support of the 2097
ward while the ward is a patient, with interest at four per cent 2098
per annum. A copy of the contract shall be filed in the probate 2099
court of the proper county and duly entered as a part of the 2100
records concerning the ward. 2101

       Sec. 5123.04. (A) The director of mental retardation and 2102
developmental disabilities is the executive head of the department 2103
of mental retardation and developmental disabilities. All duties 2104
conferred on the department and its institutions by law or by 2105
order of the director shall be performed under such rules as the 2106
director prescribes, and shall be under the director's control. 2107
The director shall establish bylaws for the government of all 2108
institutions under the jurisdiction of the department. Except as 2109
otherwise is provided as to appointments by chiefs of divisions, 2110
the director shall appoint such employees as are necessary for the 2111
efficient conduct of the department, and shall prescribe their 2112
titles and duties. If the director is not a licensed physician, 2113
decisions relating to medical diagnosis and treatment shall be the 2114
responsibility of a licensed physician appointed by the director. 2115

       (B) The director shall adopt rules for the proper execution 2116
of the powers and duties of the department. 2117

       (C) The director shall adopt rules establishing standards 2118
that mental retardation programs and facilities shall follow when 2119
performing evaluations of the mental condition of defendants 2120
ordered by the court under section 2919.271 or 2945.371 of the 2121
Revised Code, and for the treatment of defendants who have been 2122
found incompetent to stand trial under section 2945.38 of the 2123
Revised Code, and certify the compliance of such programs and 2124
facilities with the standards. 2125

       (D) On behalf of the department, the director has the 2126
authority to, and responsibility for, entering into contracts and 2127
other agreements. 2128

       (E) The director shall adopt rules in accordance with Chapter 2129
119. of the Revised Code that do all of the following: 2130

       (1) Specify the supplemental services that may be provided 2131
through a trust authorized by section ~~1339.51~~5815.28 of the 2132
Revised Code; 2133

       (2) Establish standards for the maintenance and distribution 2134
to a beneficiary of assets of a trust authorized by section 2135
~~1339.51~~5815.28 of the Revised Code. 2136

       (F) The director shall provide monitoring of county boards of 2137
mental retardation and developmental disabilities. 2138

       Sec. 5123.28. (A) Except as otherwise provided in this 2139
division, money or property deposited with managing officers of 2140
institutions under the jurisdiction of the department of mental 2141
retardation and developmental disabilities by any resident under 2142
the department's control or by relatives, guardians, conservators, 2143
and others for the special benefit of such resident, as well as 2144
all other funds and all other income paid to the resident, to ~~his~~ 2145
the resident's estate, or on ~~his~~the resident's behalf, or paid to 2146
the managing officer or to the institution as representative payee 2147
or otherwise paid on the resident's behalf, shall remain in the 2148
hands of such managing officers in appropriate accounts for use 2149
accordingly. Each such managing officer shall keep itemized book 2150
accounts of the receipt and disposition of such money and 2151
property, which book shall be open at all times to the inspection 2152
of the department. The director of mental retardation and 2153
developmental disabilities shall adopt rules governing the 2154
deposit, transfer, withdrawal, or investment of such funds and the 2155
income of the funds, as well as rules under which such funds and 2156
income shall be paid by managing officers, institutions, or 2157
district managers for the support of such residents pursuant to 2158
Chapter 5121. of the Revised Code, or for their other needs. 2159

       This division does not require, and shall not be construed as 2160
requiring, the deposit of the principal or income of a trust 2161
created pursuant to section ~~1339.51~~5815.28 of the Revised Code 2162
with managing officers of institutions under the jurisdiction of 2163
the department. 2164

       (B) Whenever any resident confined in a state institution 2165
under the jurisdiction of the department dies, escapes, or is 2166
discharged from the institution, any personal funds of the 2167
resident remain in the hands of the managing officer of the 2168
institution, and no demand is made upon the managing officer by 2169
the owner of the funds or ~~his~~the owner's legally appointed 2170
representative, the managing officer shall hold the funds in the 2171
personal deposit fund for a period of at least one year during 2172
which time the managing officer shall make every effort possible 2173
to locate the owner or ~~his~~the owner's legally appointed 2174
representative. If, at the end of this period, no demand has been 2175
made for the funds, the managing officer shall dispose of the 2176
funds as follows: 2177

       (1) All money in a personal deposit fund in excess of ten 2178
dollars due for the support of a resident, shall be paid in 2179
accordance with Chapter 5121. of the Revised Code. 2180

       (2) All money in a personal deposit fund in excess of ten 2181
dollars not due for the support of a resident, shall be placed to 2182
the credit of the institution's local account designated as the 2183
"industrial and entertainment" fund. 2184

       (3) The first ten dollars to the credit of a resident shall 2185
be placed to the credit of the institution's local account 2186
designated as the "industrial and entertainment" fund. 2187

       (C) Whenever any resident in any state institution subject to 2188
the jurisdiction of the department dies, escapes, or is discharged 2189
from the institution, any personal effects of the resident remain 2190
in the hands of the managing officer of the institution, and no 2191
demand is made upon the managing officer by the owner of the 2192
personal effects or ~~his~~the owner's legally appointed 2193
representative, the managing officer shall hold and dispose of the 2194
personal effects in the following manner. All the miscellaneous 2195
personal effects shall be held for a period of at least one year, 2196
during which time the managing officer shall make every effort 2197
possible to locate the owner or ~~his~~the owner's legal 2198
representative. If, at the end of this period, no demand has been 2199
made by the owner of the property or ~~his~~the owner's legal 2200
representative, the managing officer shall file with the county 2201
recorder of the county of commitment of such owner, all deeds, 2202
wills, contract mortgages, or assignments. The balance of the 2203
personal effects shall be sold at public auction after being duly 2204
advertised, and the funds turned over to the treasurer of state 2205
for credit to the general revenue fund. If any of the property is 2206
not of a type to be filed with the county recorder and is not 2207
salable at public auction, the managing officer of the institution 2208
shall destroy that property. 2209

       Sec. 5123.40. There is hereby created in the state treasury 2210
the services fund for individuals with mental retardation and 2211
developmental disabilities. On the death of the beneficiary of a 2212
trust created pursuant to section ~~1339.51~~5815.28 of the Revised 2213
Code, the portion of the remaining assets of the trust specified 2214
in the trust instrument shall be deposited to the credit of the 2215
fund. 2216

       Money credited to the fund shall be used for individuals with 2217
mental retardation and developmental disabilities. In accordance 2218
with Chapter 119. of the Revised Code, the department of mental 2219
retardation and developmental disabilities may adopt any rules 2220
necessary to implement this section. 2221

       Sec. 5801.01. As used in Chapters 5801. to 5811. of the 2222
Revised Code: 2223

       (A) "Action," with respect to an act of a trustee, includes a 2224
failure to act. 2225

       (B) "Ascertainable standard" means a standard relating to an 2226
individual's health, education, support, or maintenance within the 2227
meaning of section 2041(b)(1)(A) or 2514(c)(1) of the Internal 2228
Revenue Code. 2229

       (C) "Beneficiary" means a person that has a present or future 2230
beneficial interest in a trust, whether vested or contingent, or 2231
that, in a capacity other than that of trustee, holds a power of 2232
appointment over trust property, or a charitable organization that 2233
is expressly designated in the terms of the trust to receive 2234
distributions. "Beneficiary" does not include any charitable 2235
organization that is not expressly designated in the terms of the 2236
trust to receive distributions, but to whom the trustee may in its 2237
discretion make distributions. 2238

       (D) "Beneficiary surrogate" means a person, other than a 2239
trustee, designated by the settlor in the trust instrument to 2240
receive notices, information, and reports otherwise required to be 2241
provided to a current beneficiary under divisions (B)(8) and (9) 2242
of section 5801.04 of the Revised Code. 2243

       (E) "Charitable trust" means a trust, or portion of a trust, 2244
created for a charitable purpose described in division (A) of 2245
section 5804.05 of the Revised Code. 2246

       (F) "Current beneficiary" means a beneficiary that, on the 2247
date the beneficiary's qualification is determined, is a 2248
distributee or permissible distributee of trust income or 2249
principal. 2250

       (G) "Environmental law" means a federal, state, or local law, 2251
rule, regulation, or ordinance relating to protection of the 2252
environment. 2253

       (H) "Guardian of the estate" means a guardian appointed by a 2254
court to administer the estate of any individual or to serve as 2255
conservator of the property of an individual eighteen years of age 2256
or older under section 2111.021 of the Revised Code. 2257

       (I) "Guardian of the person" means a guardian appointed by a 2258
court to make decisions regarding the support, care, education, 2259
health, and welfare of any individual or to serve as conservator 2260
of the person of an individual eighteen years of age or older 2261
under section 2111.021 of the Revised Code. "Guardian of the 2262
person" does not include a guardian ad litem. 2263

       (J) "Internal Revenue Code" means the "Internal Revenue Code 2264
of 1986," 100 Stat. 2085, 26 U.S.C. 1 et seq., as amended. 2265

       (K) "Interests of the beneficiaries" means the beneficial 2266
interests provided in the terms of the trust. 2267

       (L) "Jurisdiction," with respect to a geographic area, 2268
includes a state or country. 2269

       (M) "Mandatory distribution" means a distribution of income 2270
or principal, including a distribution upon termination of the 2271
trust, that the trustee is required to make to a beneficiary under 2272
the terms of the trust. Mandatory distributions do not include 2273
distributions that a trustee is directed or authorized to make 2274
pursuant to a support or other standard, regardless of whether the 2275
terms of the trust provide that the trustee "may" or "shall" make 2276
the distributions pursuant to a support or other standard. 2277

       (N) "Person" means an individual, corporation, business 2278
trust, estate, trust, partnership, limited liability company, 2279
association, joint venture, government, governmental agency or 2280
instrumentality, public corporation, or any other legal or 2281
commercial entity. 2282

       (O) "Power of withdrawal" means a presently exercisable 2283
general power of appointment other than a power exercisable by a 2284
trustee that is limited by an ascertainable standard or that is 2285
exercisable by another person only upon consent of the trustee or 2286
a person holding an adverse interest. 2287

       (P) "Property" means anything or any interest in anything 2288
that may be the subject of ownership. 2289

       (Q) "Qualified beneficiary" means a beneficiary to whom, on 2290
the date the beneficiary's qualification is determined, any of the 2291
following applies: 2292

       (1) The beneficiary is a distributee or permissible 2293
distributee of trust income or principal. 2294

       (2) The beneficiary would be a distributee or permissible 2295
distributee of trust income or principal if the interests of the 2296
distributees described in division (Q)(1) of this section 2297
terminated on that date, but the termination of those interests 2298
would not cause the trust to terminate. 2299

       (3) The beneficiary would be a distributee or permissible 2300
distributee of trust income or principal if the trust terminated 2301
on that date. 2302

       (R) "Revocable," as applied to a trust, means revocable at 2303
the time of determination by the settlor alone or by the settlor 2304
with the consent of any person other than a person holding an 2305
adverse interest. A trust's characterization as revocable is not 2306
affected by the settlor's lack of capacity to exercise the power 2307
of revocation, regardless of whether an agent of the settlor under 2308
a power of attorney, or a guardian of the person or estate of the 2309
settlor, is serving. 2310

       (S) "Settlor" means a person, including a testator, who 2311
creates, or contributes property to, a trust. If more than one 2312
person creates or contributes property to a trust, each person is 2313
a settlor of the portion of the trust property attributable to 2314
that person's contribution except to the extent another person has 2315
the power to revoke or withdraw that portion. 2316

       (T) "Spendthrift provision" means a term of a trust that 2317
restrains both voluntary and involuntary transfer of a 2318
beneficiary's interest. 2319

       (U) "State" means a state of the United States, the District 2320
of Columbia, the Commonwealth of Puerto Rico, a territory or 2321
possession of the United States, or an Indian tribe or band 2322
recognized by federal law or formally acknowledged by a state. 2323

       (V) "Terms of a trust" means the manifestation of the 2324
settlor's intent regarding a trust's provisions as expressed in 2325
the trust instrument or as may be established by other evidence 2326
that would be admissible in a judicial proceeding. 2327

       (W) "Trust instrument" means an instrument executed by the 2328
settlor that contains terms of the trust and any amendments to 2329
that instrument. 2330

       (X) "Trustee" includes an original, additional, and successor 2331
trustee and a cotrustee. 2332

       (Y)(1) "Wholly discretionary trust" means a trust to which 2333
all of the following apply: 2334

       (a) The trust is irrevocable. 2335

       (b) Distributions of income or principal from the trust may 2336
or shall be made to or for the benefit of the beneficiary only at 2337
the trustee's discretion. 2338

       (c) The beneficiary does not have a power of withdrawal from 2339
the trust. 2340

       (d) The terms of the trust use "sole," "absolute," 2341
"uncontrolled," or language of similar import to describe the 2342
trustee's discretion to make distributions to or for the benefit 2343
of the beneficiary. 2344

       (e) The terms of the trust do not provide any standards to 2345
guide the trustee in exercising its discretion to make 2346
distributions to or for the benefit of the beneficiary. 2347

       (f) The beneficiary is not the settlor, the trustee, or a 2348
cotrustee. 2349

       (g) The beneficiary does not have the power to become the 2350
trustee or a cotrustee. 2351

       (2) A trust may be a wholly discretionary trust with respect 2352
to one or more but less than all beneficiaries. 2353

       (3) If a beneficiary has a power of withdrawal, the trust may 2354
be a wholly discretionary trust with respect to that beneficiary 2355
during any period in which the beneficiary may not exercise the 2356
power. During a period in which the beneficiary may exercise the 2357
power, both of the following apply: 2358

       (a) The portion of the trust the beneficiary may withdraw may 2359
not be a wholly discretionary trust with respect to that 2360
beneficiary; 2361

       (b) The portion of the trust the beneficiary may not withdraw 2362
may be a wholly discretionary trust with respect to that 2363
beneficiary. 2364

       (4) If the beneficiary and one or more others have made 2365
contributions to the trust, the portion of the trust attributable 2366
to the beneficiary's contributions may not be a wholly 2367
discretionary trust with respect to that beneficiary, but the 2368
portion of the trust attributable to the contributions of others 2369
may be a wholly discretionary trust with respect to that 2370
beneficiary. If a beneficiary has a power of withdrawal, then upon 2371
the lapse, release, or waiver of the power, the beneficiary is 2372
treated as having made contributions to the trust only to the 2373
extent the value of the property affected by the lapse, release, 2374
or waiver exceeds the greatest of the following amounts: 2375

       (a) The amount specified in section 2041(b)(2) or 2514(e) of 2376
the Internal Revenue Code; 2377

       (b) If the donor of the property subject to the beneficiary's 2378
power of withdrawal is not married at the time of the transfer of 2379
the property to the trust, the amount specified in section 2503(b) 2380
of the Internal Revenue Code; 2381

       (c) If the donor of the property subject to the beneficiary's 2382
power of withdrawal is married at the time of the transfer of the 2383
property to the trust, twice the amount specified in section 2384
2503(b) of the Internal Revenue Code. 2385

       (5) Notwithstanding divisions (Y)(1)(f) and (g) of this 2386
section, a trust may be a wholly discretionary trust if the 2387
beneficiary is, or has the power to become, a trustee only with 2388
respect to the management or the investment of the trust assets, 2389
and not with respect to making discretionary distribution 2390
decisions. With respect to a trust established for the benefit of 2391
an individual who is blind or disabled as defined in 42 U.S.C. 2392
1382c(a)(2) or (3), as amended, a wholly discretionary trust may 2393
include either or both of the following: 2394

       (a) Precatory language regarding its intended purpose of 2395
providing supplemental goods and services to or for the benefit of 2396
the beneficiary, and not to supplant benefits from public 2397
assistance programs; 2398

       (b) A prohibition against providing food, clothing, and 2399
shelter to the beneficiary. 2400

       Sec. 5801.011. Chapters 5801. to 5811. of the Revised Code 2401
may be cited as the Ohio trust code. 2402

       Sec. 5801.02. Except as otherwise provided in any provision 2403
of Chapters 5801. to 5811. of the Revised Code, those chapters 2404
apply to charitable and noncharitable inter vivos express trusts 2405
and to trusts created pursuant to a statute, judgment, or decree 2406
that requires the trust to be administered in the manner of an 2407
express trust. Chapters 5801. to 5811. of the Revised Code apply 2408
to testamentary trusts to the extent provided by section 2109.69 2409
of the Revised Code. 2410

       Sec. 5801.03. (A) Subject to division (B) of this section, a 2411
person has knowledge of a fact if any of the following apply: 2412

       (1) The person has actual knowledge of the fact. 2413

       (2) The person has received notice or notification of the 2414
fact. 2415

       (3) From all the facts and circumstances known to the person 2416
at the time in question, the person has reason to know the fact. 2417

       (B) An organization that conducts activities through 2418
employees has notice or knowledge of a fact involving a trust only 2419
from the time an employee having responsibility to act for the 2420
trust received the information or the information would have been 2421
brought to the employee's attention if the organization had 2422
exercised reasonable diligence. An organization exercises 2423
reasonable diligence if it maintains reasonable routines for 2424
communicating significant information to the employee having 2425
responsibility to act for the trust and there is reasonable 2426
compliance with the routines. Reasonable diligence does not 2427
require an employee of the organization to communicate information 2428
unless the communication is part of the individual's regular 2429
duties or the individual knows a matter involving the trust would 2430
be materially affected by the information. 2431

       Sec. 5801.04. (A) Except as otherwise provided in the terms 2432
of the trust, Chapters 5801. to 5811. of the Revised Code govern 2433
the duties and powers of a trustee, relations among trustees, and 2434
the rights and interests of a beneficiary. 2435

       (B) The terms of a trust prevail over any provision of 2436
Chapters 5801. to 5811. of the Revised Code except the following: 2437

       (1) The requirements for creating a trust; 2438

       (2) The duty of a trustee to act in good faith and in 2439
accordance with the purposes of the trust; 2440

       (3) The requirement that the trust have a purpose that is 2441
lawful, not contrary to public policy, and possible to achieve; 2442

       (4) The power of the court to modify or terminate a trust 2443
under sections 5804.10 to 5804.16 of the Revised Code; 2444

       (5) The effect of a spendthrift provision and the rights of 2445
certain creditors and assignees to reach a trust as provided in 2446
Chapter 5805. of the Revised Code; 2447

       (6) The power of the court under section 5807.02 of the 2448
Revised Code to require, dispense with, or modify or terminate a 2449
bond; 2450

       (7) The power of the court under division (B) of section 2451
5807.08 of the Revised Code to adjust a trustee's compensation 2452
specified in the terms of the trust which is unreasonably low or 2453
high; 2454

       (8) Subject to division (C) of this section, the duty under 2455
divisions (B)(2) and (3) of section 5808.13 of the Revised Code to 2456
notify current beneficiaries of an irrevocable trust who have 2457
attained twenty-five years of age of the existence of the trust, 2458
of the identity of the trustee, and of their right to request 2459
trustee's reports; 2460

       (9) Subject to division (C) of this section, the duty under 2461
division (A) of section 5808.13 of the Revised Code to respond to 2462
the request of a current beneficiary of an irrevocable trust for 2463
trustee's reports and other information reasonably related to the 2464
administration of a trust; 2465

       (10) The effect of an exculpatory term under section 5810.08 2466
of the Revised Code; 2467

       (11) The rights under sections 5810.10 to 5810.13 of the 2468
Revised Code of a person other than a trustee or beneficiary; 2469

       (12) Periods of limitation for commencing a judicial 2470
proceeding; 2471

       (13) The power of the court to take any action and exercise 2472
any jurisdiction that may be necessary in the interests of 2473
justice; 2474

       (14) The subject-matter jurisdiction of the court for 2475
commencing a proceeding as provided in section 5802.03 of the 2476
Revised Code. 2477

       (C) With respect to one or more of the current beneficiaries, 2478
the settlor, in the trust instrument, may waive or modify the 2479
duties of the trustee described in divisions (B)(8) and (9) of 2480
this section. The waiver or modification may be made only by the 2481
settlor designating in the trust instrument one or more 2482
beneficiary surrogates to receive any notices, information, or 2483
reports otherwise required under those divisions to be provided to 2484
the current beneficiaries. If the settlor makes a waiver or 2485
modification pursuant to this division, the trustee shall provide 2486
the notices, information, and reports to the beneficiary surrogate 2487
or surrogates in lieu of providing them to the current 2488
beneficiaries. The beneficiary surrogate or surrogates shall act 2489
in good faith to protect the interests of the current 2490
beneficiaries for whom the notices, information, or reports are 2491
received. A waiver or modification made under this division shall 2492
be effective for so long as the beneficiary surrogate or 2493
surrogates, or their successor or successors designated in 2494
accordance with the terms of the trust instrument, act in that 2495
capacity. 2496

       Sec. 5801.05. The common law of trusts and principles of 2497
equity continue to apply in this state, except to the extent 2498
modified by Chapters 5801. to 5811. or another section of the 2499
Revised Code. 2500

       Sec. 5801.06. The law of the jurisdiction designated in the 2501
terms of a trust determines the meaning and effect of the terms 2502
unless the designation of that jurisdiction's law is contrary to a 2503
strong public policy of the jurisdiction having the most 2504
significant relationship to the matter at issue. In the absence of 2505
a controlling designation in the terms of the trust, the law of 2506
the jurisdiction having the most significant relationship to the 2507
matter at issue determines the meaning and effect of the terms. 2508

       Sec. 5801.07. (A) Without precluding other means for 2509
establishing a sufficient connection with the designated 2510
jurisdiction, the terms of a trust designating the principal place 2511
of administration of the trust are valid and controlling if a 2512
trustee's principal place of business is located in or a trustee 2513
is a resident of the designated jurisdiction or if all or part of 2514
the administration occurs in the designated jurisdiction. 2515

       (B) A trustee is under a continuing duty to administer the 2516
trust at a place appropriate to its purposes, its administration, 2517
and the interests of the beneficiaries. 2518

        (C) Without precluding the right of the court to order, 2519
approve, or disapprove a transfer, the trustee, in furtherance of 2520
the duty prescribed by division (B) of this section, may transfer 2521
the trust's principal place of administration to another state or 2522
to a jurisdiction outside of the United States. 2523

       (D) The trustee shall notify the current beneficiaries of a 2524
proposed transfer of a trust's principal place of administration 2525
not less than sixty days before initiating the transfer. The 2526
notice of a proposed transfer shall include all of the following: 2527

       (1) The name of the jurisdiction to which the principal place 2528
of administration is to be transferred; 2529

       (2) The address and telephone number at the new location at 2530
which the trustee can be contacted; 2531

       (3) An explanation of the reasons for the proposed transfer; 2532

       (4) The date on which the trustee expects the proposed 2533
transfer to occur. 2534

       (E) In connection with a transfer of the trust's principal 2535
place of administration, the trustee may transfer some or all of 2536
the trust property to a successor trustee designated in the terms 2537
of the trust or appointed pursuant to section 5807.04 of the 2538
Revised Code. 2539

       Sec. 5801.08. (A) Notice to a person or the sending of a 2540
document to a person under Chapters 5801. to 5811. of the Revised 2541
Code shall be accomplished in a manner reasonably suitable under 2542
the circumstances and likely to result in receipt of the notice or 2543
document. Permissible methods of notice or for sending a document 2544
include first-class mail, personal delivery, delivery to the 2545
person's last known place of residence or place of business, or a 2546
properly directed electronic message. 2547

       (B) Notice otherwise required or a document otherwise 2548
required to be sent under Chapters 5801. to 5811. of the Revised 2549
Code is not required to be provided to a person whose identity or 2550
location is unknown to and not reasonably ascertainable by the 2551
trustee. 2552

       (C) The person to be notified or sent a document may waive 2553
notice or the sending of a document under Chapters 5801. to 5811. 2554
of the Revised Code. 2555

       (D) Notice of a judicial proceeding must be given as provided 2556
in the applicable rules of civil procedure. 2557

       Sec. 5801.09. (A) Whenever Chapters 5801. to 5811. of the 2558
Revised Code require notice to current or qualified beneficiaries 2559
of a trust, the trustee shall also give notice to any other 2560
beneficiary who has sent the trustee a request for notice. 2561

       (B) A person appointed to enforce a trust created for the 2562
care of an animal or another noncharitable purpose as provided in 2563
section 5804.08 or 5804.09 of the Revised Code has the rights of a 2564
current beneficiary under Chapters 5801. to 5811. of the Revised 2565
Code. 2566

       Sec. 5801.10. (A) As used in this section, "creditor" means 2567
any of the following: 2568

       (1) A person holding a debt or security for a debt entered 2569
into by a trustee on behalf of the trust; 2570

       (2) A person holding a debt secured by one or more assets of 2571
the trust; 2572

       (3) A person having a claim against the trustee or the assets 2573
of the trust under section 5805.06 of the Revised Code; 2574

       (4) A person who has attached through legal process a 2575
beneficiary's interest in the trust. 2576

       (B) The parties to an agreement under this section shall be 2577
all of the following, or their representatives under the 2578
representation provisions of Chapter 5803. of the Revised Code, 2579
except that only the settlor and any trustee are required to be 2580
parties to an amendment of any revocable trust: 2581

       (1) The settlor if living and if no adverse income or 2582
transfer tax results would arise from the settlor's participation; 2583

       (2) All beneficiaries; 2584

       (3) All currently serving trustees; 2585

       (4) Creditors, if their interest is to be affected by the 2586
agreement. 2587

       (C) The persons specified in division (B) of this section may 2588
by written instrument enter into an agreement with respect to any 2589
matter concerning the construction of, administration of, or 2590
distributions under the trust instrument, the investment of income 2591
or principal held by the trustee, or other matters. The agreement 2592
is valid only to the extent that it does not effect a termination 2593
of the trust before the date specified for the trust's termination 2594
in the trust instrument, does not change the interests of the 2595
beneficiaries in the trust except as necessary to effect a 2596
modification described in division (C)(5) or (6) of this section, 2597
and includes terms and conditions that could be properly approved 2598
by the court under Chapters 5801. to 5811. of the Revised Code or 2599
other applicable law. Matters that may be resolved by a private 2600
settlement agreement include, but are not limited to, all of the 2601
following: 2602

       (1) Determining classes of creditors, beneficiaries, heirs, 2603
next of kin, or other persons; 2604

       (2) Resolving disputes arising out of the administration or 2605
distribution under the trust instrument, including disputes over 2606
the construction of the language of the trust instrument or 2607
construction of the language of other writings that affect the 2608
trust instrument; 2609

       (3) Granting to the trustee necessary or desirable powers not 2610
granted in the trust instrument or otherwise provided by law, to 2611
the extent that those powers either are not inconsistent with the 2612
express provisions or purposes of the trust instrument or, if 2613
inconsistent with the express provisions or purposes of the trust 2614
instrument, are necessary for the due administration of the trust 2615
instrument; 2616

       (4) Modifying the trust instrument, if the modification is 2617
not inconsistent with any dominant purpose or objective of the 2618
trust; 2619

       (5) Modifying the trust instrument in the manner required to 2620
qualify the gift under the trust instrument for the charitable 2621
estate or gift tax deduction permitted by federal law, including 2622
the addition of mandatory governing instrument requirements for a 2623
charitable remainder trust as required by the Internal Revenue 2624
Code and regulations promulgated under it in any case in which all 2625
parties interested in the trust have submitted written agreements 2626
to the proposed changes or written disclaimer of interest; 2627

       (6) Modifying the trust instrument in the manner required to 2628
qualify any gift under the trust instrument for the estate tax 2629
marital deduction available to noncitizen spouses, including the 2630
addition of mandatory governing instrument requirements for a 2631
qualified domestic trust under section 2056A of the Internal 2632
Revenue Code and regulations promulgated under it in any case in 2633
which all parties interested in the trust have submitted written 2634
agreements to the proposed changes or written disclaimer of 2635
interest; 2636

       (7) Resolving any other matter that arises under Chapters 2637
5801. to 5811. of the Revised Code. 2638

       (D) No agreement shall be entered into under this section 2639
affecting the rights of a creditor without the creditor's consent 2640
or affecting the collection rights of federal, state, or local 2641
taxing authorities. 2642

       (E) Any agreement entered into under this section that 2643
complies with the requirements of division (C) of this section 2644
shall be final and binding on the trustee, the settlor if living, 2645
all beneficiaries, and their heirs, successors, and assigns. 2646

       (F) Notwithstanding anything in this section, in division (D) 2647
of section 5803.03 of the Revised Code, or in any other rule of 2648
law to the contrary, a trustee serving under the trust instrument 2649
shall only represent its own individual or corporate interests in 2650
negotiating or entering into an agreement subject to this section. 2651
No trustee serving under the trust instrument shall be considered 2652
to represent any settlor, beneficiary, or the interests of any 2653
settlor or beneficiary in negotiating or entering into an 2654
agreement subject to this section. 2655

       (G) Any party to a private settlement agreement entered into 2656
under this section may request the court to approve the agreement, 2657
to determine whether the representation as provided in Chapter 2658
5803. of the Revised Code was adequate, and to determine whether 2659
the agreement contains terms and conditions the court could have 2660
properly approved. 2661

       (H) If an agreement entered into under this section contains 2662
a provision requiring binding arbitration of any disputes arising 2663
under the agreement, the provision is enforceable. 2664

       (I) Nothing in this section affects any of the following: 2665

       (1) The right of a beneficiary to disclaim under section 2666
5815.36 of the Revised Code; 2667

       (2) The termination or modification of a trust under section 2668
5804.10, 5804.11, 5804.12, 5804.13, 5804.14, 5804.15, or 5804.16 2669
of the Revised Code; 2670

       (3) The ability of a trustee to divide or consolidate a trust 2671
under section 5804.17 of the Revised Code. 2672

       (J) Nothing in this section restricts or limits the 2673
jurisdiction of any court to dispose of matters not covered by 2674
agreements under this section or to supervise the acts of trustees 2675
appointed by that court. 2676

       (K) This section shall be liberally construed to favor the 2677
validity and enforceability of agreements entered into under it. 2678

       (L) A trustee serving under the trust instrument is not 2679
liable to any third person arising from any loss due to that 2680
trustee's actions or inactions taken or omitted in good faith 2681
reliance on the terms of an agreement entered into under this 2682
section. 2683

       (M) This section does not apply to any of the following: 2684

        (1) A charitable trust that has one or more charitable 2685
organizations as qualified beneficiaries; 2686

        (2) A charitable trust the terms of which authorize or direct 2687
the trustee to distribute trust income or principal to one or more 2688
charitable organizations to be selected by the trustee, or for one 2689
or more charitable purposes described in division (A) of section 2690
5804.05 of the Revised Code, if any of the following apply: 2691

        (a) The distributions may be made on the date that an 2692
agreement under this section would be entered into. 2693

        (b) The distributions could be made on the date that an 2694
agreement under this section would be entered into if the 2695
interests of the current beneficiaries of the trust terminated on 2696
that date, but the termination of those interests would not cause 2697
the trust to terminate. 2698

        (c) The distributions could be made on the date that an 2699
agreement under this section would be entered into if the trust 2700
terminated on that date. 2701

       Sec. 5802.01. (A) A court may intervene in the 2702
administration of a trust to the extent its jurisdiction is 2703
invoked by an interested person or as provided by law. 2704

       (B) An inter vivos trust is not subject to continuing 2705
judicial supervision unless ordered by the court. Trusts created 2706
pursuant to a section of the Revised Code or a judgment or decree 2707
of a court are subject to continuing judicial supervision to the 2708
extent provided by the section, judgment, or decree or by court 2709
order. 2710

       (C) A judicial proceeding involving a trust may relate to any 2711
matter involving the trust's administration, including a request 2712
for instructions and an action to declare rights. 2713

       Sec. 5802.02. (A) By accepting the trusteeship of a trust 2714
having its principal place of administration in this state or by 2715
moving the principal place of administration to this state, the 2716
trustee submits personally to the jurisdiction of the courts of 2717
this state regarding any matter involving the trust. 2718

       (B) With respect to their interests in the trust, the 2719
beneficiaries of a trust having its principal place of 2720
administration in this state are subject to the jurisdiction of 2721
the courts of this state regarding any matter involving the trust. 2722
By accepting a distribution from the trust, the recipient submits 2723
personally to the jurisdiction of the courts of this state 2724
regarding any matter involving the trust. 2725

       (C) This section does not preclude other methods of obtaining 2726
jurisdiction over a trustee, beneficiary, or other person 2727
receiving property from the trust. 2728

       Sec. 5802.03. The probate division of the court of common 2729
pleas has concurrent jurisdiction with, and the same powers at law 2730
and in equity as, the general division of the court of common 2731
pleas to issue writs and orders and to hear and determine any 2732
action that involves an inter vivos trust. 2733

       Sec. 5803.01. (A) Notice to a person who may represent and 2734
bind another person under this chapter has the same effect as if 2735
notice were given directly to the other person. 2736

       (B) The consent of a person who may represent and bind 2737
another person under this chapter is binding on the person 2738
represented unless the person represented objects to the 2739
representation before the consent would otherwise have become 2740
effective. 2741

       (C) Except as otherwise provided in sections 5804.11 and 2742
5806.02 of the Revised Code, a person who under this chapter may 2743
represent a settlor who lacks capacity may receive notice and give 2744
a binding consent on the settlor's behalf. 2745

       (D) A settlor may not represent and bind a beneficiary under 2746
this chapter with respect to the termination or modification of a 2747
trust under division (A) of section 5804.11 of the Revised Code. 2748

       Sec. 5803.02. To the extent there is no conflict of interest 2749
between the holder of a general testamentary power of appointment 2750
and the persons represented with respect to the particular 2751
question or dispute, the holder may represent and bind persons 2752
whose interests, as permissible appointees, takers in default, or 2753
otherwise, are subject to the power. 2754

       Sec. 5803.03. To the extent there is no conflict of interest 2755
between the representative and the person represented or among 2756
those being represented with respect to a particular question or 2757
dispute, all of the following apply: 2758

       (A) A guardian of the estate may represent and bind the 2759
estate that the guardian of the estate controls. 2760

       (B) A guardian of the person may represent and bind the ward 2761
if a guardian of the estate has not been appointed. 2762

       (C) An agent having authority to act with respect to the 2763
particular question or dispute may represent and bind the 2764
principal. 2765

       (D) Except as provided in division (F) of section 5801.10 of 2766
the Revised Code, a trustee may represent and bind the 2767
beneficiaries of the trust. 2768

       (E) A personal representative of a decedent's estate may 2769
represent and bind persons interested in the estate. 2770

       (F) A parent may represent and bind the parent's minor or 2771
unborn child if neither a guardian for the child's estate or a 2772
guardian of the person has been appointed. 2773

       Sec. 5803.04. Unless otherwise represented, a minor, 2774
incapacitated individual, unborn individual, or person whose 2775
identity or location is unknown and not reasonably ascertainable 2776
may be represented by and bound by another having a substantially 2777
identical interest with respect to the particular question or 2778
dispute, but only to the extent there is no conflict of interest 2779
between the representative and the person represented. 2780

       Sec. 5803.05. (A) If the court determines that an interest 2781
is not represented under this chapter or that the otherwise 2782
available representation might be inadequate, the court may 2783
appoint a representative to receive notice, give consent, and 2784
otherwise represent, bind, and act on behalf of a minor, 2785
incapacitated individual, unborn individual, or person whose 2786
identity or location is unknown. A representative may be appointed 2787
to represent several persons or interests. 2788

       (B) A representative may act on behalf of the individual 2789
represented with respect to any matter arising under Chapters 2790
5801. to 5811. of the Revised Code, whether or not a judicial 2791
proceeding concerning the trust is pending. 2792

       (C) In making decisions, a representative may consider 2793
general benefit accruing to the living members of the individual's 2794
family. 2795

       Sec. 5804.01. A trust may be created by any of the following 2796
methods: 2797

       (A) Transfer of property to another person as trustee during 2798
the settlor's lifetime or by will or other disposition taking 2799
effect upon the settlor's death; 2800

       (B) Declaration by the owner of property that the owner holds 2801
identifiable property as trustee; 2802

       (C) Exercise of a power of appointment in favor of a trustee; 2803

       (D) A court order. 2804

       Sec. 5804.02. (A) A trust is created only if all of the 2805
following apply: 2806

       (1) The settlor of the trust, other than the settlor of a 2807
trust created by a court order, has capacity to create a trust. 2808

       (2) The settlor of the trust, other than the settlor of a 2809
trust created by a court order, indicates an intention to create 2810
the trust. 2811

       (3) The trust has a definite beneficiary or is one of the 2812
following: 2813

       (a) A charitable trust; 2814

       (b) A trust for the care of an animal, as provided in section 2815
5804.08 of the Revised Code; 2816

       (c) A trust for a noncharitable purpose, as provided in 2817
section 5804.09 of the Revised Code. 2818

       (4) The trustee has duties to perform. 2819

       (5) The same person is not the sole trustee and sole 2820
beneficiary. 2821

       (B) A beneficiary is definite if the beneficiary can be 2822
ascertained now or in the future, subject to any applicable rule 2823
against perpetuities. 2824

       (C) A power in a trustee to select a beneficiary from an 2825
indefinite class is valid. If the power is not exercised within a 2826
reasonable time, the power fails, and the property subject to the 2827
power passes to the persons who would have taken the property had 2828
the power not been conferred. 2829

       (D) A trust is valid regardless of the existence, size, or 2830
character of the corpus of the trust. This division applies to any 2831
trust that was executed prior to, or is executed on or after, the 2832
effective date of Chapters 5801. to 5811. of the Revised Code. 2833

