As Reported by the Senate Judiciary Committee

129th General Assembly Regular Session 2011-2012

Sub. H. B. No. 479

Representatives Hagan, C., Blessing 

Cosponsors:  Speaker Batchelder  Representatives Gardner, Grossman, Stebelton, Sears, Boose, Damschroder, Schuring, Wachtmann, Johnson, Beck, Gonzales, Terhar, Amstutz, Antonio, Blair, Brenner, Bubp, Buchy, Budish, Carney, Celebrezze, Combs, Conditt, Derickson, DeVitis, Dovilla, Duffey, Foley, Hackett, Hall, Hayes, Henne, Kozlowski, Letson, McClain, McGregor, Milkovich, Newbold, O'Brien, Phillips, Pillich, Ruhl, Smith, Sprague, Stautberg, Winburn 

Senators Bacon, Obhof, Wagoner 

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A BILL

To amend sections 317.08, 317.32, 317.321, 1336.04,

1

1701.73, 1702.38, 1703.22, 2101.24, 2131.08,

2

2131.09, 2329.66, 2329.661, 5805.06, 5808.08,

3

5808.18, 5815.24, 5815.25, and 5815.36 and to

4

enact sections 1301.401, 1319.07, 1319.08,

5

1319.09, 5815.37, and 5816.01 to 5816.14 of the

6

Revised Code to adopt the Ohio Legacy Trust Act;

7

to modify certain property rights in the Ohio

8

Trust Code; to require the recording of personal

9

property transfers with the county recorder upon

10

request; to regulate the temporary conveyance of

11

trust real property for financing purposes; to

12

grant probate courts concurrent jurisdiction with

13

court of common pleas general divisions over

14

certain actions involving the designation or

15

removal of certain beneficiaries, title change

16

involving joint and survivorship interests,

17

alleged gifts, or the passing of assets upon death

18

other than by will, intestate succession, or

19

trust; to regulate the use and enforceability of

20

certain loan covenants in nonrecourse commercial

21

loan transactions; and to make certain changes in

22

the exempt interests law, the fraudulent transfers

23

law, the secured transactions recording law, and

24

the rule against perpetuities.

25

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

Section 1. That sections 317.08, 317.32, 317.321, 1336.04,	26
1701.73, 1702.38, 1703.22, 2101.24, 2131.08, 2131.09, 2329.66,	27
2329.661, 5805.06, 5808.08, 5808.18, 5815.24, 5815.25, and 5815.36	28
be amended and sections 1301.401, 1319.07, 1319.08, 1319.09,	29
5815.37, 5816.01, 5816.02, 5816.03, 5816.04, 5816.05, 5816.06,	30
5816.07, 5816.08, 5816.09, 5816.10, 5816.11, 5816.12, 5816.13, and	31
5816.14 of the Revised Code be enacted to read as follows:	32

Sec. 317.08. (A) Except as provided in divisions (C) and,	33
(D), and (E) of this section, the county recorder shall keep six	34
separate sets of records as follows:	35

(1) A record of deeds, in which shall be recorded all deeds	36
and other instruments of writing for the absolute and	37
unconditional sale or conveyance of lands, tenements, and	38
hereditaments; all notices as provided in sections 5301.47 to	39
5301.56 of the Revised Code; all judgments or decrees in actions	40
brought under section 5303.01 of the Revised Code; all	41
declarations and bylaws, and all amendments to declarations and	42
bylaws, as provided in Chapter 5311. of the Revised Code;	43
affidavits as provided in sections 5301.252 and 5301.56 of the	44
Revised Code; all certificates as provided in section 5311.17 of	45
the Revised Code; all articles dedicating archaeological preserves	46
accepted by the director of the Ohio historical society under	47
section 149.52 of the Revised Code; all articles dedicating nature	48
preserves accepted by the director of natural resources under	49
section 1517.05 of the Revised Code; all agreements for the	50
registration of lands as archaeological or historic landmarks	51
under section 149.51 or 149.55 of the Revised Code; all	52
conveyances of conservation easements and agricultural easements	53
under section 5301.68 of the Revised Code; all instruments	54
extinguishing agricultural easements under section 901.21 or	55
5301.691 of the Revised Code or pursuant to terms of such an	56
easement granted to a charitable organization under section	57
5301.68 of the Revised Code; all instruments or orders described	58
in division (B)(2)(b) of section 5301.56 of the Revised Code; all	59
no further action letters issued under section 122.654 or 3746.11	60
of the Revised Code; all covenants not to sue issued under section	61
3746.12 of the Revised Code, including all covenants not to sue	62
issued pursuant to section 122.654 of the Revised Code; any	63
restrictions on the use of property contained in a no further	64
action letter issued under section 122.654 of the Revised Code,	65
any restrictions on the use of property identified pursuant to	66
division (C)(3)(a) of section 3746.10 of the Revised Code, and any	67
restrictions on the use of property contained in a deed or other	68
instrument as provided in division (E) or (F) of section 3737.882	69
of the Revised Code; any easement executed or granted under	70
section 3734.22, 3734.24, 3734.25, or 3734.26 of the Revised Code;	71
any environmental covenant entered into in accordance with	72
sections 5301.80 to 5301.92 of the Revised Code; all memoranda of	73
trust, as described in division (A) of section 5301.255 of the	74
Revised Code, that describe specific real property; and all	75
agreements entered into under division (A) of section 1506.44 of	76
the Revised Code;	77

(2) A record of mortgages, in which shall be recorded all of	78
the following:	79

(a) All mortgages, including amendments, supplements,	80
modifications, and extensions of mortgages, or other instruments	81
of writing by which lands, tenements, or hereditaments are or may	82
be mortgaged or otherwise conditionally sold, conveyed, affected,	83
or encumbered;	84

(b) All executory installment contracts for the sale of land	85
executed after September 29, 1961, that by their terms are not	86
required to be fully performed by one or more of the parties to	87
them within one year of the date of the contracts;	88

(c) All options to purchase real estate, including	89
supplements, modifications, and amendments of the options, but no	90
option of that nature shall be recorded if it does not state a	91
specific day and year of expiration of its validity;	92

(d) Any tax certificate sold under section 5721.33 of the	93
Revised Code, or memorandum of it, that is presented for filing of	94
record.	95

(3) A record of powers of attorney, including all memoranda	96
of trust, as described in division (A) of section 5301.255 of the	97
Revised Code, that do not describe specific real property;	98

(4) A record of plats, in which shall be recorded all plats	99
and maps of town lots, of the subdivision of town lots, and of	100
other divisions or surveys of lands, any center line survey of a	101
highway located within the county, the plat of which shall be	102
furnished by the director of transportation or county engineer,	103
and all drawings and amendments to drawings, as provided in	104
Chapter 5311. of the Revised Code;	105

(5) A record of leases, in which shall be recorded all	106
leases, memoranda of leases, and supplements, modifications, and	107
amendments of leases and memoranda of leases;	108

(6) A record of declarations executed pursuant to section	109
2133.02 of the Revised Code and durable powers of attorney for	110
health care executed pursuant to section 1337.12 of the Revised	111
Code.	112

(B) All instruments or memoranda of instruments entitled to	113
record shall be recorded in the proper record in the order in	114
which they are presented for record. The recorder may index, keep,	115
and record in one volume unemployment compensation liens, internal	116
revenue tax liens and other liens in favor of the United States as	117
described in division (A) of section 317.09 of the Revised Code,	118
personal tax liens, mechanic's liens, agricultural product liens,	119
notices of liens, certificates of satisfaction or partial release	120
of estate tax liens, discharges of recognizances, excise and	121
franchise tax liens on corporations, broker's liens, and liens	122
provided for in sections 1513.33, 1513.37, 3752.13, 5111.022, and	123
5311.18 of the Revised Code.	124

The recording of an option to purchase real estate, including	125
any supplement, modification, and amendment of the option, under	126
this section shall serve as notice to any purchaser of an interest	127
in the real estate covered by the option only during the period of	128
the validity of the option as stated in the option.	129

(C) In lieu of keeping the six separate sets of records	130
required in divisions (A)(1) to (6) of this section and the	131
records required in divisiondivisions (D) and (E) of this	132
section, a county recorder may record all the instruments required	133
to be recorded by this section in two separate sets of record	134
books. One set shall be called the "official records" and shall	135
contain the instruments listed in divisions (A)(1), (2), (3), (5),	136
and (6) and (D) and (E) of this section. The second set of records	137
shall contain the instruments listed in division (A)(4) of this	138
section.	139

(D) Except as provided in division (C) of this section, the	140
county recorder shall keep a separate set of records containing	141
all corrupt activity lien notices filed with the recorder pursuant	142
to section 2923.36 of the Revised Code and a separate set of	143
records containing all medicaid fraud lien notices filed with the	144
recorder pursuant to section 2933.75 of the Revised Code.	145

(E)(1) The county recorder shall keep a separate set of	146
records containing all transfers, conveyances, or assignments of	147
any type of tangible or intangible personal property or any rights	148
or interests in that property if and to the extent that any person	149
wishes to record that personal property transaction and if the	150
applicable instrument is acknowledged before a notary public. If	151
the transferor is a natural person, the notice of personal	152
property transfer shall be recorded in the county in this state in	153
which the transferor maintains the transferor's principal	154
residence. If the transferor is not a natural person, the notice	155
of personal property transfer shall be recorded in the county in	156
this state in which the transferor maintains its principal place	157
of business. If the transferor does not maintain a principal	158
residence or a principal place of business in this state and the	159
transfer is to a trustee of a legacy trust formed pursuant to	160
Chapter 5816. of the Revised Code, the notice of personal property	161
transfer shall be recorded in the county in this state where that	162
trustee maintains a principal residence or principal place of	163
business. In all other instances, the notice of personal property	164
transfer shall be recorded in the county in this state where the	165
property described in the notice is located.	166

(2) The records described in division (E)(1) of this section	167
shall be maintained in or as part of the "official records" under	168
division (C) of this section.	169

Sec. 317.32.  The county recorder shall charge and collect	170
the following fees, to include, except as otherwise provided in	171
division (A)(2) of this section, base fees for the recorder's	172
services and housing trust fund fees, collected pursuant to	173
section 317.36 of the Revised Code:	174

(A) For(1) Except as otherwise provided in division (A)(2)	175
of this section, for recording and indexing an instrument whenif	176
the photocopy or any similar process is employed, a base fee of	177
fourteen dollars for the first two pages and a housing trust fund	178
fee of fourteen dollars, and a base fee of four dollars and a	179
housing trust fund fee of four dollars for each subsequent page,	180
size eight and one-half inches by fourteen inches, or fraction of	181
a page, including the caption page, of such instrument;	182