       (E) A trust is not invalid because a person, including, but 2834
not limited to, the creator of the trust, is or may become the 2835
sole trustee and the sole holder of the present beneficial 2836
enjoyment of the corpus of the trust, provided that one or more 2837
other persons hold a vested, contingent, or expectant interest 2838
relative to the enjoyment of the corpus of the trust upon the 2839
cessation of the present beneficial enjoyment. A merger of the 2840
legal and equitable titles to the corpus of a trust described in 2841
this division does not occur in its creator, and, notwithstanding 2842
any contrary provision of Chapter 2107. of the Revised Code, the 2843
trust is not a testamentary trust that is required to comply with 2844
that chapter in order for its corpus to be legally distributed to 2845
other beneficiaries in accordance with the provisions of the trust 2846
upon the cessation of the present beneficial enjoyment. This 2847
division applies to any trust that satisfies the provisions of 2848
this division, whether the trust was executed prior to, on, or 2849
after October 10, 1991. 2850

       Sec. 5804.03. A trust not created by will is validly created 2851
if its creation complies with the law of the jurisdiction in which 2852
the trust instrument was executed or the law of the jurisdiction 2853
in which, at the time of creation, any of the following applies: 2854

       (A) The settlor was domiciled in, had a place of abode in, or 2855
was a national of the jurisdiction. 2856

       (B) A trustee was domiciled or had a place of business in the 2857
jurisdiction. 2858

       (C) Any trust property was located in the jurisdiction. 2859

       Sec. 5804.04. A trust may be created only to the extent that 2860
its purposes are lawful, not contrary to public policy, and 2861
possible to achieve. A trust exists, and its assets shall be held, 2862
for the benefit of its beneficiaries in accordance with the 2863
interests of the beneficiaries in the trust. 2864

       Sec. 5804.05. (A) A charitable trust may be created for the 2865
relief of poverty, the advancement of education or religion, the 2866
promotion of health, governmental or municipal purposes, or other 2867
purposes the achievement of which is beneficial to the community. 2868

       (B) If the terms of a charitable trust do not indicate a 2869
particular charitable purpose or beneficiary, the court may select 2870
one or more charitable purposes or beneficiaries. The selection 2871
must be consistent with the settlor's intention to the extent it 2872
can be ascertained. 2873

       (C) The settlor of a charitable trust, among others, may 2874
maintain a proceeding to enforce the trust. 2875

       Sec. 5804.06. A trust is void to the extent its creation was 2876
induced by fraud, duress, or undue influence. As used in this 2877
section, "fraud," "duress," and "undue influence" have the same 2878
meanings for trust validity purposes as they have for purposes of 2879
determining the validity of a will. 2880

       Sec. 5804.07. Except as required by any section of the 2881
Revised Code not in Chapters 5801. to 5811. of the Revised Code, a 2882
trust is not required to be evidenced by a trust instrument, but 2883
the creation of an oral trust and its terms may be established 2884
only by clear and convincing evidence. 2885

       Sec. 5804.08. (A) A trust may be created to provide for the 2886
care of an animal alive during the settlor's lifetime. The trust 2887
terminates upon the death of the animal or, if the trust was 2888
created to provide for the care of more than one animal alive 2889
during the settlor's lifetime, upon the death of the last 2890
surviving animal. 2891

       (B) A person appointed in the terms of a trust or, if no 2892
person is so appointed, a person appointed by the court may 2893
enforce a trust authorized by this section. A person having an 2894
interest in the welfare of an animal that is provided care by a 2895
trust authorized by this section may request the court to appoint 2896
a person to enforce the trust or to remove a person appointed. 2897

       (C) The property of a trust authorized by this section may be 2898
applied only to its intended use, except to the extent the court 2899
determines that the value of the trust property exceeds the amount 2900
required for the intended use. Except as otherwise provided in the 2901
terms of the trust, property not required for the intended use 2902
must be distributed to the settlor if then living or to the 2903
settlor's successors in interest. 2904

       Sec. 5804.09. Except as otherwise provided in section 2905
5804.08 of the Revised Code or any other section of the Revised 2906
Code: 2907

       (A) A trust may be created for a noncharitable purpose 2908
without a definite or definitely ascertainable beneficiary or for 2909
a noncharitable but otherwise valid purpose to be selected by the 2910
trustee. A trust created for a noncharitable purpose may not be 2911
enforced for more than twenty-one years. 2912

       (B) A trust authorized by this section may be enforced by a 2913
person appointed in the terms of the trust or, if no person is so 2914
appointed, by a person appointed by the court. 2915

       (C) The property of a trust authorized by this section may be 2916
applied only to its intended use, except to the extent the court 2917
determines that the value of the trust property exceeds the amount 2918
required for the intended use. Except as otherwise provided in the 2919
terms of the trust, property not required for the intended use 2920
must be distributed to the settlor if then living or to the 2921
settlor's successors in interest. 2922

       Sec. 5804.10. (A) In addition to the methods of termination 2923
prescribed by sections 5804.11 to 5804.14 of the Revised Code, a 2924
trust terminates to the extent the trust is revoked or expires 2925
pursuant to its terms, a court determines that no purpose of the 2926
trust remains to be achieved, or a court determines that the 2927
purposes of the trust have become unlawful or impossible to 2928
achieve. 2929

       (B) A trustee or beneficiary may commence a proceeding to 2930
approve or disapprove a proposed modification or termination under 2931
sections 5804.11 to 5804.16 of the Revised Code or to approve or 2932
disapprove a trust combination or division under section 5804.17 2933
of the Revised Code. The settlor may commence a proceeding to 2934
approve or disapprove a proposed modification or termination under 2935
section 5804.11 of the Revised Code. The settlor of a charitable 2936
trust may maintain a proceeding to modify the trust under section 2937
5804.13 of the Revised Code. 2938

       Sec. 5804.11. (A) If upon petition the court finds that the 2939
settlor and all beneficiaries consent to the modification or 2940
termination of a noncharitable irrevocable trust, the court shall 2941
enter an order approving the modification or termination even if 2942
the modification or termination is inconsistent with a material 2943
purpose of the trust. An agent under a power of attorney may 2944
exercise a settlor's power to consent to a trust's modification or 2945
termination only to the extent expressly authorized by both the 2946
power of attorney and the terms of the trust. The settlor's 2947
guardian of the estate may exercise a settlor's power to consent 2948
to a trust's modification or termination with the approval of the 2949
court supervising the guardianship if an agent is not so 2950
authorized. The guardian of the settlor's person may exercise a 2951
settlor's power to consent to a trust's modification or 2952
termination with the approval of the court supervising the 2953
guardianship if an agent is not so authorized and a guardian of 2954
the estate has not been appointed. This division applies only to 2955
irrevocable trusts created on or after the effective date of 2956
Chapters 5801. to 5811. of the Revised Code and to revocable 2957
trusts that become irrevocable on or after the effective date of 2958
Chapters 5801. to 5811. of the Revised Code. This division does 2959
not apply to a noncharitable irrevocable trust described in 42 2960
U.S.C. 1396p(d)(4). 2961

       (B) A noncharitable irrevocable trust may be terminated upon 2962
consent of all of the beneficiaries if the court concludes that 2963
continuance of the trust is not necessary to achieve any material 2964
purpose of the trust. A noncharitable irrevocable trust may be 2965
modified, but not to remove or replace the trustee, upon consent 2966
of all of the beneficiaries if the court concludes that 2967
modification is not inconsistent with a material purpose of the 2968
trust. A spendthrift provision in the terms of the trust may, but 2969
is not presumed to, constitute a material purpose of the trust. 2970

       (C) Upon termination of a trust under division (A) or (B) of 2971
this section, the trustee shall distribute the trust property as 2972
agreed by the beneficiaries. 2973

       (D) If not all of the beneficiaries consent to a proposed 2974
modification or termination of the trust under division (A) or (B) 2975
of this section, the court may approve the modification or 2976
termination if the court is satisfied of both of the following: 2977

       (1) That if all of the beneficiaries had consented, the trust 2978
could have been modified or terminated under this section; 2979

       (2) That the interests of a beneficiary who does not consent 2980
will be adequately protected. 2981

       Sec. 5804.12. (A) The court may modify the administrative or 2982
dispositive terms of a trust or terminate the trust if because of 2983
circumstances not anticipated by the settlor modification or 2984
termination will further the purposes of the trust. To the extent 2985
practicable, the court shall make the modification in accordance 2986
with the settlor's probable intention. 2987

       (B) The court may modify the administrative terms of a trust 2988
if continuation of the trust on its existing terms would be 2989
impracticable or impair the trust's administration. 2990

       (C) Upon termination of a trust under this section, the 2991
trustee shall distribute the trust property in a manner consistent 2992
with the purposes of the trust. 2993

       Sec. 5804.13. (A) Except as otherwise provided in division 2994
(B) of this section, if a particular charitable purpose becomes 2995
unlawful, impracticable, or impossible to achieve, all of the 2996
following apply: 2997

       (1) The trust does not fail in whole or in part. 2998

       (2) The trust property does not revert to the settlor or the 2999
settlor's successors in interest. 3000

       (3) The court may apply cy pres to modify or terminate the 3001
trust by directing that the trust property be applied or 3002
distributed, in whole or in part, in a manner consistent with the 3003
settlor's charitable purposes. In accordance with section 109.25 3004
of the Revised Code, the attorney general is a necessary party to 3005
a judicial proceeding brought under this section. 3006

       (B) A provision in the terms of a charitable trust for the 3007
distribution of the trust property to a noncharitable beneficiary 3008
prevails over the power of the court under division (A) of this 3009
section to apply cy pres to modify or terminate the trust. 3010

       Sec. 5804.14. (A)(1) Except as provided in division (A)(2) 3011
of this section, after notice to the qualified beneficiaries, the 3012
trustee of an inter vivos trust consisting of trust property 3013
having a total value of less than one hundred thousand dollars may 3014
terminate the trust if the trustee concludes that the value of the 3015
trust property is insufficient to justify the cost of 3016
administration. 3017

       (2) Division (A)(1) of this section does not apply to any of 3018
the following: 3019

        (a) A charitable trust that has one or more charitable 3020
organizations as qualified beneficiaries; 3021

        (b) A charitable trust the terms of which authorize or direct 3022
the trustee to distribute trust income or principal to one or more 3023
charitable organizations to be selected by the trustee, or for one 3024
or more charitable purposes described in division (A) of section 3025
5804.05 of the Revised Code, if any of the following apply: 3026

        (i) The distributions may be made on the date that the trust 3027
would be terminated under division (A)(1) of this section. 3028

        (ii) The distributions could be made on the date that the 3029
trust would be terminated under division (A)(1) of this section if 3030
the interests of the current beneficiaries of the trust terminated 3031
on that date, but the termination of those interests would not 3032
cause the trust to terminate. 3033

        (iii) The distributions could be made on the date that the 3034
trust would be terminated under division (A)(1) of this section, 3035
if the trust terminated on that date but not under that division. 3036

       (B) If an inter vivos trust consists of trust property having 3037
a total value of less than one hundred thousand dollars, the court 3038
may modify or terminate the trust or remove the trustee and 3039
appoint a different trustee if it determines that the value of the 3040
trust property is insufficient to justify the cost of 3041
administration. 3042

       (C) Upon the termination of a trust pursuant to division 3043
(A)(1) of this section, the trustee shall distribute the trust 3044
estate in accordance with any provision specified in the trust 3045
instrument for the premature termination of the trust. If there is 3046
no provision of that nature in the trust instrument, the trustee 3047
shall distribute the trust estate among the beneficiaries of the 3048
trust in accordance with their respective beneficial interests and 3049
in a manner that the trustee determines to be equitable. For 3050
purposes of distributing the trust estate among the beneficiaries 3051
of the trust under this division, the trustee shall consider all 3052
of the following: 3053

       (1) The existence of any agreement among the beneficiaries 3054
with respect to their beneficial interests; 3055

       (2) The actuarial values of the separate beneficial interests 3056
of the beneficiaries; 3057

       (3) Any expression of preference of the beneficiaries that is 3058
contained in the trust instrument. 3059

       (D) Upon the termination of a trust pursuant to division (B) 3060
of this section, the probate court shall order the distribution of 3061
the trust estate in accordance with any provision specified in the 3062
trust instrument for the premature termination of the trust. If 3063
there is no provision of that nature in the trust instrument, the 3064
probate court shall order the distribution of the trust estate 3065
among the beneficiaries of the trust in accordance with their 3066
respective beneficial interests and in a manner that the court 3067
determines to be equitable. For purposes of ordering the 3068
distribution of the trust estate among the beneficiaries of the 3069
trust under this division, the court shall consider the three 3070
factors listed in division (C) of this section. 3071

       (E) The existence of a spendthrift or similar provision in a 3072
trust instrument or will does not preclude the termination of a 3073
trust pursuant to this section. 3074

       (F) This section does not apply to an easement for 3075
conservation or preservation. 3076

       Sec. 5804.15. The court may reform the terms of a trust, 3077
even if they are unambiguous, to conform the terms to the 3078
settlor's intention if it is proved by clear and convincing 3079
evidence that both the settlor's intent and the terms of the trust 3080
were affected by a mistake of fact or law, whether in expression 3081
or inducement. 3082

       Sec. 5804.16. To achieve the settlor's tax objectives, the 3083
court may modify the terms of a trust in a manner that is not 3084
contrary to the settlor's probable intention. The court may 3085
provide that the modification has retroactive effect. 3086

       Sec. 5804.17. After notice to the qualified beneficiaries, a 3087
trustee may combine two or more trusts into a single trust or 3088
divide a trust into two or more separate trusts if the result does 3089
not impair the rights of any beneficiary or adversely affect 3090
achievement of the purposes of the trust. 3091

       Sec. 5804.18. A trust described in 42 U.S.C. 1396p(d)(4) is 3092
irrevocable if the terms of the trust prohibit the settlor from 3093
revoking it, whether or not the settlor's estate or the settlor's 3094
heirs are named as the remainder beneficiary or beneficiaries of 3095
the trust upon the settlor's death. 3096

       Sec. 5805.01. (A) A spendthrift provision is valid only if 3097
it restrains both voluntary and involuntary transfer of a 3098
beneficiary's interest or if it restrains involuntary transfer of 3099
a beneficiary's interest and permits voluntary transfer of a 3100
beneficiary's interest only with the consent of a trustee who is 3101
not the beneficiary. 3102

       (B) A term of a trust providing that the interest of a 3103
beneficiary is held subject to a "spendthrift trust," or words of 3104
similar import, is sufficient to restrain both voluntary and 3105
involuntary transfer of the beneficiary's interest. 3106

       (C) A beneficiary may not transfer an interest in a trust in 3107
violation of a valid spendthrift provision and, except as 3108
otherwise provided in this chapter and in section 5810.04 of the 3109
Revised Code, a creditor or assignee of the beneficiary may not 3110
reach the interest or a distribution by the trustee before its 3111
receipt by the beneficiary. Real property or tangible personal 3112
property that is owned by the trust but that is made available for 3113
a beneficiary's use or occupancy in accordance with the trustee's 3114
authority under the trust instrument shall not be considered to 3115
have been distributed by the trustee or received by the 3116
beneficiary for purposes of allowing a creditor or assignee of the 3117
beneficiary to reach the property. 3118

       Sec. 5805.02. (A) As used in this section, "child" includes 3119
any person for whom an order or judgment for child support has 3120
been entered in this or another state. 3121

       (B) Subject to section 5805.03 of the Revised Code, a 3122
spendthrift provision is unenforceable against either of the 3123
following: 3124

       (1) The beneficiary's child or spouse who has a judgment or 3125
court order against the beneficiary for support, but only if 3126
distributions can be made for the beneficiary's support under the 3127
terms of the trust; 3128

       (2) A claim of this state or the United States to the extent 3129
provided by the Revised Code or federal law. 3130

       (C) A spendthrift provision is enforceable against the 3131
beneficiary's former spouse. 3132

       (D) A claimant described in division (B) of this section may 3133
obtain from the court an order attaching present or future 3134
distributions to or for the benefit of the beneficiary. The court 3135
may limit the award to the relief that is appropriate under the 3136
circumstances, considering among any other factors determined 3137
appropriate by the court the support needs of the beneficiary, the 3138
beneficiary's spouse, and the beneficiary's dependent children or, 3139
with respect to a beneficiary who is the recipient of public 3140
benefits, the supplemental needs of the beneficiary if the trust 3141
was not intended to provide for the beneficiary's basic support. 3142

       (E) The only exceptions to the effectiveness of a spendthrift 3143
provision are those described in divisions (B) and (D) of this 3144
section, in division (B) of section 5805.05 of the Revised Code, 3145
and in sections 5805.06 and 5810.04 of the Revised Code. 3146

       Sec. 5805.03. Notwithstanding anything to the contrary in 3147
division (B) of section 5805.02 of the Revised Code, no creditor 3148
or assignee of a beneficiary of a wholly discretionary trust may 3149
reach the beneficiary's interest in the trust, or a distribution 3150
by the trustee before its receipt by the beneficiary, whether by 3151
attachment of present or future distributions to or for the 3152
benefit of the beneficiary, by judicial sale, by obtaining an 3153
order compelling the trustee to make distributions from the trust, 3154
or by any other means, regardless of whether the trust instrument 3155
includes a spendthrift provision. 3156

       Sec. 5805.04. (A) As used in this section, "child" includes 3157
any person for whom an order or judgment for child support has 3158
been entered in this or any other state. 3159

       (B) Except as otherwise provided in divisions (C) and (D) of 3160
this section, whether or not a trust contains a spendthrift 3161
provision, a creditor of a beneficiary may not compel a 3162
distribution that is subject to the trustee's discretion, even if 3163
the discretion is expressed in the form of a standard of 3164
distribution or the trustee has abused the discretion. 3165

       (C) Division (B) of this section does not apply to this state 3166
for any claim for support of a beneficiary in a state institution 3167
if the terms of the trust do not include a spendthrift provision 3168
and do include a standard for distributions to or for the 3169
beneficiary under which the trustee may make distributions for the 3170
beneficiary's support. 3171

       (D) Unless the settlor has explicitly provided in the trust 3172
that the beneficiary's child or spouse or both are excluded from 3173
benefiting from the trust, to the extent a trustee of a trust that 3174
is not a wholly discretionary trust has not complied with a 3175
standard of distribution or has abused a discretion, both of the 3176
following apply: 3177

       (1) The court may order a distribution to satisfy a judgment 3178
or court order against the beneficiary for support of the 3179
beneficiary's child or spouse, provided that the court may order 3180
the distributions only if distributions can be made for the 3181
beneficiary's support under the terms of the trust and that the 3182
court may not order any distributions under this division to 3183
satisfy a judgment or court order against the beneficiary for 3184
support of the beneficiary's former spouse. 3185

       (2) The court shall direct the trustee to pay to the child or 3186
spouse the amount that is equitable under the circumstances but 3187
not more than the amount the trustee would have been required to 3188
distribute to or for the benefit of the beneficiary had the 3189
trustee complied with the standard or not abused the discretion. 3190

       (E) Even if a trust does not contain a spendthrift provision, 3191
to the extent a beneficiary's interest in a trust is subject to 3192
the exercise of the trustee's discretion, whether or not such 3193
discretion is subject to one or more standards of distribution, 3194
the interest may not be ordered sold to satisfy or partially 3195
satisfy a claim of the beneficiary's creditor or assignee. 3196

       (F) If the trustee's or cotrustee's discretion to make 3197
distributions for the trustee's or cotrustee's own benefit is 3198
limited by an ascertainable standard, a creditor may not reach or 3199
compel distribution of the beneficial interest except to the 3200
extent the interest would be subject to the creditor's claim if 3201
the beneficiary were not acting as trustee or cotrustee. 3202

       Sec. 5805.05. (A) To the extent that a trust that gives a 3203
beneficiary the right to receive one or more mandatory 3204
distributions does not contain a spendthrift provision, the court 3205
may authorize a creditor or assignee of the beneficiary to attach 3206
present or future mandatory distributions to or for the benefit of 3207
the beneficiary or to reach the beneficiary's interest by other 3208
means. The court may limit an award under this section to the 3209
relief that is appropriate under the circumstances, considering 3210
among any other factors determined appropriate by the court, the 3211
support needs of the beneficiary, the beneficiary's spouse, and 3212
the beneficiary's dependent children or, with respect to a 3213
beneficiary who is the recipient of public benefits, the 3214
supplemental needs of the beneficiary if the trust was not 3215
intended to provide for the beneficiary's basic support. If in 3216
exercising its power under this section the court decides to order 3217
either a sale of a beneficiary's interest or that a lien be placed 3218
on the interest, in deciding between the two types of action, the 3219
court shall consider among any other factors it considers relevant 3220
the amount of the claim of the creditor or assignee and the 3221
proceeds a sale would produce relative to the potential value of 3222
the interest to the beneficiary. 3223

       (B) Whether or not a trust contains a spendthrift provision, 3224
a creditor or assignee of a beneficiary may reach a mandatory 3225
distribution the beneficiary is entitled to receive if the trustee 3226
has not made the distribution to the beneficiary within a 3227
reasonable time after the designated distribution date. 3228

       Sec. 5805.06. (A) Whether or not the terms of a trust 3229
contain a spendthrift provision, all of the following apply: 3230

       (1) During the lifetime of the settlor, the property of a 3231
revocable trust is subject to claims of the settlor's creditors. 3232

       (2) With respect to an irrevocable trust, a creditor or 3233
assignee of the settlor may reach the maximum amount that can be 3234
distributed to or for the settlor's benefit. If a trust has more 3235
than one settlor, the amount the creditor or assignee of a 3236
particular settlor may reach may not exceed the settlor's interest 3237
in the portion of the trust attributable to that settlor's 3238
contribution. 3239

       (3) With respect to a trust described in 42 U.S.C. section 3240
1396p(d)(4)(A) or (C), the court may limit the award of a 3241
settlor's creditor under division (A)(1) or (2) of this section to 3242
the relief that is appropriate under the circumstances, 3243
considering among any other factors determined appropriate by the 3244
court, the supplemental needs of the beneficiary. 3245

       (B) For purposes of this section, all of the following apply: 3246

       (1) The holder of a power of withdrawal is treated in the 3247
same manner as the settlor of a revocable trust to the extent of 3248
the property subject to the power during the period the power may 3249
be exercised. 3250

       (2) Upon the lapse, release, or waiver of the power of 3251
withdrawal, the holder is treated as the settlor of the trust only 3252
to the extent the value of the property affected by the lapse, 3253
release, or waiver exceeds the greatest of the following amounts: 3254

       (a) The amount specified in section 2041(b)(2) or 2514(e) of 3255
the Internal Revenue Code; 3256

       (b) If the donor of the property subject to the holder's 3257
power of withdrawal is not married at the time of the transfer of 3258
the property to the trust, the amount specified in section 2503(b) 3259
of the Internal Revenue Code; 3260

       (c) If the donor of the property subject to the holder's 3261
power of withdrawal is married at the time of the transfer of the 3262
property to the trust, twice the amount specified in section 3263
2503(b) of the Internal Revenue Code. 3264

       Sec. 5805.07. Trust property is not subject to personal 3265
obligations of the trustee, even if the trustee becomes insolvent 3266
or bankrupt. 3267

       Sec. 5806.01. The capacity required to create, amend, 3268
revoke, or add property to a revocable trust, or to direct the 3269
actions of the trustee of a revocable trust, is the same as that 3270
required to make a will. 3271

       Sec. 5806.02. (A) Unless the terms of a trust expressly 3272
provide that the trust is irrevocable, the settlor may revoke or 3273
amend the trust. This division does not apply to a trust created 3274
under an instrument executed before the effective date of this 3275
section. 3276

       (B) If a revocable trust is created or funded by more than 3277
one settlor, all of the following apply: 3278

       (1) To the extent the trust consists of community property, 3279
either spouse acting alone may revoke the trust, but the trust may 3280
be amended only by joint action of both spouses. 3281

       (2) To the extent the trust consists of property other than 3282
community property, each settlor may revoke or amend the trust 3283
with regard to the portion of the trust property attributable to 3284
that settlor's contribution. 3285

       (3) Upon the revocation or amendment of the trust by less 3286
than all of the settlors, the trustee shall promptly notify the 3287
other settlors of the revocation or amendment. 3288

       (C) The settlor may revoke or amend a revocable trust by 3289
substantial compliance with a method provided in the terms of the 3290
trust or, if the terms of the trust do not provide a method, by 3291
any other method manifesting clear and convincing evidence of the 3292
settlor's intent, provided that a revocable trust may not be 3293
revoked or amended by a will or codicil, regardless of whether it 3294
refers to the trust or specifically devises property that would 3295
otherwise have passed according to the terms of the trust unless 3296
the terms of the trust expressly allow it to be revoked or amended 3297
by a will or codicil. 3298

       (D) Upon revocation of a revocable trust, the trustee shall 3299
deliver the trust property as the settlor directs. 3300

       (E) An agent under a power of attorney may exercise a 3301
settlor's powers with respect to revocation, amendment, or 3302
distribution of trust property only to the extent expressly 3303
authorized by both the terms of the trust and the power. 3304

       (F) A guardian of the estate of the settlor or, if no 3305
guardian of the estate has been appointed, a guardian of the 3306
person of the settlor may exercise a settlor's powers with respect 3307
to revocation, amendment, or distribution of trust property only 3308
with the approval of the court supervising the guardianship. 3309

       (G) A trustee who does not know that a trust has been revoked 3310
or amended is not liable to the settlor or settlor's successors in 3311
interest for distributions made and other actions taken on the 3312
assumption that the trust had not been amended or revoked. 3313

       Sec. 5806.03. (A) During the lifetime of the settlor of a 3314
revocable trust, whether or not the settlor has capacity to revoke 3315
the trust, the rights of the beneficiaries are subject to the 3316
control of, and the duties of the trustee are owed exclusively to, 3317
the settlor. If the trustee breaches its duty during the lifetime 3318
of the settlor, any recovery obtained from the trustee after the 3319
settlor becomes incapacitated or dies shall be apportioned by the 3320
court. If the settlor is living when the recovery is obtained, the 3321
court shall apportion the recovery between the settlor and the 3322
trust, or allocate the entire recovery to the settlor or the 3323
trust, as it determines to be equitable under the circumstances. 3324
If the settlor is not living when the recovery is obtained, the 3325
court shall apportion the recovery between the settlor's estate 3326
and the trust, or allocate the entire recovery to the settlor's 3327
estate or the trust, as it determines to be equitable under the 3328
circumstances. 3329

       (B) During the period the power may be exercised, the holder 3330
of a power of withdrawal has the rights of a settlor of a 3331
revocable trust under this section to the extent of the property 3332
subject to the power. 3333

       ~~Sec. 2305.121.~~        Sec. 5806.04. (A) Any of the following actions 3334
pertaining to a revocable trust that is made irrevocable by the 3335
death of the ~~grantor~~settlor of the trust shall be commenced 3336
within two years after the date of the death of the ~~grantor~~ 3337
settlor of the trust: 3338

       (1) An action to contest the validity of the trust; 3339

       (2) An action to contest the validity of any amendment to the 3340
trust that was made during the lifetime of the ~~grantor~~settlor of 3341
the trust; 3342

       (3) An action to contest the revocation of the trust during 3343
the lifetime of the ~~grantor~~settlor of the trust; 3344

       (4) An action to contest the validity of any transfer made to 3345
the trust during the lifetime of the ~~grantor~~settlor of the trust. 3346

       (B) Upon the death of the ~~grantor~~settlor of a revocable 3347
trust that was made irrevocable by the death of the ~~grantor~~ 3348
settlor, the trustee, without liability, may proceed to distribute 3349
the trust property in accordance with the terms of the trust 3350
unless either of the following applies: 3351

       (1) The trustee has actual knowledge of a pending action to 3352
contest the validity of the trust, any amendment to the trust, the 3353
revocation of the trust, or any transfer made to the trust during 3354
the lifetime of the ~~grantor~~settlor of the trust. 3355

       (2) The trustee receives written notification from a 3356
potential contestant of a potential action to contest the validity 3357
of the trust, any amendment to the trust, the revocation of the 3358
trust, or any transfer made to the trust during the lifetime of 3359
the ~~grantor~~settlor of the trust, and the action is actually filed 3360
within ninety days after the written notification was given to the 3361
trustee. 3362

       (C) If a distribution of trust property is made pursuant to 3363
division (B) of this section, a beneficiary of the trust shall 3364
return any distribution to the extent that it exceeds the 3365
distribution to which the beneficiary is entitled if the trust, an 3366
amendment to the trust, or a transfer made to the trust later is 3367
determined to be invalid. 3368

       (D) This section applies only to revocable trusts that are 3369
made irrevocable by the death of the ~~grantor~~settlor of the trust 3370
if the grantor dies on or after ~~the effective date of this section~~ 3371
July 23, 2002. 3372

       Sec. 5807.01. (A) Except as otherwise provided in division 3373
(C) of this section, a person designated as trustee accepts the 3374
trusteeship by substantially complying with a method of acceptance 3375
provided in the terms of the trust or, if the terms of the trust 3376
do not provide a method or the method provided in the terms is not 3377
expressly made exclusive, by accepting delivery of the trust 3378
property, exercising powers or performing duties as trustee, or 3379
otherwise indicating acceptance of the trusteeship. 3380

       (B) A person designated as trustee who has not yet accepted 3381
the trusteeship may reject the trusteeship. A designated trustee 3382
who does not accept the trusteeship within a reasonable time after 3383
knowing of the designation is deemed to have rejected the 3384
trusteeship. 3385

       (C) A person designated as trustee, without accepting the 3386
trusteeship, may do either or both of the following: 3387

       (1) Act to preserve the trust property if, within a 3388
reasonable time after acting, the person sends a rejection of the 3389
trusteeship to the settlor or, if the settlor is dead or lacks 3390
capacity, to a qualified beneficiary; 3391

       (2) Inspect or investigate trust property to determine 3392
potential liability under environmental or other law or for any 3393
other purpose. 3394

       Sec. 5807.02. (A) A trustee shall give bond to secure 3395
performance of the trustee's duties only if the court finds that a 3396
bond is needed to protect the interests of the beneficiaries or is 3397
required by the terms of the trust and the court has not dispensed 3398
with the requirement. 3399

       (B) The court may specify the amount of a bond, its 3400
liabilities, and whether sureties are necessary. The court may 3401
modify or terminate a bond at any time. 3402

       (C) A regulated financial-service institution qualified to do 3403
trust business in this state need not give bond, even if required 3404
by the terms of the trust. 3405

       Sec. 5807.03. (A) If there are three or more cotrustees 3406
serving, the cotrustees may act by majority decision. 3407

       (B) If a vacancy occurs in a cotrusteeship, the remaining 3408
cotrustees may act for the trust. 3409

       (C) A cotrustee must participate in the performance of a 3410
trustee's function unless the cotrustee is unavailable to perform 3411
the function because of absence, illness, disqualification under 3412
other law, or other temporary incapacity or the cotrustee has 3413
properly delegated the performance of the function to another 3414
trustee. 3415

       (D) If a cotrustee is unavailable to perform duties because 3416
of absence, illness, disqualification under other law, or other 3417
temporary incapacity and prompt action is necessary to achieve the 3418
purposes of the trust or to avoid injury to the trust property, 3419
the remaining cotrustee or a majority of the remaining cotrustees 3420
may act for the trust. 3421

       (E) A trustee may delegate to a cotrustee duties and powers 3422
that a prudent trustee of comparable skills could properly 3423
delegate under the circumstances. A delegation made under this 3424
division shall be governed by section 5808.07 of the Revised Code. 3425
Unless a delegation was irrevocable, a trustee may revoke a 3426
delegation previously made. 3427

       (F) Except as otherwise provided in division (G) of this 3428
section, and subject to divisions (C) and (E) of this section, a 3429
trustee who does not join in an action of another trustee is not 3430
liable for the action. 3431

       (G) Except as otherwise provided in this division, each 3432
trustee shall exercise reasonable care to prevent a cotrustee from 3433
committing a serious breach of trust and to compel a cotrustee to 3434
redress a serious breach of trust. A trustee is not required to 3435
exercise reasonable care of that nature under this division, and a 3436
trustee is not liable for resulting losses, when section 5815.25 3437
of the Revised Code is applicable or there is more than one other 3438
trustee and the other trustees act by majority vote. 3439

       (H) A dissenting trustee who joins in an action at the 3440
direction of the majority of the trustees and who notified any 3441
cotrustee of the dissent at or before the time of the action is 3442
not liable for the action. 3443

       Sec. 5807.04. (A) A vacancy in a trusteeship occurs under 3444
any of the following circumstances: 3445

       (1) A person designated as trustee rejects the trusteeship; 3446

       (2) A person designated as trustee cannot be identified or 3447
does not exist; 3448

       (3) A trustee resigns; 3449

       (4) A trustee is disqualified or removed; 3450

       (5) A trustee dies; 3451

       (6) A guardian of the estate or person is appointed for an 3452
individual serving as trustee. 3453

       (B) If one or more cotrustees remain in office, a vacancy in 3454
a trusteeship need not be filled. A vacancy in a trusteeship must 3455
be filled if the trust has no remaining trustee. 3456

       (C) A vacancy in a trusteeship of a noncharitable trust that 3457
is required to be filled must be filled in the following order of 3458
priority: 3459

       (1) By a person designated in the terms of the trust to act 3460
as successor trustee; 3461

       (2) By a person appointed by someone designated in the terms 3462
of the trust to appoint a successor trustee; 3463

       (3) By a person appointed by unanimous agreement of the 3464
qualified beneficiaries; 3465

       (4) By a person appointed by the court. 3466

       (D) A vacancy in a trusteeship of a charitable trust that is 3467
required to be filled must be filled in the following order of 3468
priority: 3469

       (1) By a person designated in the terms of the trust to act 3470
as successor trustee; 3471

       (2) By a person appointed by someone designated in the terms 3472
of the trust to appoint a successor trustee; 3473

       (3) By a person selected by the charitable organizations 3474
expressly designated to receive distributions under the terms of 3475
the trust; 3476

       (4) By a person appointed by the court. 3477

       (E) Whether or not a vacancy in a trusteeship exists or is 3478
required to be filled, the court may appoint an additional trustee 3479
or special fiduciary whenever the court considers the appointment 3480
necessary for the administration of the trust. 3481

       Sec. 5807.05. (A) A trustee may resign upon at least thirty 3482
days' notice to the qualified beneficiaries, the settlor, if 3483
living, and all cotrustees or with the approval of the court. 3484

       (B) In approving a resignation of a trustee, the court may 3485
issue orders and impose conditions reasonably necessary for the 3486
protection of the trust property. 3487

       (C) Any liability of a resigning trustee or of any sureties 3488
on the trustee's bond for acts or omissions of the trustee is not 3489
discharged or affected by the trustee's resignation. 3490

       Sec. 5807.06. (A) The settlor, a cotrustee, or a beneficiary 3491
may request the court to remove a trustee, or the court may remove 3492
a trustee on its own initiative. 3493

       (B) The court may remove a trustee for any of the following 3494
reasons: 3495

       (1) The trustee has committed a serious breach of trust; 3496

       (2) Lack of cooperation among cotrustees substantially 3497
impairs the administration of the trust; 3498

       (3) Because of unfitness, unwillingness, or persistent 3499
failure of the trustee to administer the trust effectively, the 3500
court determines that removal of the trustee best serves the 3501
interests of the beneficiaries. 3502

       (C) Pending a final decision on a request to remove a 3503
trustee, or in lieu of or in addition to removing a trustee, the 3504
court may order any appropriate relief under division (B) of 3505
section 5810.01 of the Revised Code that is necessary to protect 3506
the trust property or the interests of the beneficiaries. 3507

       Sec. 5807.07. (A) Unless a cotrustee remains in office or 3508
the court otherwise orders, and until the trust property is 3509
delivered to a successor trustee or other person entitled to it, a 3510
trustee who has resigned or been removed has the duties of a 3511
trustee and the powers necessary to protect the trust property. 3512

       (B) A trustee who has resigned or been removed shall proceed 3513
expeditiously to deliver the trust property within the trustee's 3514
possession to the cotrustee, successor trustee, or other person 3515
entitled to it. 3516

       Sec. 5807.08. (A) If the terms of a trust do not specify the 3517
trustee's compensation, a trustee is entitled to compensation that 3518
is reasonable under the circumstances. 3519

       (B) If the terms of a trust specify the trustee's 3520
compensation, the trustee is entitled to be compensated as 3521
specified, but the court may allow more or less compensation if 3522
the duties of the trustee are substantially different from those 3523
contemplated when the trust was created or the compensation 3524
specified by the terms of the trust would be unreasonably low or 3525
high. 3526

       Sec. 5807.09. (A) A trustee is entitled to be reimbursed out 3527
of the trust property, with interest as appropriate, for expenses 3528
that were properly incurred in the administration of the trust 3529
and, to the extent necessary to prevent unjust enrichment of the 3530
trust, expenses that were not properly incurred in the 3531
administration of the trust. 3532

       (B) An advance by the trustee of money for the protection of 3533
the trust gives rise to a lien against trust property to secure 3534
reimbursement with reasonable interest. 3535

       Sec. 5808.01. Upon acceptance of a trusteeship, the trustee 3536
shall administer the trust in good faith, in accordance with its 3537
terms and purposes and the interests of the beneficiaries, and in 3538
accordance with Chapters 5801. to 5811. of the Revised Code. 3539

       Sec. 5808.02. (A) A trustee shall administer the trust 3540
solely in the interests of the beneficiaries. 3541

       (B) Subject to the rights of persons dealing with or 3542
assisting the trustee as provided in section 5810.12 of the 3543
Revised Code, a sale, encumbrance, or other transaction involving 3544
the investment or management of trust property entered into by the 3545
trustee for the trustee's own personal account or that is 3546
otherwise affected by a conflict between the trustee's fiduciary 3547
and personal interests is voidable by a beneficiary affected by 3548
the transaction unless one of the following applies: 3549

       (1) The transaction was authorized by the terms of the trust 3550
or by other provisions of the Revised Code. 3551

       (2) The transaction was approved by the court. 3552

       (3) The beneficiary did not commence a judicial proceeding 3553
within the time allowed by section 5810.05 of the Revised Code. 3554

       (4) The beneficiary consented to the trustee's conduct, 3555
ratified the transaction, or released the trustee in compliance 3556
with section 5810.09 of the Revised Code. 3557

       (5) The transaction involves a contract entered into or claim 3558
acquired by the trustee before the person became or contemplated 3559
becoming trustee. 3560

       (C) A sale, encumbrance, or other transaction involving the 3561
investment or management of trust property is presumed to be 3562
affected by a conflict between personal and fiduciary interests if 3563
it is entered into by the trustee with one of the following: 3564

       (1) The trustee's spouse; 3565

       (2) The trustee's descendant, sibling, or parent or the 3566
spouse of a trustee's descendant, sibling, or parent; 3567

       (3) An agent or attorney of the trustee; 3568

       (4) A corporation or other person or enterprise in which the 3569
trustee, or a person that owns a significant interest in the 3570
trustee, has an interest that might affect the trustee's best 3571
judgment. 3572

       (D) A transaction not concerning trust property in which the 3573
trustee engages in the trustee's individual capacity involves a 3574
conflict between personal and fiduciary interests if the 3575
transaction concerns an opportunity properly belonging to the 3576
trust. 3577

       (E) An investment by a trustee that is permitted by other 3578
provisions of the Revised Code is not presumed to be affected by a 3579
conflict between personal and fiduciary interests if the 3580
investment otherwise complies with the prudent investor rule of 3581
Chapter 5809. of the Revised Code. 3582

       (F) In voting shares of stock or in exercising powers of 3583
control over similar interests in other forms of enterprise, the 3584
trustee shall act in the best interests of the beneficiaries. If 3585
the trust is the sole owner of a corporation or other form of 3586
enterprise, the trustee shall elect or appoint directors or other 3587
managers who will manage the corporation or enterprise in the best 3588
interests of the beneficiaries. 3589

       (G) This section does not preclude either of the following: 3590

       (1) Any transaction authorized by another section of the 3591
Revised Code; 3592

       (2) Unless the beneficiaries establish that it is unfair, any 3593
of the following transactions: 3594

       (a) An agreement between a trustee and a beneficiary relating 3595
to the appointment or compensation of the trustee; 3596

       (b) Payment of reasonable compensation to the trustee; 3597

       (c) A transaction between a trust and another trust, 3598
decedent's estate, or guardianship of which the trustee is a 3599
fiduciary or in which a beneficiary has an interest; 3600

       (d) A deposit of trust money in a regulated 3601
financial-services institution that is an affiliate of the 3602
trustee; 3603

       (e) An advance by the trustee of money for the protection of 3604
the trust. 3605

       (H) The court may appoint a special fiduciary to make a 3606
decision with respect to any proposed transaction that might 3607
violate this section if entered into by the trustee. 3608

       ~~Sec. 1339.55.~~        Sec. 5808.03. ~~(A) A trustee shall invest and manage~~ 3609
~~the trust assets solely in the interest of the beneficiaries.~~ 3610

       ~~(B)~~ If a trust has two or more beneficiaries, the trustee 3611
shall act impartially in investing ~~and~~, managing, and distributing 3612
the trust ~~assets taking into account any differing~~property, 3613
giving due regard to the beneficiaries' respective interests of 3614
~~the beneficiaries~~. 3615

       Sec. 5808.04. A trustee shall administer the trust as a 3616
prudent person would and shall consider the purposes, terms, 3617
distributional requirements, and other circumstances of the trust. 3618
In satisfying this standard, the trustee shall exercise reasonable 3619
care, skill, and caution. 3620

       ~~Sec. 1339.57.~~        Sec. 5808.05. Except as otherwise permitted by law, 3621
in ~~investing and managing~~administering a trust ~~assets~~, a trustee 3622
may ~~only~~ incur only costs that are appropriate and reasonable in 3623
relation to the assets, the purposes of the trust, and the skills 3624
of the trustee. 3625

       Sec. 5808.06. A trustee who has special skills or expertise, 3626
or is named trustee in reliance upon the trustee's representation 3627
that the trustee has special skills or expertise, shall use those 3628
special skills or expertise. 3629

       ~~Sec. 1339.59.~~        Sec. 5808.07. (A) A trustee may delegate ~~investment~~ 3630
duties and ~~management functions of a trust~~powers that a prudent 3631
trustee having comparable skills could properly delegate under the 3632
circumstances. In accordance with this division, a trustee shall 3633
exercise reasonable care, skill, and caution in doing all of the 3634
following: 3635

       (1) Selecting an agent, cotrustee, or other fiduciary to whom 3636
the delegation is made; 3637

       (2) Establishing the scope and terms of the delegation 3638
consistent with the purposes and terms of the trust; 3639

       (3) Periodically reviewing the agent's, cotrustee's, or other 3640
fiduciary's actions in order to monitor the agent's, cotrustee's, 3641
or other fiduciary's performance and compliance with the terms of 3642
the delegation. 3643

       (B) In performing ~~investment or management functions of~~ a 3644
~~trust that are~~ delegated ~~to an agent~~function, an agent, 3645
cotrustee, or other fiduciary owes a duty to the trust to exercise 3646
reasonable care to comply with the terms of the delegation. 3647

       (C) A trustee who complies with division (A) of this section 3648
is not liable to the beneficiaries of the trust or to the trust 3649
for the decisions or actions of the agent, cotrustee, or other 3650
fiduciary to whom the function was delegated. 3651

       (D) By accepting the delegation of ~~investment~~powers or 3652
~~management functions~~duties from the trustee of a trust that is 3653
subject to the laws of this state, an agent, cotrustee, or other 3654
fiduciary submits to the jurisdiction of this state. 3655

       Sec. 5808.08. (A) While a trust is revocable, the trustee 3656
may follow a direction of the settlor that is contrary to the 3657
terms of the trust. 3658

       (B) As provided in section 5815.25 of the Revised Code, a 3659
trustee is not liable for losses resulting from certain actions or 3660
failures to act when other persons are granted certain powers with 3661
respect to the administration of the trust. 3662

       (C) The terms of a trust may confer upon a trustee or other 3663
person a power to direct the modification or termination of the 3664
trust. 3665

       (D) A person other than a beneficiary who holds a power to 3666
direct is presumptively a fiduciary who, as a fiduciary, is 3667
required to act in good faith with regard to the purposes of the 3668
trust and the interests of the beneficiaries. The holder of a 3669
power to direct is liable for any loss that results from breach of 3670
a fiduciary duty. 3671

       Sec. 5808.09. A trustee shall take reasonable steps to take 3672
control of and protect the trust property. 3673

       Sec. 5808.10. (A) A trustee shall keep adequate records of 3674
the administration of the trust. 3675

       (B) A trustee shall keep trust property separate from the 3676
trustee's own property. 3677

       (C) Except as otherwise provided in division (D) of this 3678
section and in section 2131.21 of the Revised Code, a trustee not 3679
subject to federal or state banking regulation shall cause the 3680
trust property to be designated so that the interest of the trust, 3681
to the extent feasible, appears in records maintained by a party 3682
other than a trustee or beneficiary. 3683

       (D) If the trustee maintains records clearly indicating the 3684
respective interests, a trustee may invest as a whole the property 3685
of two or more separate trusts. 3686

       Sec. 5808.11. A trustee shall take reasonable steps to 3687
enforce claims of the trust and to defend claims against the 3688
trust. 3689

       Sec. 5808.12. A trustee shall take reasonable steps to 3690
collect trust property held by third persons. The responsibility 3691
of a successor trustee with respect to the administration of the 3692
trust by a prior trustee shall be governed by section 5815.24 of 3693
the Revised Code. 3694

       Sec. 5808.13. (A) A trustee shall keep the current 3695
beneficiaries of the trust reasonably informed about the 3696
administration of the trust and of the material facts necessary 3697
for them to protect their interests. Unless unreasonable under the 3698
circumstances, a trustee shall promptly respond to a beneficiary's 3699
request for information related to the administration of the 3700
trust. 3701

       (B) A trustee shall do all of the following: 3702

       (1) Upon the request of a beneficiary, promptly furnish to 3703
the beneficiary a copy of the trust instrument. If the settlor of 3704
a revocable trust that has become irrevocable has completely 3705
restated the terms of the trust, the trust instrument furnished by 3706
the trustee shall be the restated trust instrument, including any 3707
amendments to the restated trust instrument. Nothing in division 3708
(B)(1) of this section limits the ability of a beneficiary to 3709
obtain a copy of the original trust instrument, any other 3710
restatements of the original trust instrument, or amendments to 3711
the original trust instrument and any other restatements of the 3712
original trust instrument in a judicial proceeding with respect to 3713
the trust. 3714

       (2) Within sixty days after accepting a trusteeship, notify 3715
the current beneficiaries of the acceptance and of the trustee's 3716
name, address, and telephone number; 3717

       (3) Within sixty days after the date the trustee acquires 3718
knowledge of the creation of an irrevocable trust, or the date the 3719
trustee acquires knowledge that a formerly revocable trust has 3720
become irrevocable, whether by the death of the settlor or 3721
otherwise, notify the current beneficiaries of the trust's 3722
existence, of the identity of the settlor or settlors, of the 3723
right to request a copy of the trust instrument, and of the right 3724
to a trustee's report as provided in division (C) of this section; 3725

       (4) Notify the current beneficiaries in advance of any change 3726
in the method or rate of the trustee's compensation. 3727

       (C) A trustee shall send to the current beneficiaries, and to 3728
other beneficiaries who request it, at least annually and at the 3729
termination of the trust, a report of the trust property, 3730
liabilities, receipts, and disbursements, including the source and 3731
amount of the trustee's compensation, a listing of the trust 3732
assets, and, if feasible, the trust assets' respective market 3733
values. Upon a vacancy in a trusteeship, unless a cotrustee 3734
remains in office, a report for the period during which the former 3735
trustee served must be sent to the current beneficiaries by the 3736
former trustee. A personal representative or guardian may send the 3737
current beneficiaries a report on behalf of a deceased or 3738
incapacitated trustee. 3739

       (D) A beneficiary may waive the right to a trustee's report 3740
or other information otherwise required to be furnished under this 3741
section. A beneficiary, with respect to future reports and other 3742
information, may withdraw a waiver previously given. 3743

       (E) The trustee may provide information and reports to 3744
beneficiaries to whom the provided information and reports are not 3745
required to be provided under this section. 3746

       (F) Divisions (B)(2) and (3) of this section apply only to a 3747
trustee who accepts a trusteeship on or after the effective date 3748
of this section, to an irrevocable trust created on or after the 3749
effective date of this section, and to a revocable trust that 3750
becomes irrevocable on or after the effective date of this 3751
section. 3752

       Sec. 5808.14. (A) The judicial standard of review for 3753
discretionary trusts is that the trustee shall exercise a 3754
discretionary power reasonably, in good faith, and in accordance 3755
with the terms and purposes of the trust and the interests of the 3756
beneficiaries, except that a reasonableness standard shall not be 3757
applied to the exercise of discretion by the trustee of a wholly 3758
discretionary trust. The greater the grant of discretion by the 3759
settlor to the trustee, the broader the range of permissible 3760
conduct by the trustee in exercising it. 3761

       (B) Subject to division (D) of this section, and unless the 3762
terms of the trust expressly indicate that a rule in this division 3763
does not apply: 3764

       (1) A person other than a settlor who is a beneficiary and 3765
trustee of a trust that confers on the trustee a power to make 3766
discretionary distributions to or for the trustee's personal 3767
benefit may exercise the power only in accordance with an 3768
ascertainable standard. 3769

       (2) A trustee may not exercise a power to make discretionary 3770
distributions to satisfy a legal obligation of support that the 3771
trustee personally owes another person. 3772

       (C) A power whose exercise is limited or prohibited by 3773
division (B) of this section may be exercised by a majority of the 3774
remaining trustees whose exercise of the power is not so limited 3775
or prohibited. If the power of all trustees is so limited or 3776
prohibited, the court may appoint a special fiduciary with 3777
authority to exercise the power. 3778

       (D) Division (B) of this section does not apply to any of the 3779
following: 3780

       (1) A power held by the settlor's spouse who is the trustee 3781
of a trust for which a marital deduction, as defined in section 3782
2056(b)(5) or 2523(e) of the Internal Revenue Code, was previously 3783
allowed; 3784

       (2) Any trust during any period that the trust may be revoked 3785
or amended by its settlor; 3786

       (3) A trust if contributions to the trust qualify for the 3787
annual exclusion under section 2503(c) of the Internal Revenue 3788
Code. 3789

       Sec. 5808.15. (A) A trustee, without authorization by the 3790
court, may exercise powers conferred by the terms of the trust 3791
and, except as limited by the terms of the trust, may exercise all 3792
of the following powers: 3793

       (1) All powers over the trust property that an unmarried 3794
competent owner has over individually owned property; 3795

       (2) Any other powers appropriate to achieve the proper 3796
investment, management, and distribution of the trust property; 3797

       (3) Any other powers conferred by Chapters 5801. to 5811. of 3798
the Revised Code. 3799

       (B) The exercise of a power is subject to the fiduciary 3800
duties prescribed by Chapter 5808. of the Revised Code. 3801

       Sec. 5808.16. Without limiting the authority conferred by 3802
section 5808.15 of the Revised Code, a trustee may do all of the 3803
following: 3804

       (A) Collect trust property and accept or reject additions to 3805
the trust property from a settlor or any other person; 3806

       (B) Acquire or sell property, for cash or on credit, at 3807
public or private sale; 3808

       (C) Exchange, partition, or otherwise change the character of 3809
trust property; 3810

       (D) Deposit trust money in an account in a regulated 3811
financial-service institution; 3812

       (E) Borrow money, with or without security, and mortgage or 3813
pledge trust property for a period within or extending beyond the 3814
duration of the trust; 3815

       (F) With respect to an interest in a proprietorship, 3816
partnership, limited liability company, business trust, 3817
corporation, or other form of business or enterprise, continue the 3818
business or other enterprise and take any action that may be taken 3819
by shareholders, members, or property owners, including merging, 3820
dissolving, or otherwise changing the form of business 3821
organization or contributing additional capital; 3822

       (G) With respect to stocks or other securities, exercise the 3823
rights of an absolute owner, including the right to do any of the 3824
following: 3825

       (1) Vote, or give proxies to vote, with or without power of 3826
substitution, or enter into or continue a voting trust agreement; 3827

       (2) Hold a security in the name of a nominee or in other form 3828
without disclosure of the trust so that title may pass by 3829
delivery; 3830

       (3) Pay calls, assessments, and other sums chargeable or 3831
accruing against the securities and sell or exercise stock 3832
subscription or conversion rights; 3833

       (4) Deposit the securities with a depositary or other 3834
regulated financial-service institution. 3835

       (H) With respect to an interest in real property, construct, 3836
or make ordinary or extraordinary repairs to, alterations to, or 3837
improvements in, buildings or other structures, demolish 3838
improvements, raze existing or erect new party walls or buildings, 3839
subdivide or develop land, dedicate land to public use or grant 3840
public or private easements, and make or vacate plats and adjust 3841
boundaries; 3842

       (I) Enter into a lease for any purpose as lessor or lessee, 3843
including a lease or other arrangement for exploration and removal 3844
of natural resources, with or without the option to purchase or 3845
renew, for a period within or extending beyond the duration of the 3846
trust; 3847

       (J) Grant an option involving a sale, lease, or other 3848
disposition of trust property or acquire an option for the 3849
acquisition of property, including an option exercisable beyond 3850
the duration of the trust, and exercise an option so acquired; 3851

       (K) Insure the property of the trust against damage or loss 3852
and insure the trustee, the trustee's agents, and beneficiaries 3853
against liability arising from the administration of the trust; 3854

       (L) Abandon or decline to administer property of no value or 3855
of insufficient value to justify its collection or continued 3856
administration; 3857

       (M) With respect to possible liability for violation of 3858
environmental law, do any of the following: 3859

       (1) Inspect or investigate property the trustee holds or has 3860
been asked to hold, or property owned or operated by an 3861
organization in which the trustee holds or has been asked to hold 3862
an interest, for the purpose of determining the application of 3863
environmental law with respect to the property; 3864

       (2) Take action to prevent, abate, or otherwise remedy any 3865
actual or potential violation of any environmental law affecting 3866
property held directly or indirectly by the trustee, whether taken 3867
before or after the assertion of a claim or the initiation of 3868
governmental enforcement; 3869

       (3) Decline to accept property into trust or disclaim any 3870
power with respect to property that is or may be burdened with 3871
liability for violation of environmental law; 3872

       (4) Compromise claims against the trust that may be asserted 3873
for an alleged violation of environmental law; 3874

       (5) Pay the expense of any inspection, review, abatement, or 3875
remedial action to comply with environmental law. 3876

       (N) Pay or contest any claim, settle a claim by or against 3877
the trust, and release, in whole or in part, a claim belonging to 3878
the trust; 3879

       (O) Pay taxes, assessments, compensation of the trustee and 3880
of employees and agents of the trust, and other expenses incurred 3881
in the administration of the trust; 3882

       (P) Exercise elections with respect to federal, state, and 3883
local taxes; 3884

       (Q) Select a mode of payment under any employee benefit or 3885
retirement plan, annuity, or life insurance policy payable to the 3886
trustee, exercise rights under any employee benefit or retirement 3887
plan, annuity, or life insurance policy payable to the trustee, 3888
including the right to indemnification for expenses and against 3889
liabilities, and take appropriate action to collect the proceeds; 3890

       (R) Make loans out of trust property, including loans to a 3891
beneficiary on terms and conditions the trustee considers to be 3892
fair and reasonable under the circumstances, and the trustee has a 3893
lien on future distributions for repayment of those loans; 3894

       (S) Pledge the property of a revocable trust to guarantee 3895
loans made by others to the settlor of the revocable trust, or, if 3896
the settlor so directs, to guarantee loans made by others to a 3897
third party; 3898

       (T) Appoint a trustee to act in another jurisdiction with 3899
respect to trust property located in the other jurisdiction, 3900
confer upon the appointed trustee all of the powers and duties of 3901
the appointing trustee, require that the appointed trustee furnish 3902
security, and remove any trustee so appointed; 3903

       (U) Pay an amount distributable to a beneficiary who is under 3904
a legal disability or who the trustee reasonably believes is 3905
incapacitated, by paying it directly to the beneficiary or 3906
applying it for the beneficiary's benefit, or by doing any of the 3907
following: 3908

       (1) Paying it to the beneficiary's guardian of the estate, 3909
or, if the beneficiary does not have a guardian of the estate, the 3910
beneficiary's guardian of the person; 3911

       (2) Paying it to the beneficiary's custodian under sections 3912
5814.01 to 5814.09 of the Revised Code and, for that purpose, 3913
creating a custodianship; 3914

       (3) If the trustee does not know of a guardian of the person 3915
or estate, or custodian, paying it to an adult relative or other 3916
person having legal or physical care or custody of the 3917
beneficiary, to be expended on the beneficiary's behalf; 3918

       (4) Managing it as a separate fund on the beneficiary's 3919
behalf, subject to the beneficiary's continuing right to withdraw 3920
the distribution. 3921

       (V) On distribution of trust property or the division or 3922
termination of a trust, make distributions in divided or undivided 3923
interests, allocate particular assets in proportionate or 3924
disproportionate shares, value the trust property for those 3925
purposes, and adjust for resulting differences in valuation; 3926

       (W) Resolve a dispute concerning the interpretation of the 3927
trust or its administration by mediation, arbitration, or other 3928
procedure for alternative dispute resolution; 3929

       (X) Prosecute or defend an action, claim, or judicial 3930
proceeding in any jurisdiction to protect trust property and the 3931
trustee in the performance of the trustee's duties; 3932

       (Y) Sign and deliver contracts and other instruments that are 3933
useful to achieve or facilitate the exercise of the trustee's 3934
powers; 3935

       (Z) On termination of the trust, exercise the powers 3936
appropriate to wind up the administration of the trust and 3937
distribute the trust property to the persons entitled to it. 3938

       Sec. 5808.17. (A) Upon termination or partial termination of 3939
a trust, the trustee may send to the beneficiaries a proposal for 3940
distribution. The right of any beneficiary to object to the 3941
proposed distribution terminates if the beneficiary does not 3942
notify the trustee of an objection within thirty days after the 3943
proposal was sent but only if the proposal informed the 3944
beneficiary of the right to object and of the time allowed for 3945
objection. 3946

       (B) Upon the occurrence of an event terminating or partially 3947
terminating a trust, the trustee shall proceed expeditiously to 3948
distribute the trust property to the persons entitled to it, 3949
subject to the right of the trustee to retain a reasonable reserve 3950
for the payment of debts, expenses, and taxes. 3951

       (C) A release by a beneficiary of a trustee from liability 3952
for breach of trust is invalid to the extent that it was induced 3953
by improper conduct of the trustee or that the beneficiary, at the 3954
time of the release, did not know of the beneficiary's rights or 3955
of the material facts relating to the breach. 3956

       ~~Sec. 1339.52.~~        Sec. 5809.01. (A)(1) As used in the Revised Code, 3957
the "Ohio Uniform Prudent Investor Act" means sections 5809.01 to 3958
5809.08, 5808.03, 5808.05, and 5808.06, division (A) of section 3959
5808.02, and division (B) of section 5808.07 of the Revised Code, 3960
and those sections may be cited as the "Ohio Uniform Prudent 3961
Investor Act." 3962

       (2) As used in ~~sections 1339.52 to 1339.61 of the Revised~~ 3963
~~Code~~the Ohio Uniform Prudent Investor Act, "trustee" means a 3964
trustee under any testamentary, inter vivos, or other trust. 3965

       (B) Except as provided in division (C) or (D) of this 3966
section, a trustee who invests and manages trust assets under 3967
~~sections 1339.52 to 1339.61 of the Revised Code~~the Ohio Uniform 3968
Prudent Investor Act owes a duty to the beneficiaries of the trust 3969
to comply with ~~sections 1339.52 to 1339.61 of the Revised Code~~the 3970
Ohio Uniform Prudent Investor Act. 3971

       (C) ~~Sections 1339.52 to 1339.61 of the Revised Code~~The Ohio 3972
Uniform Prudent Investor Act may be expanded, restricted, 3973
eliminated, or otherwise altered, without express reference to 3974
~~these sections~~ by the instrument creating a trust to the Ohio 3975
Uniform Prudent Investor Act or any section of the Revised Code 3976
that is part of that act. 3977

       (D) A trustee is not liable to a beneficiary of a trust to 3978
the extent the trustee acted in reasonable reliance on the 3979
provisions of the trust. 3980

       ~~Sec. 1339.53.~~        Sec. 5809.02. (A) A trustee shall invest and manage 3981
trust assets as a prudent investor would, by considering the 3982
purposes, terms, distribution requirements, and other 3983
circumstances of the trust. In satisfying this requirement, the 3984
trustee shall exercise reasonable care, skill, and caution. 3985

       (B) A trustee shall make a reasonable effort to verify facts 3986
relevant to the investment and management of trust assets. 3987

       (C) ~~A trustee who has special skills or expertise, or is~~ 3988
~~named trustee in reliance upon the trustee's representation that~~ 3989
~~the trustee has special skills or expertise, has a duty to use~~ 3990
~~those special skills or expertise.~~ 3991

       ~~(D)~~ A trustee's investment and management decisions 3992
respecting individual trust assets shall not be evaluated in 3993
isolation but in the context of the trust portfolio as a whole and 3994
as part of an overall investment strategy having risk and return 3995
objectives reasonably suited to the trust. 3996

       ~~(E)~~(D) Among circumstances that a trustee shall consider in 3997
investing and managing trust assets are the following as are 3998
relevant to the trust or its beneficiaries: 3999

       (1) The general economic conditions; 4000

       (2) The possible effect of inflation or deflation; 4001

       (3) The expected tax consequences of investment decisions or 4002
strategies; 4003

       (4) The role that each investment or course of action plays 4004
within the overall trust portfolio, which may include financial 4005
assets, interests in closely held enterprises, tangible and 4006
intangible personal property, and real property; 4007

       (5) The expected total return from income and appreciation of 4008
capital; 4009

       (6) Other resources of the beneficiaries; 4010

       (7) Needs for liquidity, regularity of income, and 4011
preservation or appreciation of capital; 4012

       (8) An asset's special relationship or special value, if any, 4013
to the purposes of the trust or to one or more of the 4014
beneficiaries. 4015

       ~~Sec. 1339.54.~~        Sec. 5809.03. (A) A trustee may invest in any kind 4016
of property or type of investment provided that the investment is 4017
consistent with the requirements and standards of ~~sections 1339.52~~ 4018
~~to 1339.61 of the Revised Code~~the Ohio Uniform Prudent Investor 4019
Act. 4020

       (B) A trustee shall diversify the investments of a trust 4021
unless the trustee reasonably determines that, because of special 4022
circumstances, the purposes of the trust are better served without 4023
diversifying. 4024

       ~~Sec. 1339.56.~~        Sec. 5809.04. Within a reasonable time after 4025
accepting a trusteeship or receiving trust assets, a trustee shall 4026
review the trust assets and make and implement decisions 4027
concerning the retention and disposition of trust assets in order 4028
to bring the trust portfolio into compliance with the purposes, 4029
terms, distribution requirements, and other circumstances of the 4030
trust, and in order to comply with the requirements and standards 4031
of ~~sections 1339.52 to 1339.61 of the Revised Code~~the Ohio 4032
Uniform Prudent Investor Act. 4033

       ~~Sec. 1339.58.~~        Sec. 5809.05. Compliance with ~~sections 1339.52 to~~ 4034
~~1339.61 of the Revised Code~~the Ohio Uniform Prudent Investor Act 4035
shall be determined in light of the facts and circumstances 4036
existing at the time of a trustee's decision or action and not by 4037
hindsight. 4038

       Sec. 5809.06. (A) A trustee may delegate investment and 4039
management functions of a trust that a prudent trustee having 4040
comparable skills could properly delegate under the circumstances. 4041
A trustee that exercises its delegation authority under this 4042
division shall comply with the requirements of division (A) of 4043
section 5808.07 of the Revised Code. 4044

       (B) In performing investment or management functions of a 4045
trust that are delegated to an agent, an agent owes a duty to the 4046
trust to exercise reasonable care to comply with the terms of the 4047
delegation. 4048

       (C) A trustee who delegates a function to an agent in 4049
compliance with division (A) of this section is not liable to the 4050
beneficiaries of the trust or to the trust for the decisions or 4051
actions of the agent to whom the function was delegated. 4052

       (D) By accepting the delegation of investment or management 4053
functions of a trust that is subject to the laws of this state, an 4054
agent submits to the jurisdiction of this state. 4055

       ~~Sec. 1339.60.~~        Sec. 5809.07. The following terms or comparable 4056
language in the provisions of a trust, unless otherwise limited or 4057
modified, authorizes any investment or strategy permitted by 4058
~~sections 1339.52 to 1339.61 of the Revised Code~~the Ohio Uniform 4059
Prudent Investor Act: "investments permissible by law for 4060
investment of trust funds"; "legal investments"; "authorized 4061
investments"; "using the judgment and care under the circumstances 4062
then prevailing that persons of prudence, discretion, and 4063
intelligence exercise in the management of their own affairs, not 4064
in regard to speculation but in regard to the permanent 4065
disposition of their funds considering the probable income as well 4066
as the probable safety of their capital"; "prudent man rule"; 4067
"prudent trustee rule"; "prudent person rule"; and "prudent 4068
investor rule." 4069

       ~~Sec. 1339.61.~~        Sec. 5809.08. (A) ~~Sections 1339.52 to 1339.61 of the~~ 4070
~~Revised Code~~The Ohio Uniform Prudent Investor Act shall be 4071
applied and construed to effectuate the general purpose to make 4072
uniform the law with respect to the subject of these sections 4073
among the states enacting it. ~~These sections may be cited as the~~ 4074
~~"Ohio Uniform Prudent Investor Act."~~ 4075

       (B) ~~Sections 1339.52 to 1339.61 of the Revised Code apply~~The 4076
Ohio Uniform Prudent Investor Act applies to trusts existing on or 4077
created after ~~the effective date of these sections~~March 22, 1999. 4078
As applied to trusts existing on ~~the effective date of these~~ 4079
~~sections~~March 22, 1999, ~~sections 1339.52 to 1339.61 of~~ the 4080
~~Revised Code govern~~Ohio Uniform Prudent Investor Act governs only 4081
decisions or actions occurring after ~~the effective date of these~~ 4082
~~sections~~March 22, 1999. 4083

       (C) The temporary investment of cash or funds pursuant to 4084
section ~~1339.44~~5815.26 or 2109.372 of the Revised Code shall be 4085
considered a prudent investment in compliance with ~~sections~~ 4086
~~1339.52 to 1339.61 of the Revised Code~~the Ohio Uniform Prudent 4087
Investor Act. 4088

       Sec. 5810.01. (A) A violation by a trustee of a duty the 4089
trustee owes to a beneficiary is a breach of trust. 4090

       (B) To remedy a breach of trust that has occurred or may 4091
occur, the court may do any of the following: 4092

       (1) Compel the trustee to perform the trustee's duties; 4093

       (2) Enjoin the trustee from committing a breach of trust; 4094

       (3) Compel the trustee to redress a breach of trust by paying 4095
money, restoring property, or other means; 4096

       (4) Order a trustee to account; 4097

       (5) Appoint a special fiduciary to take possession of the 4098
trust property and administer the trust; 4099

       (6) Suspend the trustee; 4100

       (7) Remove the trustee as provided in section 5807.06 of the 4101
Revised Code; 4102

       (8) Reduce or deny compensation to the trustee; 4103

       (9) Subject to section 5810.12 of the Revised Code, void an 4104
act of the trustee, impose a lien or a constructive trust on trust 4105
property, or trace trust property wrongfully disposed of and 4106
recover the property or its proceeds; 4107

       (10) Order any other appropriate relief. 4108

       Sec. 5810.02. (A) A trustee who commits a breach of trust is 4109
liable to the beneficiaries affected for the greater of the 4110
following: 4111

       (1) The amount required to restore the value of the trust 4112
property and trust distributions to what they would have been had 4113
the breach not occurred; 4114

       (2) The profit the trustee made by reason of the breach. 4115

       (B) Except as otherwise provided in this division, if more 4116
than one trustee is liable to the beneficiaries for a breach of 4117
trust, a trustee is entitled to contribution from the other 4118
trustee or trustees. A trustee is not entitled to contribution if 4119
the trustee was substantially more at fault than another trustee 4120
or if the trustee committed the breach of trust in bad faith or 4121
with reckless indifference to the purposes of the trust or the 4122
interests of the beneficiaries. A trustee who received a benefit 4123
from the breach of trust is not entitled to contribution from 4124
another trustee to the extent of the benefit received. 4125

       Sec. 5810.03. (A) Absent a breach of trust, a trustee is not 4126
accountable to a beneficiary for any profit made by the trustee 4127
arising from the administration of the trust. 4128

       (B) Absent a breach of trust, a trustee is not liable to a 4129
beneficiary for a loss or depreciation in the value of trust 4130
property or for not having made a profit. 4131

       Sec. 5810.04. In a judicial proceeding involving the 4132
administration of a trust, including a trust that contains a 4133
spendthrift provision, the court, as justice and equity may 4134
require, may award costs, expenses, and reasonable attorney's fees 4135
to any party, to be paid by another party, from the trust that is 4136
the subject of the controversy, or from a party's interest in the 4137
trust that is the subject of the controversy. 4138

       Sec. 5810.05. (A) A beneficiary may not commence a 4139
proceeding against a trustee for breach of trust more than two 4140
years after the date the beneficiary, a representative of the 4141
beneficiary, or a beneficiary surrogate is sent a report that 4142
adequately discloses the existence of a potential claim for breach 4143
of trust and informs the beneficiary, the representative of the 4144
beneficiary, or the beneficiary surrogate of the time allowed for 4145
commencing a proceeding against a trustee. 4146

       (B) A report adequately discloses the existence of a 4147
potential claim for breach of trust if it provides sufficient 4148
information so that the beneficiary or the representative of the 4149
beneficiary knows of the potential claim or should know of the 4150
existence of the potential claim. 4151

       (C) If division (A) of this section does not apply, 4152
notwithstanding section 2305.09 of the Revised Code, a judicial 4153
proceeding by a beneficiary against a trustee for breach of trust 4154
must be commenced within four years after the first of the 4155
following to occur: 4156

       (1) The removal, resignation, or death of the trustee; 4157

       (2) The termination of the beneficiary's interest in the 4158
trust; 4159

       (3) The termination of the trust; 4160

       (4) The time at which the beneficiary knew or should have 4161
known of the breach of trust. 4162

       Sec. 5810.06. A trustee who acts in reasonable reliance on 4163
the terms of the trust as expressed in the trust instrument is not 4164
liable to a beneficiary for a breach of trust to the extent the 4165
breach resulted from the reliance. 4166

       Sec. 5810.07. If the happening of an event, including 4167
marriage, divorce, performance of educational requirements, or 4168
death, affects the administration or distribution of a trust, a 4169
trustee who has exercised reasonable care to ascertain the 4170
happening of the event is not liable for a loss resulting from the 4171
trustee's lack of knowledge. 4172

       Sec. 5810.08. A term of a trust relieving a trustee of 4173
liability for breach of trust is unenforceable to the extent that 4174
it relieves the trustee of liability for breach of trust committed 4175
in bad faith or with reckless indifference to the purposes of the 4176
trust or the interests of the beneficiaries or was inserted as the 4177
result of an abuse by the trustee of a fiduciary or confidential 4178
relationship to the settlor. 4179

       Sec. 5810.09. A trustee is not liable to a beneficiary for 4180
breach of trust if the beneficiary consented to the conduct 4181
constituting the breach, released the trustee from liability for 4182
the breach, or ratified the transaction constituting the breach, 4183
unless the consent, release, or ratification of the beneficiary 4184
was induced by improper conduct of the trustee or, at the time of 4185
the consent, release, or ratification, the beneficiary did not 4186
know of the beneficiary's rights or of the material facts relating 4187
to the breach. 4188

       Sec. 5810.10. (A) Except as otherwise provided in the 4189
contract, for contracts entered into on or after March 22, 1984, a 4190
trustee is not personally liable on a contract properly entered 4191
into in the trustee's fiduciary capacity in the course of 4192
administering the trust if the trustee in the contract disclosed 4193
the fiduciary capacity. The words "trustee," "as trustee," 4194
"fiduciary," or "as fiduciary," or other words that indicate one's 4195
trustee capacity, following the name or signature of a trustee are 4196
sufficient disclosure for purposes of this division. 4197

       (B) A trustee is personally liable for torts committed in the 4198
course of administering a trust or for obligations arising from 4199
ownership or control of trust property, including liability for 4200
violation of environmental law, only if the trustee is personally 4201
at fault. 4202

       (C) A claim based on a contract entered into by a trustee in 4203
the trustee's fiduciary capacity, on an obligation arising from 4204
ownership or control of trust property, or on a tort committed in 4205
the course of administering a trust may be asserted in a judicial 4206
proceeding against the trustee in the trustee's fiduciary 4207
capacity, whether or not the trustee is personally liable for the 4208
claim. 4209

       Sec. 5810.11. (A)(1) Except as otherwise provided in 4210
division (C) of this section or unless personal liability is 4211
imposed in the contract, a trustee who holds an interest as a 4212
general partner in a general or limited partnership is not 4213
personally liable on a contract entered into by the partnership 4214
after the trust's acquisition of the interest if the fiduciary 4215
capacity was disclosed. A partnership certificate that is filed 4216
pursuant to Chapter 1777. or another chapter of the Revised Code 4217
and that indicates that a trustee holds a general partnership 4218
interest in a fiduciary capacity by the use following the name or 4219
signature of the trustee of the words "as trustee" or other words 4220
that indicate the trustee's fiduciary capacity constitutes a 4221
sufficient disclosure for purposes of this division. 4222

       (2) If a partnership certificate is not required to be filed 4223
pursuant to Chapter 1777. or another chapter of the Revised Code, 4224
a sufficient disclosure for purposes of division (A) of this 4225
section can be made by a trustee if a certificate that is filed 4226
with the recorder of the county in which the partnership's 4227
principal office or place of business is situated and with the 4228
recorder of each county in which the partnership owns real estate 4229
satisfies all of the following requirements: 4230

       (a) The certificate states in full the names of all persons 4231
holding interests in the partnership and their places of 4232
residence. 4233

       (b) The certificate is signed by all persons who are general 4234
partners in the partnership and is acknowledged by a person 4235
authorized to take acknowledgements of deeds. 4236

       (c) The certificate uses the words "trustee under the (will 4237
or trust) of (name of decedent or settlor)," or other words that 4238
indicate the trustee's fiduciary capacity, following the trustee's 4239
name or signature. 4240