(2) For recording and indexing an instrument described in	183
division (E)(1) of section 317.08 of the Revised Code if the	184
photocopy or any similar process is employed, a fee of	185
twenty-eight dollars for the first two pages to be deposited into	186
the county treasury to the credit of the special fund designated	187
as "general fund moneys to supplement the equipment needs of the	188
county recorder" under section 317.321 of the Revised Code, and a	189
fee of eight dollars to be deposited in the same manner for each	190
subsequent page, size eight and one-half inches by fourteen	191
inches, or fraction of a page, including the caption page, of that	192
instrument;	193

(B) For certifying a photocopy from the record previously	194
recorded, a base fee of one dollar and a housing trust fund fee of	195
one dollar per page, size eight and one-half inches by fourteen	196
inches, or fraction of a page; for each certification whereif the	197
recorder's seal is required, except as to instruments issued by	198
the armed forces of the United States, a base fee of fifty cents	199
and a housing trust fund fee of fifty cents;	200

(C) For manual or typewritten recording of assignment or	201
satisfaction of mortgage or lease or any other marginal entry, a	202
base fee of four dollars and a housing trust fund fee of four	203
dollars;	204

(D) For entering any marginal reference by separate recorded	205
instrument, a base fee of two dollars and a housing trust fund fee	206
of two dollars for each marginal reference set out in that	207
instrument, in addition to the fees set forth in division (A)(1)	208
of this section;	209

(E) For indexing in the real estate mortgage records,	210
pursuant to section 1309.519 of the Revised Code, financing	211
statements covering crops growing or to be grown, timber to be	212
cut, minerals or the like, including oil and gas, accounts subject	213
to section 1309.301 of the Revised Code, or fixture filings made	214
pursuant to section 1309.334 of the Revised Code, a base fee of	215
two dollars and a housing trust fund fee of two dollars for each	216
name indexed;	217

(F) For recording manually any plat not exceeding six lines,	218
a base fee of two dollars and a housing trust fund fee of two	219
dollars, and for each additional line, a base fee of ten cents and	220
a housing trust fund fee of ten cents;	221

(G) For filing zoning resolutions, including text and maps,	222
in the office of the recorder as required under sections 303.11	223
and 519.11 of the Revised Code, a base fee of twenty-five dollars	224
and a housing trust fund fee of twenty-five dollars, regardless of	225
the size or length of the resolutions;	226

(H) For filing zoning amendments, including text and maps, in	227
the office of the recorder as required under sections 303.12 and	228
519.12 of the Revised Code, a base fee of ten dollars and a	229
housing trust fund fee of ten dollars regardless of the size or	230
length of the amendments;	231

(I) For photocopying a document, other than at the time of	232
recording and indexing as provided for in division (A)(1) or (2)	233
of this section, a base fee of one dollar and a housing trust fund	234
fee of one dollar per page, size eight and one-half inches by	235
fourteen inches, or fraction thereof;	236

(J) For local facsimile transmission of a document, a base	237
fee of one dollar and a housing trust fund fee of one dollar per	238
page, size eight and one-half inches by fourteen inches, or	239
fraction thereof; for long distance facsimile transmission of a	240
document, a base fee of two dollars and a housing trust fund fee	241
of two dollars per page, size eight and one-half inches by	242
fourteen inches, or fraction thereof;	243

(K) For recording a declaration executed pursuant to section	244
2133.02 of the Revised Code or a durable power of attorney for	245
health care executed pursuant to section 1337.12 of the Revised	246
Code, or both a declaration and a durable power of attorney for	247
health care, a base fee of at least fourteen dollars but not more	248
than twenty dollars and a housing trust fund fee of at least	249
fourteen dollars but not more than twenty dollars.	250

In any county in which the recorder employs the photostatic	251
or any similar process for recording maps, plats, or prints the	252
recorder shall determine, charge, and collect for the recording or	253
rerecording of any map, plat, or print, a base fee of five cents	254
and a housing trust fund fee of five cents per square inch, for	255
each square inch of the map, plat, or print filed for that	256
recording or rerecording, with a minimum base fee of twenty	257
dollars and a minimum housing trust fund fee of twenty dollars;	258
for certifying a copy from the record, a base fee of two cents and	259
a housing trust fund fee of two cents per square inch of the	260
record, with a minimum base fee of two dollars and a minimum	261
housing trust fund fee of two dollars.	262

The fees provided in this section shall be paid upon the	263
presentation of the instruments for record or upon the application	264
for any certified copy of the record, except that the payment of	265
fees associated with the filing and recording of, or the copying	266
of, notices of internal revenue tax liens and notices of other	267
liens in favor of the United States as described in division (A)	268
of section 317.09 of the Revised Code and certificates of	269
discharge or release of those liens, shall be governed by section	270
317.09 of the Revised Code, and the payment of fees for providing	271
copies of instruments conveying or extinguishing agricultural	272
easements to the office of farmland preservation in the department	273
of agriculture under division (H) of section 5301.691 of the	274
Revised Code shall be governed by that division.	275

Sec. 317.321.  (A) Not later than the first day of October of	276
any year, the county recorder may submit to the board of county	277
commissioners a proposal for the acquisition or maintenance of	278
micrographic or other equipment or for contract services or a	279
proposal to reserve funds for the office's future equipment needs	280
if the county recorder has no immediate plans for the acquisition	281
of equipment or services. TheEither proposal shall be in writing	282
and shall include at least the following:	283

(1) A request that an amount not to exceed seven dollars of	284
the fee collected for filing or recording a document for which a	285
fee is charged as required by division (A)(1) of section 317.32 of	286
the Revised Code or by section 1309.525 or 5310.15 of the Revised	287
Code and the amount of the fees collected under division (A)(2) of	288
section 317.32 of the Revised Code be placed in the county	289
treasury and designated as "general fund moneys to supplement the	290
equipment needs of the county recorder";	291

(2) The number of years, not to exceed five, for which the	292
county recorder requests that the amount requested under division	293
(A)(1) of this section be given the designation specified in that	294
division;	295

(3) An estimate of the total amount of fees that will be	296
generated for filing or recording a document for which a fee is	297
charged as required by division (A)(1) or (2) of section 317.32 of	298
the Revised Code or by section 1309.525 or 5310.15 of the Revised	299
Code;	300

(4) An estimate of the total amount of fees for filing or	301
recording a document for which a fee is charged as required by	302
division (A)(1) or (2) of section 317.32 of the Revised Code or by	303
section 1309.525 or 5310.15 of the Revised Code that will be	304
designated as "general fund moneys to supplement the equipment	305
needs of the county recorder" if the request submitted under	306
division (A)(1) of this section is approved by the board of county	307
commissioners.	308

TheA proposal for the acquisition or maintenance of	309
micrographic or other equipment or for contract services may	310
include a description or summary of the micrographic or other	311
equipment, or maintenance thereofof the micrographic or other	312
equipment, that the county recorder proposes to acquire, or the	313
nature of contract services that the county recorder proposes to	314
utilize. IfA proposal to reserve funds for the office's future	315
equipment needs if the county recorder has no immediate plans for	316
the acquisition of equipment or services, the proposal shall	317
explain the general needs of the office for equipment and shall	318
state that the intent of the proposal is to reserve funds for the	319
office's future equipment needs.	320

(B) The board of county commissioners shall receive the	321
either proposal and the clerk shall enter it on the journal. At	322
the same time, the board shall establish a date, not sooner than	323
fifteen noror later than thirty days after the board's receipt	324
of the proposal, on which to meet with the recorder to review the	325
proposal.	326

(C)(1) Not later than the fifteenth day of December of any	327
year in which a proposal for the acquisition or maintenance of	328
micrographic or other equipment or for contract services is	329
submitted under division (A) of this section, the board of county	330
commissioners shall approve, reject, or modify the proposal and	331
notify the county recorder of its action on the proposal. If the	332
board rejects or modifies the proposal, it shall make a written	333
finding that the request is for a purpose other than for	334
acquiring, leasing, or otherwise obtaining micrographic or other	335
equipment or contracts for use by the county recorder or that the	336
amount requested for the acquisition or maintenance of	337
micrographic or other equipment or for contract services is	338
excessive as determined by the board. If the board approves the	339
proposal, it shall request the establishment of a special fund	340
under section 5705.12 of the Revised Code for any fees designated	341
as "general fund moneys to supplement the equipment needs of the	342
county recorder."	343

(2) Not later than the fifteenth day of December of any year	344
in which a proposal to reserve funds for the office's future	345
equipment needs is submitted under division (A) of this section,	346
the board of county commissioners shall approve the proposal,	347
notify the county recorder of its action on the proposal, and	348
request the establishment of a special fund under section 5705.12	349
of the Revised Code for any fees designated as "general fund	350
moneys to supplement the equipment needs of the county recorder."	351

(D) The acquisition or maintenance of micrographic or other	352
equipment and the acquisition of contract services shall be	353
specifically governed by sections 307.80 to 307.806, 307.84 to	354
307.846, 307.86 to 307.92, and 5705.38, and by division (D) of	355
section 5705.41 of the Revised Code.	356

Sec. 1301.401. (A) For purposes of this section, "public	357
record" means either of the following:	358

(1) Any document described or referred to in section 317.08	359
of the Revised Code;	360

(2) Any document the filing or recording of which is required	361
or allowed under any provision of Chapter 1309. of the Revised	362
Code.	363

(B) The recording with any county recorder of any document	364
described in division (A)(1) of this section or the filing or	365
recording with the secretary of state of any document described in	366
division (A)(2) of this section shall be constructive notice to	367
the whole world of the existence and contents of either document	368
as a public record and of any transaction referred to in that	369
public record, including, but not limited to, any transfer,	370
conveyance, or assignment reflected in that record.	371

(C) Any person contesting the validity or effectiveness of	372
any transaction referred to in a public record is considered to	373
have discovered that public record and any transaction referred to	374
in the record as of the time that the record was first filed with	375
the secretary of state or tendered to a county recorder for	376
recording.	377

Sec. 1319.07. As used in sections 1319.07 to 1319.09 of the	378
Revised Code:	379

(A) "Nonrecourse carveout" means a specific exemption, if	380
any, to the nonrecourse provisions set forth in the loan documents	381
for a nonrecourse loan that has the effect of creating, if	382
specified events occur, personal liability of the borrower or	383
guarantor or other surety of the loan for all or some amounts owed	384
to the lender.	385

(B) "Nonrecourse loan" means a commercial loan secured by a	386
mortgage on real property located in this state and evidenced by	387
loan documents that meet any of the following:	388

(1) Provide that the lender will not enforce the liability or	389
obligation of the borrower by an action or proceeding in which a	390
money judgment is sought against the borrower;	391

(2) Provide that any judgment in any action or proceeding on	392
the loan is enforceable against the borrower only to the extent of	393
the borrower's interest in the mortgaged property and other	394
collateral security given for the loan;	395

(3) Provide that the lender will not seek a deficiency	396
judgment against the borrower;	397