       (3) A contract or other written instrument that is delivered 4241
to a party that contracts with the partnership in which a trustee 4242
holds a general partnership interest in a fiduciary capacity and 4243
that indicates that the trustee so holds the interest constitutes 4244
a disclosure for purposes of division (A)(1) of this section with 4245
respect to transactions between the party and the partnership. If 4246
a disclosure has been made by a certificate in accordance with 4247
division (A) of this section, a disclosure for purposes of 4248
division (A) of this section with respect to such transactions 4249
exists regardless of whether a contract or other instrument 4250
indicates the trustee holds the general partnership interest in a 4251
fiduciary capacity. 4252

       (B) Except as otherwise provided in division (C) of this 4253
section, a trustee who holds an interest as a general partner in a 4254
general or limited partnership is not personally liable for torts 4255
committed by the partnership or for obligations arising from 4256
ownership or control of the interest unless the trustee is 4257
personally at fault. 4258

       (C) The immunity provided by this section does not apply if 4259
an interest in the partnership is held by the trustee in a 4260
capacity other than that of trustee or is held by the trustee's 4261
spouse or one or more of the trustee's descendants, siblings, or 4262
parents, or the spouse of any of them. 4263

       (D) If the trustee of a revocable trust holds an interest as 4264
a general partner in a general or limited partnership, the settlor 4265
is personally liable for contracts and other obligations of the 4266
partnership as if the settlor were a general partner. 4267

       Sec. 5810.12. (A) A person other than a beneficiary who in 4268
good faith assists a trustee, or who in good faith and for value 4269
deals with a trustee, without knowledge that the trustee is 4270
exceeding or improperly exercising the trustee's powers is 4271
protected from liability as if the trustee properly exercised the 4272
power. 4273

       (B) A person other than a beneficiary who in good faith deals 4274
with a trustee is not required to inquire into the extent of the 4275
trustee's powers or the propriety of their exercise. 4276

       (C) A person who in good faith delivers assets to a trustee 4277
is not required to ensure their proper application. 4278

       (D) A person other than a beneficiary who in good faith 4279
assists a former trustee, or who in good faith and for value deals 4280
with a former trustee, without knowledge that the trusteeship has 4281
terminated is protected from liability as if the former trustee 4282
were still a trustee. 4283

       (E) Comparable protective provisions of other laws relating 4284
to commercial transactions or transfer of securities by 4285
fiduciaries prevail over the protection provided by this section. 4286

       Sec. 5810.13. (A) Instead of furnishing a copy of the trust 4287
instrument to a person other than a beneficiary, the trustee may 4288
furnish to the person a certification of trust containing all of 4289
the following information: 4290

       (1) A statement that the trust exists and the date the trust 4291
instrument was executed; 4292

       (2) The identity of the settlor; 4293

       (3) The identity and address of the currently acting trustee; 4294

       (4) The powers of the trustee; 4295

       (5) The revocability or irrevocability of the trust and the 4296
identity of any person holding a power to revoke the trust; 4297

       (6) The authority of cotrustees to sign or otherwise 4298
authenticate and whether all or less than all are required in 4299
order to exercise powers of the trustee; 4300

       (7) The trust's taxpayer identification number; 4301

       (8) The manner of taking title to trust property. 4302

       (B) Any trustee may sign or otherwise authenticate a 4303
certification of trust. 4304

       (C) A certification of trust shall state that the trust has 4305
not been revoked, modified, or amended in any manner that would 4306
cause the representations contained in the certification of trust 4307
to be incorrect. 4308

       (D) A certification of trust is not required to contain the 4309
dispositive terms of a trust. 4310

       (E) A recipient of a certification of trust may require the 4311
trustee to furnish copies of those excerpts from the original 4312
trust instrument and later amendments that designate the trustee 4313
and confer upon the trustee the power to act in the pending 4314
transaction. 4315

       (F) A person who acts in reliance upon a certification of 4316
trust without knowledge that the representations contained in the 4317
certification are incorrect is not liable to any person for so 4318
acting and may assume without inquiry the existence of the facts 4319
contained in the certification. Knowledge of the terms of the 4320
trust may not be inferred solely from the fact that a copy of all 4321
or part of the trust instrument is held by the person relying upon 4322
the certification. 4323

       (G) A person who in good faith enters into a transaction in 4324
reliance upon a certification of trust may enforce the transaction 4325
against the trust property as if the representations contained in 4326
the certification were correct. 4327

       (H) A person making a demand for the trust instrument in 4328
addition to a certification of trust or excerpts is liable for 4329
damages if the court determines that the person did not act in 4330
good faith in demanding the trust instrument. 4331

       (I) This section does not limit the right of a person to 4332
obtain a copy of the trust instrument in a judicial proceeding 4333
concerning the trust. 4334

       Sec. 5811.01. In applying and construing Chapters 5801. to 4335
5811. of the Revised Code, a court may consider the need to 4336
promote uniformity of the law with respect to the subject matter 4337
of those chapters among states that enact the uniform trust code. 4338

       Sec. 5811.02. The provisions of Chapters 5801. to 5811. of 4339
the Revised Code governing the legal effect, validity, or 4340
enforceability of electronic records or electronic signatures and 4341
of contracts formed or performed with the use of electronic 4342
records or electronic signatures conform to the requirements of 4343
section 102 of the Electronic Signatures in Global and National 4344
Commerce Act, 15 U.S.C. 7002, 114 Stat. 467, and supersede, 4345
modify, and limit the requirements of the Electronic Signatures in 4346
Global and National Commerce Act. 4347

       Sec. 5811.03. (A) Except as otherwise provided in Chapters 4348
5801. to 5811. of the Revised Code, all of the following apply: 4349

       (1) Chapters 5801. to 5811. of the Revised Code apply to all 4350
trusts created before, on, or after their effective date. 4351

       (2) Chapters 5801. to 5811. of the Revised Code apply to all 4352
judicial proceedings concerning trusts commenced on or after their 4353
effective date. 4354

       (3) Chapters 5801. to 5811. of the Revised Code apply to 4355
judicial proceedings concerning trusts commenced before the 4356
effective date of those chapters unless the court finds that 4357
application of a particular provision of those chapters would 4358
substantially interfere with the effective conduct of the judicial 4359
proceedings or prejudice the rights of the parties, in which case 4360
the particular provision does not apply, and the superseded law 4361
applies. 4362

       (4) Any rule of construction or presumption provided in 4363
Chapters 5801. to 5811. of the Revised Code applies to trust 4364
instruments executed before the effective date of those chapters 4365
unless there is a clear indication of a contrary intent in the 4366
terms of the trust. 4367

       (5) Chapters 5801. to 5811. of the Revised Code do not affect 4368
an act done before the effective date of those chapters. 4369

       (B) If a right is acquired, extinguished, or barred upon the 4370
expiration of a prescribed period that has commenced to run under 4371
any other statute before the effective date of Chapters 5801. to 4372
5811. of the Revised Code, that statute continues to apply to the 4373
right even if it has been repealed or superseded. 4374

       ~~Sec. 1340.40.~~        Sec. 5812.01. As used in sections ~~1340.40~~5812.01 to 4375
~~1340.91~~5812.52 of the Revised Code: 4376

       (A) "Accounting period" means a calendar year unless another 4377
twelve-month period is selected by a fiduciary. "Accounting 4378
period" includes a portion of a calendar year or other 4379
twelve-month period that begins when an income interest begins or 4380
ends when an income interest ends. 4381

       (B) "Beneficiary" includes, in the case of a decedent's 4382
estate, an heir, legatee, and devisee and, in the case of a trust, 4383
an income beneficiary and a remainder beneficiary. 4384

       (C) "Fiduciary" means a personal representative or a trustee. 4385
The term includes an executor, administrator, successor personal 4386
representative, special administrator, and a person performing 4387
substantially the same function. 4388

       (D) "Income" means money or property that a fiduciary 4389
receives as current return from a principal asset. "Income" 4390
includes a portion of receipts from a sale, exchange, or 4391
liquidation of a principal asset, to the extent provided in 4392
sections ~~1340.57~~5812.18 to ~~1340.77~~5812.38 of the Revised Code. 4393

       (E) "Income beneficiary" means a person to whom net income of 4394
a trust is or may be payable. 4395

       (F) "Income interest" means the right of an income 4396
beneficiary to receive all or part of net income, whether the 4397
terms of the trust require or authorize it to be distributed in 4398
the trustee's discretion. 4399

       (G) "Mandatory income interest" means the right of an income 4400
beneficiary to receive net income that the terms of the trust 4401
require the fiduciary to distribute. 4402

       (H) "Net income" means the total receipts allocated to income 4403
during an accounting period minus the disbursements made from 4404
income during the period, plus or minus transfers under sections 4405
~~1340.40~~5812.01 to ~~1340.91~~5812.52 of the Revised Code to or from 4406
income during the period. 4407

       (I) "Person" means an individual, corporation, business 4408
trust, estate, trust, partnership, limited liability company, 4409
association, joint venture, or government; governmental 4410
subdivision, agency, or instrumentality; public corporation; or 4411
any other legal or commercial entity. 4412

       (J) "Principal" means property held in trust for distribution 4413
to a remainder beneficiary when the trust terminates. 4414

       (K) "Remainder beneficiary" means a person entitled to 4415
receive principal when an income interest ends. 4416

       (L) "Terms of a trust" means the manifestation of the intent 4417
of a settlor or decedent with respect to the trust, expressed in a 4418
manner that admits of its proof in a judicial proceeding, whether 4419
by written or spoken words or by conduct. 4420

       (M) "Trustee" includes an original, additional, or successor 4421
trustee, whether or not appointed or confirmed by a court. 4422

       ~~Sec. 1340.41.~~        Sec. 5812.02. (A) In allocating receipts and 4423
disbursements to or between principal and income, and with respect 4424
to any matter within the scope of sections ~~1340.46~~5812.07 to 4425
~~1340.53~~5812.14 of the Revised Code, all of the following apply: 4426

       (1) A fiduciary shall administer a trust or estate in 4427
accordance with the terms of the trust or the will, even if there 4428
is a different provision in sections ~~1340.40~~5812.01 to ~~1340.91~~ 4429
5812.52 of the Revised Code. 4430

       (2) A fiduciary may administer a trust or estate by the 4431
exercise of a discretionary power of administration given to the 4432
fiduciary by the terms of the trust or the will, even if the 4433
exercise of the power produces a result different from a result 4434
required or permitted by any provision of sections ~~1340.40~~5812.01 4435
to ~~1340.91~~5812.52 of the Revised Code. 4436

       (3) A fiduciary shall administer a trust or estate in 4437
accordance with sections ~~1340.40~~5812.01 to ~~1340.91~~5812.52 of the 4438
Revised Code if the terms of the trust or the will do not contain 4439
a different provision or do not give the fiduciary a discretionary 4440
power of administration. 4441

       (4) A fiduciary shall add a receipt, or charge a 4442
disbursement, to principal to the extent that the terms of the 4443
trust and any provision of sections ~~1340.40~~5812.01 to ~~1340.91~~ 4444
5812.52 of the Revised Code do not provide for allocating the 4445
receipt or disbursement to or between principal and income. 4446

       (B) In exercising the power to adjust under division (A) of 4447
section ~~1340.42~~5812.03 of the Revised Code or a discretionary 4448
power of administration regarding a matter within the scope of 4449
sections ~~1340.40~~5812.01 to ~~1340.91~~5812.52 of the Revised Code, 4450
whether granted by the terms of a trust, a will, or a provision of 4451
any such section, a fiduciary shall administer a trust or estate 4452
impartially, based on what is fair and reasonable to all of the 4453
beneficiaries, except to the extent that the terms of the trust or 4454
the will clearly manifest an intention that the fiduciary shall or 4455
may favor one or more of the beneficiaries. A determination in 4456
accordance with sections ~~1340.40~~5812.01 to ~~1340.91~~5812.52 of the 4457
Revised Code is presumed to be fair and reasonable to all of the 4458
beneficiaries. 4459

       (C) In allocating receipts and disbursements to or between 4460
principal and income, a fiduciary may credit a receipt or charge 4461
an expenditure to income or principal with respect to a decedent's 4462
estate, a trust, or property passing to a trust, that is eligible 4463
for a federal estate tax marital deduction or Ohio estate tax 4464
marital deduction, or for a federal estate tax charitable 4465
deduction or Ohio estate tax charitable deduction, or for a 4466
federal gift tax marital deduction or federal gift tax charitable 4467
deduction only to the extent that the credit of the receipt or 4468
charge of the expenditure will not cause the reduction or loss of 4469
the deduction. 4470

       (D) As used in division (C) of this section: 4471

       (1) "Federal estate tax charitable deduction" means the 4472
estate tax charitable deduction allowed by subtitle B, Chapter 11 4473
of the "Internal Revenue Code of 1986," 26 U.S.C.A. 2055, as 4474
amended. 4475

       (2) "Federal estate tax marital deduction" means the estate 4476
tax marital deduction allowed by subtitle B, Chapter 11 of the 4477
"Internal Revenue Code of 1986," 26 U.S.C.A. 2056, as amended. 4478

       (3) "Federal gift tax charitable deduction" means the gift 4479
tax charitable deduction allowed by subtitle B, Chapter 12 of the 4480
"Internal Revenue Code of 1986," 26 U.S.C.A. 2522, as amended. 4481

       (4) "Federal gift tax marital deduction" means the gift tax 4482
marital deduction allowed by subtitle B, Chapter 12 of the 4483
"Internal Revenue Code of 1986," 26 U.S.C.A. 2523, as amended. 4484

       (5) "Ohio estate tax charitable deduction" means the estate 4485
tax charitable deduction allowed by division (A) of section 4486
5731.17 of the Revised Code. 4487

       (6) "Ohio estate tax marital deduction" means the estate tax 4488
marital deduction allowed by section 5731.15 of the Revised Code. 4489

       ~~Sec. 1340.42.~~        Sec. 5812.03. (A) A trustee may adjust between 4490
principal and income to the extent the trustee considers necessary 4491
if the trustee invests and manages the trust assets as a prudent 4492
investor, the terms of the trust describe the amount that may or 4493
must be distributed to a beneficiary by referring to the trust's 4494
income, and the trustee determines, after applying division (A) of 4495
section ~~1340.41~~5812.02 of the Revised Code, that the trustee is 4496
unable to comply with division (B) of that section. 4497

       (B) In deciding whether and to what extent to exercise the 4498
power conferred by division (A) of this section, a trustee shall 4499
consider all factors relevant to the trust and its beneficiaries, 4500
including all of the following factors to the extent they are 4501
relevant: 4502

       (1) The nature, purpose, and expected duration of the trust; 4503

       (2) The intent of the settlor; 4504

       (3) The identity and circumstances of the beneficiaries; 4505

       (4) The needs for liquidity, regularity of income, and 4506
preservation and appreciation of capital; 4507

       (5) The assets held in the trust; the extent to which they 4508
consist of financial assets, interests in closely held 4509
enterprises, tangible and intangible personal property, or real 4510
property; the extent to which an asset is used by a beneficiary; 4511
and whether an asset was purchased by the trustee or received from 4512
the settlor; 4513

       (6) The net amount allocated to income under sections ~~1340.40~~ 4514
5812.01, ~~1340.41~~5812.02, and ~~1340.46~~5812.07 to ~~1340.91~~5812.52 4515
of the Revised Code; and the increase or decrease in the value of 4516
the principal assets, which the trustee may estimate as to assets 4517
for which market values are not readily available; 4518

       (7) Whether and to what extent the terms of the trust give 4519
the trustee the power to invade principal or accumulate income or 4520
prohibit the trustee from invading principal or accumulating 4521
income, and the extent to which the trustee has exercised a power 4522
from time to time to invade principal or accumulate income; 4523

       (8) The actual and anticipated effect of economic conditions 4524
on principal and income and effects of inflation and deflation; 4525

       (9) The anticipated tax consequences of an adjustment. 4526

       (C) A trustee shall not make an adjustment if any of the 4527
following applies: 4528

       (1) The adjustment diminishes the income interest in a trust 4529
that requires all of the income to be paid at least annually to a 4530
spouse and for which an estate tax or gift tax marital deduction 4531
would be allowed, in whole or in part, if the trustee did not have 4532
the power to make the adjustment. 4533

       (2) The adjustment reduces the actuarial value of the income 4534
interest in a trust to which a person transfers property with the 4535
intent to qualify for a gift tax exclusion. 4536

       (3) The adjustment changes the amount payable to a 4537
beneficiary as a fixed annuity or a fixed fraction of the value of 4538
the trust assets. 4539

       (4) The adjustment is from any amount that is permanently set 4540
aside for charitable purposes under a will or the terms of a trust 4541
unless both income and principal are so set aside. 4542

       (5) If possessing or exercising the power to make the 4543
adjustment causes an individual to be treated as the owner of all 4544
or part of the trust for income tax purposes, and the individual 4545
would not be treated as the owner if the trustee did not possess 4546
the power to make the adjustment; 4547

       (6) If possessing or exercising the power to make the 4548
adjustment causes all or part of the trust assets to be included 4549
for estate tax purposes in the estate of an individual who has the 4550
power to remove a trustee or appoint a trustee, or both, and the 4551
assets would not be included in the estate of the individual if 4552
the trustee did not possess the power to make the adjustment; 4553

       (7) If the trustee is a beneficiary of the trust; 4554

       (8) If the trustee is not a beneficiary, but the adjustment 4555
would benefit the trustee directly or indirectly. 4556

       (D) If division (C)(5), (6), (7), or (8) of this section 4557
applies to a trustee and there is more than one trustee, a 4558
cotrustee to whom the provision does not apply may make the 4559
adjustment unless the exercise of the power by the remaining 4560
trustee or trustees is not permitted by the terms of the trust. 4561

       (E) A trustee may release the entire power conferred by 4562
division (A) of this section or may release only the power to 4563
adjust from income to principal or the power to adjust from 4564
principal to income if the trustee is uncertain about whether 4565
possessing or exercising the power will cause a result described 4566
in division (C)(1), (2), (3), (4), (5), (6), or (8) of this 4567
section or if the trustee determines that possessing or exercising 4568
the power will or may deprive the trust of a tax benefit or impose 4569
a tax burden not described in division (C) of this section. The 4570
release may be permanent or for a specified period, including a 4571
period measured by the life of an individual. 4572

       (F) Terms of a trust that limit the power of a trustee to 4573
make an adjustment between principal and income do not affect the 4574
application of this section unless it is clear from the terms of 4575
the trust that the terms are intended to deny the trustee the 4576
power of adjustment conferred by division (A) of this section. 4577

       (G) The liability of a trustee relative to the exercise of 4578
adjustment authority conferred by divisions (A) to (F) of this 4579
section shall be limited in the following manner: 4580

       (1) Unless a court determines that a trustee has acted in bad 4581
faith, no trustee shall be held liable for damages for choosing 4582
not to make an adjustment. 4583

       (2) Unless a court determines that a trustee has acted in bad 4584
faith with respect to an adjustment, the sole remedy to be ordered 4585
by a court shall be a prospective correction of the adjustment. 4586

       (3) For purposes of this section, and subject to division (C) 4587
of this section, from time to time a trustee may make a 4588
safe-harbor adjustment to increase net trust accounting income up 4589
to and including an amount equal to four per cent of the trust's 4590
fair market value determined as of the first business day of the 4591
current year. If a trustee determines to make this safe-harbor 4592
adjustment, the propriety of this adjustment shall be conclusively 4593
presumed. Nothing in division (G)(3) of this section prohibits any 4594
other type of adjustment authorized under any provision of this 4595
section. 4596

       ~~Sec. 1340.46.~~        Sec. 5812.07. After a decedent dies, in the case of 4597
an estate, or after an income interest in a trust ends, all of the 4598
following apply: 4599

       (A) The fiduciary of the estate or of the terminating income 4600
interest shall determine, under the provisions of sections ~~1340.51~~ 4601
5812.12 to ~~1340.86~~5812.47 of the Revised Code that apply to 4602
trustees and under division (E) of this section, the amount of net 4603
income and net principal receipts received from property 4604
specifically given to a beneficiary. The fiduciary shall 4605
distribute the net income and net principal receipts to the 4606
beneficiary that is to receive the specific property. 4607

       (B) A fiduciary shall determine the remaining net income of a 4608
decedent's estate or a terminating income interest under the 4609
provisions of sections ~~1340.51~~5812.12 to ~~1340.86~~5812.47 of the 4610
Revised Code that apply to trustees and by doing all of the 4611
following: 4612

       (1) Including in net income all income from property used to 4613
discharge liabilities; 4614

       (2) Paying from income or principal, in the fiduciary's 4615
discretion, fees of attorneys, accountants, and fiduciaries; court 4616
costs and other expenses of administration; and interest on death 4617
taxes. However, the fiduciary may pay those expenses from income 4618
of property passing to a trust for which the fiduciary claims an 4619
estate tax marital or charitable deduction only to the extent that 4620
the payment of those expenses from income will not cause the 4621
reduction or loss of the deduction. 4622

       (3) Paying from principal all other disbursements made or 4623
incurred in connection with the settlement of a decedent's estate 4624
or the winding up of a terminating income interest, including 4625
debts, funeral expenses, disposition of remains, family 4626
allowances, and death taxes and related penalties that are 4627
apportioned to the estate or terminating income interest by the 4628
will, the terms of the trust, or applicable law. 4629

       (C) A fiduciary shall distribute to a beneficiary that 4630
receives a pecuniary amount outright the interest or any other 4631
amount provided by the will, the terms of the trust, or applicable 4632
law from net income determined under division (B) of this section 4633
or from principal to the extent that net income is insufficient. 4634
If a beneficiary is to receive a pecuniary amount outright from a 4635
trust after an income interest ends and no interest or other 4636
amount is provided for by the terms of the trust or applicable 4637
law, the fiduciary shall distribute the interest or other amount 4638
to which the beneficiary would be entitled under applicable law if 4639
the pecuniary amount were required to be paid under a will. 4640

       (D) A fiduciary shall distribute the net income remaining 4641
after distributions required by division (C) of this section, in 4642
the manner described in section ~~1340.47~~5812.08 of the Revised 4643
Code, to all other beneficiaries, including a beneficiary that 4644
receives a pecuniary amount in trust, even if the beneficiary 4645
holds an unqualified power to withdraw assets from the trust or 4646
other presently exercisable, general power of appointment over the 4647
trust. 4648

       (E) A fiduciary shall not reduce principal or income receipts 4649
from property described in division (A) of this section because of 4650
a payment described in section ~~1340.81~~5812.42 or ~~1340.82~~5812.43 4651
of the Revised Code to the extent that the will, the terms of the 4652
trust, or applicable law requires the fiduciary to make the 4653
payment from assets other than the property or to the extent that 4654
the fiduciary recovers or expects to recover the payment from a 4655
third party. The net income and principal receipts from the 4656
property are determined by including all of the amounts the 4657
fiduciary receives or pays with respect to the property, whether 4658
those amounts accrued or became due before, on, or after the date 4659
of a decedent's death or an income interest's terminating event, 4660
and by making a reasonable provision for amounts that the 4661
fiduciary believes the estate or terminating income interest may 4662
become obligated to pay after the property is distributed. 4663

       ~~Sec. 1340.47.~~        Sec. 5812.08. (A) Each beneficiary described in 4664
division (D) of section ~~1340.46~~5812.07 of the Revised Code is 4665
entitled to receive a portion of the net income equal to the 4666
beneficiary's fractional interest in undistributed principal 4667
assets, using values as of the distribution date. If a fiduciary 4668
makes more than one distribution of assets to beneficiaries to 4669
whom this section applies, each beneficiary, including one that 4670
does not receive part of the distribution, is entitled, as of each 4671
distribution date, to the net income the fiduciary has received 4672
after the date of the decedent's death or terminating event or 4673
earlier distribution date but has not distributed as of the 4674
current distribution date. 4675

       (B) In determining a beneficiary's share of net income for 4676
the purpose of this section, all of the following apply: 4677

       (1) The beneficiary is entitled to receive a portion of the 4678
net income equal to the beneficiary's fractional interest in the 4679
undistributed principal assets immediately before the distribution 4680
date, including assets that later may be sold to meet principal 4681
obligations. 4682

       (2) The beneficiary's fractional interest in the 4683
undistributed principal assets must be calculated without regard 4684
to property specifically given to a beneficiary and property 4685
required to pay pecuniary amounts not in trust. 4686

       (3) The beneficiary's fractional interest in the 4687
undistributed principal assets must be calculated on the basis of 4688
the aggregate value of those assets as of the distribution date 4689
without reducing the value by any unpaid principal obligation. 4690

       (4) The distribution date for purposes of this section may be 4691
the date as of which the fiduciary calculates the value of the 4692
assets if that date is reasonably near the date on which assets 4693
are actually distributed. 4694

       (C) If a fiduciary does not distribute all of the collected 4695
but undistributed net income described in divisions (A) and (B) of 4696
this section to each person as of a distribution date, the 4697
fiduciary shall maintain appropriate records showing the interest 4698
of each. 4699

       (D) To the extent that a fiduciary considers it appropriate, 4700
the fiduciary may apply the provisions of divisions (A) to (C) of 4701
this section to any net gain or loss, realized after the date of 4702
the decedent's death or an income interest termination or earlier 4703
distribution date, from the disposition of a principal asset to 4704
which such provisions apply. 4705

       ~~Sec. 1340.51.~~        Sec. 5812.12. (A) An income beneficiary is entitled 4706
to net income from the date on which the income interest begins. 4707
An income interest begins on the date specified in the terms of 4708
the trust or, if no date is specified, on the date an asset 4709
becomes subject to a trust or successive income interest. 4710

       (B) An asset becomes subject to a trust on any of the 4711
following dates: 4712

       (1) The date it is transferred to the trust, in the case of 4713
an asset that is transferred to a trust during the transferor's 4714
life; 4715

       (2) The date of a testator's death, in the case of an asset 4716
that becomes subject to a trust by reason of a will, even if there 4717
is an intervening period of administration of the testator's 4718
estate; 4719

       (3) The date of an individual's death, in the case of an 4720
asset that is transferred to a fiduciary by a third party because 4721
of the individual's death. 4722

       (C) An asset becomes subject to a successive income interest 4723
on the day after the preceding income interest ends, as determined 4724
under division (D) of this section, even if there is an 4725
intervening period of administration to wind up the preceding 4726
income interest. 4727

       (D) An income interest ends on the day before an income 4728
beneficiary dies or another terminating event occurs, or on the 4729
last day of a period during which there is no beneficiary to whom 4730
a trustee may distribute income. 4731

       ~~Sec. 1340.52.~~        Sec. 5812.13. (A) A trustee shall allocate to 4732
principal an income receipt or disbursement other than one to 4733
which division (A) of section ~~1340.46~~5812.07 of the Revised Code 4734
applies, if its due date occurs before a decedent dies in the case 4735
of an estate or before an income interest begins in the case of a 4736
trust or successive income interest. 4737

       (B) A trustee shall allocate an income receipt or 4738
disbursement to income if its due date occurs on or after the date 4739
on which a decedent dies or an income interest begins and if it is 4740
a periodic due date. An income receipt or disbursement shall be 4741
treated as accruing from day to day if its due date is not 4742
periodic or it has no due date. The portion of the receipt or 4743
disbursement accruing before the date on which a decedent dies or 4744
an income interest begins shall be allocated to principal, and the 4745
balance shall be allocated to income. 4746

       (C) For the purposes of this section, an item of income or an 4747
obligation is due on the date the payer is required to make a 4748
payment. If a payment date is not stated, there is no due date. 4749
Distributions to shareholders or other owners from an entity to 4750
which section ~~1340.57~~5812.18 of the Revised Code applies are 4751
deemed to be due on the date fixed by the entity for determining 4752
who is entitled to receive the distribution or, if no date is 4753
fixed, on the declaration date for the distribution. A due date is 4754
periodic for receipts or disbursements that must be paid at 4755
regular intervals under a lease or an obligation to pay interest 4756
or if an entity customarily makes distributions at regular 4757
intervals. 4758

       ~~Sec. 1340.53.~~        Sec. 5812.14. (A) As used in this section, 4759
"undistributed income" means net income received before the date 4760
on which an income interest ends. "Undistributed income" excludes 4761
an item of income or expense that is due or accrued or net income 4762
that has been added or is required to be added to principal under 4763
the terms of the trust. 4764

       (B) When a mandatory income interest ends, the trustee shall 4765
pay to a mandatory income beneficiary that survives that date, or 4766
the estate of a deceased mandatory income beneficiary whose death 4767
causes the interest to end, the beneficiary's share of the 4768
undistributed income that is not disposed of under the terms of 4769
the trust, unless the beneficiary has an unqualified power to 4770
revoke more than five per cent of the trust immediately before the 4771
income interest ends. If the beneficiary has such power, the 4772
undistributed income from the portion of the trust that may be 4773
revoked shall be added to principal. 4774

       (C) When a trustee's obligation to pay a fixed annuity or a 4775
fixed fraction of the value of the trust's assets ends, the 4776
trustee shall prorate the final payment if and to the extent 4777
required by applicable law to accomplish a purpose of the trust or 4778
its settlor relating to income, gift, estate, or other tax 4779
requirements. 4780

       ~~Sec. 1340.57.~~        Sec. 5812.18. (A) As used in this section, "entity" 4781
means a corporation, partnership, limited liability company, 4782
regulated investment company, real estate investment trust, common 4783
trust fund, or any other organization in which a trustee has an 4784
interest other than a trust or estate to which section ~~1340.58~~ 4785
5812.19 of the Revised Code applies, a business or activity to 4786
which section ~~1340.59~~5812.20 of the Revised Code applies, or an 4787
asset-backed security to which section ~~1340.77~~5812.38 of the 4788
Revised Code applies. 4789

       (B) Except as otherwise provided in this section, a trustee 4790
shall allocate to income money received from an entity. 4791

       (C) A trustee shall allocate all of the following receipts 4792
from an entity to principal: 4793

       (1) Property other than money; 4794

       (2) Money received in one distribution or a series of related 4795
distributions in exchange for part or all of a trust's interest in 4796
the entity; 4797

       (3) Money received in total or partial liquidation of the 4798
entity; 4799

       (4) Money received from an entity that is a regulated 4800
investment company or a real estate investment trust if the money 4801
distributed is a capital gain dividend for federal income tax 4802
purposes. 4803

       (D) Money is received in partial liquidation in either of the 4804
following circumstances: 4805

       (1) To the extent that the entity, at or near the time of a 4806
distribution, indicates that it is a distribution in partial 4807
liquidation; 4808

       (2) If the total amount of money and property received in a 4809
distribution or series of related distributions is greater than 4810
twenty per cent of the entity's gross assets, as shown by the 4811
entity's year-end financial statements immediately preceding the 4812
initial receipt. 4813

       (E) Money is not received in partial liquidation, nor shall 4814
it be taken into account under division (D)(2) of this section, to 4815
the extent that it does not exceed the amount of income tax that a 4816
trustee or beneficiary must pay on taxable income of the entity 4817
that distributes the money. 4818

       (F) A trustee may rely upon a statement made by an entity 4819
about the source or character of a distribution if the statement 4820
is made at or near the time of distribution by the entity's board 4821
of directors or other person or group of persons authorized to 4822
exercise powers to pay money or transfer property comparable to 4823
those of a corporation's board of directors. 4824

       ~~Sec. 1340.58.~~        Sec. 5812.19. A trustee shall allocate to income an 4825
amount received as a distribution of income from a trust or an 4826
estate in which the trust has an interest other than a purchased 4827
interest, and shall allocate to principal an amount received as a 4828
distribution of principal from such a trust or estate. If a 4829
trustee purchases an interest in a trust that is an investment 4830
entity, or a decedent or donor transfers an interest in such a 4831
trust to a trustee, section ~~1340.57~~5812.18 or ~~1340.77~~5812.38 of 4832
the Revised Code applies to a receipt from the trust. 4833

       ~~Sec. 1340.59.~~        Sec. 5812.20. (A) If a trust that conducts a business 4834
or other activity determines that it is in the best interest of 4835
all the beneficiaries to account separately for the business or 4836
activity instead of accounting for it as part of the trust's 4837
general accounting records, the trustee may maintain separate 4838
accounting records for its transactions, whether or not its assets 4839
are segregated from other trust assets. 4840

       (B) A trustee that accounts separately for a business or 4841
other activity may determine the extent to which its net cash 4842
receipts must be retained for working capital, the acquisition or 4843
replacement of fixed assets, and other reasonably foreseeable 4844
needs of the business or activity, and the extent to which the 4845
remaining net cash receipts are accounted for as principal or 4846
income in the trust's general accounting records. If a trustee 4847
sells assets of the business or other activity, other than in the 4848
ordinary course of the business or activity, the trustee shall 4849
account for the net amount received as principal in the trust's 4850
general accounting records to the extent the trustee determines 4851
that the amount received is no longer required in the conduct of 4852
the business. 4853

       (C) Activities for which a trustee may maintain separate 4854
accounting records under this section include all of the 4855
following: 4856

       (1) Retail, manufacturing, service, and other traditional 4857
business activities; 4858

       (2) Farming; 4859

       (3) Raising and selling livestock and other animals; 4860

       (4) Management of rental properties; 4861

       (5) Extraction of minerals and other natural resources; 4862

       (6) Timber operations; 4863

       (7) Activities to which section ~~1340.76~~5812.37 of the 4864
Revised Code applies. 4865

       ~~Sec. 1340.63.~~        Sec. 5812.24. A trustee shall allocate to principal 4866
all of the following: 4867

       (A) To the extent not allocated to income under sections 4868
~~1340.40~~5812.01 to ~~1340.91~~5812.52 of the Revised Code, assets 4869
received from a transferor during the transferor's lifetime, a 4870
decedent's estate, a trust with a terminating income interest, or 4871
a payer under a contract naming the trust or its trustee as 4872
beneficiary; 4873

       (B) Money or other property received from the sale, exchange, 4874
liquidation, or change in form of a principal asset, including 4875
realized profit, subject to sections ~~1340.57~~5812.18 to ~~1340.77~~ 4876
5812.38 of the Revised Code; 4877

       (C) Amounts recovered from third parties to reimburse the 4878
trust because of disbursements described in division (A)(7) of 4879
section ~~1340.82~~5812.43 of the Revised Code or for other reasons 4880
to the extent not based on the loss of income; 4881

       (D) Proceeds of property taken by eminent domain, but a 4882
separate award made for the loss of income with respect to an 4883
accounting period during which a current income beneficiary had a 4884
mandatory income interest is income; 4885

       (E) Net income received in an accounting period during which 4886
there is no beneficiary to whom a trustee may or must distribute 4887
income; 4888

       (F) Other receipts as provided in sections ~~1340.70~~5812.31 to 4889
~~1340.77~~5812.38 of the Revised Code. 4890

       ~~Sec. 1340.64.~~        Sec. 5812.25. To the extent that a trustee accounts 4891
for receipts from rental property pursuant to this section, the 4892
trustee shall allocate to income an amount received as rent of 4893
real or personal property, including an amount received for 4894
cancellation or renewal of a lease. An amount received as a 4895
refundable deposit, including a security deposit or a deposit that 4896
is to be applied as rent for future periods, shall be added to 4897
principal and held subject to the terms of the lease and shall not 4898
be available for distribution to a beneficiary until the trustee's 4899
contractual obligations have been satisfied with respect to that 4900
amount. 4901

       ~~Sec. 1340.65.~~        Sec. 5812.26. (A) An amount received as interest, 4902
whether determined at a fixed, variable, or floating rate, on an 4903
obligation to pay money to the trustee, including an amount 4904
received as consideration for prepaying principal, shall be 4905
allocated to income without any provision for amortization of 4906
premium. 4907

       (B) A trustee shall allocate to principal an amount received 4908
from the sale, redemption, or other disposition of an obligation 4909
to pay money to the trustee more than one year after the date it 4910
is purchased or acquired by the trustee, including an obligation 4911
whose purchase price or value when it is acquired is less than its 4912
value at maturity. If the obligation matures within one year after 4913
the date it is purchased or acquired by the trustee, an amount 4914
received in excess of its purchase price or its value when 4915
acquired by the trust shall be allocated to income. 4916

       (C) This section does not apply to an obligation to which 4917
section ~~1340.71~~5812.32, ~~1340.72~~5812.33, ~~1340.73~~5812.34, ~~1340.74~~ 4918
5812.35, ~~1340.76~~5812.37, or ~~1340.77~~5812.38 of the Revised Code 4919
applies. 4920

       ~~Sec. 1340.66.~~        Sec. 5812.27. (A) Except as otherwise provided in 4921
division (B) of this section, a trustee shall allocate to 4922
principal the proceeds of a life insurance policy or other 4923
contract in which the trust or its trustee is named as 4924
beneficiary, including a contract that insures the trust or its 4925
trustee against loss for damage to, destruction of, or loss of 4926
title to a trust asset. The trustee shall allocate dividends on an 4927
insurance policy to income if the premiums on the policy are paid 4928
from income, and to principal if the premiums are paid from 4929
principal. 4930

       (B) A trustee shall allocate to income proceeds of a contract 4931
that insures the trustee against loss of occupancy or other use by 4932
an income beneficiary, loss of income, or, subject to section 4933
~~1340.59~~5812.20 of the Revised Code, loss of profits from a 4934
business. 4935

       (C) This section does not apply to a contract to which 4936
section ~~1340.71~~5812.32 of the Revised Code applies. 4937

       ~~Sec. 1340.70.~~        Sec. 5812.31. If a trustee determines that an 4938
allocation between principal and income required by section 4939
~~1340.71~~5812.32, ~~1340.72~~5812.33, ~~1340.73~~5812.34, ~~1340.74~~ 4940
5812.35, or ~~1340.77~~5812.38 of the Revised Code is insubstantial, 4941
the trustee may allocate the entire amount to principal unless one 4942
of the circumstances described in division (C) of section ~~1340.42~~ 4943
5812.03 of the Revised Code applies to the allocation. This power 4944
may be exercised by a cotrustee in the circumstances described in 4945
division (D) of that section and may be released for the reasons 4946
and in the manner described in division (E) of the section. An 4947
allocation is presumed to be insubstantial if either of the 4948
following applies: 4949

       (A) The amount of the allocation would increase or decrease 4950
net income in an accounting period, as determined before the 4951
allocation, by less than ten per cent. 4952

       (B) The value of the asset producing the receipt for which 4953
the allocation would be made is less than ten per cent of the 4954
total value of the trust's assets at the beginning of the 4955
accounting period. 4956

       ~~Sec. 1340.71.~~        Sec. 5812.32. (A) As used in this section, "payment" 4957
means a payment that a trustee may receive over a fixed number of 4958
years or during the life of one or more individuals because of 4959
services rendered or property transferred to the payer in exchange 4960
for future payments. "Payment" includes a payment made in money or 4961
property from the payer's general assets or from a separate fund 4962
created by the payer, including a private or commercial annuity, 4963
an individual retirement account, or a pension, profit-sharing, 4964
stock-bonus, or stock-ownership plan. 4965

       (B) To the extent that a payment is characterized as interest 4966
or a dividend or a payment made in lieu of interest or a dividend, 4967
a trustee shall allocate it to income. The trustee shall allocate 4968
to principal the balance of the payment and any other payment 4969
received in the same accounting period that is not characterized 4970
as interest, a dividend, or an equivalent payment. 4971

       (C) If no part of a payment is characterized as interest, a 4972
dividend, or an equivalent payment, and all or part of the payment 4973
is required to be made, a trustee shall allocate to income ten per 4974
cent of the part that is required to be made during the accounting 4975
period and the balance to principal. If no part of a payment is 4976
required to be made or the payment received is the entire amount 4977
to which the trustee is entitled, the trustee shall allocate the 4978
entire payment to principal. For purposes of this division, a 4979
payment is not "required to be made" to the extent that it is made 4980
because the trustee exercises a right of withdrawal. 4981

       (D) If, to obtain an estate tax marital deduction for a 4982
trust, a trustee must allocate more of a payment to income than is 4983
provided for by this section, the trustee shall allocate to income 4984
the additional amount necessary to obtain the marital deduction. 4985

       (E) This section does not apply to payments to which section 4986
~~1340.72~~5812.33 of the Revised Code applies. 4987

       ~~Sec. 1340.72.~~        Sec. 5812.33. (A) As used in this section, 4988
"liquidating asset" means an asset whose value will diminish or 4989
terminate because the asset is expected to produce receipts for a 4990
period of limited duration. "Liquidating asset" includes a 4991
leasehold, patent, copyright, royalty right, and right to receive 4992
payments during a period of more than one year under an 4993
arrangement that does not provide for the payment of interest on 4994
the unpaid balance. "Liquidating asset" excludes a payment subject 4995
to section ~~1340.71~~5812.32 of the Revised Code, resources subject 4996
to section ~~1340.73~~5812.34 of the Revised Code, timber subject to 4997
section ~~1340.74~~5812.35 of the Revised Code, an activity subject 4998
to section ~~1340.76~~5812.37 of the Revised Code, an asset subject 4999
to section ~~1340.77~~5812.38 of the Revised Code, or any asset for 5000
which the trustee establishes a reserve for depreciation under 5001
section ~~1340.83~~5812.44 of the Revised Code. 5002

       (B) A trustee shall allocate to income ten per cent of the 5003
receipts from a liquidating asset and the balance to principal. 5004

       ~~Sec. 1340.73.~~        Sec. 5812.34. (A) To the extent that a trustee 5005
accounts for receipts from an interest in minerals or other 5006
natural resources pursuant to this section, the trustee shall 5007
allocate the receipts in accordance with all of the following: 5008

       (1) If received as nominal delay rental or nominal annual 5009
rent on a lease, a receipt shall be allocated to income. 5010

       (2) If received from a production payment, a receipt shall be 5011
allocated to income if and to the extent that the agreement 5012
creating the production payment provides a factor for interest or 5013
its equivalent. The balance shall be allocated to principal. 5014

       (3) If an amount received as a royalty, shut-in-well payment, 5015
take-or-pay payment, bonus, or delay rental is more than nominal, 5016
ninety per cent shall be allocated to principal and the balance to 5017
income. 5018

       (4) If an amount is received from a working interest or any 5019
other interest not provided for in division (A)(1), (2), or (3) of 5020
this section, ninety per cent of the net amount received shall be 5021
allocated to principal and the balance to income. 5022

       (B) An amount received on account of an interest in water 5023
that is renewable shall be allocated to income. If the water is 5024
not renewable, ninety per cent of the amount shall be allocated to 5025
principal and the balance to income. 5026

       (C) This section applies whether or not a decedent or donor 5027
was extracting minerals, water, or other natural resources before 5028
the interest became subject to the trust. 5029

       (D) If a trust owns an interest in minerals, water, or other 5030
natural resources on ~~the effective date of this section~~January 1, 5031
2003, the trustee may allocate receipts from the interest as 5032
provided in this section or in the manner used by the trustee 5033
before that date. If the trust acquires an interest in minerals, 5034
water, or other natural resources after ~~the effective date of this~~ 5035
~~section~~January 1, 2003, the trustee shall allocate receipts from 5036
the interest as provided in this section. 5037

       ~~Sec. 1340.74.~~        Sec. 5812.35. (A) To the extent that a trustee 5038
accounts for receipts from the sale of timber and related products 5039
pursuant to this section, the trustee shall allocate the net 5040
receipts in accordance with all of the following: 5041

       (1) To income, to the extent that the amount of timber 5042
removed from the land does not exceed the rate of growth of the 5043
timber during the accounting periods in which a beneficiary has a 5044
mandatory income interest; 5045

       (2) To principal, to the extent that the amount of timber 5046
removed from the land exceeds the rate of growth of the timber or 5047
the net receipts are from the sale of standing timber; 5048

       (3) To or between income and principal, if the net receipts 5049
are from the lease of timberland or from a contract to cut timber 5050
from land owned by a trust, by determining the amount of timber 5051
removed from the land under the lease or contract and applying 5052
divisions (A)(1) and (2) of this section; 5053

       (4) To principal, to the extent that advance payments, 5054
bonuses, and other payments are not allocated pursuant to division 5055
(A)(1), (2), or (3) of this section. 5056

       (B) In determining net receipts to be allocated pursuant to 5057
division (A) of this section, a trustee shall deduct and transfer 5058
to principal a reasonable amount for depletion. 5059

       (C) This section applies whether or not a decedent or 5060
transferor was harvesting timber from the property before it 5061
became subject to the trust. 5062

       (D) If a trust owns an interest in timberland on ~~the~~ 5063
~~effective date of this section~~January 1, 2003, the trustee may 5064
allocate net receipts from the sale of timber and related products 5065
as provided in this section or in the manner used by the trustee 5066
before that date. If the trust acquires an interest in timberland 5067
after ~~the effective date of this section~~January 1, 2003, the 5068
trustee shall allocate net receipts from the sale of timber and 5069
related products as provided in this section. 5070

       ~~Sec. 1340.75.~~        Sec. 5812.36. (A) If a marital deduction is allowed 5071
for all or part of a trust whose assets consist substantially of 5072
property that does not provide the spouse with sufficient income 5073
from or use of the trust assets, and if the amounts that the 5074
trustee transfers from principal to income under section ~~1340.42~~ 5075
5812.03 of the Revised Code and distributes to the spouse from 5076
principal pursuant to the terms of the trust are insufficient to 5077
provide the spouse with the beneficial enjoyment required to 5078
obtain the marital deduction, the spouse may require the trustee 5079
to make property productive of income, convert property within a 5080
reasonable time, or exercise the power conferred by division (A) 5081
of that section. The trustee may decide which action or 5082
combination of actions to take. 5083

       (B) In cases not governed by division (A) of this section, 5084
proceeds from the sale or other disposition of an asset shall be 5085
principal without regard to the amount of income the asset 5086
produces during any accounting period. 5087

       ~~Sec. 1340.76.~~        Sec. 5812.37. (A) As used in this section, 5088
"derivative" means a contract or financial instrument or a 5089
combination of contracts and financial instruments that gives a 5090
trust the right or obligation to participate in some or all 5091
changes in the price of a tangible or intangible asset or group of 5092
assets, or changes in a rate, an index of prices or rates, or 5093
other market indicator for an asset or a group of assets. 5094

       (B) To the extent that a trustee does not account under 5095
section ~~1340.59~~5812.20 of the Revised Code for transactions in 5096
derivatives, the trustee shall allocate to principal receipts from 5097
and disbursements made in connection with those transactions. 5098

       (C) If a trustee grants an option to buy property from the 5099
trust, whether or not the trust owns the property when the option 5100
is granted, grants an option that permits another person to sell 5101
property to the trust, or acquires an option to buy property for 5102
the trust or an option to sell an asset owned by the trust, and 5103
the trustee or other owner of the asset is required to deliver the 5104
asset if the option is exercised, an amount received for granting 5105
the option shall be allocated to principal. An amount paid to 5106
acquire the option shall be paid from principal. A gain or loss 5107
realized upon the exercise of an option, including an option 5108
granted to a settlor of the trust for services rendered, shall be 5109
allocated to principal. 5110

       ~~Sec. 1340.77.~~        Sec. 5812.38. (A) As used in this section, 5111
"asset-backed security" means an asset whose value is based upon 5112
the right it gives the owner to receive distributions from the 5113
proceeds of financial assets that provide collateral for the 5114
security. "Asset-backed security" includes an asset that gives the 5115
owner the right to receive from the collateral financial assets 5116
only the interest or other current return or only the proceeds 5117
other than interest or current return. "Asset-backed security" 5118
excludes an asset to which section ~~1340.57~~5812.18 or ~~1340.71~~ 5119
5812.32 of the Revised Code applies. 5120

       (B) If a trust receives a payment from interest or other 5121
current return and from other proceeds of the collateral financial 5122
assets, the trustee shall allocate to income the portion of the 5123
payment that the payer identifies as being from interest or other 5124
current return and shall allocate the balance of the payment to 5125
principal. 5126

       (C) If a trust receives one or more payments in exchange for 5127
the trust's entire interest in an asset-backed security in one 5128
accounting period, the trustee shall allocate the payments to 5129
principal. If a payment is one of a series of payments that will 5130
result in the liquidation of the trust's interest in the security 5131
over more than one accounting period, the trustee shall allocate 5132
ten per cent of the payment to income and the balance to 5133
principal. 5134

       ~~Sec. 1340.81.~~        Sec. 5812.42. A trustee shall make all of the 5135
following disbursements from income to the extent that they are 5136
not disbursements to which division (B)(2) or (3) of section 5137
~~1340.46~~5812.07 of the Revised Code applies: 5138

       (A) One-half of the regular compensation of the trustee and 5139
of any person providing investment advisory or custodial services 5140
to the trustee; 5141

       (B) One-half of all expenses for accountings, judicial 5142
proceedings, or other matters that involve both the income and 5143
remainder interests; 5144

       (C) All of the other ordinary expenses incurred in connection 5145
with the administration, management, or preservation of trust 5146
property and the distribution of income, including interest, 5147
ordinary repairs, regularly recurring taxes assessed against 5148
principal, and expenses of a proceeding or other matter that 5149
concerns primarily the income interest; 5150

       (D) Recurring premiums on insurance covering the loss of a 5151
principal asset or the loss of income from or use of the asset. 5152

       ~~Sec. 1340.82.~~        Sec. 5812.43. (A) A trustee shall make all of the 5153
following disbursements from principal: 5154

       (1) The remaining one-half of the disbursements described in 5155
divisions (A) and (B) of section ~~1340.81~~5812.42 of the Revised 5156
Code; 5157

       (2) All of the trustee's compensation calculated on principal 5158
as a fee for acceptance, distribution, or termination, and 5159
disbursements made to prepare property for sale; 5160

       (3) Payments on the principal of a trust debt; 5161

       (4) Expenses of a proceeding that concerns primarily 5162
principal, including a proceeding to construe the trust or to 5163
protect the trust or its property; 5164

       (5) Premiums paid on a policy of insurance not described in 5165
division (D) of section ~~1340.81~~5812.42 of the Revised Code of 5166
which the trust is the owner and beneficiary; 5167

       (6) Estate, inheritance, and other transfer taxes, including 5168
penalties, apportioned to the trust; 5169

       (7) Disbursements related to environmental matters, including 5170
reclamation, assessing environmental conditions, remedying and 5171
removing environmental contamination, monitoring remedial 5172
activities and the release of substances, preventing future 5173
releases of substances, collecting amounts from persons liable or 5174
potentially liable for the costs of those activities, penalties 5175
imposed under environmental laws or regulations and other payments 5176
made to comply with those laws or regulations, statutory or common 5177
law claims by third parties, and defending claims based on 5178
environmental matters. 5179

       (B) If a principal asset is encumbered with an obligation 5180
that requires income from that asset to be paid directly to the 5181
creditor, the trustee shall transfer from principal to income an 5182
amount equal to the income paid to the creditor in reduction of 5183
the principal balance of the obligation. 5184

       ~~Sec. 1340.83.~~        Sec. 5812.44. (A) As used in this section, 5185
"depreciation" means a reduction in value due to wear, tear, 5186
decay, corrosion, or gradual obsolescence of a fixed asset having 5187
a useful life of more than one year. 5188

       (B) A trustee may transfer to principal a reasonable amount 5189
of the net cash receipts from a principal asset that is subject to 5190
depreciation, but shall not transfer any amount for depreciation 5191
under any of the following circumstances: 5192

       (1) Any amount for depreciation of that portion of real 5193
property used or available for use by a beneficiary as a residence 5194
or of tangible personal property held or made available for the 5195
personal use or enjoyment of a beneficiary; 5196

       (2) Any amount for depreciation during the administration of 5197
a decedent's estate; 5198

       (3) Any amount for depreciation under this section if the 5199
trustee is accounting under section ~~1340.59~~5812.20 of the Revised 5200
Code for the business or activity in which the asset is used. 5201

       (C) An amount transferred to principal need not be held as a 5202
separate fund. 5203

       ~~Sec. 1340.84.~~        Sec. 5812.45. (A) If a trustee makes or expects to 5204
make a principal disbursement described in this section, the 5205
trustee may transfer an appropriate amount from income to 5206
principal in one or more accounting periods to reimburse principal 5207
or to provide a reserve for future principal disbursements. 5208

       (B) Principal disbursements to which division (A) of this 5209
section applies include all of the following, but only to the 5210
extent that the trustee has not been and does not expect to be 5211
reimbursed by a third party: 5212

       (1) An amount chargeable to income but paid from principal 5213
because it is unusually large, including extraordinary repairs; 5214

       (2) A capital improvement to a principal asset, whether in 5215
the form of changes to an existing asset or the construction of a 5216
new asset, including special assessments; 5217

       (3) Disbursements made to prepare property for rental, 5218
including tenant allowances, leasehold improvements, and broker's 5219
commissions; 5220

       (4) Periodic payments on an obligation secured by a principal 5221
asset to the extent that the amount transferred from income to 5222
principal for depreciation is less than the periodic payments; 5223

       (5) Disbursements described in division (A)(7) of section 5224
~~1340.82~~5812.43 of the Revised Code. 5225

       (C) If the asset whose ownership gives rise to the 5226
disbursements becomes subject to a successive income interest 5227
after an income interest ends, a trustee may continue to transfer 5228
amounts from income to principal as provided in division (A) of 5229
this section. 5230

       ~~Sec. 1340.85.~~        Sec. 5812.46. (A) A tax required to be paid by a 5231
trustee based on receipts allocated to income shall be paid from 5232
income. 5233

       (B) A tax required to be paid by a trustee based on receipts 5234
allocated to principal shall be paid from principal, even if the 5235
tax is called an income tax by the taxing authority. 5236

       (C) A tax required to be paid by a trustee on the trust's 5237
share of an entity's taxable income shall be paid proportionately 5238
as follows: 5239

       (1) From income, to the extent that receipts from the entity 5240
are allocated to income; 5241

       (2) From principal, as follows: 5242

       (a) To the extent that receipts from the entity are allocated 5243
to principal; and 5244

       (b) To the extent that the trust's share of the entity's 5245
taxable income exceeds the total receipts described in divisions 5246
(C)(1) and (2)(a) of this section. 5247

       (D) For purposes of this section, receipts allocated to 5248
principal or income shall be reduced by the amount distributed to 5249
a beneficiary from principal or income for which the trust 5250
receives a deduction in calculating the tax. 5251

       ~~Sec. 1340.86.~~        Sec. 5812.47. (A) A fiduciary may make adjustments 5252
between principal and income to offset the shifting of economic 5253
interests or tax benefits between income beneficiaries and 5254
remainder beneficiaries that arise from any of the following: 5255

       (1) Elections and decisions, other than those described in 5256
division (B) of this section, that the fiduciary makes from time 5257
to time regarding tax matters; 5258

       (2) An income tax or any other tax that is imposed upon the 5259
fiduciary or a beneficiary as a result of a transaction involving 5260
or a distribution from the estate or trust; 5261

       (3) The ownership by an estate or trust of an interest in an 5262
entity whose taxable income, whether or not distributed, is 5263
includable in the taxable income of the estate, trust, or 5264
beneficiary. 5265

       (B) If the amount of an estate tax marital deduction or 5266
charitable contribution deduction is reduced because a fiduciary 5267
deducts an amount paid from principal for income tax purposes 5268
instead of deducting it for estate tax purposes, and as a result 5269
estate taxes paid from principal are increased and income taxes 5270
paid by an estate, trust, or beneficiary are decreased, each 5271
estate, trust, or beneficiary that benefits from the decrease in 5272
income tax shall reimburse the principal from which the increase 5273
in estate tax is paid. The total reimbursement shall equal the 5274
increase in the estate tax to the extent that the principal used 5275
to pay the increase would have qualified for a marital deduction 5276
or charitable contribution deduction but for the payment. The 5277
proportionate share of the reimbursement for each estate, trust, 5278
or beneficiary whose income taxes are reduced shall be the same as 5279
its proportionate share of the total decrease in income tax. An 5280
estate or trust shall reimburse principal from income. 5281

       ~~Sec. 1340.90.~~        Sec. 5812.51. (A) Sections ~~1340.40~~5812.01 to 5282
~~1340.91~~5812.52 of the Revised Code may be cited as the "uniform 5283
principal and income act (1997)." 5284

       (B) In applying and construing the "uniform principal and 5285
income act (1997)", consideration shall be given to the need to 5286
promote uniformity of the law with respect to its subject matter 5287
among states that enact the "uniform principal and income act 5288
(1997)". 5289

       ~~Sec. 1340.91.~~        Sec. 5812.52. Sections ~~1340.40~~5812.01 to ~~1340.90~~ 5290
5812.51 of the Revised Code apply to every trust or decedent's 5291
estate existing on ~~the effective date of this section~~January 1, 5292
2003, except as otherwise expressly provided in the will or terms 5293
of the trust or in sections ~~1340.40~~5812.01 to ~~1340.90~~5812.51 of 5294
the Revised Code. 5295

       ~~Sec. 1340.31.~~        Sec. 5813.01. As used in sections ~~1340.31~~5813.01 to 5296
~~1340.37~~5813.07 of the Revised Code: 5297

       (A) "Institution" means an incorporated or unincorporated 5298
organization that is organized and operated exclusively for 5299
educational, religious, charitable, or other eleemosynary purposes 5300
or a governmental organization to the extent that it holds funds 5301
exclusively for any of those purposes. 5302

       (B) "Governing board" means the body responsible for the 5303
management of an institution. 5304

       (C) "Institutional trust fund" means a trust fund, or a part 5305
of a trust fund, that is held by a trustee for the exclusive use, 5306
benefit, or purposes of one or more institutions and that is not 5307
wholly distributable to the institution or institutions on a 5308
current basis under the terms of the applicable trust instrument. 5309
"Institutional trust fund" does not include a fund in which a 5310
beneficiary that is not an institution has an interest other than 5311
a right that may arise upon a violation of a covenant under the 5312
terms of the applicable trust instrument or upon a violation of or 5313
the failure of the purposes of the fund. 5314

       (D) "Applicable fund value" means for any particular fiscal 5315
year the sum of the month-end values of the net assets of an 5316
institutional trust fund for the prior fiscal year for those 5317
months in which the institutional trust fund has been in existence 5318
during such prior fiscal year divided by the number of those 5319
months. The month-end values shall be determined by the trustee in 5320
accordance with the trustee's records, and any such determination 5321
made by a trustee in good faith is conclusive. 5322

       (E) "Trust instrument" means a testamentary or inter vivos 5323
trust under which the trustee of the trust holds an institutional 5324
trust fund. 5325

       (F) "Trustee" means an individual, corporation, institution, 5326
or organization, including, but not limited to, a bank, trust 5327
company, or other financial institution, serving as a trustee or 5328
as sole trustee under a trust instrument. "Trustee" includes an 5329
original trustee and any successor or added trustee. 5330

       ~~Sec. 1340.32.~~        Sec. 5813.02. (A) Subject to division (D) of this 5331
section and section ~~1340.33~~5813.03 of the Revised Code, during 5332
any fiscal year in which income may be or is required to be 5333
distributed to an institution from an institutional trust fund, 5334
income means the greater of the following: 5335

       (1) The income from the assets of the institutional trust 5336
fund for the fiscal year as determined in accordance with the 5337
applicable trust instrument and applicable law without regard to 5338
sections ~~1340.31~~5813.01 to ~~1340.37~~5813.07 of the Revised Code; 5339

       (2) The amount requested by the institution's governing board 5340
for the fiscal year pursuant to division (B) of this section. 5341

       (B) An institution's governing board may request that an 5342
amount be distributed to the institution for the fiscal year, and 5343
that amount shall not exceed the sum of both of the following: 5344

       (1) Five per cent of the applicable fund value for the 5345
institutional trust fund for the fiscal year; 5346

       (2) If, in any prior fiscal year that is after ~~the effective~~ 5347
~~date of this section~~September15, 1999, the governing board 5348
requested less than five per cent of the applicable fund value for 5349
~~such~~that prior fiscal year and if the amount the institution 5350
actually received from the institutional trust fund pursuant to 5351
division (A) of this section was less than five per cent for ~~such~~ 5352
that prior fiscal year, the aggregate difference between five per 5353
cent of the applicable fund value with respect to each such prior 5354
fiscal year and the amount the institution actually received 5355
pursuant to division (A) of this section for ~~such~~each prior 5356
fiscal year. 5357

       (C) If, under a trust instrument, more than one institution 5358
is a beneficiary of an institutional trust fund, the trustee shall 5359
take such actions that the trustee determines appropriate or 5360
necessary to allow for the distributions of income as contemplated 5361
by division (A) of this section, which actions may include 5362
dividing the institutional trust fund into separate shares 5363
according to the interest that each institution has in the total 5364
institutional trust fund held under the trust instrument. 5365

       (D) This section does not limit the authority or obligation 5366
of a trustee to distribute, or the authority of a governing board 5367
to request, funds as permitted or required under the terms of the 5368
applicable trust instrument. 5369

       ~~Sec. 1340.33.~~        Sec. 5813.03. (A) Division (A) of section ~~1340.32~~ 5370
5813.02 of the Revised Code does not apply if the applicable trust 5371
instrument expressly indicates the settlor's intention that income 5372
is to be otherwise than as defined in division (A) of section 5373
~~1340.32~~5813.02 of the Revised Code. 5374

       (B) A restriction upon the definition of income in division 5375
(A) of section ~~1340.32~~5813.02 of the Revised Code may not be 5376
inferred from a designation of an institutional trust fund as an 5377
endowment; a direction or authorization in the applicable trust 5378
instrument to use only "income," "interest," "dividends," or 5379
"rents, issues, or profits," or "to preserve the principal 5380
intact," or a direction that contains other words of a similar 5381
import; a direction in a trust instrument that income and 5382
principal are to be determined by reference to certain statutory 5383
provisions; or, subject to division (A) of this section, the 5384
inclusion of specified provisions in a trust instrument setting 5385
forth the way in which income and principal are to be determined. 5386

       (C) The rule of construction set forth in division (B) of 5387
this section applies to trust instruments executed or in effect 5388
before, on, or after ~~the effective date of this section~~September 5389
15, 1999. 5390

       ~~Sec. 1340.34.~~        Sec. 5813.04. (A) In administering the powers to 5391
request amounts from a trustee of an institutional trust fund in 5392
accordance with divisions (A) and (B) of section ~~1340.32~~5813.02 5393
of the Revised Code, members of a governing board of an 5394
institution shall exercise ordinary business care and prudence 5395
under the facts and circumstances prevailing at the time of the 5396
action or decision and shall make requests for amounts under 5397
divisions (A) and (B) of section ~~1340.32~~5813.02 of the Revised 5398
Code only as is prudent under this standard. In so doing, the 5399
governing board shall consider the long- and short-term needs of 5400
the institution in carrying out its educational, religious, 5401
charitable, or other eleemosynary purposes; the institution's 5402
present and anticipated financial requirements; the expected total 5403
return on the investments held by the institution and held by the 5404
trustee under the applicable trust instrument; price level trends; 5405
and general economic conditions. 5406

       (B) In determining the expected total return on the 5407
investments held by a trustee of an institutional trust fund under 5408
the applicable trust instrument, the members of the governing 5409
board of an institution may follow, and are not required to 5410
examine independently, the determination of the trustee regarding 5411
the expected total return on the investments held by the trustee. 5412

       (C) A trustee of an institutional trust fund has no duty to 5413
inquire or ascertain whether the governing board of an institution 5414
has satisfied the standards set forth in divisions (A) and (B) of 5415
this section, and the trustee does not have any liability for the 5416
failure of the governing board to satisfy those standards. 5417

       ~~Sec. 1340.35.~~        Sec. 5813.05. Nothing in sections ~~1340.40~~5812.01 to 5418
~~1340.91~~5812.52, or any other section of the Revised Code limits 5419
or restricts the definition of income in division (A) of section 5420
~~1340.32~~5813.02 of the Revised Code or limits or restricts a 5421
governing board of an institution from requesting, or a trustee 5422
from making, distributions from an institutional trust fund in 5423
accordance with sections ~~1340.31~~5813.01 to ~~1340.37~~5813.07 of the 5424
Revised Code. 5425

       ~~Sec. 1340.36.~~        Sec. 5813.06. (A) Nothing in sections ~~1340.31~~ 5426
5813.01 to ~~1340.35~~5813.05 of the Revised Code affects the 5427
construction or interpretation of sections 1715.51 to 1715.59 of 5428
the Revised Code relating to the uniform management of 5429
institutional funds act. Specifically, neither the percentage set 5430
forth in division (B) of section 1340.32 of the Revised Code nor 5431
the amount actually requested by a governing board pursuant to 5432
section ~~1340.32~~5813.02 of the Revised Code shall be construed or 5433
interpreted to limit or expand what is a prudent amount that can 5434
be expended by a governing board of an institution under sections 5435
1715.51 to 1715.59 of the Revised Code. 5436

       (B) If an institutional trust fund is also an institutional 5437
fund as defined in division (B) of section 1715.51 of the Revised 5438
Code with the result that sections 1715.51 to 1715.59 of the 5439
Revised Code also are applicable to the institutional trust fund, 5440
then sections 1715.51 to 1715.59 of the Revised Code apply to the 5441
institutional trust fund, and sections ~~1340.31~~5813.01 to ~~1340.37~~ 5442
5813.07 of the Revised Code do not apply to the institutional 5443
trust fund. 5444

       ~~Sec. 1340.37.~~        Sec. 5813.07. Sections ~~1340.31~~5813.01 to ~~1340.37~~ 5445
5813.07 of the Revised Code may be cited as the "institutional 5446
trust funds act." 5447

       ~~Sec. 1339.31.~~        Sec. 5814.01. As used in sections ~~1339.31~~5814.01 to 5448
~~1339.39~~5814.09 of the Revised Code, unless the context otherwise 5449
requires: 5450

       (A) "Benefit plan" means any plan of an employer for the 5451
benefit of any employee, any plan for the benefit of any partner, 5452
or any plan for the benefit of a proprietor, and includes, but is 5453
not limited to, any pension, retirement, death benefit, deferred 5454
compensation, employment agency, stock bonus, option, or 5455
profit-sharing contract, plan, system, account, or trust. 5456

       (B) "Broker" means a person that is lawfully engaged in the 5457
business of effecting transactions in securities for the account 5458
of others. A "broker" includes a financial institution that 5459
effects such transactions and a person who is lawfully engaged in 5460
buying and selling securities for ~~his~~the person's own account, 5461
through a broker or otherwise, as a part of a regular business. 5462

       (C) "Court" means the probate court. 5463

       (D) "The custodial property" includes: 5464

       (1) All securities, money, life or endowment insurance 5465
policies, annuity contracts, benefit plans, real estate, tangible 5466
and intangible personal property, proceeds of a life or endowment 5467
insurance policy, an annuity contract, or a benefit plan, and 5468
other types of property under the supervision of the same 5469
custodian for the same minor as a consequence of a transfer or 5470
transfers made to the minor, a gift or gifts made to the minor, or 5471
a purchase made by the custodian for the minor, in a manner 5472
prescribed in sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the 5473
Revised Code; 5474

       (2) The income from the custodial property; 5475

       (3) The proceeds, immediate and remote, from the sale, 5476
exchange, conversion, investment, reinvestment, or other 5477
disposition of the securities, money, life or endowment insurance 5478
policies, annuity contracts, benefit plans, real estate, tangible 5479
and intangible personal property, proceeds of a life or endowment 5480
insurance policy, an annuity contract, or a benefit plan, other 5481
types of property, and income. 5482

       (E) "Custodian" or "successor custodian" means a person so 5483
designated in a manner prescribed in sections ~~1339.31~~5814.01 to 5484
~~1339.39~~5814.09 of the Revised Code. 5485

       (F) "Financial institution" means any bank, as defined in 5486
section 1101.01, any building and loan association, as defined in 5487
section 1151.01, any credit union as defined in section 1733.01 of 5488
the Revised Code, and any federal credit union, as defined in the 5489
"Federal Credit Union Act," 73 Stat. 628 (1959), 12 U.S.C.A. 1752, 5490
as amended. 5491

       (G) "Guardian of the minor" includes the general guardian, 5492
guardian, tutor, or curator of the property, estate, or person of 5493
a minor. 5494

       (H) "Issuer" means a person who places or authorizes the 5495
placing of ~~his~~the person's name on a security, other than as a 5496
transfer agent, to evidence that it represents a share, 5497
participation, or other interest in ~~his~~the person's property or 5498
in an enterprise, or to evidence ~~his~~the person's duty or 5499
undertaking to perform an obligation that is evidenced by the 5500
security, or who becomes responsible for or in place of any such 5501
person. 5502

       (I) "Legal representative" of a person means the executor, 5503
administrator, general guardian, guardian, committee, conservator, 5504
tutor, or curator of ~~his~~the person's property or estate. 5505

       (J) "Member of the minor's family" means a parent, 5506
stepparent, spouse, grandparent, brother, sister, uncle, or aunt 5507
of the minor, whether of the whole or half blood, or by adoption. 5508

       (K) "Minor" means a person who has not attained the age of 5509
twenty-one years. 5510

       (L) "Security" includes any note, stock, treasury stock, 5511
common trust fund, bond, debenture, evidence of indebtedness, 5512
certificate of interest or participation in an oil, gas, or mining 5513
title or lease or in payments out of production under an oil, gas, 5514
or mining title or lease, collateral trust certificate, 5515
transferable share, voting trust certificate, or, in general, any 5516
interest or instrument commonly known as a security, or any 5517
certificate of interest or participation in, any temporary or 5518
interim certificate, receipt or certificate of deposit for, or any 5519
warrant or right to subscribe to or purchase, any of the 5520
foregoing. A "security" does not include a security of which the 5521
donor or transferor is the issuer. A security is in "registered 5522
form" when it specifies a person who is entitled to it or to the 5523
rights that it evidences and its transfer may be registered upon 5524
books maintained for that purpose by or on behalf of the issuer. 5525

       (M) "Transfer" means a disposition, other than a gift, by a 5526
person who is eighteen years of age or older that creates 5527
custodial property under sections ~~1339.31~~5814.01 to ~~1339.39~~ 5528
5814.09 of the Revised Code. 5529

       (N) "Transfer agent" means a person who acts as 5530
authenticating trustee, transfer agent, registrar, or other agent 5531
for an issuer in the registration of transfers of its securities, 5532
in the issue of new securities, or in the cancellation of 5533
surrendered securities. 5534

       (O) "Transferor" means a person who is eighteen years of age 5535
or older, who makes a transfer. 5536

       (P) "Trust company" means a financial institution that is 5537
authorized to exercise trust powers. 5538

       (Q) "Administrator" includes an "administrator with the will 5539
annexed." 5540

       ~~Sec. 1339.32.~~        Sec. 5814.02. (A) A person who is eighteen years of 5541
age or older may, during ~~his~~the person's lifetime, make a gift or 5542
transfer of a security, money, a life or endowment insurance 5543
policy, an annuity contract, a benefit plan, real estate, tangible 5544
or intangible personal property, or any other property to, may 5545
designate as beneficiary of a life or endowment insurance policy, 5546
an annuity contract, or a benefit plan, or make a transfer by the 5547
irrevocable exercise of a power of appointment in favor of, a 5548
person who is a minor on the date of the gift or transfer: 5549

       (1) If the subject of the gift or transfer is a security in 5550
registered form, by registering it in the name of the donor or 5551
transferor, another person who is eighteen years of age or older, 5552
or a trust company, followed, in substance, by the words: "as 5553
custodian for ................ (name of minor) under the Ohio 5554
Transfers to Minors Act"; 5555

       (2) If the subject of the gift or transfer is a security not 5556
in registered form, by delivering it to the donor or transferor, 5557
another person who is eighteen years of age or older, or a trust 5558
company, accompanied by a statement of a gift or transfer in the 5559
following form, in substance, signed by the donor or transferor 5560
and the person or trust company designated as custodian: 5561

"GIFT OR TRANSFER UNDER THE OHIO TRANSFERS TO MINORS ACT 5562

       I, .................... (name of donor or transferor), hereby 5563
deliver to (name of custodian) as custodian for 5564
................... (name of minor) under the Ohio Transfers to 5565
Minors Act, the following security (ies): (insert an appropriate 5566
description of the security or securities delivered, sufficient to 5567
identify it or them). 5568

5569
(signature of donor or transferor) 5570

....................... (name of custodian) hereby acknowledges 5571
receipt of the above described security (ies) as custodian for the 5572
above minor under the Ohio Transfers to Minors Act. 5573

Dated: ............... 5574
(signature of custodian)" 5575

       (3) If the subject of the gift or transfer is money, by 5576
paying or delivering it to a broker, or a financial institution 5577
for credit to an account in the name of the donor or transferor, 5578
another person who is eighteen years of age or older, or a trust 5579
company, followed, in substance, by the words: "as custodian for 5580
................... (name of minor) under the Ohio Transfers to 5581
Minors Act." 5582

       (4) If the subject of the gift or transfer is a life or 5583
endowment insurance policy, an annuity contract, or a benefit 5584
plan, by assigning the policy, contract, or plan to the donor or 5585
transferor, another person who is eighteen years of age or older, 5586
or a trust company, followed, in substance by the words: "as 5587
custodian for ................. (name of minor) under the Ohio 5588
Transfers to Minors Act." 5589

       (5) If the subject of the gift or transfer is an interest in 5590
real estate, by executing and delivering in the appropriate manner 5591
a deed, assignment, or similar instrument in the name of the donor 5592
or transferor, another person who is eighteen years of age or 5593
older, or a trust company, followed, in substance, by the words: 5594
"as custodian for ............... (name of minor) under the Ohio 5595
Transfers to Minors Act." 5596

       (6) If the subject of the gift or transfer is tangible 5597
personal property, by delivering it to the donor or transferor, 5598
another person who is eighteen years of age or older, or a trust 5599
company, accompanied by a statement of a gift or transfer in the 5600
following form, in substance, signed by the donor or transferor 5601
and the person or trust company designated as custodian: 5602

"GIFT OR TRANSFER UNDER THE OHIO TRANSFERS TO MINORS ACT 5603

       I, ................ (name of donor or transferor), hereby 5604
deliver to .................. (name of custodian) as custodian for 5605
.................. (name of minor) under the Ohio Transfers to 5606
Minors Act, the following property: (insert an appropriate 5607
description of the property delivered, sufficient to identify it). 5608

5609
(signature of donor or transferor) 5610

......................... (name of custodian) hereby acknowledges 5611
receipt of the above described property as custodian for the above 5612
minor under the Ohio Transfers to Minors Act. 5613

Dated: ............... 5614
(signature of custodian)" 5615

       (7) If the subject of the gift or transfer is tangible 5616
personal property, title to which is evidenced by a certificate of 5617
title issued by a department or agency of a state or of the United 5618
States, by issuing title to the donor or transferor, another 5619
person who is eighteen years of age or older, or a trust company, 5620
accompanied by a statement of a gift or transfer in the following 5621
form, in substance: "as custodian for ....................... 5622
(name of minor) under the Ohio Transfers to Minors Act"; or by 5623
delivering the title to another person who is eighteen years of 5624
age or older or a trust company, endorsed to that person followed 5625
in substance by the following words: "as custodian for 5626
................... under the Ohio Transfers to Minors Act." 5627