(4) Provide that there is no recourse against the borrower	398
personally for the loan;	399

(5) Include any combination of divisions (B)(1) to (4) of	400
this section or any other provisions to the effect that the loan	401
is without personal liability to the borrower beyond the	402
borrower's interest in the mortgaged property and other collateral	403
security given for the loan.	404

(C) "Nonrecourse provisions" means one or more of the	405
provisions described in divisions (B)(1) to (5) of this section,	406
whether or not the loan is subject to a nonrecourse carveout or	407
carveouts.	408

(D) "Postclosing solvency covenant" means any provision of	409
the loan documents for a nonrecourse loan, whether expressed as a	410
covenant, representation, warranty, or default, that relates	411
solely to the solvency of the borrower, including, without	412
limitation, a provision requiring that the borrower maintain	413
adequate capital or have the ability to pay the borrower's debts,	414
with respect to any period of time after the date the loan is	415
initially funded. "Postclosing solvency covenant" does not include	416
a covenant not to file a voluntary bankruptcy or other voluntary	417
insolvency proceeding or not to collude in an involuntary	418
proceeding.	419

Sec. 1319.08. (A) A postclosing solvency covenant shall not	420
be used, directly or indirectly, as a nonrecourse carveout or as	421
the basis for any claim or action against a borrower or any	422
guarantor or other surety on a nonrecourse loan.	423

(B) A provision in the documents for a nonrecourse loan that	424
does not comply with division (A) of this section is invalid and	425
unenforceable.	426

Sec. 1319.09. Section 1319.08 of the Revised Code does not	427
prohibit a loan that is secured by a mortgage on real property	428
located in this state from being fully recourse to the borrower or	429
guarantor, including, but not limited to, as a result of a	430
postclosing solvency covenant, if the loan documents for that loan	431
do not contain nonrecourse loan provisions.	432

Sec. 1336.04.  (A) A transfer made or an obligation incurred	433
by a debtor is fraudulent as to a creditor, whether the claim of	434
the creditor arose before, or within a reasonable time not to	435
exceed four years after, the transfer was made or the obligation	436
was incurred, if the debtor made the transfer or incurred the	437
obligation in either of the following ways:	438

(1) With actual intent to hinder, delay, or defraud any	439
creditor of the debtor;	440

(2) Without receiving a reasonably equivalent value in	441
exchange for the transfer or obligation, and if either of the	442
following applies:	443

(a) The debtor was engaged or was about to engage in a	444
business or a transaction for which the remaining assets of the	445
debtor were unreasonably small in relation to the business or	446
transaction;	447

(b) The debtor intended to incur, or believed or reasonably	448
should have believed that hethe debtor would incur, debts beyond	449
histhe debtor's ability to pay as they became due.	450

(B) In determining actual intent under division (A)(1) of	451
this section, consideration may be given to all relevant factors,	452
including, but not limited to, the following:	453

(1) Whether the transfer or obligation was to an insider;

454

(2) Whether the debtor retained possession or control of the	455
property transferred after the transfer;	456

(3) Whether the transfer or obligation was disclosed or	457
concealed;	458

(4) Whether before the transfer was made or the obligation	459
was incurred, the debtor had been sued or threatened with suit;	460

(5) Whether the transfer was of substantially all of the	461
assets of the debtor;	462

(6) Whether the debtor absconded;

463

(7) Whether the debtor removed or concealed assets;

464

(8) Whether the value of the consideration received by the	465
debtor was reasonably equivalent to the value of the asset	466
transferred or the amount of the obligation incurred;	467

(9) Whether the debtor was insolvent or became insolvent	468
shortly after the transfer was made or the obligation was	469
incurred;	470

(10) Whether the transfer occurred shortly before or shortly	471
after a substantial debt was incurred;	472

(11) Whether the debtor transferred the essential assets of	473
the business to a lienholder who transferred the assets to an	474
insider of the debtor.	475

Sec. 1701.73.  (A)(1) Upon the adoption of any amendment or	476
amended articles, a certificate containing a copy of the	477
resolution adopting the amendment or amended articles, a statement	478
of the manner of its adoption, and, in the case of adoption of the	479
resolution by the incorporators or directors, a statement of the	480
basis for such adoption, shall be filed with the secretary of	481
state, and thereupon the articles shall be amended accordingly,	482
any change of shares provided for in the amendment or amended	483
articles shall become effective, and the amended articles shall	484
supersede the existing articles.	485

(2) Except as provided in division (A)(3) of this section,	486
when an amendment or amended articles are adopted by the directors	487
pursuant to section 1701.70 of the Revised Code, the corporation	488
shall send notice of the amendment or amended articles, and a copy	489
or summary thereofof the amendment or amended articles, by mail,	490
overnight delivery service, or any other means of communication	491
authorized by the shareholder to whom the notice and copy or	492
summary are sent, to each shareholder of the corporation of record	493
as of the date on which the directors approved the amendment or	494
amended articles. The notice shall be sent to the shareholders	495
within twenty days after the filing of the certificate required by	496
division (A)(1) of this section.	497

(3) Any corporation that files periodic reports with the	498
United States securities and exchange commission pursuant to	499
section 13 of the "Securities Exchange Act of 1934," 48 Stat. 881,	500
15 U.S.C. 78m, as amended, or section 15(d) of the "Securities	501
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78o(d), as amended,	502
may satisfy the notice to shareholders of record requirement of	503
division (A)(2) of this section by including a copy or summary of	504
the amendment or amended articles in a report filed in accordance	505
with those provisions within twenty days after the filing of the	506
certificate required by division (A)(1) of this section.	507

(B) When an amendment or amended articles are adopted by the	508
incorporators, the certificate described in division (A)(1) of	509
this section shall be signed by each of them.	510

(C) When an amendment or amended articles are adopted by the	511
directors or by the shareholders, the certificate described in	512
division (A)(1) of this section shall be signed by any authorized	513
officer.	514

(D) A copy of an amendment or amended articles changing the	515
name of a corporation or its principal office in this state,	516
certified by the secretary of state, may be filed for record in	517
the office of the county recorder of any county in this state, and	518
for such recording, the county recorder shall charge and collect	519
the same fee as provided for in division (A)(1) of section 317.32	520
of the Revised Code. The copy shall be recorded in the records of	521
deeds.	522

Sec. 1702.38.  (A) The articles may be amended from time to	523
time in any respect if the articles as amended set forth all the	524
provisions that are required in, and only those provisions that	525
may properly be in, original articles filed at the time of	526
adopting the amendment, other than with respect to the initial	527
directors, except that a public benefit corporation shall not	528
amend its articles in such manner that it will cease to be a	529
public benefit corporation.	530

(B) Without limiting the generality of the authority	531
described in division (A) of this section, the articles may be	532
amended to:	533

(1) Change the name of the corporation;

534

(2) Change the place in this state where its principal office	535
is to be located;	536

(3) Change, enlarge, or diminish its purpose or purposes;

537

(4) Change any provision of the articles or add any provision	538
that may properly be included in the articles.	539

(C)(1) The voting members present in person, by use of	540
authorized communications equipment, by mail, or, if permitted, by	541
proxy at a meeting held for that purpose, may adopt an amendment	542
by the affirmative vote of a majority of the voting members	543
present if a quorum is present or, if the articles or the	544
regulations provide or permit, by the affirmative vote of a	545
greater or lesser proportion or number of the voting members, and	546
by the affirmative vote of the voting members of any particular	547
class that is required by the articles or the regulations.	548

(2) For purposes of division (C)(1) of this section,	549
participation by a voting member at a meeting through the use of	550
any of the means of communication described in that division	551
constitutes presence in person of that voting member at the	552
meeting for purposes of determining a quorum.	553

(D) In addition to or in lieu of adopting an amendment to the	554
articles, the voting members may adopt amended articles by the	555
same action or vote as that required to adopt the amendment.	556

(E) The directors may adopt amended articles to consolidate	557
the original articles and all previously adopted amendments to the	558
articles that are in force at the time, or the voting members at a	559
meeting held for that purpose may adopt the amended articles by	560
the same vote as that required to adopt an amendment.	561

(F) Amended articles shall set forth all the provisions that	562
are required in, and only the provisions that may properly be in,	563
original articles filed at the time of adopting the amended	564
articles, other than with respect to the initial directors, and	565
shall contain a statement that they supersede the existing	566
articles.	567

(G) Upon the adoption of any amendment or amended articles, a	568
certificate containing a copy of the resolution adopting the	569
amendment or amended articles, a statement of the manner of its	570
adoption, and, in the case of adoption of the resolution by the	571
directors, a statement of the basis for such adoption, shall be	572
filed with the secretary of state, and upon that filing the	573
articles shall be amended accordingly, and the amended articles	574
shall supersede the existing articles. The certificate shall be	575
signed by any authorized officer of the corporation.	576

(H) A copy of an amendment or amended articles changing the	577
name of a corporation or its principal office in this state,	578
certified by the secretary of state, may be filed for record in	579
the office of the county recorder of any county in this state, and	580
for that recording the county recorder shall charge and collect	581
the same fee as provided for in division (A)(1) of section 317.32	582
of the Revised Code. That copy shall be recorded in the records of	583
deeds.	584

Sec. 1703.22.  An amendment changing the name of a foreign	585
corporation may be filed for record with the county recorder of	586
any county when accompanied by a certificate from the secretary of	587
state of this state certifying that an amendment evidencing a	588
change in the corporate name has been filed in the secretary of	589
state's office. For such recording the recorder shall charge and	590
collect the same fee as provided for in division (A)(1) of section	591
317.32 of the Revised Code.	592

Sec. 2101.24.  (A)(1) Except as otherwise provided by law,	593
the probate court has exclusive jurisdiction:	594

(a) To take the proof of wills and to admit to record	595
authenticated copies of wills executed, proved, and allowed in the	596
courts of any other state, territory, or country. If the probate	597
judge is unavoidably absent, any judge of the court of common	598
pleas may take proof of wills and approve bonds to be given, but	599
the record of these acts shall be preserved in the usual records	600
of the probate court.	601

(b) To grant and revoke letters testamentary and of	602
administration;	603

(c) To direct and control the conduct and settle the accounts	604
of executors and administrators and order the distribution of	605
estates;	606

(d) To appoint the attorney general to serve as the	607
administrator of an estate pursuant to section 2113.06 of the	608
Revised Code;	609

(e) To appoint and remove guardians, conservators, and	610
testamentary trustees, direct and control their conduct, and	611
settle their accounts;	612

(f) To grant marriage licenses;

613

(g) To make inquests respecting persons who are so mentally	614
impaired as a result of a mental or physical illness or	615
disability, or mental retardation, or as a result of chronic	616
substance abuse, that they are unable to manage their property and	617
affairs effectively, subject to guardianship;	618

(h) To qualify assignees, appoint and qualify trustees and	619
commissioners of insolvents, control their conduct, and settle	620
their accounts;	621

(i) To authorize the sale of lands, equitable estates, or	622
interests in lands or equitable estates, and the assignments of	623
inchoate dower in such cases of sale, on petition by executors,	624
administrators, and guardians;	625

(j) To authorize the completion of real property contracts on	626
petition of executors and administrators;	627

(k) To construe wills;

628

(l) To render declaratory judgments, including, but not	629
limited to, those rendered pursuant to section 2107.084 of the	630
Revised Code;	631

(m) To direct and control the conduct of fiduciaries and	632
settle their accounts;	633

(n) To authorize the sale or lease of any estate created by	634
will if the estate is held in trust, on petition by the trustee;	635

(o) To terminate a testamentary trust in any case in which a	636
court of equity may do so;	637

(p) To hear and determine actions to contest the validity of	638
wills;	639

(q) To make a determination of the presumption of death of	640
missing persons and to adjudicate the property rights and	641
obligations of all parties affected by the presumption;	642

(r) To hear and determine an action commenced pursuant to	643
section 3107.41 of the Revised Code to obtain the release of	644
information pertaining to the birth name of the adopted person and	645
the identity of the adopted person's biological parents and	646
biological siblings;	647

(s) To act for and issue orders regarding wards pursuant to	648
section 2111.50 of the Revised Code;	649

(t) To hear and determine actions against sureties on the	650
bonds of fiduciaries appointed by the probate court;	651

(u) To hear and determine actions involving informed consent	652
for medication of persons hospitalized pursuant to section	653
5122.141 or 5122.15 of the Revised Code;	654

(v) To hear and determine actions relating to durable powers	655
of attorney for health care as described in division (D) of	656
section 1337.16 of the Revised Code;	657

(w) To hear and determine actions commenced by objecting	658
individuals, in accordance with section 2133.05 of the Revised	659
Code;	660

(x) To hear and determine complaints that pertain to the use	661
or continuation, or the withholding or withdrawal, of	662
life-sustaining treatment in connection with certain patients	663
allegedly in a terminal condition or in a permanently unconscious	664
state pursuant to division (E) of section 2133.08 of the Revised	665
Code, in accordance with that division;	666

(y) To hear and determine applications that pertain to the	667
withholding or withdrawal of nutrition and hydration from certain	668
patients allegedly in a permanently unconscious state pursuant to	669
section 2133.09 of the Revised Code, in accordance with that	670
section;	671

(z) To hear and determine applications of attending	672
physicians in accordance with division (B) of section 2133.15 of	673
the Revised Code;	674

(aa) To hear and determine actions relative to the use or	675
continuation of comfort care in connection with certain principals	676
under durable powers of attorney for health care, declarants under	677
declarations, or patients in accordance with division (E) of	678
either section 1337.16 or 2133.12 of the Revised Code;	679

(bb) To hear and determine applications for an order	680
relieving an estate from administration under section 2113.03 of	681
the Revised Code;	682

(cc) To hear and determine applications for an order granting	683
a summary release from administration under section 2113.031 of	684
the Revised Code;	685

(dd) To hear and determine actions relating to the exercise	686
of the right of disposition, in accordance with section 2108.90 of	687
the Revised Code;	688

(ee) To hear and determine actions relating to the	689
disinterment and reinterment of human remains under section 517.23	690
of the Revised Code;	691

(ff) To hear and determine petitions for an order for	692
treatment of a person suffering from alcohol and other drug abuse	693
filed under section 3793.34 of the Revised Code and to order	694
treatment of that nature in accordance with, and take other	695
actions afforded to the court under, sections 3793.31 to 3793.39	696
of the Revised Code.	697

(2) In addition to the exclusive jurisdiction conferred upon	698
the probate court by division (A)(1) of this section, the probate	699
court shall have exclusive jurisdiction over a particular subject	700
matter if both of the following apply:	701

(a) Another section of the Revised Code expressly confers	702
jurisdiction over that subject matter upon the probate court.	703

(b) No section of the Revised Code expressly confers	704
jurisdiction over that subject matter upon any other court or	705
agency.	706

(B)(1) The probate court has concurrent jurisdiction with,	707
and the same powers at law and in equity as, the general division	708
of the court of common pleas to issue writs and orders, and to	709
hear and determine actions as follows:	710

(a) If jurisdiction relative to a particular subject matter	711
is stated to be concurrent in a section of the Revised Code or has	712
been construed by judicial decision to be concurrent, any action	713
that involves that subject matter;	714

(b) Any action that involves an inter vivos trust; a trust	715
created pursuant to section 5815.28 of the Revised Code; a	716
charitable trust or foundation; subject to divisions (A)(1)(u) and	717
(z) of this section, a power of attorney, including, but not	718
limited to, a durable power of attorney; the medical treatment of	719
a competent adult; or a writ of habeas corpus;	720

(c) Subject to section 2101.31 of the Revised Code, any	721
action with respect to a probate estate, guardianship, trust, or	722
post-death dispute that involves any of the following:	723

(i) A designation or removal of a beneficiary of a life	724
insurance policy, annuity contract, retirement plan, brokerage	725
account, security account, bank account, real property, or	726
tangible personal property;	727

(ii) A designation or removal of a payable-on-death	728
beneficiary or transfer-on-death beneficiary;	729

(iii) A change in the title to any asset involving a joint	730
and survivorship interest;	731

(iv) An alleged gift;

732

(v) The passing of assets upon the death of an individual	733
otherwise than by will, intestate succession, or trust.	734

(2) Any action that involves a concurrent jurisdiction	735
subject matter and that is before the probate court may be	736
transferred by the probate court, on its order, to the general	737
division of the court of common pleas.	738

(C) The probate court has plenary power at law and in equity	739
to dispose fully of any matter that is properly before the court,	740
unless the power is expressly otherwise limited or denied by a	741
section of the Revised Code.	742

(D) The jurisdiction acquired by a probate court over a	743
matter or proceeding is exclusive of that of any other probate	744
court, except when otherwise provided by law.	745

Sec. 2131.08.  (A) Subject to sections 1746.14, 1747.09, and	746
2131.09 of the Revised Code, no interest in real or personal	747
property shall be good unless it must vest, if at all, not later	748
than twenty-one years after a life or lives in being at the	749
creation of the interest. All estates given in tail, by deed or	750
will, in real property lying within this state shall be and remain	751
an absolute estate in fee simple to the issue of the first donee	752
in tail. It is the intention by the adoption of this section to	753
make effective in this state what is generally known as the common	754
law rule against perpetuities, except as set forth in divisions	755
(B) and (C) of this section.	756

(B) For the purposes of this section and subject to sections	757
1746.14, 1747.09, and 2131.09 of the Revised Code, the time of the	758
creation of an interest in real or personal property subject to a	759
power reserved by the grantor to revoke or terminate the interest	760
shall be the time at which the reserved power expires by reason of	761
the death of the grantor, by release of the power, or otherwise.	762

(C) Any interest in real or personal property that would	763
violate the rule against perpetuities, under division (A) of this	764
section, shall be reformed, within the limits of the rule, to	765
approximate most closely the intention of the creator of the	766
interest. In determining whether an interest would violate the	767
rule and in reforming an interest, the period of perpetuities	768
shall be measured by actual rather than possible events.	769

(D) For purposes of this section and subject to sections	770
1746.14, 1747.09, and 2131.09 of the Revised Code, the following	771
apply:	772

(1) The time of the creation of an interest in real or	773
personal property resulting from the exercise of a general power	774
of appointment exercisable in a nonfiduciary capacity by deed,	775
whether or not also exercisable by will, shall be the time at	776
which that power of appointment is exercised.	777

(2) The time of the creation of an interest in real or	778
personal property resulting from the termination, without	779
exercise, of a general power of appointment exercisable in a	780
nonfiduciary capacity by deed, whether or not also exercisable by	781
will, shall be the time at which that power of appointment	782
terminates by reason of the death of the power holder, by release	783
of the power, or otherwise.	784

(E) Divisions (B) and (C) of this section shall be effective	785
with respect to interests in real or personal property created by	786
wills of decedents dying after December 31, 1967, with respect to	787
interests in real or personal property created by inter vivos	788
instruments executed after December 31, 1967, and with respect to	789
interests in real or personal property created by inter vivos	790
instruments executed on or before December 31, 1967, that by	791
reason of division (B) of this section will be treated as	792
interests created after December 31, 1967. Divisions (B) and (C)	793
of this section shall be effective with respect to interests in	794
real or personal property created by the exercise of a power of	795
appointment if divisions (B) and (C) of this section apply to the	796
instrument that exercises the power, whether or not divisions (B)	797
and (C) of this section apply to the instrument that creates the	798
power.	799

(F) Divisions (D) and (G) of this section are intended to be	800
a statement of the common law of this state and shall be effective	801
with respect to interests in real or personal property whenever	802
created.	803

(G) For purposes of this section:

804

(1) "General power of appointment" has the same meaning as in	805
section 2131.09 of the Revised Code.	806

(2) "Exercisable by deed" in reference to a power of	807
appointment means a power that can be exercised during the power	808
holder's lifetime by an instrument that takes effect immediately.	809

Sec. 2131.09.  (A) A trust of real or personal property	810
created by an employer as part of a stock bonus plan, pension	811
plan, disability or death benefit plan, or profit-sharing plan,	812
for the benefit of some or all of the employees, to which	813
contributions are made by the employer or employees, or both, for	814
the purpose of distributing to the employees or their	815
beneficiaries the earnings or the principal, or both earnings and	816
principal, of the fund so held in trust is not invalid as	817
violating the rule against perpetuities, any other existing law	818
against perpetuities, or any law restricting or limiting the	819
duration of trusts; but the trust may continue for the time that	820
is necessary to accomplish the purposes for which it was created.	821

The income arising from any trust within the classifications	822
mentioned in this division may be accumulated in accordance with	823
the terms of the trust for as long a time as is necessary to	824
accomplish the purposes for which the trust was created,	825
notwithstanding any law limiting the period during which trust	826
income may be accumulated.	827

No rule of law against perpetuities or the suspension of the	828
power of alienation of the title to property invalidates any trust	829
within the classifications mentioned in this division unless the	830
trust is terminated by decree of a court in a suit instituted	831
within two years after June 25, 1951.	832

(B)(1) No rule of law against perpetuities or suspension of	833
the power of alienation of the title to property, any other	834
existing law against perpetuities, or any law restricting or	835
limiting the duration of trusts shall apply with respect to any	836
interest in real or personal property held in trust if theboth of	837
the following apply:	838

(a) The instrument creating the trust specifically states	839
that the rule against perpetuities or the provisions of division	840
(B)(A) of section 2131.08 of the Revised Code shall not apply to	841
the trust and if either the.	842