       (8) If the subject of the gift or transfer is the designation 5628
of a minor as beneficiary of a life or endowment insurance policy, 5629
an annuity contract, or a benefit plan, by designating as 5630
beneficiary of the policy, contract, or plan the donor or 5631
transferor, another person who is eighteen years of age or older, 5632
or a trust company, followed, in substance, by the words: "as 5633
custodian for ................... (name of minor) under the Ohio 5634
Transfers to Minors Act." 5635

       (9) If the subject of the gift or transfer is an irrevocable 5636
exercise of a power of appointment in favor of a minor or is an 5637
interest in any property that is not described in divisions (A)(1) 5638
to (8) of this section, by causing the ownership of the property 5639
to be transferred by any written document in the name of the donor 5640
or transferor, another person who is eighteen years of age or 5641
older, or a trust company, followed, in substance, by the words: 5642
"as custodian for .................. (name of minor) under the 5643
Ohio Transfers to Minors Act." 5644

       (B) Trustees, inter vivos or testamentary, executors, and 5645
administrators having authority to distribute or pay any trust or 5646
estate property to or for the benefit of a minor, or having 5647
authority to distribute or pay any trust or estate property to any 5648
other person for the benefit of a minor may, if authorized by a 5649
will or trust instrument, distribute or pay trust or estate 5650
property of any type mentioned in division (A) of this section in 5651
the manner and form provided in that division, and may name the 5652
custodian or successor custodian of the property if the will or 5653
trust instrument does not name an eligible custodian, or if the 5654
will or trust does not name an eligible successor custodian and 5655
the naming of a successor custodian is necessary. A person who is 5656
eighteen years of age or older, in ~~his~~the person's will or trust 5657
instrument, may provide that the fiduciary shall make any payment 5658
or distribution as provided in this division and may name the 5659
custodian and a successor custodian of the trust or estate 5660
property. As to any distribution or payment so made, the testator 5661
of a will, under the provisions of which a testamentary trust or 5662
estate is being administered, or the settlor of an inter vivos 5663
trust shall be deemed the donor or transferor. 5664

       (C) Any gift, transfer, payment, or distribution that is made 5665
in a manner prescribed in division (A), (B), or (E) of this 5666
section may be made to only one minor and only one person may be 5667
the custodian. All gifts, transfers, payments, and distributions 5668
made by a person in a manner prescribed in sections ~~1339.31~~ 5669
5814.01 to ~~1339.39~~5814.09 of the Revised Code to the same 5670
custodian for the benefit of the same minor result in a single 5671
custodianship. 5672

       (D) A donor or transferor who makes a gift or transfer to a 5673
minor in a manner prescribed in division (A) of this section and a 5674
trustee, executor, or administrator acting under division (B) or 5675
(E) of this section shall promptly do all things within ~~his~~the 5676
donor's, transferor's, trustee's, executor's, or administrator's 5677
power to put the subject of the gift or transfer in the possession 5678
and control of the custodian, but neither the donor's, 5679
transferor's, trustee's, executor's, or administrator's failure to 5680
comply with this division, nor ~~his~~the designation by the donor, 5681
transferor, trustee, executor, or administrator of an ineligible 5682
custodian, nor the renunciation by the person or trust company 5683
designated as custodian, affects the consummation of the gift or 5684
transfer. 5685

       (E) If there is no will, or if a will, trust, or other 5686
governing instrument does not contain an authorization to make a 5687
transfer as described in this division, a trustee, executor, or 5688
administrator may make a transfer in a manner prescribed in 5689
division (A) of this section to ~~himself~~self, another person who 5690
is eighteen years of age or older, or a trust company, as 5691
custodian, if all of the following apply: 5692

       (1) Irrespective of the value of the property, the trustee, 5693
executor, or administrator considers the transfer to be in the 5694
best interest of the minor; 5695

       (2) Irrespective of the value of the property, the transfer 5696
is not prohibited by or inconsistent with the applicable will, 5697
trust agreement, or other governing instrument; 5698

       (3) If the value of the property exceeds ten thousand 5699
dollars, the transfer is authorized by the appropriate court. 5700

       ~~Sec. 1339.33.~~        Sec. 5814.03. (A) A gift or transfer made in a 5701
manner prescribed in sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 5702
of the Revised Code, is irrevocable and conveys to the minor 5703
indefeasibly vested legal title to the security, money, life or 5704
endowment insurance policy, annuity contract, benefit plan, real 5705
estate, tangible or intangible personal property, or other 5706
property given or, subject to the right of the owner of the 5707
policy, contract, or benefit plan to change the beneficiary if the 5708
custodian is not the owner, to the proceeds of a life or endowment 5709
insurance policy, an annuity contract, or a benefit plan given, 5710
but no guardian of the minor has any right, power, duty, or 5711
authority with respect to the custodial property except as 5712
provided in sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the 5713
Revised Code. 5714

       (B) By making a gift or transfer in a manner prescribed in 5715
sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the Revised Code, 5716
the donor or transferor incorporates in ~~his~~the gift or transfer 5717
all the provisions of these sections and grants to the custodian, 5718
and to any issuer, transfer agent, financial institution, broker, 5719
or third person dealing with a person or trust company designated 5720
as custodian, the respective powers, rights, and immunities 5721
provided in these sections. 5722

       ~~Sec. 1339.34.~~        Sec. 5814.04. (A) The custodian shall collect, hold, 5723
manage, invest, and reinvest the custodial property. 5724

       (B) The custodian shall pay over to the minor for expenditure 5725
by the minor, or expend for the use or benefit of the minor, as 5726
much of or all the custodial property as the custodian considers 5727
advisable for the use and benefit of the minor in the manner, at 5728
the time or times, and to the extent that the custodian in ~~his~~the 5729
custodian's discretion considers suitable and proper, with or 5730
without court order, with or without regard to the duty or ability 5731
of the custodian or of any other person to support the minor or 5732
~~his~~the minor's ability to do so, and with or without regard to 5733
any other income or property of the minor that may be applicable 5734
or available for any purpose. Any payment or expenditure that is 5735
made under this division is in addition to, is not a substitute 5736
for, and does not affect the obligation of any person to support 5737
the minor for whom the payment or expenditure is made. 5738

       (C) The court, on the petition of a parent or guardian of the 5739
minor or of the minor, if hethe minor has attained the age of 5740
fourteen years, may order the custodian to pay over to the minor 5741
for expenditure by ~~him~~the minor or to expend as much of or all 5742
the custodial property as is necessary for the use and benefit of 5743
the minor. 5744

       (D)(1) Except as provided in division (D)(2) of this section, 5745
to the extent that the custodial property is not so expended, the 5746
custodian shall deliver or pay the custodial property over to the 5747
minor on ~~his~~the minor's attaining the age of twenty-one years or, 5748
if the minor dies before attaining the age of twenty-one years, 5749
shall, upon the minor's death, deliver or pay the custodial 5750
property over to the estate of the minor. 5751

       (2) If the donor or transferor, in the written instrument 5752
that makes or provides for the gift or transfer, directs the 5753
custodian to deliver or pay over the custodial property to the 5754
minor on ~~his~~the minor's attaining any age between eighteen and 5755
twenty-one, the custodian shall deliver or pay over the custodial 5756
property to the minor on ~~his~~the minor's attaining that age, or, 5757
if the minor dies before attaining that age, the custodian shall, 5758
upon the minor's death, deliver or pay the custodial property over 5759
to the estate of the minor. 5760

       (E) The custodian, notwithstanding statutes restricting 5761
investments by fiduciaries, shall invest and reinvest the 5762
custodial property as would a prudent person of discretion and 5763
intelligence dealing with the property of another, except that the 5764
custodian may, in the discretion of the custodian and without 5765
liability to the minor or the estate of the minor, retain any 5766
custodial property received in a manner prescribed in sections 5767
~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the Revised Code. If a 5768
custodian has special skills or is named custodian on the basis of 5769
representations of special skills or expertise, the custodian is 5770
under a duty to use those skills or that expertise. 5771

       (F) The custodian may sell, exchange, convert, or otherwise 5772
dispose of custodial property in the manner, at the time or times, 5773
for the price or prices, and upon the terms hethe custodian 5774
considers advisable. HeThe custodian may vote in person or by 5775
general or limited proxy a security that is custodial property. He 5776
The custodian may consent, directly or through a committee or 5777
other agent, to the reorganization, consolidation, merger, 5778
dissolution, or liquidation of an issuer of a security that is 5779
custodial property, and to the sale, lease, pledge, or mortgage of 5780
any property by or to such an issuer, and to any other action by 5781
such an issuer. HeThe custodian may purchase any life or 5782
endowment insurance policy or annuity contract on the life of the 5783
minor or any member of the family of the minor and pay, from funds 5784
in ~~his~~the custodian's custody, any premiums on any life or 5785
endowment insurance policy or annuity contract held by ~~him~~the 5786
custodian as custodial property. HeThe custodian may execute and 5787
deliver any and all instruments in writing that hethe custodian 5788
considers advisable to carry out any of ~~his~~the custodian's powers 5789
as custodian. 5790

       (G) The custodian shall register each security that is 5791
custodial property and in registered form in the name of the 5792
custodian, followed, in substance, by the words: "as custodian for 5793
............ (name of minor) under the Ohio Transfers to Minors 5794
Act," or shall maintain each security that is custodial property 5795
and in registered form in an account with a broker or in a 5796
financial institution in the name of the custodian, followed, in 5797
substance, by the words: "as custodian for ............. (name of 5798
minor) under the Ohio Transfers to Minors Act." A security held in 5799
account with a broker or in a financial institution in the name of 5800
the custodian may be held in the name of the broker or financial 5801
institution. A security that is custodial property and in 5802
registered form and that is held by a broker or in a financial 5803
institution in which the broker or financial institution does not 5804
have a lien for indebtedness due to it from a custodial account 5805
may not be pledged, lent, hypothecated, or disposed of except upon 5806
the specific instructions of the custodian. The custodian shall 5807
hold all money that is custodial property in an account with a 5808
broker or in a financial institution in the name of the custodian, 5809
followed, in substance, by the words: "as custodian for 5810
............ (name of minor) under the Ohio Transfers to Minors 5811
Act." The custodian shall hold all life or endowment insurance 5812
policies, annuity contracts, or benefit plans that are custodial 5813
property in the name of the custodian, followed, in substance, by 5814
the words "as custodian for ................ (name of minor) under 5815
the Ohio Transfers to Minors Act." The custodian shall take title 5816
to all real estate that is custodial property in the name of the 5817
custodian, followed, in substance, by the words: "as custodian for 5818
............ (name of minor) under the Ohio Transfers to Minors 5819
Act." The custodian shall keep all other custodial property 5820
separate and distinct from ~~his~~the custodian's own property in a 5821
manner to identify it clearly as custodial property. 5822

       (H) The custodian shall keep records of all transactions with 5823
respect to the custodial property and make the records available 5824
for inspection at reasonable intervals by a parent or legal 5825
representative of the minor or by the minor, if hethe minor has 5826
attained the age of fourteen years. 5827

       (I) A custodian has, with respect to the custodial property, 5828
in addition to the rights and powers provided in sections ~~1339.31~~ 5829
5814.01 to ~~1339.39~~5814.09 of the Revised Code, all the rights and 5830
powers that a guardian has with respect to property not held as 5831
custodial property. 5832

       (J) The custodian may invest in or pay premiums on any life 5833
or endowment insurance policy or annuity contract on either of the 5834
following: 5835

       (1) The life of the minor, if the minor or the estate of the 5836
minor is the sole beneficiary under the policy or contract; 5837

       (2) The life of any person in whom the minor has an insurable 5838
interest, if the minor, ~~his~~the minor's estate, or the custodian 5839
in ~~his~~the custodian's capacity as custodian is the sole 5840
beneficiary. 5841

       (K) All of the rights, powers, and authority of the custodian 5842
over custodial property, including all of the incidents of 5843
ownership in any life or endowment insurance policy, annuity 5844
contract, or benefit plan, are held only in the capacity of the 5845
custodian as custodian. 5846

       ~~Sec. 1339.35.~~        Sec. 5814.05. (A) A custodian is entitled to 5847
reimbursement from the custodial property for ~~his~~ reasonable 5848
expenses incurred in the performance of ~~his~~the custodian's 5849
duties. 5850

       (B) A custodian may act without compensation for ~~his~~the 5851
custodian's services. 5852

       (C) Unless hethe custodian is a donor or transferor, athe 5853
custodian may receive from custodial property reasonable 5854
compensation for ~~his~~the custodian's services determined by one of 5855
the following standards in the order stated: 5856

       (1) A direction by the donor or transferor when the gift or 5857
transfer is made; 5858

       (2) A statute of this state applicable to custodians; 5859

       (3) The statute of this state applicable to guardians; 5860

       (4) An order of the court. 5861

       (D) Except as otherwise provided in sections ~~1339.31~~5814.01 5862
to ~~1339.39~~5814.09 of the Revised Code, a custodian shall not be 5863
required to give a bond for the performance of ~~his~~the custodian's 5864
duties. 5865

       (E) A custodian not compensated for ~~his~~the custodian's 5866
services is not liable for losses to the custodial property unless 5867
they result from ~~his~~the custodian's bad faith, intentional 5868
wrongdoing, or gross negligence or from ~~his~~the custodian's 5869
failure to maintain the standard of prudence in investing the 5870
custodial property provided in sections ~~1339.31~~5814.01 to ~~1339.39~~ 5871
5814.09 of the Revised Code. 5872

       ~~Sec. 1339.36.~~        Sec. 5814.06. An issuer, transfer agent, financial 5873
institution, broker, life insurance company, or other person 5874
acting on the instructions of or otherwise dealing with any person 5875
purporting to act as a donor or transferor or dealing with any 5876
person or trust company purporting to act as a custodian is not 5877
required to do any of the following: 5878

       (A) Determine either of the following: 5879

       (1) Whether the person or trust company designated by the 5880
purported donor or transferor, or the person or trust company 5881
purporting to act as a custodian, has been duly designated; 5882

       (2) Whether any purchase, sale, or transfer to or by, or any 5883
other act of, any person or trust company purporting to act as a 5884
custodian is in accordance with or authorized by sections ~~1339.31~~ 5885
5814.01 to ~~1339.39~~5814.09 of the Revised Code. 5886

       (B) Inquire into the validity or propriety under sections 5887
~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the Revised Code of any 5888
instrument or instructions executed or given by a person 5889
purporting to act as a donor or transferor or by a person or trust 5890
company purporting to act as a custodian; 5891

       (C) See to the application by any person or trust company 5892
purporting to act as a custodian of any money or other property 5893
paid or delivered to the person or trust company. 5894

       ~~Sec. 1339.37.~~        Sec. 5814.07. (A) Any person who is eighteen years 5895
of age or older or a trust company is eligible to become a 5896
successor custodian. A successor custodian has all the rights, 5897
powers, duties, and immunities of a custodian designated in a 5898
manner prescribed by sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 5899
of the Revised Code. 5900

       (B) A custodian may resign and designate ~~his~~the custodian's 5901
successor by doing all of the following: 5902

       (1) Executing an instrument of resignation that designates 5903
the successor custodian; 5904

       (2) Causing each security that is custodial property and in 5905
registered form to be registered in the name of the successor 5906
custodian followed, in substance, by the words: "as custodian for 5907
..................... under the Ohio Transfers 5908

(name of minor) 5909

to Minors Act;" 5910

       (3) Executing in the appropriate manner a deed, assignment, 5911
or similar instrument for all interest in real estate that is 5912
custodial property in the name of the successor custodian, 5913
followed, in substance, by the words: "as custodian for 5914
........................... under the Ohio Transfers to 5915

(name of minor) 5916

Minors Act"; 5917

       (4) Delivering to the successor custodian the instrument of 5918
resignation, each security registered in the name of the successor 5919
custodian, each deed, assignment, or similar instrument for all 5920
interest in real estate that is in the name of the successor 5921
custodian, and all other custodial property, together with any 5922
additional instruments that are required for the transfer of the 5923
custodial property. 5924

       (C) A custodian may petition the court for permission to 5925
resign and for the designation of a successor custodian. 5926

       (D) A custodian may designate by ~~his~~the custodian's will a 5927
successor custodian, which designation is effective at the 5928
custodian's death. Upon the custodian's death, the custodian's 5929
legal representative shall do each of the following: 5930

       (1) Cause each security that is custodial property and in 5931
registered form to be registered in the name of the successor 5932
custodian, followed, in substance, by the words: "as custodian for 5933
......................... under the Ohio Transfers to 5934

(name of minor) 5935

Minors Act"; 5936

       (2) Execute in the appropriate manner a deed, assignment, or 5937
similar instrument for all interest in real estate that is 5938
custodial property in the name of the successor custodian, 5939
followed, in substance, by the words: "as custodian for 5940

........................... under the Ohio Transfers to Minors 5941

(name of minor) 5942

Act"; 5943

       (3) Deliver to the successor custodian each security 5944
registered in the name of the successor custodian, each deed, 5945
assignment, or similar instrument for all interest in real estate 5946
that is in the name of the successor custodian, and all other 5947
custodial property, together with any additional instruments that 5948
are required for the transfer of the custodial property. 5949

       (E) If no eligible successor custodian is designated by the 5950
donor or transferor in ~~his~~the donor's or transferor's will or 5951
trust or by the custodian in ~~his~~the custodian's will, or if the 5952
custodian dies intestate or is adjudged to be an incompetent by a 5953
court, the legal representative of the custodian may designate a 5954
successor custodian. If the court in which the estate or 5955
guardianship proceedings relative to the custodian are pending 5956
approves the designation, the designation shall be regarded as 5957
having been effective as of the date of the death of the custodian 5958
or as of the date hethe custodian was adjudged to be an 5959
incompetent. Upon the approval of the court, the legal 5960
representative of the custodian shall cause the custodial property 5961
to be transferred or registered in the name of the successor 5962
custodian as provided in divisions (D)(1) to (3) of this section. 5963

       (F) If a person or entity designated as successor custodian 5964
is not eligible, or renounces or dies before the minor attains the 5965
age of twenty-one years, or if the custodian dies without 5966
designating a successor custodian and division (E) of this section 5967
does not apply because the custodian does not have a legal 5968
representative, the guardian of the minor shall be the successor 5969
custodian. If the minor does not have a guardian, a donor or 5970
transferor, the legal representative of the donor or transferor, 5971
the legal representative of the custodian, a member of the minor's 5972
family who is eighteen years of age or older, or the minor, if he 5973
the minor has attained the age of fourteen years, may petition the 5974
court for the designation of a successor custodian. 5975

       (G) A donor or transferor, the legal representative of a 5976
donor or transferor, a member of the minor's family who is 5977
eighteen years of age or older, a guardian of the minor, or the 5978
minor, if hethe minor has attained the age of fourteen years, may 5979
petition the court that, for cause shown in the petition, the 5980
custodian be removed and a successor custodian be designated or, 5981
in the alternative, that the custodian be required to give bond 5982
for the performance of ~~his~~the custodian's duties. 5983

       (H) Upon the filing of a petition as provided in this 5984
section, the court shall grant an order, directed to the persons 5985
and returnable on any notice that the court may require, to show 5986
cause why the relief prayed for in the petition should not be 5987
granted and, in due course, grant any relief that the court finds 5988
to be in the best interests of the minor. 5989

       ~~Sec. 1339.38.~~        Sec. 5814.08. (A) The minor, if hethe minor has 5990
attained the age of fourteen years, or the legal representative of 5991
the minor, a member of the minor's family who is eighteen years of 5992
age or older, or a donor or transferor or ~~his~~the donor's or 5993
transferor's legal representative may petition the court for an 5994
accounting by the custodian or ~~his~~the custodian's legal 5995
representative. A successor custodian may petition the court for 5996
an accounting by the custodian that hethe successor custodian 5997
succeeded. 5998

       (B) The court, in a proceeding under sections ~~1339.31~~5814.01 5999
to ~~1339.39~~5814.09 of the Revised Code, or otherwise, may require 6000
or permit the custodian or ~~his~~the custodian's legal 6001
representative to account and, if the custodian is removed, shall 6002
so require and order delivery of all custodial property to the 6003
successor custodian and the execution of all instruments required 6004
for the transfer of the custodial property. 6005

       ~~Sec. 1339.39.~~        Sec. 5814.09. (A) Sections ~~1339.31~~5814.01 to 6006
~~1339.39~~5814.09 of the Revised Code shall be so construed as to 6007
effectuate their general purpose to make uniform the law of those 6008
states ~~which~~that enact similar provisions. 6009

       (B) Sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the 6010
Revised Code shall not be construed as providing an exclusive 6011
method for making gifts or transfers to minors. 6012

       (C) Nothing in sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of 6013
the Revised Code, shall affect gifts made under former sections 6014
1339.19 to 1339.28 of the Revised Code, nor the powers, duties, 6015
and immunities conferred by gifts in such manner upon custodians 6016
and persons dealing with custodians. Sections ~~1339.31~~5814.01 to 6017
~~1339.39~~5814.09 of the Revised Code henceforth apply, however, to 6018
all gifts made in a manner and form prescribed in former sections 6019
1339.19 to 1339.28 of the Revised Code, except insofar as ~~such~~the 6020
application impairs constitutionally vested rights. Sections 6021
~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the Revised Code shall be 6022
construed as a continuation of the provisions of former sections 6023
1339.19 to 1339.28 of the Revised Code, according to the language 6024
employed, and not as a new enactment. 6025

       (D) Nothing in sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of 6026
the Revised Code, as of ~~the effective date of this amendment~~May 6027
7, 1986, shall affect gifts made under those sections as they 6028
existed prior to ~~the effective date of this amendment~~May 7, 1986, 6029
or the powers, duties, and immunities conferred by the gifts in 6030
any manner upon custodians and persons dealing with custodians. 6031
Sections ~~1339.31~~5814.01 to ~~1339.39~~5814.09 of the Revised Code, 6032
as of ~~the effective date of this amendment~~May 7, 1986, hereafter 6033
apply to all gifts made in a manner and form prescribed in those 6034
sections as they existed prior to ~~the effective date of this~~ 6035
~~amendment~~May 7, 1986, except to the extent that the application 6036
of those sections, as of ~~the effective date of this amendment~~May 6037
7, 1986, would impair constitutionally vested rights. 6038

       ~~Sec. 1339.031.~~        Sec. 5815.01. Except when the intent of the settlor 6039
clearly is to the contrary, the following rules of construction 6040
shall apply in interpreting the terms "inheritance" and "bequest": 6041

       (A) The term "inheritance," in addition to its meaning at 6042
common law or under any other section or sections of the Revised 6043
Code, includes any change of title to real property by reason of 6044
the death of the owner of that real property, regardless of 6045
whether the owner died testate or intestate. 6046

       (B) The term "bequest," in addition to its meaning at common 6047
law or under any other section or sections of the Revised Code, 6048
includes any disposition of real property that occurs as a result 6049
of the death of the settlor. 6050

       ~~Sec. 1339.01.~~        Sec. 5815.02. As used in sections ~~1339.01~~5815.02 6051
and ~~1339.02~~5815.03 of the Revised Code: 6052

       (A) "Fiduciary" includes a trustee under any trust, 6053
expressed, implied, resulting, or constructive; an executor, 6054
administrator, public administrator, guardian, committee, 6055
conservator, curator, receiver, trustee in bankruptcy, assignee 6056
for the benefit of creditors, partner, agent, officer of a public 6057
or private corporation, or public officer; or any other person 6058
acting in a fiduciary capacity for any person, trust, or estate. 6059

       (B) "Good faith" includes an act done honestly, whether it is 6060
done negligently or not. 6061

       (C) "Issuer" includes domestic corporations, companies, 6062
associations, and trusts; foreign corporations, companies, 6063
associations, and trusts, to the extent that securities issued by 6064
them are held of record by persons in this state or are held on 6065
deposit in this state, and to the extent that such foreign 6066
corporation, company, association, or trust is a holder of record 6067
of, or otherwise interested in, securities of domestic 6068
corporations, companies, associations, or trusts; and also the 6069
transfer agents and registrars of the issuer and the depositories 6070
for its securities. 6071

       (D) "Person" includes a corporation, partnership, 6072
association, or two or more persons having a joint or common 6073
interest. 6074

       (E) "Securities" includes the items in the following 6075
enumeration, which, however, is not exclusive: 6076

       (1) Shares, share certificates, and other certificates and 6077
evidences of ownership or participation in property, assets, or 6078
trust estate; bonds, notes, debentures, certificates, or evidences 6079
of indebtedness, certificates of interest or participation, 6080
collateral trust certificates, equipment-trust certificates, 6081
preorganization or subscription certificates or receipts, and 6082
voting-trust certificates; passbooks or certificates of deposit of 6083
money, securities, or other property; scrip certificates, 6084
fractional interests certificates, and, in general, interests or 6085
instruments commonly known as securities, and certificates of 6086
interest or participation in, temporary or interim certificates or 6087
receipts for, or warrants or rights to subscribe to, purchase, or 6088
receive, any of the foregoing, whether such securities were issued 6089
by the issuer in its corporate capacity, in its individual 6090
capacity, or in a fiduciary capacity; 6091

       (2) Securities ~~which~~that were issued originally by other 6092
corporations, companies, associations, or trusts, but have become 6093
the securities of the present issuer, individually or as a 6094
fiduciary. 6095

       ~~Sec. 1339.02.~~        Sec. 5815.03. Unless there has been delivered to an 6096
issuer a certified copy of an order, judgment, or decree of a 6097
court, judge, or administrative body or official, the legal effect 6098
of which is to restrict, suspend, or remove such capacity or 6099
authority, ~~such~~the issuer may treat all persons in whose names 6100
its securities are of record on its records as being of full age 6101
and competent and as having capacity and authority to exercise all 6102
rights of ownership in respect of ~~such~~the securities, including 6103
the right to receive and to give receipts for payments and 6104
distributions, the right to transfer ~~said~~the securities, and the 6105
right to vote or to give consent in person or by proxy, 6106
notwithstanding any description, limitation, or qualification 6107
appearing on ~~such~~the securities or on ~~such~~the records, any 6108
reference thereon to another instrument or to any fiduciary or 6109
pledgee or other relationship, or any knowledge or notice, actual 6110
or constructive, of the right, interest, or claim of any other 6111
person or of the infancy or lack of capacity or authority of the 6112
persons in whose names ~~such~~the securities are of record. 6113

       ~~Such~~The issuer may treat a fiduciary as having capacity and 6114
authority to exercise all ~~said~~ rights of ownership in respect of 6115
~~such~~the securities that are of record in the name of a decedent 6116
holder, of a person in conservation, receivership, or bankruptcy, 6117
or of a minor, incompetent person, or person under disability, and 6118
~~such~~the issuer shall be protected in any action taken or suffered 6119
by it in reliance upon any instrument showing the appointment of 6120
~~such~~the fiduciary. 6121

       ~~Such~~The issuer is not liable for loss caused by any act done 6122
or omitted by it under this section. ~~Such~~The issuer need not see 6123
to the execution of any trust, or to the observance or performance 6124
of any obligation of a holder of record, a fiduciary, or a pledgee 6125
of ~~such~~the securities, and it need not inquire or inform itself 6126
concerning ~~the same~~those matters. 6127

       This section does not enlarge the capacity, right, or 6128
authority of any holder of record of ~~such~~the securities as 6129
against any person other than ~~such~~the issuer, nor prevent any 6130
court of competent jurisdiction from enforcing or protecting any 6131
right, title, or interest in ~~such~~the securities in any person who 6132
is not a holder of record ~~thereof~~the securities. 6133

       This section does not protect any ~~such~~ issuer who 6134
participates with a fiduciary in a breach of ~~his~~the fiduciary's 6135
trust with knowledge of such facts that the action of ~~such~~the 6136
issuer amounts to bad faith. 6137

       ~~Sec. 1339.03.~~        Sec. 5815.04. As used in sections ~~1339.03~~5815.04 to 6138
~~1339.13, inclusive,~~5815.11 of the Revised Code: 6139

       (A) "Bank" includes any person, carrying on the business of 6140
banking and any financial institution defined in section 5725.01 6141
of the Revised Code. 6142

       (B) "Fiduciary" includes a trustee under any trust, 6143
expressed, implied, resulting, or constructive, an executor, 6144
~~adminstrator~~administrator, guardian, conservator, curator, 6145
receiver, trustee in bankruptcy, assignee for the benefit of 6146
creditors, partner, agent, officer of a corporation, public or 6147
private, public officer, or any other person acting in a fiduciary 6148
capacity for any person, trust, or estate. 6149

       (C) "Person" includes a corporation, partnership, 6150
association, or two or more persons having a joint or common 6151
interest. 6152

       (D) "Principal" includes any person to whom a fiduciary as 6153
such owes an obligation. 6154

       (E) "Good faith" includes an act when it is in fact done 6155
honestly. 6156

       ~~Sec. 1339.04.~~        Sec. 5815.05. A person who in good faith pays or 6157
transfers to a fiduciary any money or other property ~~which~~that 6158
the fiduciary as such is authorized to receive is not responsible 6159
for the proper application ~~thereof~~of the money or other property 6160
by the fiduciary. Any right or title acquired from the fiduciary 6161
in consideration of ~~such~~the payment or transfer is not invalid 6162
because of a misapplication by the fiduciary. 6163

       ~~Sec. 1339.08.~~        Sec. 5815.06. If a deposit is made in a bank to the 6164
credit of a fiduciary as such, the bank may pay the amount of the 6165
deposit or any part thereof upon the check of the fiduciary, 6166
signed with the name in which ~~such~~the deposit is entered, without 6167
being liable to the principal, unless the bank pays the check with 6168
actual knowledge that the fiduciary is committing a breach of ~~his~~ 6169
the obligation as fiduciary in drawing the check or with knowledge 6170
of such facts that its action in paying the check amounts to bad 6171
faith. 6172

       If such a check is payable to the drawee bank and is 6173
delivered to it in payment of or as security for a personal debt 6174
of the fiduciary to it, the bank is liable to the principal if the 6175
fiduciary in fact commits a breach of ~~his~~the obligation as 6176
fiduciary in drawing or delivering the check. 6177

       ~~Sec. 1339.09.~~        Sec. 5815.07. If a check is drawn upon ~~his~~the 6178
principal's account by a fiduciary who is empowered to do so, the 6179
bank may pay ~~such~~the check without being liable to the principal, 6180
unless the bank pays the check with actual knowledge that the 6181
fiduciary is committing a breach of ~~his~~the obligation as 6182
fiduciary in drawing ~~such~~the check or with knowledge of such 6183
facts that its action in paying the check amounts to bad faith. 6184

       If such a check is payable to the drawee bank and is 6185
delivered to it in payment of or as security for a personal debt 6186
of the fiduciary to it, the bank is liable to the principal if the 6187
fiduciary in fact commits a breach of ~~his~~the obligation as 6188
fiduciary in drawing or delivering the check. 6189

       ~~Sec. 1339.10.~~        Sec. 5815.08. If a fiduciary makes a deposit in a 6190
bank to ~~his~~the fiduciary's personal credit of checks drawn by ~~him~~ 6191
the fiduciary upon an account in ~~his~~the fiduciary's own name as 6192
fiduciary, checks payable to ~~him~~the fiduciary as fiduciary, 6193
checks drawn by ~~him~~the fiduciary upon an account in the name of 6194
~~his~~the principal if hethe fiduciary is empowered to draw checks 6195
thereon, checks payable to ~~his~~the principal and indorsed by ~~him~~ 6196
the fiduciary if hethe fiduciary is empowered to indorse ~~such~~the 6197
checks, or if hethe fiduciary otherwise makes a deposit of funds 6198
held by ~~him~~the fiduciary as fiduciary, the bank receiving ~~such~~ 6199
the deposit is not bound to inquire whether the fiduciary is 6200
committing a breach of ~~his~~the obligation as fiduciary. 6201

       ~~Such~~The bank may pay the amount of the deposit or any part 6202
thereof upon the personal check of the fiduciary without being 6203
liable to the principal, unless the bank receives the deposit or 6204
pays the check with actual knowledge that the fiduciary is 6205
committing a breach of ~~his~~the obligation as fiduciary in making 6206
~~such~~the deposit or in drawing ~~such~~the check, or with knowledge 6207
of such facts that the action of ~~such~~the bank in receiving the 6208
deposit or paying the check amounts to bad faith. 6209

       ~~Sec. 1339.11.~~        Sec. 5815.09. When a deposit is made in a bank in 6210
the name of two or more persons as trustees and a check is drawn 6211
upon the trust account by any trustee authorized to do so by the 6212
other, neither the payee or other holder nor the bank is bound to 6213
inquire whether it is a breach of trust to authorize ~~such~~the 6214
trustee to draw checks upon the trust account and neither is 6215
liable unless the circumstances are such that the action of the 6216
payee or other holder or the bank amounts to bad faith. 6217

       ~~Sec. 1339.12.~~        Sec. 5815.10. Sections ~~1339.03~~5815.04 to ~~1339.13,~~ 6218
~~inclusive,~~5815.11 of the Revised Code shall be so construed ~~so as~~ 6219
to effectuate their general purpose ~~which is to make~~of making the 6220
law of this state uniform with the law of those states ~~which~~that 6221
enact similar legislation. 6222

       ~~Sec. 1339.13.~~        Sec. 5815.11. In any case not provided for in 6223
sections ~~1339.03~~5815.04 to ~~1339.13, inclusive,~~5815.11 of the 6224
Revised Code, the rules of law and equity, including the law 6225
merchant and those rules of law and equity relating to trusts, 6226
agency, negotiable instruments, and banking apply. 6227

       ~~Sec. 1339.15.~~        Sec. 5815.12. As used in sections ~~1339.151~~5815.13, 6228
~~1339.16~~5815.14, and ~~1339.17~~5815.15 of the Revised Code, "power 6229
of appointment" means any power ~~which~~that is in effect a power to 6230
appoint, however created, regardless of the nomenclature used in 6231
creating the power and regardless of connotations under the law of 6232
property, trusts, or wills. ~~Such~~The power includes but is not 6233
limited to powers which are special, general, limited, absolute, 6234
in gross, appendant, appurtenant, or collateral. 6235

       ~~Sec. 1339.151.~~        Sec. 5815.13. Any power of appointment ~~which~~that 6236
is not subject to an express condition that it may be exercised 6237
only by a donee or holder of a greater age may be exercised by any 6238
donee or holder of the age of eighteen years, or over. 6239

       ~~Sec. 1339.16.~~        Sec. 5815.14. Any power of appointment may be 6240
released in whole or in part by the donee or holder of the power 6241
by an instrument in writing, signed and acknowledged in the manner 6242
prescribed for the execution of deeds. No such release is 6243
ineffective because it was given either for or without 6244
consideration, because it was signed and acknowledged before June 6245
3, 1943, or because no delivery is made of a copy of the release 6246
as provided for in section ~~1339.17~~5815.15 of the Revised Code. 6247

       Sections ~~1339.16~~5815.14 and ~~1339.17~~5815.15 of the Revised 6248
Code do not affect the validity of a release of a power of 6249
appointment effected in any other form or manner. 6250

       A donee or holder of a power of appointment may disclaim the 6251
same at any time, wholly or in part, in the same manner and to the 6252
same extent as hethe donee or holder of the power might release 6253
it. 6254

       ~~Sec. 1339.17.~~        Sec. 5815.15. No fiduciary or other person having 6255
the possession or control of any property subject to a power of 6256
appointment, other than the donee or holder of such power, has 6257
notice of a release of the power until a copy of the release is 6258
delivered to ~~him~~the fiduciary or other person having possession 6259
or control. 6260

       No purchaser or mortgagee of real property subject to a power 6261
of appointment has notice of a release of the power until a copy 6262
of the release is delivered to the officer charged by law with the 6263
recording of deeds in the county in which the property is 6264
situated. If the property is in this state the county recorder to 6265
whom a release is delivered shall record ~~such~~the release in the 6266
record of powers of attorney and shall charge a fee computed in 6267
the same manner as the fee charged for recording deeds. 6268

       ~~Sec. 1339.18.~~        Sec. 5815.16. (A) Absent an express agreement to the 6269
contrary, an attorney who performs legal services for a fiduciary, 6270
by reason of the attorney performing those legal services for the 6271
fiduciary, has no duty or obligation in contract, tort, or 6272
otherwise to any third party to whom the fiduciary owes fiduciary 6273
obligations. 6274

       (B) As used in this section, "fiduciary" means a trustee 6275
under an express trust or an executor or administrator of a 6276
decedent's estate. 6277

       ~~Sec. 1339.41.~~        Sec. 5815.21. Whenever the executor of a will or the 6278
trustee of a testamentary or inter vivos trust is permitted or 6279
required to select assets in kind to satisfy a gift, devise, or 6280
bequest, whether outright or in trust, intended to qualify for the 6281
federal estate tax marital deduction prescribed by the United 6282
States "Internal Revenue Code of 1954," 68A Stat. 392, 26 U.S.C.A. 6283
2056, or any comparable federal statute enacted after July 20, 6284
1965, and the will or trust instrument empowers or requires the 6285
fiduciary to satisfy such gift, devise, or bequest by allocating 6286
assets thereto at any values other than market values at the date 6287
of satisfaction of such gift, devise, or bequest, the executor or 6288
trustee shall satisfy such gift, devise, or bequest by 6289
distribution of assets having a value fairly representative in the 6290
aggregate of appreciation or depreciation in the value of all 6291
property, including cash, available for distribution in 6292
satisfaction of such gift, devise, or bequest, unless the will or 6293
trust instrument expressly requires that distribution be made in a 6294
manner so as not to be fairly representative of such appreciation 6295
or depreciation. 6296