(b) The trustee of the trust has unlimited power to sell all	843
trust assets, or if one or more persons, one of whom may be the	844
trustee, hashave the unlimited power to direct the trustee or to	845
approve the trustee's decision, either to sell all trust assets or	846
to terminate the entire trust.	847

(2) Division (B)(1) of this section shall apply to the	848
interpretation of a testamentary or inter vivos trust instrument	849
that creates an interest in real or personal property in relation	850
to which one or more of the following conditions appliesapply:	851

(a) The instrument creating the testamentary or inter vivos	852
trust is executed in this state.	853

(b) The sole trustee or one of the trustees is domiciled in	854
this state.	855

(c) The testamentary or inter vivos trust is administered in	856
this state or the situs of a substantial portion of the assets	857
subject to the testamentary portion of the testamentary or inter	858
vivos trust is in this state, even though some part or all of	859
those assets are physically deposited for safekeeping in a state	860
other than this state.	861

(d) The instrument creating the testamentary or inter vivos	862
trust states that the law of this state is to apply.	863

(3) DivisionSubject to division (C) of this section,	864
division (B) of this section shall be effective with respect to	865
all of the following:	866

(a) An interest in real or personal property in trust created	867
by wills of decedentsunder the terms of a will of a decedent	868
dying on or after the effective date of this amendmentMarch 22,	869
1999;	870

(b) An interest in real or personal property created byunder	871
the terms of an inter vivos or testamentary trust instrument	872
executed on or after the effective date of this amendmentMarch	873
22, 1999;	874

(c) An interest in real or personal property in trust created	875
by the exercise of a general power of appointment on or after the	876
effective date of this amendmentMarch 22, 1999;	877

(d) An interest in real or personal property in trust created	878
by the exercise of a nongeneral power of appointment over any	879
portion of a trust that meets the requirements of division (B) of	880
this section, but only if the date of creation of that nongeneral	881
power of appointment is on or after the effective date of this	882
section.	883

(4) Division (B) of this section shall not apply to the	884
exercise of a power of appointment other than a general power of	885
appointment.	886

(C) The exercise of a nongeneral power of appointment granted	887
over any portion of a trust to which the rule against perpetuities	888
does not apply because the terms of the trust meet the	889
requirements of division (B) of this section shall nevertheless be	890
subject to section 2131.08 of the Revised Code, except that	891
interests created pursuant to the exercise of a nongeneral power	892
of appointment that has a date of creation on or after the	893
effective date of this section shall be required to vest not later	894
than one thousand years after the date of creation of that power.	895

(D) For purposes of this section, the instrument creating a	896
trust subject to a power reserved by the grantor to amend, revoke,	897
or terminate the trust shall include the original instrument	898
establishing the trust and all amendments to the instrument made	899
prior to the time at which the reserved power expires by reason of	900
the death of the grantor, by release of the power, or otherwise.	901

(E) The amendment of division (B)(1) of this section and	902
divisions (D) and (F) of this section are intended to clarify the	903
provisions of this section as originally enacted and apply to	904
trust instruments that are in existence prior to, on, or after the	905
effective date of this section.	906

(F) For purposes of this section, "general:

907

(1) "General power of appointment" means a power that is	908
exercisable in favor of the individual possessing the power, the	909
person'sindividual's estate, the person'sindividual's creditors,	910
or the creditors of the person'sindividual's estate other than	911
either of the following:	912

(a) A power that is limited by an ascertainable standard as	913
defined in section 5801.01 of the Revised Code;	914

(b) A power of withdrawal held by an individual, but only to	915
the extent that it does not exceed the amount specified in section	916
2041(b)(2) or 2514(e) of the "Internal Revenue Code of 1986," 100	917
Stat. 2085, 26 U.S.C. 1 et seq., as amended.	918

(2) "Nongeneral power of appointment" means any power of	919
appointment that is not a general power of appointment.	920

(3) The "date of creation" of a nongeneral power of	921
appointment created by the exercise of one or more powers of	922
appointment, except by the exercise of a general power of	923
appointment exercisable by deed, shall be the date of creation of	924
the first of those powers of appointment to be exercised.	925

(4) "Exercisable by deed" has the same meaning as in section	926
2131.08 of the Revised Code.	927

Sec. 2329.66.  (A) Every person who is domiciled in this	928
state may hold property exempt from execution, garnishment,	929
attachment, or sale to satisfy a judgment or order, as follows:	930

(1)(a) In the case of a judgment or order regarding money	931
owed for health care services rendered or health care supplies	932
provided to the person or a dependent of the person, one parcel or	933
item of real or personal property that the person or a dependent	934
of the person uses as a residence. Division (A)(1)(a) of this	935
section does not preclude, affect, or invalidate the creation	936
under this chapter of a judgment lien upon the exempted property	937
but only delays the enforcement of the lien until the property is	938
sold or otherwise transferred by the owner or in accordance with	939
other applicable laws to a person or entity other than the	940
surviving spouse or surviving minor children of the judgment	941
debtor. Every person who is domiciled in this state may hold	942
exempt from a judgment lien created pursuant to division (A)(1)(a)	943
of this section the person's interest, not to exceed twentyone	944
hundred twenty-five thousand two hundred dollars, in the exempted	945
property.	946

(b) In the case of all other judgments and orders, the	947
person's interest, not to exceed twentyone hundred twenty-five	948
thousand two hundred dollars, in one parcel or item of real or	949
personal property that the person or a dependent of the person	950
uses as a residence.	951

(c) For purposes of divisions (A)(1)(a) and (b) of this	952
section, "parcel" means a tract of real property as identified on	953
the records of the auditor of the county in which the real	954
property is located.	955

(2) The person's interest, not to exceed three thousand two	956
hundred twenty-five dollars, in one motor vehicle;	957

(3) The person's interest, not to exceed four hundred	958
dollars, in cash on hand, money due and payable, money to become	959
due within ninety days, tax refunds, and money on deposit with a	960
bank, savings and loan association, credit union, public utility,	961
landlord, or other person, other than personal earnings.	962

(4)(a) The person's interest, not to exceed five hundred	963
twenty-five dollars in any particular item or ten thousand seven	964
hundred seventy-five dollars in aggregate value, in household	965
furnishings, household goods, wearing apparel, appliances, books,	966
animals, crops, musical instruments, firearms, and hunting and	967
fishing equipment that are held primarily for the personal,	968
family, or household use of the person;	969

(b) The person's aggregate interest in one or more items of	970
jewelry, not to exceed one thousand three hundred fifty dollars,	971
held primarily for the personal, family, or household use of the	972
person or any of the person's dependents.	973

(5) The person's interest, not to exceed an aggregate of two	974
thousand twenty-five dollars, in all implements, professional	975
books, or tools of the person's profession, trade, or business,	976
including agriculture;	977

(6)(a) The person's interest in a beneficiary fund set apart,	978
appropriated, or paid by a benevolent association or society, as	979
exempted by section 2329.63 of the Revised Code;	980

(b) The person's interest in contracts of life or endowment	981
insurance or annuities, as exempted by section 3911.10 of the	982
Revised Code;	983

(c) The person's interest in a policy of group insurance or	984
the proceeds of a policy of group insurance, as exempted by	985
section 3917.05 of the Revised Code;	986

(d) The person's interest in money, benefits, charity,	987
relief, or aid to be paid, provided, or rendered by a fraternal	988
benefit society, as exempted by section 3921.18 of the Revised	989
Code;	990

(e) The person's interest in the portion of benefits under	991
policies of sickness and accident insurance and in lump sum	992
payments for dismemberment and other losses insured under those	993
policies, as exempted by section 3923.19 of the Revised Code.	994

(7) The person's professionally prescribed or medically	995
necessary health aids;	996

(8) The person's interest in a burial lot, including, but	997
not limited to, exemptions under section 517.09 or 1721.07 of the	998
Revised Code;	999

(9) The person's interest in the following:

1000

(a) Moneys paid or payable for living maintenance or rights,	1001
as exempted by section 3304.19 of the Revised Code;	1002

(b) Workers' compensation, as exempted by section 4123.67 of	1003
the Revised Code;	1004

(c) Unemployment compensation benefits, as exempted by	1005
section 4141.32 of the Revised Code;	1006

(d) Cash assistance payments under the Ohio works first	1007
program, as exempted by section 5107.75 of the Revised Code;	1008

(e) Benefits and services under the prevention, retention,	1009
and contingency program, as exempted by section 5108.08 of the	1010
Revised Code;	1011

(f) Disability financial assistance payments, as exempted by	1012
section 5115.06 of the Revised Code;	1013

(g) Payments under section 24 or 32 of the "Internal Revenue	1014
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.	1015

(10)(a) Except in cases in which the person was convicted of	1016
or pleaded guilty to a violation of section 2921.41 of the Revised	1017
Code and in which an order for the withholding of restitution from	1018
payments was issued under division (C)(2)(b) of that section, in	1019
cases in which an order for withholding was issued under section	1020
2907.15 of the Revised Code, in cases in which an order for	1021
forfeiture was issued under division (A) or (B) of section	1022
2929.192 of the Revised Code, and in cases in which an order was	1023
issued under section 2929.193 of the Revised Code, and only to the	1024
extent provided in the order, and except as provided in sections	1025
3105.171, 3105.63, 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06	1026
of the Revised Code, the person's rightrights to or interests in	1027
a pension, benefit, annuity, retirement allowance, or accumulated	1028
contributions, the person's rightrights to or interests in a	1029
participant account in any deferred compensation program offered	1030
by the Ohio public employees deferred compensation board, a	1031
government unit, or a municipal corporation, or the person's other	1032
accrued or accruing rights or interests, as exempted by section	1033
145.56, 146.13, 148.09, 742.47, 3307.41, 3309.66, or 5505.22 of	1034
the Revised Code, and the person's rightrights to or interests in	1035
benefits from the Ohio public safety officers death benefit fund;	1036

(b) Except as provided in sections 3119.80, 3119.81, 3121.02,	1037
3121.03, and 3123.06 of the Revised Code, the person's right	1038
rights to receive or interests in receiving a payment or other	1039
benefits under any pension, annuity, or similar plan or contract,	1040
not including a payment or benefit from a stock bonus or	1041
profit-sharing plan or a payment included in division (A)(6)(b) or	1042
(10)(a) of this section, on account of illness, disability, death,	1043
age, or length of service, to the extent reasonably necessary for	1044
the support of the person and any of the person's dependents,	1045
except if all the following apply:	1046

(i) The plan or contract was established by or under the	1047
auspices of an insider that employed the person at the time the	1048
person's rights or interests under the plan or contract arose.	1049

(ii) The payment is on account of age or length of service.

1050

(iii) The plan or contract is not qualified under the	1051
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as	1052
amended.	1053

(c) Except for any portion of the assets that were deposited	1054
for the purpose of evading the payment of any debt and except as	1055
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and	1056
3123.06 of the Revised Code, the person's rightrights or	1057
interests in the assets held in, or to directly or indirectly	1058
receive any payment or benefit under, any individual retirement	1059
account, individual retirement annuity, "Roth IRA," "529 plan," or	1060
education individual retirement account that provides payments or	1061
benefits by reason of illness, disability, death, retirement, or	1062
age or provides payments or benefits for purposes of education, to	1063
the extent that the assets, payments, or benefits described in	1064
division (A)(10)(c) of this section are attributable to or derived	1065
from any of the following or from any earnings, dividends,	1066
interest, appreciation, or gains on any of the following:	1067

(i) Contributions of the person that were less than or equal	1068
to the applicable limits on deductible contributions to an	1069
individual retirement account or individual retirement annuity in	1070
the year that the contributions were made, whether or not the	1071
person was eligible to deduct the contributions on the person's	1072
federal tax return for the year in which the contributions were	1073
made;	1074

(ii) Contributions of the person that were less than or equal	1075
to the applicable limits on contributions to a Roth IRA or	1076
education individual retirement account in the year that the	1077
contributions were made;	1078

(iii) Contributions of the person that are within the	1079
applicable limits on rollover contributions under subsections 219,	1080
402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 408A(c)(3)(B),	1081
408A(d)(3), and 530(d)(5) of the "Internal Revenue Code of 1986,"	1082
100 Stat. 2085, 26 U.S.C.A. 1, as amended;	1083

(iv) Contributions by any person into any plan, fund, or	1084
account that is formed, created, or administered pursuant to, or	1085
is otherwise subject to, section 529 of the "Internal Revenue Code	1086
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.	1087

(d) Except for any portion of the assets that were deposited	1088
for the purpose of evading the payment of any debt and except as	1089
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and	1090
3123.06 of the Revised Code, the person's rightrights or	1091
interests in the assets held in, or to receive any payment under,	1092
any Keogh or "H.R. 10" plan that provides benefits by reason of	1093
illness, disability, death, retirement, or age, to the extent	1094
reasonably necessary for the support of the person and any of the	1095
person's dependents.	1096

(e) The person's rights to or interests in any assets held	1097
in, or to directly or indirectly receive any payment or benefit	1098
under, any individual retirement account, individual retirement	1099
annuity, "Roth IRA," "529 plan," or education individual	1100
retirement account that a decedent, upon or by reason of the	1101
decedent's death, directly or indirectly left to or for the	1102
benefit of the person, either outright or in trust or otherwise,	1103
including, but not limited to, any of those rights or interests in	1104
assets or to receive payments or benefits that were transferred,	1105
conveyed, or otherwise transmitted by the decedent by means of a	1106
will, trust, exercise of a power of appointment, beneficiary	1107
designation, transfer or payment on death designation, or any	1108
other method or procedure.	1109

(f) The exemptions under divisions (A)(10)(a) to (e) of this	1110
section also shall apply or otherwise be available to an alternate	1111
payee under a qualified domestic relations order (QDRO) or other	1112
similar court order.	1113

(g) A person's interest in any plan, program, instrument, or	1114
device described in divisions (A)(10)(a) to (e) of this section	1115
shall be considered an exempt interest even if the plan, program,	1116
instrument, or device in question, due to an error made in good	1117
faith, failed to satisfy any criteria applicable to that plan,	1118
program, instrument, or device under the "Internal Revenue Code of	1119
1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.	1120

(11) The person's right to receive spousal support, child	1121
support, an allowance, or other maintenance to the extent	1122
reasonably necessary for the support of the person and any of the	1123
person's dependents;	1124

(12) The person's right to receive, or moneys received during	1125
the preceding twelve calendar months from, any of the following:	1126

(a) An award of reparations under sections 2743.51 to 2743.72	1127
of the Revised Code, to the extent exempted by division (D) of	1128
section 2743.66 of the Revised Code;	1129

(b) A payment on account of the wrongful death of an	1130
individual of whom the person was a dependent on the date of the	1131
individual's death, to the extent reasonably necessary for the	1132
support of the person and any of the person's dependents;	1133

(c) Except in cases in which the person who receives the	1134
payment is an inmate, as defined in section 2969.21 of the Revised	1135
Code, and in which the payment resulted from a civil action or	1136
appeal against a government entity or employee, as defined in	1137
section 2969.21 of the Revised Code, a payment, not to exceed	1138
twenty thousand two hundred dollars, on account of personal bodily	1139
injury, not including pain and suffering or compensation for	1140
actual pecuniary loss, of the person or an individual for whom the	1141
person is a dependent;	1142

(d) A payment in compensation for loss of future earnings of	1143
the person or an individual of whom the person is or was a	1144
dependent, to the extent reasonably necessary for the support of	1145
the debtor and any of the debtor's dependents.	1146

(13) Except as provided in sections 3119.80, 3119.81,	1147
3121.02, 3121.03, and 3123.06 of the Revised Code, personal	1148
earnings of the person owed to the person for services in an	1149
amount equal to the greater of the following amounts:	1150

(a) If paid weekly, thirty times the current federal minimum	1151
hourly wage; if paid biweekly, sixty times the current federal	1152
minimum hourly wage; if paid semimonthly, sixty-five times the	1153
current federal minimum hourly wage; or if paid monthly, one	1154
hundred thirty times the current federal minimum hourly wage that	1155
is in effect at the time the earnings are payable, as prescribed	1156
by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29	1157
U.S.C. 206(a)(1), as amended;	1158

(b) Seventy-five per cent of the disposable earnings owed to	1159
the person.	1160

(14) The person's right in specific partnership property, as	1161
exempted by division (B)(3) of section 1775.24 of the Revised Code	1162
or the person's rights in a partnership pursuant to section	1163
1776.50 of the Revised Code, except as otherwise set forth in	1164
section 1776.50 of the Revised Code;	1165

(15) A seal and official register of a notary public, as	1166
exempted by section 147.04 of the Revised Code;	1167

(16) The person's interest in a tuition unit or a payment	1168
under section 3334.09 of the Revised Code pursuant to a tuition	1169
payment contract, as exempted by section 3334.15 of the Revised	1170
Code;	1171

(17) Any other property that is specifically exempted from	1172
execution, attachment, garnishment, or sale by federal statutes	1173
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11	1174
U.S.C.A. 101, as amended;	1175

(18) The person's aggregate interest in any property, not to	1176
exceed one thousand seventy-five dollars, except that division	1177
(A)(18) of this section applies only in bankruptcy proceedings.	1178

(B) On April 1, 2010, and on the first day of April in each	1179
third calendar year after 2010, the Ohio judicial conference shall	1180
adjust each dollar amount set forth in this section to reflect the	1181
changeany increase in the consumer price index for all urban	1182
consumers, as published by the United States department of labor,	1183
or, if that index is no longer published, a generally available	1184
comparable index, for the three-year period ending on the	1185
thirty-first day of December of the preceding year. Any	1186
adjustments required by this division shall be rounded to the	1187
nearest twenty-five dollars.	1188

The Ohio judicial conference shall prepare a memorandum	1189
specifying the adjusted dollar amounts. The judicial conference	1190
shall transmit the memorandum to the director of the legislative	1191
service commission, and the director shall publish the memorandum	1192
in the register of Ohio. (Publication of the memorandum in the	1193
register of Ohio shall continue until the next memorandum	1194
specifying an adjustment is so published.) The judicial conference	1195
also may publish the memorandum in any other manner it concludes	1196
will be reasonably likely to inform persons who are affected by	1197
its adjustment of the dollar amounts.	1198

(C) As used in this section:

1199

(1) "Disposable earnings" means net earnings after the	1200
garnishee has made deductions required by law, excluding the	1201
deductions ordered pursuant to section 3119.80, 3119.81, 3121.02,	1202
3121.03, or 3123.06 of the Revised Code.	1203

(2) "Insider" means:

1204

(a) If the person who claims an exemption is an individual, a	1205
relative of the individual, a relative of a general partner of the	1206
individual, a partnership in which the individual is a general	1207
partner, a general partner of the individual, or a corporation of	1208
which the individual is a director, officer, or in control;	1209

(b) If the person who claims an exemption is a corporation, a	1210
director or officer of the corporation; a person in control of the	1211
corporation; a partnership in which the corporation is a general	1212
partner; a general partner of the corporation; or a relative of a	1213
general partner, director, officer, or person in control of the	1214
corporation;	1215

(c) If the person who claims an exemption is a partnership, a	1216
general partner in the partnership; a general partner of the	1217
partnership; a person in control of the partnership; a partnership	1218
in which the partnership is a general partner; or a relative in, a	1219
general partner of, or a person in control of the partnership;	1220

(d) An entity or person to which or whom any of the following	1221
applies:	1222

(i) The entity directly or indirectly owns, controls, or	1223
holds with power to vote, twenty per cent or more of the	1224
outstanding voting securities of the person who claims an	1225
exemption, unless the entity holds the securities in a fiduciary	1226
or agency capacity without sole discretionary power to vote the	1227
securities or holds the securities solely to secure to debt and	1228
the entity has not in fact exercised the power to vote.	1229

(ii) The entity is a corporation, twenty per cent or more of	1230
whose outstanding voting securities are directly or indirectly	1231
owned, controlled, or held with power to vote, by the person who	1232
claims an exemption or by an entity to which division (C)(2)(d)(i)	1233
of this section applies.	1234

(iii) A person whose business is operated under a lease or	1235
operating agreement by the person who claims an exemption, or a	1236
person substantially all of whose business is operated under an	1237
operating agreement with the person who claims an exemption.	1238

(iv) The entity operates the business or all or substantially	1239
all of the property of the person who claims an exemption under a	1240
lease or operating agreement.	1241

(e) An insider, as otherwise defined in this section, of a	1242
person or entity to which division (C)(2)(d)(i), (ii), (iii), or	1243
(iv) of this section applies, as if the person or entity were a	1244
person who claims an exemption;	1245

(f) A managing agent of the person who claims an exemption.