       ~~Sec. 1339.411.~~        Sec. 5815.22. (A)(1) Except as provided in 6297
divisions (A)(2), (3), and (4) of this section, a spendthrift 6298
provision in an instrument that creates an inter vivos or 6299
testamentary trust shall not cause any forfeiture or postponement 6300
of any interest in property that satisfies both of the following: 6301

       (a) It is granted to a surviving spouse of the testator or 6302
other settlor. 6303

       (b) It qualifies for the federal estate tax marital deduction 6304
allowed by Subtitle B, Chapter 11, of the "Internal Revenue Code 6305
of 1986," 26 U.S.C.A. 2056, as amended, the estate tax marital 6306
deduction allowed by division (A) of section 5731.15 of the 6307
Revised Code, or the qualified terminable interest property 6308
deduction allowed by division (B) of section 5731.15 of the 6309
Revised Code. 6310

       (2) Division (A)(1) of this section does not apply if an 6311
instrument that creates an inter vivos or testamentary trust 6312
expressly states the intention of the testator or other settlor 6313
that obtaining a marital deduction or a qualified terminable 6314
interest property deduction as described in division (A)(1)(b) of 6315
this section is less important than enforcing the forfeiture or 6316
postponement of the interest in property in accordance with the 6317
spendthrift provision in the instrument. 6318

       (3) Division (A)(1) of this section applies only to the 6319
forfeiture or postponement portions of a spendthrift provision and 6320
does not apply to any portion of a spendthrift provision that 6321
prohibits a beneficiary from assigning, alienating, or otherwise 6322
disposing of any beneficial interest in a trust or prohibits a 6323
creditor of a beneficiary from attaching or otherwise encumbering 6324
the trust estate. 6325

       (4) Division (A)(1) of this section does not apply to any 6326
beneficiary of an inter vivos or testamentary trust other than the 6327
surviving spouse of the testator or other settlor or to any inter 6328
vivos or testamentary trust of which the surviving spouse of the 6329
testator or other settlor is a beneficiary if an interest in 6330
property does not qualify for a marital deduction or a qualified 6331
terminable interest property deduction as described in division 6332
(A)(1)(b) of this section. 6333

       (B)(1) Except as provided in divisions (B)(2) and (3) of this 6334
section, if an instrument creating an inter vivos or testamentary 6335
trust includes a spendthrift provision and the trust holds shares 6336
in an S corporation, the spendthrift provision shall not cause any 6337
forfeiture or postponement of any beneficial interest, income, 6338
principal, or other interest in the shares of the S corporation 6339
held by the trust. For purposes of division (B)(1) of this 6340
section, "S corporation" has the same meaning as in section 1361 6341
of the "Internal Revenue Code of 1986," 26 U.S.C. 1361. 6342

       (2) Division (B)(1) of this section does not apply if an 6343
instrument that creates an inter vivos or testamentary trust 6344
expressly states the intention of the testator or other settlor 6345
that maintenance of the corporation's status as an S corporation 6346
is less important than enforcing the forfeiture or postponement of 6347
any beneficial interest, income, principal, or other interest in 6348
the S corporation shares in accordance with the spendthrift 6349
provision in the instrument. 6350

       (3) Division (B)(1) of this section applies only to the 6351
forfeiture or postponement portions of a spendthrift provision and 6352
does not apply to any portion of a spendthrift provision that 6353
prohibits a beneficiary from assigning, alienating, or otherwise 6354
disposing of any beneficial interest in a trust or prohibits a 6355
creditor of a beneficiary from attaching or otherwise encumbering 6356
the trust estate. 6357

       (C)(1) Except as provided in divisions (C)(2) and (3) of this 6358
section, a spendthrift provision in an instrument that creates an 6359
inter vivos or testamentary trust shall not cause any forfeiture 6360
or postponement of any interest in property that satisfies both of 6361
the following: 6362

       (a) It is granted to a person who is a skip person under the 6363
federal generation-skipping transfer tax imposed by Subtitle B, 6364
Chapter 13, of the "Internal Revenue Code of 1986," 26 U.S.C.A. 6365
2601-2663, as amended. 6366

       (b) It qualifies as a nontaxable gift under section 2642(c) 6367
of the "Internal Revenue Code of 1986," 26 U.S.C.A. 2642(c). 6368

       (2) Division (C)(1) of this section does not apply if an 6369
instrument that creates an inter vivos or testamentary trust 6370
expressly states the intention of the testator or other settlor 6371
that qualifying as a nontaxable trust gift as described in 6372
division (C)(1)(b) of this section is less important than 6373
enforcing the forfeiture or postponement of the interest in 6374
property in accordance with the spendthrift provision in the 6375
instrument. 6376

       (3) Division (C)(1) of this section applies only to the 6377
forfeiture or postponement portions of a spendthrift provision and 6378
does not apply to any portion of a spendthrift provision that 6379
prohibits a beneficiary from assigning, alienating, or otherwise 6380
disposing of any beneficial interest in a trust or prohibits a 6381
creditor of a beneficiary from attaching or otherwise encumbering 6382
the trust estate. 6383

       (D) Divisions (A), (B), and (C) of this section are intended 6384
to codify certain fiduciary and trust law principles relating to 6385
the interpretation of a testator's or other settlor's intent with 6386
respect to the provisions of a trust. Divisions (A), (B), and (C) 6387
of this section apply to trust instruments executed prior to and 6388
existing on August 29, 2000, and to trust instruments executed on 6389
or after August 29, 2000. 6390

       ~~Sec. 1339.412.~~        Sec. 5815.23. (A) Except as provided in division 6391
(B) of this section, an instrument that creates an inter vivos or 6392
testamentary trust shall not require or permit the accumulation 6393
for more than one year of any income of property that satisfies 6394
both of the following: 6395

       (1) The property is granted to a surviving spouse of the 6396
testator or other settlor. 6397

       (2) The property qualifies for the federal estate tax marital 6398
deduction allowed by subtitle B, Chapter 11 of the "Internal 6399
Revenue Code of 1986," 26 U.S.C. 2056, as amended, the estate tax 6400
marital deduction allowed by division (A) of section 5731.15 of 6401
the Revised Code, or the qualified terminable interest property 6402
deduction allowed by division (B) of section 5731.15 of the 6403
Revised Code. 6404

       (B)(1) Division (A) of this section does not apply if an 6405
instrument that creates an inter vivos or testamentary trust 6406
expressly states the intention of the testator or other settlor 6407
that obtaining a marital deduction or a qualified terminable 6408
interest property deduction as described in division (A)(2) of 6409
this section is less important than requiring or permitting the 6410
accumulation of income of property in accordance with a provision 6411
in the instrument that requires or permits the accumulation for 6412
more than one year of any income of property. 6413

       (2) Division (A) of this section does not apply to any 6414
beneficiary of an inter vivos or testamentary trust other than the 6415
surviving spouse of the testator or other settlor or to any inter 6416
vivos or testamentary trust of which the surviving spouse of the 6417
testator or other settlor is a beneficiary if an interest in 6418
property does not qualify for a marital deduction or a qualified 6419
terminable interest property deduction as described in division 6420
(A)(2) of this section. 6421

       (C)(1) The trustee of a trust that qualifies for an estate 6422
tax marital deduction for federal or Ohio estate tax purposes and 6423
that is the beneficiary of an individual retirement account has a 6424
fiduciary duty, in regard to the income distribution provision of 6425
the trust, to withdraw and distribute the income of the individual 6426
retirement account, at least annually, to the surviving spouse of 6427
the testator or other settlor. 6428

       (2) A trustee's fiduciary duty as described in division 6429
(C)(1) of this section is satisfied if the terms of the trust 6430
instrument expressly provide the surviving spouse a right to 6431
withdraw all of the assets from the trust or a right to compel the 6432
trustee to withdraw and distribute the income of the individual 6433
retirement account to the surviving spouse. 6434

       (D) Divisions (A), (B), and (C)(1) of this section are 6435
intended to codify existing fiduciary and trust law principles 6436
relating to the interpretation of a testator's or other settlor's 6437
intent with respect to the income provisions of a trust. Divisions 6438
(A), (B), and (C) of this section apply to trust instruments 6439
executed prior to and existing on October 1, 1996, or executed 6440
thereafter. The trustee of a trust described in division (A) or 6441
(B) of this section, in a written trust amendment, may elect to 6442
not apply divisions (A) and (B) of this section to the trust. Any 6443
election of that nature, when made, is irrevocable. 6444

       ~~Sec. 1339.42.~~        Sec. 5815.24. (A) As used in this section, 6445
"fiduciary" means a trustee under any expressed, implied, 6446
resulting, or constructive trust; an executor, administrator, 6447
public administrator, committee, guardian, conservator, curator, 6448
receiver, trustee in bankruptcy, or assignee for the benefit of 6449
creditors; a partner, agent, officer of a public or private 6450
corporation, or public officer; or any other person acting in a 6451
fiduciary capacity for any person, trust, or estate. 6452

       (B) A fiduciary, or a custodian, who is a transferee of real 6453
or personal property that is held by a fiduciary other than the 6454
person or entity serving as the transferee, is not required to 6455
inquire into any act, or audit any account, of the transferor 6456
fiduciary, unless the transferee is specifically directed to do so 6457
in the instrument governing ~~him~~the transferee or unless the 6458
transferee has actual knowledge of conduct of the transferor that 6459
would constitute a breach of the transferor's fiduciary 6460
responsibilities. 6461

       (C) If a trustee is authorized or directed in a trust 6462
instrument to pay or advance all or any part of the trust property 6463
to the personal representative of a decedent's estate for the 6464
payment of the decedent's legal obligations, death taxes, 6465
bequests, or expenses of administration, the trustee is not liable 6466
for the application of the trust property paid or advanced to the 6467
personal representative and is not liable for any act or omission 6468
of the personal representative with respect to the trust property, 6469
unless the trustee has actual knowledge, prior to the payment or 6470
advancement of the trust property, that the personal 6471
representative does not intend to use the trust property for such 6472
purposes. 6473

       ~~Sec. 1339.43.~~        Sec. 5815.25. (A) As used in this section, 6474
"fiduciary" means a trustee under any testamentary, inter vivos, 6475
or other trust, an executor or administrator, or any other person 6476
who is acting in a fiduciary capacity for any person, trust, or 6477
estate. 6478

       (B) When an instrument under which a fiduciary acts reserves 6479
to the grantor, or vests in an advisory or investment committee or 6480
in one or more other persons, including one or more fiduciaries, 6481
to the exclusion of the fiduciary or of one or more of several 6482
fiduciaries, any power, including, but not limited to, the 6483
authority to direct the acquisition, disposition, or retention of 6484
any investment or the power to authorize any act that an excluded 6485
fiduciary may propose, any excluded fiduciary is not liable, 6486
either individually or as a fiduciary, for either of the 6487
following: 6488

       (1) Any loss that results from compliance with an authorized 6489
direction of the grantor, committee, person, or persons; 6490

       (2) Any loss that results from a failure to take any action 6491
proposed by an excluded fiduciary that requires a prior 6492
authorization of the grantor, committee, person, or persons if 6493
that excluded fiduciary timely sought but failed to obtain that 6494
authorization. 6495

       (C) Any excluded fiduciary as described in division (B) of 6496
this section is relieved from any obligation to perform investment 6497
reviews and make recommendations with respect to any investments 6498
to the extent the grantor, an advisory or investment committee, or 6499
one or more other persons have authority to direct the 6500
acquisition, disposition, or retention of any investment. 6501

       (D) This section does not apply to the extent that the 6502
instrument under which an excluded fiduciary as described in 6503
division (B) of this section acts contains provisions that are 6504
inconsistent with this section. 6505

       ~~Sec. 1339.44.~~        Sec. 5815.26. (A) As used in this section: 6506

       (1) "Fiduciary" means a trustee under any testamentary, inter 6507
vivos, or other trust, an executor or administrator, or any other 6508
person who is acting in a fiduciary capacity for a person, trust, 6509
or estate. 6510

       (2) "Short term trust-quality investment fund" means a short 6511
term investment fund that meets both of the following conditions: 6512

       (a) The fund may be either a collective investment fund 6513
established pursuant to section 1111.14 of the Revised Code or a 6514
registered investment company, including any affiliated investment 6515
company whether or not the fiduciary has invested other funds held 6516
by it in an agency or other nonfiduciary capacity in the 6517
securities of the same registered investment company or affiliated 6518
investment company. 6519

       (b) The fund is invested in any one or more of the following 6520
manners: 6521

       (i) In obligations of the United States or of its agencies; 6522

       (ii) In obligations of one or more of the states of the 6523
United States or their political subdivisions; 6524

       (iii) In variable demand notes, corporate money market 6525
instruments including, but not limited to, commercial paper rated 6526
at the time of purchase in either of the two highest 6527
classifications established by at least one nationally recognized 6528
standard rating service; 6529

       (iv) In deposits in banks or savings and loan associations 6530
whose deposits are insured by the federal deposit insurance 6531
corporation, if the rate of interest paid on such deposits is at 6532
least equal to the rate of interest generally paid by such banks 6533
or savings and loan associations on deposits of similar terms or 6534
amounts; 6535

       (v) In fully collateralized repurchase agreements or other 6536
evidences of indebtedness that are of trust quality and are 6537
payable on demand or have a maturity date consistent with the 6538
purpose of the fund and the duty of fiduciary prudence. 6539

       (3) "Registered investment company" means any investment 6540
company that is defined in and registered under sections 3 and 8 6541
of the "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C.A. 6542
80a-3 and 80a-8. 6543

       (4) "Affiliated investment company" has the same meaning as 6544
in division (E)(1) of section 1111.10 of the Revised Code. 6545

       (B) A fiduciary is not required to invest cash that belongs 6546
to the trust and may hold that cash for the period prior to 6547
distribution if either of the following applies: 6548

       (1) The fiduciary reasonably expects to do either of the 6549
following: 6550

       (a) Distribute the cash to beneficiaries of the trust on a 6551
quarterly or more frequent basis; 6552

       (b) Use the cash for the payment of debts, taxes, or expenses 6553
of administration within the ninety-day period following the 6554
receipt of the cash by the fiduciary. 6555

       (2) Determined on the basis of the facilities available to 6556
the fiduciary and the amount of the income that reasonably could 6557
be earned by the investment of the cash, the amount of the cash 6558
does not justify the administrative burden or expense associated 6559
with its investment. 6560

       (C) If a fiduciary wishes to hold funds that belong to the 6561
trust in liquid form and division (B) of this section does not 6562
apply, the fiduciary may so hold the funds as long as they are 6563
temporarily invested as described in division (D) of this section. 6564

       (D)(1) A fiduciary may make a temporary investment of cash 6565
that he may ~~hold~~be held uninvested in accordance with division 6566
(B) of this section, and shall make a temporary investment of 6567
funds held in liquid form pursuant to division (C) of this 6568
section, in any of the following investments, unless the governing 6569
instrument provides for other investments in which the temporary 6570
investment of cash or funds is permitted: 6571

       (a) A short term trust-quality investment fund; 6572

       (b) Direct obligations of the United States or of its 6573
agencies; 6574

       (c) A deposit with a bank or savings and loan association, 6575
including a deposit with the fiduciary itself or any bank 6576
subsidiary corporation owned or controlled by the bank holding 6577
company that owns or controls the fiduciary, whose deposits are 6578
insured by the federal deposit insurance corporation, if the rate 6579
of interest paid on that deposit is at least equal to the rate of 6580
interest generally paid by that bank or savings and loan 6581
association on deposits of similar terms or amounts. 6582

       (2) A fiduciary that makes a temporary investment of cash or 6583
funds pursuant to division (D)(1) of this section may charge a 6584
reasonable fee for the services associated with that investment. 6585
The fee shall be in addition to the compensation to which the 6586
fiduciary is entitled for his ordinary fiduciary services. 6587

       (3) Fiduciaries that make one or more temporary investments 6588
of cash or funds pursuant to division (D)(1) of this section shall 6589
provide to the beneficiaries of the trusts involved, that are 6590
currently receiving income or have a right to receive income, a 6591
written disclosure of their temporary investment practices and, if 6592
applicable, the method of computing reasonable fees for their 6593
temporary investment services pursuant to division (D)(2) of this 6594
section. Fiduciaries may comply with this requirement in any 6595
appropriate written document, including, but not limited to, any 6596
periodic statement or account. 6597

       (4) A fiduciary that makes a temporary investment of cash or 6598
funds in an affiliated investment company pursuant to division 6599
(D)(1)(a) of this section shall, when providing any periodic 6600
account statements of its temporary investment practices, report 6601
the net asset value of the shares comprising the investment in the 6602
affiliated investment company. 6603

       (5) If a fiduciary that makes a temporary investment of cash 6604
or funds in an affiliated investment company pursuant to division 6605
(D)(1)(a) of this section invests in any mutual fund, the 6606
fiduciary shall provide to the beneficiaries of the trust 6607
involved, that are currently receiving income or have a right to 6608
receive income, a written disclosure, in at least ten-point 6609
boldface type, that the mutual fund is not insured or guaranteed 6610
by the federal deposit insurance corporation or by any other 6611
government agency or government-sponsored agency of the federal 6612
government or of this state. 6613

       ~~Sec. 1339.45.~~        Sec. 5815.27. (A) A provision in a will or trust 6614
agreement, which provision pertains to the payment of any taxes 6615
that are imposed by reason of the testator's or trust creator's 6616
death, does not include the payment of any portion of any tax that 6617
is imposed on any transfer under any other will or trust agreement 6618
by Chapter 13 of subtitle B of the "Internal Revenue Code of 6619
1986," 100 Stat. 2718, 26 U.S.C. 2601-2624, as amended, unless the 6620
provision of the will or trust agreement specifically states, 6621
using the words "generation-skipping transfer tax," that the 6622
payment of the tax imposed under that chapter is included within 6623
the provision of the will or trust agreement. 6624

       (B) This section applies to wills and trust agreements that 6625
are executed before or after March 14, 1979. 6626

       ~~Sec. 1339.51.~~        Sec. 5815.28. (A) As used in this section: 6627

       (1) "Ascertainable standard" includes a standard in a trust 6628
instrument requiring the trustee to provide for the care, comfort, 6629
maintenance, welfare, education, or general well-being of the 6630
beneficiary. 6631

       (2) "Disability" means any substantial, medically 6632
determinable impairment that can be expected to result in death or 6633
that has lasted or can be expected to last for a continuous period 6634
of at least twelve months, except that "disability" does not 6635
include an impairment that is the result of abuse of alcohol or 6636
drugs. 6637

       (3) "Political subdivision" and "state" have the same 6638
meanings as in section 2744.01 of the Revised Code. 6639

       (4) "Supplemental services" means services specified by rule 6640
of the department of mental health under section 5119.01 of the 6641
Revised Code or the department of mental retardation and 6642
developmental disabilities under section 5123.04 of the Revised 6643
Code that are provided to an individual with a disability in 6644
addition to services the individual is eligible to receive under 6645
programs authorized by federal or state law. 6646

       (B) Any person may create a trust under this section to 6647
provide funding for supplemental services for the benefit of 6648
another individual who meets either of the following conditions: 6649

       (1) The individual has a physical or mental disability and is 6650
eligible to receive services through the department of mental 6651
retardation and developmental disabilities or a county board of 6652
mental retardation and developmental disabilities; 6653

       (2) The individual has a mental disability and is eligible to 6654
receive services through the department of mental health or a 6655
board of alcohol, drug addiction, and mental health services. 6656

       The trust may confer discretion upon the trustee and may 6657
contain specific instructions or conditions governing the exercise 6658
of the discretion. 6659

       (C) The general division of the court of common pleas and the 6660
probate court of the county in which the beneficiary of a trust 6661
authorized by division (B) of this section resides or is confined 6662
have concurrent original jurisdiction to hear and determine 6663
actions pertaining to the trust. In any action pertaining to the 6664
trust in a court of common pleas or probate court and in any 6665
appeal of the action, all of the following apply to the trial or 6666
appellate court: 6667

       (1) The court shall render determinations consistent with the 6668
testator's or other settlor's intent in creating the trust, as 6669
evidenced by the terms of the trust instrument. 6670

       (2) The court may order the trustee to exercise discretion 6671
that the trust instrument confers upon the trustee only if the 6672
instrument contains specific instructions or conditions governing 6673
the exercise of that discretion and the trustee has failed to 6674
comply with the instructions or conditions. In issuing an order 6675
pursuant to this division, the court shall require the trustee to 6676
exercise the trustee's discretion only in accordance with the 6677
instructions or conditions. 6678

       (3) The court may order the trustee to maintain the trust and 6679
distribute assets in accordance with rules adopted by the director 6680
of mental health under section 5119.01 of the Revised Code or the 6681
director of mental retardation and developmental disabilities 6682
under section 5123.04 of the Revised Code if the trustee has 6683
failed to comply with such rules. 6684

       (D) To the extent permitted by federal law and subject to the 6685
provisions of division (C)(2) of this section pertaining to the 6686
enforcement of specific instructions or conditions governing a 6687
trustee's discretion, a trust authorized by division (B) of this 6688
section that confers discretion upon the trustee shall not be 6689
considered an asset or resource of the beneficiary, the 6690
beneficiary's estate, the settlor, or the settlor's estate and 6691
shall be exempt from the claims of creditors, political 6692
subdivisions, the state, other governmental entities, and other 6693
claimants against the beneficiary, the beneficiary's estate, the 6694
settlor, or the settlor's estate, including claims based on 6695
provisions of Chapters 5111., 5121., or 5123. of the Revised Code 6696
and claims sought to be satisfied by way of a civil action, 6697
subrogation, execution, garnishment, attachment, judicial sale, or 6698
other legal process, if all of the following apply: 6699

       (1) At the time the trust is created, the trust principal 6700
does not exceed the maximum amount determined under division (E) 6701
of this section; 6702

       (2) The trust instrument contains a statement of the 6703
settlor's intent, or otherwise clearly evidences the settlor's 6704
intent, that the beneficiary does not have authority to compel the 6705
trustee under any circumstances to furnish the beneficiary with 6706
minimal or other maintenance or support, to make payments from the 6707
principal of the trust or from the income derived from the 6708
principal, or to convert any portion of the principal into cash, 6709
whether pursuant to an ascertainable standard specified in the 6710
instrument or otherwise; 6711

       (3) The trust instrument provides that trust assets can be 6712
used only to provide supplemental services, as defined by rule of 6713
the director of mental health under section 5119.01 of the Revised 6714
Code or the director of mental retardation and developmental 6715
disabilities under section 5123.04 of the Revised Code, to the 6716
beneficiary; 6717

       (4) The trust is maintained and assets are distributed in 6718
accordance with rules adopted by the director of mental health 6719
under section 5119.01 of the Revised Code or the director of 6720
mental retardation and developmental disabilities under section 6721
5123.04 of the Revised Code; 6722

       (5) The trust instrument provides that on the death of the 6723
beneficiary, a portion of the remaining assets of the trust, which 6724
shall be not less than fifty per cent of such assets, will be 6725
deposited to the credit of the services fund for individuals with 6726
mental illness created by section 5119.17 of the Revised Code or 6727
the services fund for individuals with mental retardation and 6728
developmental disabilities created by section 5123.40 of the 6729
Revised Code. 6730

       (E) In 1994, the trust principal maximum amount for a trust 6731
created under this section shall be two hundred thousand dollars. 6732
The maximum amount for a trust created under this section prior to 6733
November 11, 1994, may be increased to two hundred thousand 6734
dollars. 6735

       In 1995, the maximum amount for a trust created under this 6736
section shall be two hundred two thousand dollars. Each year 6737
thereafter, the maximum amount shall be the prior year's amount 6738
plus two thousand dollars. 6739

       (F) This section does not limit or otherwise affect the 6740
creation, validity, interpretation, or effect of any trust that is 6741
not created under this section. 6742

       (G) Once a trustee takes action on a trust created by a 6743
settlor under this section and disburses trust funds on behalf of 6744
the beneficiary of the trust, then the trust may not be terminated 6745
or otherwise revoked by a particular event or otherwise without 6746
payment into the services fund created pursuant to section 5119.17 6747
or 5123.40 of the Revised Code of an amount that is equal to the 6748
disbursements made on behalf of the beneficiary for medical care 6749
by the state from the date the trust vests but that is not more 6750
than fifty per cent of the trust corpus. 6751

       ~~Sec. 1339.62.~~        Sec. 5815.31. Unless the trust or separation 6752
agreement provides otherwise, if, after executing a trust in which 6753
hethe grantor reserves to ~~himself~~self a power to alter, amend, 6754
revoke, or terminate the provisions of the trust, a grantor is 6755
divorced, obtains a dissolution of marriage, has ~~his~~the grantor's 6756
marriage annulled, or, upon actual separation from ~~his~~the 6757
grantor's spouse, enters into a separation agreement pursuant to 6758
which the parties intend to fully and finally settle their 6759
prospective property rights in the property of the other, whether 6760
by expected inheritance or otherwise, the spouse or former spouse 6761
of the grantor shall be deemed to have predeceased the grantor and 6762
any provision in the trust conferring a general or special power 6763
of appointment on the spouse or former spouse or nominating the 6764
spouse or former spouse as trustee or trust advisor shall be 6765
revoked. If the grantor remarries ~~his~~the grantor's former spouse 6766
or if the separation agreement is terminated, the spouse shall not 6767
be deemed to have predeceased the grantor and any provision in the 6768
trust conferring a general or special power of appointment on the 6769
spouse or former spouse or nominating the spouse or former spouse 6770
as trustee or trust advisor shall not be revoked. 6771

       ~~Sec. 1339.621.~~        Sec. 5815.32. If a principal executes a power of 6772
attorney designating the principal's spouse as the attorney in 6773
fact for the principal and if after executing the power of 6774
attorney, the principal and the principal's spouse are divorced, 6775
obtain a dissolution or annulment of their marriage, or enter into 6776
a separation agreement pursuant to which they intend to fully and 6777
finally settle each spouse's prospective property rights in the 6778
property of the other, the designation in the power of attorney of 6779
the spouse or former spouse of the principal to act as attorney in 6780
fact for the principal is revoked, unless the power of attorney 6781
provides otherwise. The subsequent remarriage of the principal to 6782
the principal's former spouse, or the termination of a separation 6783
agreement between the principal and the principal's spouse, does 6784
not revive a power of attorney that is revoked under this section. 6785

       ~~Sec. 1339.63.~~        Sec. 5815.33. (A) As used in this section: 6786

       (1) "Beneficiary" means a beneficiary of a life insurance 6787
policy, an annuity, a payable on death account, an individual 6788
retirement plan, an employer death benefit plan, or another right 6789
to death benefits arising under a contract. 6790

       (2) "Employer death benefit plan" means any funded or 6791
unfunded plan or program, or any fund, that is established to 6792
provide the beneficiaries of an employee participating in the 6793
plan, program, or fund with benefits that may be payable upon the 6794
death of that employee. 6795

       (3) "Individual retirement plan" means an individual 6796
retirement account or individual retirement annuity as defined in 6797
section 408 of the "Internal Revenue Code of 1986," 100 Stat. 6798
2085, 26 U.S.C.A. 408, as amended. 6799

       (B)(1) Unless the designation of beneficiary or the judgment 6800
or decree granting the divorce, dissolution of marriage, or 6801
annulment specifically provides otherwise, and subject to division 6802
(B)(2) of this section, if a spouse designates the other spouse as 6803
a beneficiary or if another person having the right to designate a 6804
beneficiary on behalf of the spouse designates the other spouse as 6805
a beneficiary, and if, after either type of designation, the 6806
spouse who made the designation or on whose behalf the designation 6807
was made, is divorced from the other spouse, obtains a dissolution 6808
of marriage, or has the marriage to the other spouse annulled, 6809
then the other spouse shall be deemed to have predeceased the 6810
spouse who made the designation or on whose behalf the designation 6811
was made, and the designation of the other spouse as a beneficiary 6812
is revoked as a result of the divorce, dissolution of marriage, or 6813
annulment. 6814

       (2) If the spouse who made the designation or on whose behalf 6815
the designation was made remarries the other spouse, then, unless 6816
the designation no longer can be made, the other spouse shall not 6817
be deemed to have predeceased the spouse who made the designation 6818
or on whose behalf the designation was made, and the designation 6819
of the other spouse as a beneficiary is not revoked because of the 6820
previous divorce, dissolution of marriage, or annulment. 6821

       (C) An agent, bank, broker, custodian, issuer, life insurance 6822
company, plan administrator, savings and loan association, 6823
transfer agent, trustee, or other person is not liable in damages 6824
or otherwise in a civil or criminal action or proceeding for 6825
distributing or disposing of property in reliance on and in 6826
accordance with a designation of beneficiary as described in 6827
division (B)(1) of this section, if both of the following apply: 6828

       (1) The distribution or disposition otherwise is proper; 6829

       (2) The agent, bank, broker, custodian, issuer, life 6830
insurance company, plan administrator, savings and loan 6831
association, transfer agent, trustee, or other person did not have 6832
any notice of the facts that resulted in the revocation of the 6833
beneficiary designation by operation of division (B)(1) of this 6834
section. 6835

       ~~Sec. 1339.64.~~        Sec. 5815.34. (A)(1) Unless the judgment or decree 6836
granting the divorce, dissolution of marriage, or annulment 6837
specifically provides otherwise, and subject to division (A)(2) of 6838
this section, if the title to any personal property is held by two 6839
persons who are married to each other, if the title is so held for 6840
the joint lives of the spouses and then to the survivor of them, 6841
and if the marriage of the spouses subsequently is terminated by a 6842
judgment or decree granting a divorce, dissolution of marriage, or 6843
annulment, then the survivorship rights of the spouses terminate, 6844
and each spouse shall be deemed the owner of an undivided interest 6845
in common in the title to the personal property, that is in 6846
proportion to ~~his~~the spouse's net contributions to the personal 6847
property. 6848

       (2) If the spouses described in division (A)(1) of this 6849
section remarry each other and the title to the personal property 6850
continues to be held by them in accordance with that division, 6851
then the survivorship rights of the spouses are not terminated, 6852
and the spouses again hold title in the personal property for 6853
their joint lives and then to the survivor of them. 6854

       (B)(1) Unless the judgment or decree granting the divorce, 6855
dissolution of marriage, or annulment specifically provides 6856
otherwise, and subject to division (B)(2) of this section, if the 6857
title to any personal property is held by more than two persons 6858
and at least two of the persons are married to each other, if the 6859
title is so held for the joint lives of the titleholders and then 6860
to the survivor or survivors of them, and if the marriage of any 6861
of the titleholders who are married to each other subsequently is 6862
terminated by a judgment or decree granting a divorce, dissolution 6863
of marriage, or annulment, then the survivorship rights of the 6864
titleholders who were married to each other terminate, the 6865
survivorship rights of the other titleholders are not affected, 6866
and each of the titleholders who were married to each other shall 6867
be deemed to be the owner of an undivided interest in common in 6868
the personal property, that is in proportion to ~~his~~the net 6869
contributions of the titleholders who were married to each other 6870
to the personal property. 6871

       (2) If the titleholders who were married to each other as 6872
described in division (B)(1) of this section remarry each other, 6873
and if the title to the personal property continues to be held by 6874
them, and the other titleholders whose survivorship rights 6875
continued unaffected, in accordance with that division, then the 6876
survivorship rights of the remarried titleholders are not 6877
terminated, and the remarried and other titleholders again hold 6878
title in the personal property for their joint lives and then to 6879
the survivor or survivors of them. 6880

       (C) An agent, bank, broker, custodian, issuer, life insurance 6881
company, plan administrator, savings and loan association, 6882
transfer agent, trustee, or other person is not liable in damages 6883
or otherwise in a civil or criminal action or proceeding for 6884
distributing or disposing of personal property in reliance on and 6885
in accordance with a registration in the form of a joint ownership 6886
for life, with rights of survivorship, as described in division 6887
(A)(1) or (B)(1) of this section, if both of the following apply: 6888

       (1) The distribution or disposition otherwise is proper; 6889

       (2) The agent, bank, broker, custodian, issuer, life 6890
insurance company, plan administrator, savings and loan 6891
association, transfer agent, trustee, or other person did not have 6892
any notice of the facts that resulted in the termination of the 6893
rights of survivorship by operation of division (A)(1) or (B)(1) 6894
of this section. 6895

       ~~Sec. 1339.65.~~        Sec. 5815.35. (A)(1) As used in this division: 6896

       ~~(a) "Fiduciary~~, fiduciary" means any person, association, or 6897
corporation, other than a trustee of a testamentary trust, an 6898
assignee or trustee for an insolvent debtor, or a guardian under 6899
Chapter 5905. of the Revised Code, that is appointed by and 6900
accountable to the probate court, and that is acting in a 6901
fiduciary capacity for another or charged with duties in relation 6902
to any property, interest, ~~trust,~~ or estate for another's benefit. 6903
A fiduciary also includes an agency under contract with the 6904
department of mental retardation and developmental disabilities 6905
for the provision of protective service under sections 5123.55 to 6906
5123.59 of the Revised Code, when appointed by anand accountable 6907
to the probate court as a guardian or trustee for a mentally 6908
retarded or developmentally disabled person. 6909

       ~~(b) "Trustee" means a trustee of an inter vivos trust.~~ 6910

       (2) A ~~trustee or~~ fiduciary who enters a contract as ~~trustee~~ 6911
or fiduciary on or after March 22, 1984, is not personally liable 6912
on that contract, unless the contract otherwise specifies, if the 6913
contract is within the ~~trustee's or~~ fiduciary's authority and the 6914
~~trustee or~~ fiduciary discloses that the contract is being entered 6915
into in ~~his trustee or~~a fiduciary capacity. In a contract, the 6916
words ~~"trustee," "as trustee,"~~ "fiduciary," or "as fiduciary," or 6917
other words that indicate one's ~~trustee or~~ fiduciary capacity, 6918
following the name or signature of a ~~trustee or~~ fiduciary ~~shall be~~ 6919
are sufficient disclosure for purposes of this division. 6920

       (B)(1) As used in this division: 6921

       ~~(a) "Partnership~~, "partnership" includes a partnership 6922
composed of only general partners and a partnership composed of 6923
general and limited partners. 6924

       ~~(b) "Revocable trust" means only a revocable trust that, by~~ 6925
~~its terms, becomes irrevocable upon the death of the settlor of~~ 6926
~~the trust.~~ 6927

       (2) Subject to division (D) of this section, an executor,or 6928
administrator~~, or trustee~~ who acquires, in ~~his~~a fiduciary 6929
capacity, a general partnership interest upon the death of a 6930
general partner of a partnership~~, or a trustee of a revocable~~ 6931
~~trust who, in his fiduciary capacity, is a general partner of a~~ 6932
~~partnership,~~ is not personally liable for any debt, obligation, or 6933
liability of the partnership that arises from ~~his~~the executor's 6934
or administrator's actions, except as provided in this division, 6935
as a general partner, or for any debt, obligation, or liability of 6936
the partnership for which hethe executor or administrator 6937
otherwise would be personally liable because hethe executor or 6938
administrator holds the general partnership interest, if hethe 6939
executor or administrator discloses that the general partnership 6940
interest is held by ~~him~~the executor or administrator in a 6941
fiduciary capacity. This immunity does not apply if an executor, 6942
or administrator~~, or trustee~~ causes loss or injury to a person who 6943
is not a partner in the partnership, by a wrongful act or 6944
omission. This immunity is not available to an executor,or 6945
administrator~~, or trustee~~ who holds a general partnership interest 6946
in ~~his~~a fiduciary capacity if ~~his~~the spouse or any ~~of his~~ lineal 6947
descendants of the executor or administrator, or the executor,or 6948
administrator~~, or trustee himself~~ other than in ~~his~~a fiduciary 6949
capacity, holds any interest in the partnership. 6950

       A partnership certificate that is filed pursuant to Chapter 6951
1777. or another chapter of the Revised Code and that indicates 6952
that an executor,or administrator~~, or trustee~~ holds a general 6953
partnership interest in a fiduciary capacity by the use following 6954
the name or signature of the executor,or administrator~~, or~~ 6955
~~trustee~~ of the words "executor under the will of (name of 6956
decedent)," or "administrator of the estate of (name of 6957
decedent)," ~~or "trustee under the (will or trust) of (name of~~ 6958
~~decedent or settlor),"~~ or other words that indicate the 6959
executor's,or administrator's~~, or trustee's~~ fiduciary capacity, 6960
constitutes a sufficient disclosure for purposes of this division. 6961

       If a partnership certificate is not required to be filed 6962
pursuant to Chapter 1777. or another chapter of the Revised Code, 6963
a sufficient disclosure for purposes of this division can be made 6964
by an executor,or administrator~~, or trustee~~ if a certificate that 6965
satisfies the following requirements is filed with the recorder of 6966
the county in which the partnership's principal office or place of 6967
business is situated and with the recorder of each county in which 6968
the partnership owns real estate: 6969

       (a) The certificate shall state in full the names of all 6970
persons holding interests in the partnership and their places of 6971
residence; 6972

       (b) The certificate shall be signed by all persons who are 6973
general partners in the partnership, and shall be acknowledged by 6974
a person authorized to take acknowledgements of deeds; 6975

       (c) The certificate shall use the words "executor under the 6976
will of (name of decedent)," or "administrator of the estate of 6977
(name of decedent)," ~~or "trustee under the (will or trust) of~~ 6978
~~(name of decedent or settlor),"~~ or other words that indicate the 6979
executor's,or administrator's~~, or trustee's~~ fiduciary capacity, 6980
following ~~his~~the name or signature of the executor or 6981
administrator. 6982