1246

(3) "Participant account" has the same meaning as in section	1247
148.01 of the Revised Code.	1248

(4) "Government unit" has the same meaning as in section	1249
148.06 of the Revised Code.	1250

(D) For purposes of this section, "interest" shall be	1251
determined as follows:	1252

(1) In bankruptcy proceedings, as of the date a petition is	1253
filed with the bankruptcy court commencing a case under Title 11	1254
of the United States Code;	1255

(2) In all cases other than bankruptcy proceedings, as of the	1256
date of an appraisal, if necessary under section 2329.68 of the	1257
Revised Code, or the issuance of a writ of execution.	1258

An interest, as determined under division (D)(1) or (2) of	1259
this section, shall not include the amount of any lien otherwise	1260
valid pursuant to section 2329.661 of the Revised Code.	1261

Sec. 2329.661.  (A) Division (A)(1) of section 2329.66 of the	1262
Revised Code does not:	1263

(1) Extend to a judgment rendered on a mortgage executed, or	1264
security interest given on real or personal property by a debtor	1265
or to a claim for less than four hundred dollars for manual work	1266
or labor;	1267

(2) Impair the lien, by mortgage or otherwise, of the vendor	1268
for the purchase money of real or personal property that the	1269
debtor or a dependent of the debtor uses as a residence,or the	1270
lien of a mechanic or other person, under a statute of this state,	1271
for materials furnished or labor performed in the erection of a	1272
dwelling house on real property, or a lien for the payment of	1273
taxes due on real property;	1274

(3) Affect or invalidate any mortgage on any real property,	1275
or any lien created by such a mortgage;	1276

(4) Impair a lien for the payment of taxes, debts, or other	1277
obligations owed to this state or any agency or political	1278
subdivision of this state;	1279

(5) Extend to a judgment rendered against a debtor for	1280
tortious operation of a motor vehicle by the debtor that results	1281
in injury, death, or loss to person or property if that injury,	1282
death, or loss was caused at a time when the debtor failed to	1283
maintain proof of financial responsibility as defined in section	1284
4509.01 of the Revised Code.	1285

(B) No promise, agreement, or contract shall be made or	1286
entered into that would waive the exemption laws of this state,	1287
and every promise, agreement, or contract insofar as it seeks to	1288
waive the exemption laws of this state is void.	1289

(C) Section 2329.66 of the Revised Code does not affect or	1290
invalidate any sale, contract of sale, conditional sale, security	1291
interest, or pledge of any personal property, or any lien created	1292
thereby.	1293

Sec. 5805.06.  (A) Whether or not the terms of a trust	1294
contain a spendthrift provision, all of the following apply:	1295

(1) During the lifetime of the settlor, the property of a	1296
revocable trust is subject to claims of the settlor's creditors.	1297

(2) WithExcept to the extent that a trust is established	1298
pursuant to, or otherwise is wholly or partially governed by or	1299
subject to Chapter 5816. of the Revised Code, with respect to an	1300
irrevocable trust, a creditor or assignee of the settlor may reach	1301
the maximum amount that can be distributed to or for the settlor's	1302
benefit. If aan irrevocable trust has more than one settlor, the	1303
amount distributable to or for a settlor's benefit that the	1304
creditor or assignee of a particular settlor may reach may not	1305
exceed thethat settlor's interest in the portion of the trust	1306
attributable to that settlor's contribution. The right of a	1307
creditor or assignee to reach a settlor's interest in an	1308
irrevocable trust shall be subject to Chapter 5816. of the Revised	1309
Code to the extent that that chapter applies to that trust.	1310

(3) With respect to a trust described in 42 U.S.C. section	1311
1396p(d)(4)(A) or (C), the court may limit the award of a	1312
settlor's creditor under division (A)(1) or (2) of this section to	1313
the relief that is appropriate under the circumstances,	1314
considering among any other factors determined appropriate by the	1315
court, the supplemental needs of the beneficiary.	1316

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

1317

(1) The holder of a power of withdrawal is treated in the	1318
same manner as the settlor of a revocable trust to the extent of	1319
the property subject to the power during the period the power may	1320
be exercised.	1321

(2) Upon the lapse, release, or waiver of the power of	1322
withdrawal, the holder is treated as the settlor of the trust only	1323
to the extent the value of the property affected by the lapse,	1324
release, or waiver exceeds the greatest of the following amounts:	1325

(a) The amount specified in section 2041(b)(2) or 2514(e) of	1326
the Internal Revenue Code;	1327

(b) If the donor of the property subject to the holder's	1328
power of withdrawal is not married at the time of the transfer of	1329
the property to the trust, the amount specified in section 2503(b)	1330
of the Internal Revenue Code;	1331

(c) If the donor of the property subject to the holder's	1332
power of withdrawal is married at the time of the transfer of the	1333
property to the trust, twice the amount specified in section	1334
2503(b) of the Internal Revenue Code.	1335

(3) None of the following shall be considered an amount that	1336
can be distributed to or for the benefit of the settlor:	1337

(a) Trust property that could be, but has not yet been,	1338
distributed to or for the benefit of the settlor only as a result	1339
of the exercise of a power of appointment held in a nonfiduciary	1340
capacity by any person other than the settlor;	1341

(b) Trust property that could be, but has not yet been,	1342
distributed to or for the benefit of the settlor of a trust	1343
pursuant to the power of the trustee to make distributions or	1344
pursuant to the power of another in a fiduciary capacity to direct	1345
distributions, if and to the extent that the distributions could	1346
be made from trust property the value of which was included in the	1347
gross estate of the settlor's spouse for federal estate tax	1348
purposes under section 2041 or 2044 of the Internal Revenue Code	1349
or that was treated as a transfer by the settlor's spouse under	1350
section 2514 or 2519 of the Internal Revenue Code;	1351

(c) Trust property that, pursuant to the exercise of a	1352
discretionary power by a person other than the settlor, could be	1353
paid to a taxing authority or to reimburse the settlor for any	1354
income tax on trust income or principal that is payable by the	1355
settlor under the law imposing the tax.	1356

Sec. 5808.08.  (A) While a trust is revocable, the trustee	1357
may follow a direction of the settlor that is contrary to the	1358
terms of the trust.	1359

(B) As provided in section 5815.25 of the Revised Code, a	1360
trustee is not liable for losses resulting from certain actions or	1361
failures to act when other persons are granted certain powers with	1362
respect to the administration of the trust.	1363

(C) The terms of a trust may confer upon a trustee or other	1364
person a power to direct the modification or termination of the	1365
trust.	1366

(D) AExcept to the extent otherwise provided by the terms of	1367
a trust, a person other than a beneficiary who holds a power to	1368
direct, including, but not limited to, a power to direct the	1369
modification or termination of a trust, is presumptively a	1370
fiduciary who, as a fiduciary, is required to act in good faith	1371
with regard to the purposes of the trust and the interests of the	1372
beneficiaries. The holder of a power to direct is liable for any	1373
loss that results from breach of a fiduciary duty.	1374

Sec. 5808.18. (A) Unless the trust instrument expressly	1375
provides otherwise and subject to the limitations set forth in	1376
this section, all of the following apply:	1377

(1) If a trustee of a trust, referred to in this section as	1378
the "first trust," has absolute power under the terms of the first	1379
trust to make distributions of principal to one or more current	1380
beneficiaries, that trustee may exercise that power by	1381
distributing all or any part of the principal subject to the	1382
power, and all or any part of any income that is not otherwise	1383
currently required to be distributed, to the trustee of another	1384
trust, referred to in this section as the "second trust," that is	1385
for the benefit of one or more current beneficiaries of the first	1386
trust. The second trust may be a trust under the trust instrument	1387
for the first trust or under a different governing instrument,	1388
including a governing instrument created by the trustee of the	1389
first trust. A trustee of a first trust who is authorized to make	1390
distributions to the trustee of a second trust pursuant to	1391
division (A) of this section may do so at any time, whether or not	1392
the trustee of the first trust would otherwise have made a	1393
distribution at that time to, or for the benefit of, any	1394
beneficiary pursuant to the terms of the first trust.	1395

(2) In determining whether a trustee has absolute power to	1396
make distributions of principal to any current beneficiary and the	1397
identity of the current beneficiaries, all of the following apply:	1398

(a) An absolute power to distribute principal includes any	1399
power to make distributions of principal that is not limited by	1400
reasonably definite standards or ascertainable standards, whether	1401
or not the word "absolute" is used in the trust instrument.	1402

(b) A power to make distributions of principal for purposes	1403
that include best interests, welfare, comfort or happiness, or	1404
words of similar import, if not otherwise limited by reasonably	1405
definite standards or ascertainable standards, constitutes an	1406
absolute power not limited by reasonably definite standards or	1407
ascertainable standards, regardless of any requirement to take	1408
into account other resources of the current beneficiary or	1409
beneficiaries to whom those distributions may be made.	1410

(c) If the current beneficiaries of the first trust are	1411
defined, in whole or in part, as a class of persons, that class	1412
includes any person who falls within that class of persons after	1413
the distribution to the second trust.	1414

(d) A power to make distributions for the benefit of a	1415
beneficiary is considered a power to make distributions to that	1416
beneficiary.	1417

(3) If property is distributed pursuant to the authority	1418
described in division (A) of this section, the governing	1419
instrument for the second trust may do either or both of the	1420
following:	1421

(a) Grant a power of appointment to one or more of the	1422
beneficiaries for whose benefit the property was so distributed,	1423
including a power to appoint trust property to the power holder,	1424
the power holder's creditors, the power holder's estate, the	1425
creditors of the power holder's estate, or any other person,	1426
whether or not that person is a beneficiary of the first trust or	1427
the second trust;	1428

(b) Provide that, at a time or upon an event specified in	1429
that governing instrument, the remaining trust property shall	1430
thereafter be held for the benefit of the beneficiaries of the	1431
first trust upon terms and conditions that are substantially	1432
identical to the terms and conditions of the trust instrument for	1433
the first trust, except that any current beneficiary or	1434
beneficiaries for whose benefit the property could have been, but	1435
was not, so distributed may be excluded from having any beneficial	1436
interest in the second trust.	1437

(4) For purposes of division (A)(3) of this section, "terms	1438
and conditions" refer only to those terms and conditions that	1439
govern the interests of the beneficiaries.	1440

(5) For purposes of division (A) of this section, charitable	1441
organizations that are not expressly designated in the terms of	1442
the first trust to receive distributions but to which the trustee	1443
of the first trust, in the discretion of the trustee, or in the	1444
discretion of any other person directing the trustee and acting in	1445
a fiduciary capacity, may at any time make a distribution, are	1446
considered beneficiaries of the first trust.	1447

(B) Unless the trust instrument expressly provides otherwise	1448
and subject to the limitations set forth in this section, a	1449
trustee of a first trust who has power, other than absolute power	1450
as described in division (A) of this section, under the terms of	1451
the first trust to make distributions of principal to one or more	1452
current beneficiaries may exercise that power by distributing all	1453
or any part of the principal subject to the power, and all or any	1454
part of any income that is not otherwise currently required to be	1455
distributed, to the trustee of a second trust. The second trust	1456
may be a trust under the trust instrument for the first trust or	1457
under a different governing instrument, including a governing	1458
instrument created by the trustee of the first trust. The power	1459
described in this division may be exercised whether or not there	1460
is a current need to distribute trust principal under any standard	1461
contained in the first trust. The exercise of a trustee's power	1462
under this division is valid only if the governing instrument for	1463
the second trust does not materially change the interests of the	1464
beneficiaries of the first trust. For purposes of this division, a	1465
power to make distributions for the benefit of a beneficiary shall	1466
be considered a power to make distributions to that beneficiary.	1467