       A contract or other written instrument delivered to a party 6983
that contracts with the partnership in which an executor,or 6984
administrator~~, or trustee~~ holds a general partnership interest in 6985
a fiduciary capacity, which indicates that the executor,or 6986
administrator~~, or trustee~~ so holds the interest, constitutes a 6987
disclosure for purposes of this division with respect to 6988
transactions between the party and the partnership. If a 6989
disclosure has been made by a certificate in accordance with this 6990
division, a disclosure for purposes of this division with respect 6991
to such transactions exists regardless of whether a contract or 6992
other instrument indicates the executor,or administrator~~, or~~ 6993
~~trustee~~ holds the general partnership interest in a fiduciary 6994
capacity. 6995

       ~~If a trustee of a revocable trust, in his fiduciary~~ 6996
~~capacity, is a general partner in a partnership, the settlor of~~ 6997
~~the trust is personally liable for any debt, obligation, or~~ 6998
~~liability of the partnership as if he were the general partner.~~ If 6999
an executor,or administrator~~, or trustee~~ acquires, in ~~his~~a 7000
fiduciary capacity, a general partnership interest, the decedent's 7001
estate ~~or the trust~~ is liable for debts, obligations, or 7002
liabilities of the partnership. 7003

       (C) An estate ~~or trust~~ that includes a general partnership 7004
interest is not liable for the debts, obligations, or liabilities 7005
of a partnership in which another estate ~~or trust~~ has a general 7006
partnership interest, merely because the executor,or 7007
administrator~~, or trustee~~ of the estates ~~or trusts~~ holds a general 7008
partnership interest in both of the partnerships in ~~his~~the 7009
executor's or administrator's fiduciary capacities. 7010

       (D) Divisions (B) and (C) of this section apply to general 7011
partnership interests held by executors,or administrators~~, or~~ 7012
~~trustees~~ in their fiduciary capacities prior to and on or after 7013
the effective date of this section. If an appropriate disclosure 7014
is made pursuant to division (B) of this section, the immunity 7015
acquired under that division extends only to debts, obligations, 7016
and liabilities of the partnership arising on and after the date 7017
of the disclosure and to debts, obligations, and liabilities of 7018
the partnership that arose prior to the acquisition of the general 7019
partnership interest by the executor,or administrator~~, or trustee~~ 7020
~~or prior to the trustee of a revocable trust~~ becoming a general 7021
partner. 7022

       ~~Sec. 1339.68.~~        Sec. 5815.36. (A) As used in this section: 7023

       (1) "Disclaimant" means any person, any guardian or personal 7024
representative of a person or estate of a person, or any 7025
attorney-in-fact or agent of a person having a general or specific 7026
authority to act granted in a written instrument, who is any of 7027
the following: 7028

       (a) With respect to testamentary instruments and intestate 7029
succession, an heir, next of kin, devisee, legatee, donee, person 7030
succeeding to a disclaimed interest, surviving joint tenant, 7031
surviving tenant by the entireties, surviving tenant of a tenancy 7032
with a right of survivorship, beneficiary under a testamentary 7033
instrument, or person designated to take pursuant to a power of 7034
appointment exercised by a testamentary instrument; 7035

       (b) With respect to nontestamentary instruments, a grantee, 7036
donee, person succeeding to a disclaimed interest, surviving joint 7037
tenant, surviving tenant by the entireties, surviving tenant of a 7038
tenancy with a right of survivorship, beneficiary under a 7039
nontestamentary instrument, or person designated to take pursuant 7040
to a power of appointment exercised by a nontestamentary 7041
instrument; 7042

       (c) With respect to fiduciary rights, privileges, powers, and 7043
immunities, a fiduciary under a testamentary or nontestamentary 7044
instrument. This section does not authorize a fiduciary to 7045
disclaim the rights of beneficiaries unless the instrument 7046
creating the fiduciary relationship authorizes such a disclaimer. 7047

       (d) Any person entitled to take an interest in property upon 7048
the death of a person or upon the occurrence of any other event. 7049

       (2) "Property" means all forms of property, real and 7050
personal, tangible and intangible. 7051

       (B)(1) A disclaimant, other than a fiduciary under an 7052
instrument who is not authorized by the instrument to disclaim the 7053
interest of a beneficiary, may disclaim, in whole or in part, the 7054
succession to any property by executing and by delivering, filing, 7055
or recording a written disclaimer instrument in the manner 7056
provided in this section. 7057

       (2) A disclaimant who is a fiduciary under an instrument may 7058
disclaim, in whole or in part, any right, power, privilege, or 7059
immunity, by executing and by delivering, filing, or recording a 7060
written disclaimer instrument in the manner provided in this 7061
section. 7062

       (3) The written instrument of disclaimer shall be signed and 7063
acknowledged by the disclaimant and shall contain all of the 7064
following: 7065

       (a) A reference to the donative instrument; 7066

       (b) A description of the property, part of property, or 7067
interest disclaimed, and of any fiduciary right, power, privilege, 7068
or immunity disclaimed; 7069

       (c) A declaration of the disclaimer and its extent. 7070

       (4) The guardian of the estate of a minor or an incompetent, 7071
or the personal representative of a deceased person, with the 7072
consent of the probate division of the court of common pleas, may 7073
disclaim, in whole or in part, the succession to any property, or 7074
interest in property, that the ward, if an adult and competent, or 7075
the deceased, if living, might have disclaimed. The guardian or 7076
personal representative, or any interested person may file an 7077
application with the probate division of the court of common pleas 7078
that has jurisdiction of the estate, asking that the court order 7079
the guardian or personal representative to execute and deliver, 7080
file, or record the disclaimer on behalf of the ward or estate. 7081
The court shall order the guardian or personal representative to 7082
execute and deliver, file, or record the disclaimer if the court 7083
finds, upon hearing after notice to interested parties and such 7084
other persons as the court shall direct, that: 7085

       (a) It is in the best interests of those interested in the 7086
estate of the person and of those who will take the disclaimed 7087
interest; 7088

       (b) It would not materially, adversely affect the minor or 7089
incompetent, or the beneficiaries of the estate of the decedent, 7090
taking into consideration other available resources and the age, 7091
probable life expectancy, physical and mental condition, and 7092
present and reasonably anticipated future needs of the minor or 7093
incompetent or the beneficiaries of the estate of the decedent. 7094

       A written instrument of disclaimer ordered by the court under 7095
this division shall be executed and be delivered, filed, or 7096
recorded within the time and in the manner in which the person 7097
could have disclaimed if the person were living, an adult, and 7098
competent. 7099

       (C) A partial disclaimer of property that is subject to a 7100
burdensome interest created by the donative instrument is not 7101
effective unless the disclaimed property constitutes a gift that 7102
is separate and distinct from undisclaimed gifts. 7103

       (D) The disclaimant shall deliver, file, or record the 7104
disclaimer, or cause the same to be done, not later than nine 7105
months after the latest of the following dates: 7106

       (1) The effective date of the donative instrument if both the 7107
taker and the taker's interest in the property are finally 7108
ascertained on that date; 7109

       (2) The date of the occurrence of the event upon which both 7110
the taker and the taker's interest in the property become finally 7111
ascertainable; 7112

       (3) The date on which the disclaimant attains twenty-one 7113
years of age or is no longer an incompetent, without tendering or 7114
repaying any benefit received while the disclaimant was under 7115
twenty-one years of age or an incompetent, and even if a guardian 7116
of a minor or incompetent had filed an application pursuant to 7117
division (B)(4) of this section and the probate division of the 7118
court of common pleas involved did not consent to the guardian 7119
executing a disclaimer. 7120

       (E) No disclaimer instrument is effective under this section 7121
if either of the following applies under the terms of the 7122
disclaimer instrument: 7123

       (1) The disclaimant has power to revoke the disclaimer. 7124

       (2) The disclaimant may transfer, or direct to be 7125
transferred, to self the entire legal and equitable ownership of 7126
the property subject to the disclaimer instrument. 7127

       (F)(1) Subject to division (F)(2) of this section, if the 7128
interest disclaimed is created by a nontestamentary instrument, 7129
the disclaimer instrument shall be delivered personally or by 7130
certified mail to the trustee or other person who has legal title 7131
to, or possession of, the property disclaimed. 7132

       (2) If the interest disclaimed is created by a testamentary 7133
instrument, by intestate succession, by a transfer on death deed 7134
pursuant to section 5302.22 of the Revised Code, or by a 7135
certificate of title to a motor vehicle, watercraft, or outboard 7136
motor that evidences ownership of the motor vehicle, watercraft, 7137
or outboard motor that is transferable on death pursuant to 7138
section 2131.13 of the Revised Code, the disclaimer instrument 7139
shall be filed in the probate division of the court of common 7140
pleas in the county in which proceedings for the administration of 7141
the decedent's estate have been commenced, and an executed copy of 7142
the disclaimer instrument shall be delivered personally or by 7143
certified mail to the personal representative of the decedent's 7144
estate. 7145

       (3) If no proceedings for the administration of the 7146
decedent's estate have been commenced, the disclaimer instrument 7147
shall be filed in the probate division of the court of common 7148
pleas in the county in which proceedings for the administration of 7149
the decedent's estate might be commenced according to law. The 7150
disclaimer instrument shall be filed and indexed, and fees 7151
charged, in the same manner as provided by law for an application 7152
to be appointed as personal representative to administer the 7153
decedent's estate. The disclaimer is effective whether or not 7154
proceedings thereafter are commenced to administer the decedent's 7155
estate. If proceedings thereafter are commenced for the 7156
administration of the decedent's estate, they shall be filed 7157
under, or consolidated with, the case number assigned to the 7158
disclaimer instrument. 7159

       (4) If an interest in real estate is disclaimed, an executed 7160
copy of the disclaimer instrument also shall be recorded in the 7161
office of the recorder of the county in which the real estate is 7162
located. The disclaimer instrument shall include a description of 7163
the real estate with sufficient certainty to identify it, and 7164
shall contain a reference to the record of the instrument that 7165
created the interest disclaimed. If title to the real estate is 7166
registered under Chapters 5309. and 5310. of the Revised Code, the 7167
disclaimer interest shall be entered as a memorial on the last 7168
certificate of title. A spouse of a disclaimant has no dower or 7169
other interest in the real estate disclaimed. 7170

       (G) Unless the donative instrument expressly provides that, 7171
if there is a disclaimer, there shall not be any acceleration of 7172
remainders or other interests, the property, part of property, or 7173
interest in property disclaimed, and any future interest that is 7174
to take effect in possession or enjoyment at or after the 7175
termination of the interest disclaimed, shall descend, be 7176
distributed, or otherwise be disposed of, and shall be 7177
accelerated, in the following manner: 7178

       (1) If intestate or testate succession is disclaimed, as if 7179
the disclaimant had predeceased the decedent; 7180

       (2) If the disclaimant is one designated to take pursuant to 7181
a power of appointment exercised by a testamentary instrument, as 7182
if the disclaimant had predeceased the donee of the power; 7183

       (3) If the donative instrument is a nontestamentary 7184
instrument, as if the disclaimant had died before the effective 7185
date of the nontestamentary instrument; 7186

       (4) If the disclaimer is of a fiduciary right, power, 7187
privilege, or immunity, as if the right, power, privilege, or 7188
immunity was never in the donative instrument. 7189

       (H) A disclaimer pursuant to this section is effective as of, 7190
and relates back for all purposes to, the date upon which the 7191
taker and the taker's interest have been finally ascertained. 7192

       (I) A disclaimant who has a present and future interest in 7193
property, and disclaims the disclaimant's present interest in 7194
whole or in part, is considered to have disclaimed the 7195
disclaimant's future interest to the same extent, unless a 7196
contrary intention appears in the disclaimer instrument or the 7197
donative instrument. A disclaimant is not precluded from 7198
receiving, as an alternative taker, a beneficial interest in the 7199
property disclaimed, unless a contrary intention appears in the 7200
disclaimer instrument or in the donative instrument. 7201

       (J) The disclaimant's right to disclaim under this section is 7202
barred if, before the expiration of the period within which the 7203
disclaimant may disclaim the interest, the disclaimant does any of 7204
the following: 7205

       (1) Assigns, conveys, encumbers, pledges, or transfers, or 7206
contracts to assign, convey, encumber, pledge, or transfer, the 7207
property or any interest in it; 7208

       (2) Waives in writing the disclaimant's right to disclaim and 7209
executes and delivers, files, or records the waiver in the manner 7210
provided in this section for a disclaimer instrument; 7211

       (3) Accepts the property or an interest in it; 7212

       (4) Permits or suffers a sale or other disposition of the 7213
property pursuant to judicial action against the disclaimant. 7214

       (K) A fiduciary's application for appointment or assumption 7215
of duties as a fiduciary does not waive or bar the disclaimant's 7216
right to disclaim a right, power, privilege, or immunity. 7217

       (L) The right to disclaim under this section exists 7218
irrespective of any limitation on the interest of the disclaimant 7219
in the nature of a spendthrift provision or similar restriction. 7220

       (M) A disclaimer instrument or written waiver of the right to 7221
disclaim that has been executed and delivered, filed, or recorded 7222
as required by this section is final and binding upon all persons. 7223

       (N) The right to disclaim and the procedures for disclaimer 7224
established by this section are in addition to, and do not exclude 7225
or abridge, any other rights or procedures existing under any 7226
other section of the Revised Code or at common law to assign, 7227
convey, release, refuse to accept, renounce, waive, or disclaim 7228
property. 7229

       (O)(1) No person is liable for distributing or disposing of 7230
property in a manner inconsistent with the terms of a valid 7231
disclaimer if the distribution or disposition is otherwise proper 7232
and the person has no actual knowledge of the disclaimer. 7233

       (2) No person is liable for distributing or disposing of 7234
property in reliance upon the terms of a disclaimer that is 7235
invalid because the right of disclaimer has been waived or barred 7236
if the distribution or disposition is otherwise proper and the 7237
person has no actual knowledge of the facts that constitute a 7238
waiver or bar to the right to disclaim. 7239

       (P)(1) A disclaimant may disclaim pursuant to this section 7240
any interest in property that is in existence on September 27, 7241
1976, if either the interest in the property or the taker of the 7242
interest in the property is not finally ascertained on that date. 7243

       (2) No disclaimer executed pursuant to this section destroys 7244
or diminishes an interest in property that exists on September 27, 7245
1976, in any person other than the disclaimant. 7246

       ~~Sec. 1339.71.~~        Sec. 5815.41. As used in sections ~~1339.71~~5815.41 to 7247
~~1339.78~~5815.48 of the Revised Code: 7248

       (A) "Art dealer" means a person engaged in the business of 7249
selling works of art, other than a person exclusively engaged in 7250
the business of selling goods at public auction. 7251

       (B) "Artist" means the creator of a work of art. 7252

       (C) "On consignment" means delivered to an art dealer for the 7253
purpose of sale or exhibition, or both, to the public by the art 7254
dealer other than at a public auction. 7255

       (D) "Work of art" means an original art work that is any of 7256
the following: 7257

       (1) A visual rendition including, but not limited to, a 7258
painting, drawing, sculpture, mosaic, or photograph; 7259

       (2) A work of calligraphy; 7260

       (3) A work of graphic art, including, but not limited to, an 7261
etching, lithograph, offset print, or silk screen; 7262

       (4) A craft work in materials, including, but not limited to, 7263
clay, textile, fiber, wood, metal, plastic, or glass; 7264

       (5) A work in mixed media, including, but not limited to, a 7265
collage or a work consisting of any combination of the items 7266
listed in divisions (D)(1) to (4) of this section. 7267

       ~~Sec. 1339.72.~~        Sec. 5815.42. If an art dealer accepts a work of 7268
art, on a fee, commission, or other compensation basis, on 7269
consignment from the artist who created the work of art, the 7270
following consequences attach: 7271

       (A) The art dealer is, with respect to that work of art, the 7272
agent of the artist. 7273

       (B) The work of art is trust property and the art dealer is a 7274
trustee for the benefit of the artist until the work of art is 7275
sold to a bona fide third party or returned to the artist. 7276

       (C) The proceeds of the sale of the work of art are trust 7277
property and the art dealer is a trustee for the benefit of the 7278
artist until the amount due the artist from the sale is paid. 7279

       (D) The art dealer is strictly liable for the loss of, or 7280
damage to, the work of art while it is in the art dealer's 7281
possession or control. The value of the work of art is, for the 7282
purpose of this division, the value established in the written 7283
contract between the artist and art dealer entered into pursuant 7284
to section ~~1339.75~~5815.45 of the Revised Code. 7285

       ~~Sec. 1339.73.~~        Sec. 5815.43. (A) If a work of art is trust property 7286
under section ~~1339.72~~5815.42 of the Revised Code when it is 7287
initially received by the art dealer, it remains trust property, 7288
notwithstanding the subsequent purchase of the work of art by the 7289
art dealer directly or indirectly for the art dealer's own 7290
account, until the purchase price specified pursuant to division 7291
(A)(3) of section ~~1339.75~~5815.45 of the Revised Code is paid in 7292
full to the artist. 7293

       (B) If an art dealer resells a work of art that hethe art 7294
dealer purchased for ~~his~~the art dealer's own account to a bona 7295
fide third party before the artist has been paid in full, the work 7296
of art ceases to be trust property and the proceeds of the resale 7297
are trust funds in the possession or control of the art dealer for 7298
the benefit of the artist to the extent necessary to pay any 7299
balance still due to the artist. The trusteeship of the proceeds 7300
continues until the artist is paid in full under the contract 7301
entered into pursuant to section ~~1339.75~~5815.45 of the Revised 7302
Code. 7303

       ~~Sec. 1339.74.~~        Sec. 5815.44. A work of art that is trust property 7304
under section ~~1339.72~~5815.42 or ~~1339.73~~5815.43 of the Revised 7305
Code is not subject to the claims, liens, or security interests of 7306
the creditors of the art dealer, notwithstanding Chapters 1301. to 7307
1310. of the Revised Code. 7308

       ~~Sec. 1339.75.~~        Sec. 5815.45. (A) An art dealer shall not accept a 7309
work of art, on a fee, commission, or other compensation basis, on 7310
consignment from the artist who created the work of art unless, 7311
prior to or at the time of acceptance, the art dealer enters into 7312
a written contract with the artist that contains all of the 7313
following: 7314

       (1) The value of the work of art and whether it may be sold; 7315

       (2) The time within which the proceeds of the sale are to be 7316
paid to the artist, if the work of art is sold; 7317

       (3) The minimum price for the sale of the work of art; 7318

       (4) The fee or percentage of the sale price that is to be 7319
paid to the art dealer for displaying or selling the work of art. 7320

       (B) If an art dealer violates this section, a court, at the 7321
request of the artist, may void the obligation of the artist to 7322
that art dealer or to a person to whom the obligation is 7323
transferred, other than a holder in due course. 7324

       ~~Sec. 1339.76.~~        Sec. 5815.46. An art dealer who accepts a work of 7325
art, on a fee, commission, or other compensation basis, on 7326
consignment from the artist who created the work of art shall not 7327
use or display the work of art or a photograph of the work of art, 7328
or permit the use or display of the work of art or a photograph of 7329
the work of art, unless both of the following occur: 7330

       ~~(1)~~(A) Notice is given to users or viewers that the work of 7331
art is the work of the artist; 7332

       ~~(2)~~(B) The artist gives prior written consent to the 7333
particular use or display. 7334

       ~~Sec. 1339.77.~~        Sec. 5815.47. Any portion of an agreement that 7335
waives any provision of sections ~~1339.71~~5815.41 to ~~1339.78~~ 7336
5815.48 of the Revised Code is void. 7337

       ~~Sec. 1339.78.~~        Sec. 5815.48. Any art dealer who violates section 7338
~~1339.75~~5815.45 or ~~1339.76~~5815.46 of the Revised Code is liable 7339
to the artist for ~~his~~the artist's reasonable attorney's fees and 7340
in an amount equal to the greater of either of the following: 7341

       (A) Fifty dollars; 7342

       (B) The actual damages, if any, including the incidental and 7343
consequential damages, sustained by the artist by reason of the 7344
violation. 7345

       Section 2. That existing sections 1111.13, 1111.15, 1151.191, 7346
1161.24, 1319.12, 1339.01, 1339.02, 1339.03, 1339.031, 1339.04, 7347
1339.08, 1339.09, 1339.10, 1339.11, 1339.12, 1339.13, 1339.15, 7348
1339.151, 1339.16, 1339.17, 1339.18, 1339.31, 1339.32, 1339.33, 7349
1339.34, 1339.35, 1339.36, 1339.37, 1339.38, 1339.39, 1339.41, 7350
1339.411, 1339.412, 1339.42, 1339.43, 1339.44, 1339.45, 1339.51, 7351
1339.52, 1339.53, 1339.54, 1339.55, 1339.56, 1339.57, 1339.58, 7352
1339.59, 1339.60, 1339.61, 1339.62, 1339.621, 1339.63, 1339.64, 7353
1339.65, 1339.68, 1339.71, 1339.72, 1339.73, 1339.74, 1339.75, 7354
1339.76, 1339.77, 1339.78, 1340.31, 1340.32, 1340.33, 1340.34, 7355
1340.35, 1340.36, 1340.37, 1340.40, 1340.41, 1340.42, 1340.46, 7356
1340.47, 1340.51, 1340.52, 1340.53, 1340.57, 1340.58, 1340.59, 7357
1340.63, 1340.64, 1340.65, 1340.66, 1340.70, 1340.71, 1340.72, 7358
1340.73, 1340.74, 1340.75, 1340.76, 1340.77, 1340.81, 1340.82, 7359
1340.83, 1340.84, 1340.85, 1340.86, 1340.90, 1340.91, 1775.03, 7360
1775.14, 1775.15, 1775.17, 1775.33, 1782.24, 2101.24, 2107.33, 7361
2109.24, 2109.37, 2109.62, 2109.68, 2111.131, 2113.861, 2305.121, 7362
2305.22, 5111.15, 5111.151, 5119.01, 5119.17, 5121.04, 5121.10, 7363
5121.30, 5121.52, 5123.04, 5123.28, and 5123.40 and sections 7364
1335.01, 1339.14, 1339.66, 1339.67, 1339.69, 1340.21, 1340.22, and 7365
1340.23 of the Revised Code are hereby repealed. 7366

       Section 3. Sections 1 and 2 of this act shall take effect on 7367
January 1, 2007. 7368

       Section 4. In enacting divisions (B) to (D) of section 7369
5808.14 of the Revised Code in Section 1 of this act, the General 7370
Assembly hereby declares its intent to codify certain fiduciary 7371
and trust law principles, previously codified in sections 1340.21 7372
to 1340.23 of the Revised Code, relating to a fiduciary's conflict 7373
of interests and, in general, to provide for the exercise of 7374
certain discretionary powers to distribute either principal or 7375
income to a beneficiary by a beneficially interested fiduciary for 7376
the beneficially interested fiduciary's own benefit to the extent 7377
of an ascertainable standard. 7378

       Section 5. Section 5123.04 of the Revised Code is presented 7379
in this act as a composite of the section as amended by both Sub. 7380
H.B. 670 and Am. Sub. S.B. 285 of the 121st General Assembly. The 7381
General Assembly, applying the principle stated in division (B) of 7382
section 1.52 of the Revised Code that amendments are to be 7383
harmonized if reasonably capable of simultaneous operation, finds 7384
that the composite is the resulting version of the section in 7385
effect prior to the effective date of the section as presented in 7386
this act. 7387

Section 1. That sections 1111.13, 1111.15, 1151.191,	74
1161.24, 1319.12, 1339.01, 1339.02, 1339.03, 1339.04, 1339.08,	75
1339.09, 1339.10, 1339.11, 1339.12, 1339.13, 1339.15, 1339.151,	76
1339.16, 1339.17, 1339.31, 1339.32, 1339.33, 1339.34, 1339.35,	77
1339.36, 1339.37, 1339.38, 1339.39, 1339.42, 1339.44, 1339.52,	78
1339.53, 1339.54, 1339.55, 1339.56, 1339.57, 1339.58, 1339.59,	79
1339.60, 1339.61, 1339.62, 1339.64, 1339.65, 1339.71, 1339.72,	80
1339.73, 1339.74, 1339.76, 1339.77, 1339.78, 1340.31, 1340.32,	81
1340.33, 1340.34, 1340.35, 1340.36, 1340.37, 1340.40, 1340.41,	82
1340.42, 1340.46, 1340.47, 1340.52, 1340.57, 1340.58, 1340.59,	83
1340.63, 1340.65, 1340.66, 1340.70, 1340.71, 1340.72, 1340.73,	84
1340.74, 1340.75, 1340.76, 1340.77, 1340.81, 1340.82, 1340.83,	85
1340.84, 1340.90, 1340.91, 1775.03, 1775.14, 1775.15, 1775.17,	86
1775.33, 1782.24, 2101.24, 2107.33, 2109.24, 2109.37, 2109.62,	87
2109.68, 2111.131, 2113.861, 2305.121, 2305.22, 5111.15, 5111.151,	88
5119.01, 5119.17, 5121.04, 5121.10, 5121.30, 5121.52, 5123.04,	89
5123.28, and 5123.40 be amended; that sections 1339.01 (5815.02),	90
1339.02 (5815.03), 1339.03 (5815.04), 1339.031 (5815.01), 1339.04	91
(5815.05), 1339.08 (5815.06), 1339.09 (5815.07), 1339.10	92
(5815.08), 1339.11 (5815.09), 1339.12 (5815.10), 1339.13	93
(5815.11), 1339.15 (5815.12), 1339.151 (5815.13), 1339.16	94
(5815.14), 1339.17 (5815.15), 1339.18 (5815.16), 1339.31	95
(5814.01), 1339.32 (5814.02), 1339.33 (5814.03), 1339.34	96
(5814.04), 1339.35 (5814.05), 1339.36 (5814.06), 1339.37	97
(5814.07), 1339.38 (5814.08), 1339.39 (5814.09), 1339.41	98
(5815.21), 1339.411 (5815.22), 1339.412 (5815.23), 1339.42	99
(5815.24), 1339.43 (5815.25), 1339.44 (5815.26), 1339.45	100
(5815.27), 1339.51 (5815.28), 1339.52 (5809.01), 1339.53	101
(5809.02), 1339.54 (5809.03), 1339.55 (5808.03), 1339.56	102
(5809.04), 1339.57 (5808.05), 1339.58 (5809.05), 1339.59	103
(5808.07), 1339.60 (5809.07), 1339.61 (5809.08), 1339.62	104
(5815.31), 1339.621 (5815.32), 1339.63 (5815.33), 1339.64	105
(5815.34), 1339.65 (5815.35), 1339.68 (5815.36), 1339.71	106
(5815.41), 1339.72 (5815.42), 1339.73 (5815.43), 1339.74	107
(5815.44), 1339.75 (5815.45), 1339.76 (5815.46), 1339.77	108
(5815.47), 1339.78 (5815.48), 1340.31 (5813.01), 1340.32	109
(5813.02), 1340.33 (5813.03), 1340.34 (5813.04), 1340.35	110
(5813.05), 1340.36 (5813.06), 1340.37 (5813.07), 1340.40	111
(5812.01), 1340.41 (5812.02), 1340.42 (5812.03), 1340.46	112
(5812.07), 1340.47 (5812.08), 1340.51 (5812.12), 1340.52	113
(5812.13), 1340.53 (5812.14), 1340.57 (5812.18), 1340.58	114
(5812.19), 1340.59 (5812.20), 1340.63 (5812.24), 1340.64	115
(5812.25), 1340.65 (5812.26), 1340.66 (5812.27), 1340.70	116
(5812.31), 1340.71 (5812.32), 1340.72 (5812.33), 1340.73	117
(5812.34), 1340.74 (5812.35), 1340.75 (5812.36), 1340.76	118
(5812.37), 1340.77 (5812.38), 1340.81 (5812.42), 1340.82	119
(5812.43), 1340.83 (5812.44), 1340.84 (5812.45), 1340.85	120
(5812.46), 1340.86 (5812.47), 1340.90 (5812.51), 1340.91	121
(5812.52), and 2305.121 (5806.04) be amended for the purpose of	122
adopting new section numbers as indicated in parentheses; and that	123
sections 2109.69, 5801.01, 5801.011, 5801.02, 5801.03, 5801.04,	124
5801.05, 5801.06, 5801.07, 5801.08, 5801.09, 5801.10, 5802.01,	125
5802.02, 5802.03, 5803.01, 5803.02, 5803.03, 5803.04, 5803.05,	126
5804.01, 5804.02, 5804.03, 5804.04, 5804.05, 5804.06, 5804.07,	127
5804.08, 5804.09, 5804.10, 5804.11, 5804.12, 5804.13, 5804.14,	128
5804.15, 5804.16, 5804.17, 5804.18, 5805.01, 5805.02, 5805.03,	129
5805.04, 5805.05, 5805.06, 5805.07, 5806.01, 5806.02, 5806.03,	130
5807.01, 5807.02, 5807.03, 5807.04, 5807.05, 5807.06, 5807.07,	131
5807.08, 5807.09, 5808.01, 5808.02, 5808.04, 5808.06, 5808.08,	132
5808.09, 5808.10, 5808.11, 5808.12, 5808.13, 5808.14, 5808.15,	133
5808.16, 5808.17, 5809.06, 5810.01, 5810.02, 5810.03, 5810.04,	134
5810.05, 5810.06, 5810.07, 5810.08, 5810.09, 5810.10, 5810.11,	135
5810.12, 5810.13, 5811.01, 5811.02, and 5811.03 of the Revised	136
Code be enacted to read as follows:	137

Sec. 1111.13. (A)(1) Except as provided in divisions (A)(2)	138
and (G) of this section or as otherwise provided by the instrument	139
creating the trust, a trust company acting as fiduciary under any	140
instrument and having funds of the trust which are to be invested	141
may, in addition to any other investments authorized to a trust	142
company by law, invest them in any of the following:	143

(a) Forms of investments enumerated or described in, or made	144
eligible for investment by, the Ohio Uniform Prudent Investor Act	145
and sections ~~1339.44, 1339.52 to 1339.61,~~ 2109.37, 2109.371, ~~and~~	146
2109.372, and 5815.26 of the Revised Code, including, but not	147
limited to, securities, stocks, bonds, or certificates of deposit	148
issued by the trust company or any bank owned or controlled by the	149
bank holding company that owns or controls the trust company.	150
Investment authority granted under division (A)(1)(a) of this	151
section is subject to the limitations on investments specified in	152
division (B) of section 2109.371 of the Revised Code.	153

(b) Any collective investment fund established and maintained	154
by the trust company or by an affiliate of the trust company;	155

(c) The securities of any investment company, including any	156
affiliated investment company, whether or not the trust company	157
has invested other funds held by it in an agency or other	158
nonfiduciary capacity in the securities of the same investment	159
company or affiliated investment company.	160

(2) A trust company acting as fiduciary may not invest its	161
trust funds in stock issued by the fiduciary itself except under	162
one of the following circumstances:	163

(a) In the case of a testamentary instrument, when expressly	164
permitted by the instrument creating the relationship and	165
authorized by court order;	166

(b) In the case of an inter vivos instrument, when expressly	167
permitted by the instrument or authorized by court order and in	168
either case, only when directed to purchase or invest in the stock	169
by a cofiduciary or other person other than the trust company who	170
has the right under the terms of the instrument to direct the	171
investment;	172

(c) When exercising rights to purchase its own stock or to	173
purchase or convert securities convertible into its own stock if	174
the rights were offered pro rata to the shareholders;	175

(d) To complement fractional shares acquired when the	176
exercise of rights or receipt of a stock dividend results in	177
fractional shareholdings.	178

(3) If the law or the instrument creating a trust expressly	179
permits investment in direct obligations of the United States or	180
an agency or instrumentality of the United States, unless	181
expressly prohibited by the instrument, a trust company also may	182
invest in no front end load money market mutual funds consisting	183
exclusively of obligations of the United States or an agency or	184
instrumentality of the United States and in repurchase agreements,	185
including those issued by the trust company itself, secured by	186
obligations of the United States or an agency or instrumentality	187
of the United States, or in securities of other no load money	188
market mutual funds whose portfolios are similarly restricted; and	189
in collective investment funds established in accordance with	190
section 1111.14 of the Revised Code or by an affiliate of the	191
trust company and consisting exclusively of any direct obligations	192
of the United States or an agency or instrumentality of the United	193
States, notwithstanding division (A)(1)(c) of that section.	194

(B) A trust company acting in any fiduciary capacity or under	195
any instrument has the right to retain any part of the trust or	196
estate it receives, whether from the creator of the trust or the	197
estate, at its inception or by later addition, or by addition by	198
any other person who is authorized to make additions to the trust	199
or estate, and any investments the trust company makes.	200

(C) Except as otherwise expressly provided by the instrument	201
creating the fiduciary relationship, any trust company may	202
exercise all voting, consenting, and dissenting rights, including	203
the right to vote for the election of directors, pertaining to	204
stocks, bonds, or other securities held by it in any fiduciary	205
capacity, including rights pertaining to stocks, bonds, or other	206
securities issued by the trust company in its individual corporate	207
capacity and held by it in any fiduciary capacity, provided:	208

(1) In the case of any fiduciary relationship created prior	209
to January 1, 1968, voting rights pertaining to any shares of a	210
trust company's own stock held by it in a fiduciary relationship,	211
if exercised, shall be exercised with respect to the election of	212
directors, only in accordance with any provisions of law	213
applicable to that election and without regard to the first	214
paragraph of division (C) and divisions (C)(2)(a), (b), and (c) of	215
this section, and those portions of division (C) of this section	216
shall not be construed to be determinative of the voting rights or	217
to be declaratory of a public policy with respect to the voting	218
rights.	219

(2) In the case of any fiduciary relationship created on or	220
after January 1, 1968, voting rights pertaining to any shares of a	221
trust company's own stock held by it in a fiduciary relationship	222
shall be exercised by it with respect to the election of	223
directors, only if and as directed in writing by any person	224
described in division (C)(2)(a), (b), or (c) of this section,	225
provided that the person may not be the trust company, or a	226
director, officer, or employee of the trust company except as to	227
fiduciary relationships in which the director, officer, or	228
employee is a settlor or beneficiary, or a nominee, agent,	229
attorney, or subsidiary of the trust company:	230

(a) Any person, including a settlor or beneficiary, who has	231
the right under the terms of the instrument under which shares are	232
held to determine the manner in which shares shall be voted, or if	233
there is no such person;	234

(b) Any person acting as cofiduciary under the instrument	235
under which such shares are held, or if there is no such person;	236

(c) Any person, having the right of revocation or amendment	237
of the instrument under which the shares are held.	238

(D) If there is more than one person having power to direct	239
voting under division (C)(2)(a), (b), or (c) of this section and	240
they fail to agree, each person shall have the right to direct	241
voting with respect to the election of directors as to an equal	242
number of shares.	243

(1) "Affiliated investment company" means any investment	245
company that is any of the following:	246

(a) Sponsored by the trust company that is acting as	247
fiduciary or by a trust company, bank, bank subsidiary	248
corporation, or other corporation owned or controlled by the bank	249
holding company that owns or controls the trust company that is	250
acting as fiduciary;	251

(b) The result of any agreement with a trust company, bank,	252
bank subsidiary corporation, or other corporation owned or	253
controlled by the bank holding company that owns or controls the	254
trust company that is acting as fiduciary;	255

(c) Established exclusively for the customers or accounts of	256
the trust company that is acting as fiduciary or of a trust	257
company, bank, bank subsidiary corporation, or other corporation	258
owned or controlled by the bank holding company that owns or	259
controls the trust company that is acting as fiduciary;	260

(d) Provided with investment advisory, brokerage, transfer	261
agency, registrar, management, shareholder servicing, custodian,	262
or any related services by the trust company that is acting as	263
fiduciary or by a trust company, bank, bank subsidiary	264
corporation, or other corporation owned or controlled by the bank	265
holding company that owns or controls the trust company that is	266
acting as fiduciary.	267

(2) "Cofiduciary" includes, but is not limited to, a	268
cotrustee, coexecutor, coadministrator, coguardian, co-agent, and	269
any person who, under the terms of the instrument creating the	270
fiduciary relationship, has the right or power to direct, approve	271
or consent to, or be consulted with respect to, the making,	272
retention, or sale of investments under the instrument.	273

(3) "Instrument" includes, but is not limited to, any will,	274
declaration of trust, agreement of trust, agency, or	275
custodianship, or court order creating a fiduciary relationship.	276

(4) "Reasonable fee" means compensation or payment, the	277
receipt of which would not constitute a breach of fiduciary duty	278
under section 36 of the "Investment Company Act of 1940," 54 Stat.	279
789, 15 U.S.C.A. 80a-35.	280

(F) Shares as to which the voting rights with respect to the	281
election of directors may not be exercised under this section	282
shall not be considered as outstanding for the purpose of	283
computing the voting power of the corporation or of its shares of	284
any class with respect to the election of directors.	285

(G) This section does not authorize a trust company acting as	286
a probate fiduciary to perform any act prohibited by section	287
2109.44 of the Revised Code, unless the act is authorized by the	288
instrument creating the trust.	289

(H) A trust company making an investment of trust funds in an	290
affiliated investment company, or a bank or other corporation	291
owned or controlled by the bank holding company that owns or	292
controls the trust company, may charge a reasonable fee for	293
investment advisory, brokerage, transfer agency, registrar,	294
management, shareholder servicing, custodian, or any related	295
services provided to an affiliated investment company. The fee may	296
be in addition to the compensation that the trust company is	297
otherwise entitled to receive from the trust, provided that the	298
fee is charged as a percentage of either asset value or income	299
earned or actual amount charged and is disclosed at least annually	300
by prospectus, account statement, or any other written means to	301
all persons entitled to receive statements of account activity.	302