(C) The exercise of the power to make distributions to a	1468
second trust under division (A) or (B) of this section is subject	1469
to the following additional limitations:	1470

(1)(a) The distribution to the trustee of the second trust	1471
shall not result in the reduction, limitation, or modification of	1472
any of the following rights or interests of a beneficiary of the	1473
first trust if the right or interest has come into effect with	1474
respect to the beneficiary:	1475

(i) The current right to a mandatory distribution of income	1476
or principal of the first trust;	1477

(ii) The current mandatory annuity or unitrust interest in	1478
the property of the first trust;	1479

(iii) The right annually to withdraw a percentage of the	1480
value of the first trust or a specified dollar amount.	1481

(b) For purposes of division (C)(1)(a)(i) of this section, a	1482
beneficiary's current right to a distribution of income is not	1483
considered to be mandatory if, under the terms of the first trust,	1484
current distributions of principal may be made to any person other	1485
than that current beneficiary.	1486

(2) If any transfer to the first trust qualified, or if not	1487
for the provisions of division (A) or (B) of this section would	1488
have qualified, for a marital or charitable deduction for purposes	1489
of any federal income, gift, or estate tax under the Internal	1490
Revenue Code, or for purposes of any state income, gift, estate,	1491
or inheritance tax, the governing instrument for the second trust	1492
shall not include or omit any term that, if included in or omitted	1493
from the trust instrument for the first trust, would have	1494
prevented the first trust from qualifying for that deduction, or	1495
would have reduced the amount of the deduction, under the same	1496
provisions of the Internal Revenue Code or under the same	1497
provisions of the applicable state law under which the transfer to	1498
the first trust so qualified.	1499

(3) If any transfer to the first trust has been treated, or	1500
if not for the provisions of division (A) or (B) of this section	1501
would have been treated, as a gift qualifying for the exclusion	1502
from the gift tax described in section 2503(b) of the Internal	1503
Revenue Code, the governing instrument for the second trust shall	1504
not include or omit any term that, if included in or omitted from	1505
the trust instrument for the first trust, would have prevented any	1506
gift to the first trust from so qualifying under the same	1507
provisions of section 2503 of the Internal Revenue Code under	1508
which the transfer to the first trust so qualified.	1509

(4) If the assets of the first trust include any shares of	1510
stock in an S corporation, as defined in section 1361 of the	1511
Internal Revenue Code, and the first trust is, or if not for the	1512
provisions of division (A) or (B) of this section would be, a	1513
permitted shareholder under any provision of section 1361 of the	1514
Internal Revenue Code, the governing instrument for the second	1515
trust shall not include or omit any term that, if included in or	1516
omitted from the trust instrument for the first trust, would have	1517
prevented the first trust from qualifying as a permitted	1518
shareholder of shares of stock in an S corporation under the same	1519
provisions of section 1361 of the Internal Revenue Code under	1520
which the first trust so qualified.	1521

(5) If any transfer to the first trust has been treated, or	1522
if not for the provisions of division (A) or (B) of this section	1523
would have been treated, as a gift qualifying for a zero inclusion	1524
ratio for purposes of the federal generation-skipping transfer tax	1525
under section 2642(c) of the Internal Revenue Code, the governing	1526
instrument for the second trust shall not include or omit any term	1527
that, if included in or omitted from the trust instrument for the	1528
first trust, would have prevented the transfer to the first trust	1529
from so qualifying.	1530

(6) If the assets of the first trust include any interest	1531
subject to the minimum distribution rules of section 401(a)(9) of	1532
the Internal Revenue Code and the treasury regulations issued	1533
under that section, the governing instrument for the second trust	1534
shall not include or omit any term that, if included in or omitted	1535
from the trust instrument for the first trust, would have	1536
shortened the maximum distribution period otherwise allowable	1537
under section 401(a)(9) of the Internal Revenue Code and the	1538
treasury regulations with respect to that interest under the first	1539
trust.	1540

(7)(a) As used in division (C)(7) of this section, "tax	1541
benefit" means any federal or state tax deduction, exemption,	1542
exclusion, or other tax benefit not otherwise listed in division	1543
(C) of this section.	1544

(b) If the trust instrument for the first trust expressly	1545
indicates an intention to qualify for any tax benefit or if the	1546
terms of the trust instrument for the first trust are clearly	1547
designed to enable the first trust to qualify for a tax benefit,	1548
and if the first trust did qualify, or if not for the provisions	1549
of division (A) or (B) of this section would have qualified, for	1550
any tax benefit, the governing instrument for the second trust	1551
shall not include or omit any term that, if included in or omitted	1552
from the trust instrument for the first trust, would have	1553
prevented the first trust from qualifying for that tax benefit.	1554

(8) The distribution to the trustee of the second trust shall	1555
not result in either of the following:	1556

(a) An increase in, or a change in the method of determining,	1557
the compensation of the trustee unless the increase in, or change	1558
in the method of determining, that compensation has been consented	1559
to by all of the persons, other than the trustee of the second	1560
trust, who are current beneficiaries of the second trust or is	1561
approved by the court having jurisdiction over the trust. However,	1562
an increase in compensation of the trustee arising solely because	1563
the duration of the second trust is longer than the duration of	1564
the first trust is not considered an increase in, or a change in	1565
the method of determining, the compensation of the trustee.	1566

(b) A reduction in the standard of care applicable to the	1567
actions of the trustee of the first trust or the second trust or	1568
an exoneration of the trustee of the first trust or the second	1569
trust from liability for actions taken in bad faith or with	1570
willful disregard of the duties of either trustee, including by	1571
increasing the extent to which the trustee is entitled to	1572
indemnification from the trust, as provided in the terms of the	1573
first trust and under any law of this state.	1574

(D) The exercise of the power to distribute trust income or	1575
principal to the trustee of a second trust under division (A) or	1576
(B) of this section shall be by an instrument in writing, signed	1577
by the trustee of the first trust and filed with the records of	1578
the first trust.	1579

(E) The power to distribute trust income or principal to the	1580
trustee of a second trust under division (A) or (B) of this	1581
section shall not be exercised in a manner contrary to any	1582
provision of section 2131.08 of the Revised Code to the extent	1583
applicable to the first trust, and after applying the provisions	1584
of division (B) of section 2131.09 of the Revised Code to the	1585
extent applicable to the first trust. Solely for purposes of	1586
applying under this division the provisions of sectionsections	1587
2131.08 and division (B) of section 2131.09 of the Revised Code,	1588
the exercise of the power to distribute trust income or principal	1589
to the trustee of a second trust under division (A) or (B) of this	1590
section is considered the exercise of a nongeneral power of	1591
appointment other than a general power of appointment within the	1592
meaning ofas defined in division (B)(4)(F) of section 2131.09 of	1593
the Revised Code.	1594

(F) The trustee of the first trust shall notify all current	1595
beneficiaries of the first trust, in writing, of the intended	1596
distribution to the trustee of a second trust pursuant to division	1597
(A) or (B) of this section not later than thirty days prior to	1598
that distribution. The distribution may be made prior to the	1599
expiration of thirty days from the date on which that notice is	1600
given to all current beneficiaries of the first trust if all of	1601
those current beneficiaries waive the thirty-day period from	1602
receipt of that notice. The trustee's giving of notice of an	1603
intended distribution under this division or the waiver or	1604
expiration of that thirty-day period from receipt of the notice do	1605
not limit the right of any beneficiary to object to the exercise	1606
of the trustee's power to distribute trust principal as provided	1607
in any other applicable provision of the Ohio Trust Code.	1608

(G) Any person, other than the trustee, who has a power	1609
exercisable in a fiduciary capacity to direct the trustee to make	1610
any distribution of principal that, if held by the trustee, would	1611
be a power to make a distribution as described in division (A) or	1612
(B) of this section, may exercise that power by directing the	1613
trustee to make a distribution under either division (A) or (B) of	1614
this section, whichever would be applicable if that person were	1615
the trustee, subject to all of the limitations described in this	1616
section that apply to a trustee's exercise of that power.	1617

(H) The exercise of the power to distribute trust income or	1618
principal to the trustee of a second trust under division (A) or	1619
(B) of this section is not prohibited by a spendthrift clause or a	1620
provision in the trust instrument that prohibits the amendment or	1621
revocation of the trust.	1622

(I) For purposes of division (A) of section 5808.14 of the	1623
Revised Code, a trustee who acts reasonably and in good faith in	1624
exercising the power to distribute trust income or principal to	1625
the trustee of a second trust in accordance with division (A) or	1626
(B) of this section, is presumed to have acted in accordance with	1627
the terms and purposes of the trust and the interests of the	1628
beneficiaries.	1629

(J) Nothing in this section is intended to create or imply a	1630
duty to exercise a power to distribute income or principal of a	1631
trust, and no inference of impropriety shall arise as a result of	1632
a trustee not exercising the power to make any distribution to the	1633
trustee of a second trust under division (A) or (B) of this	1634
section.	1635

(K) If the first trust is a testamentary trust established	1636
under the will of a testator who was domiciled in this state at	1637
the time of the testator's death, the power to distribute trust	1638
income or principal to the trustee of a second trust under	1639
division (A) or (B) of this section may be exercised only if	1640
approved by the court, if any, that has jurisdiction over the	1641
testamentary trust.	1642

(L) Divisions (A) and (B) of this section do not apply to	1643
either of the following:	1644

(1) Any trust during any period that the trust may be revoked	1645
or amended by its settlor;	1646

(2) Any trustee with respect to any portion of the first	1647
trust as to which that trustee is also the settlor.	1648

(M) If, and to the extent that, a trustee makes any	1649
distribution pursuant to division (A) or (B) of this section to	1650
the trustee of a second trust, then for purposes of division (W)	1651
of section 5801.01 of the Revised Code, the governing instrument	1652
for the second trust is considered to be an amendment of the trust	1653
instrument signed by the settlor of the first trust, even if that	1654
governing instrument is signed by a person other than that	1655
settlor.	1656

(N) Nothing in this section shall be construed to limit the	1657
power of any trustee to distribute trust property in further	1658
trust, whether that power arises under the terms of the trust	1659
instrument, under any other section of Title LVIII of the Revised	1660
Code, under any other statute, or under the common law. The terms	1661
of a trust instrument may do any of the following:	1662

(1) Confer upon the trustee the power to make any	1663
distribution, or confer upon any other person acting in a	1664
fiduciary capacity the power to direct the trustee to make any	1665
distribution, in further trust that is broader or more limited	1666
than, or that conflict with, the provisions of this section;	1667

(2) Provide for different requirements for notice to	1668
beneficiaries of the trust of the trustee's exercise of the power	1669
conferred under the terms of the trust instrument or described in	1670
division (A) or (B) of this section;	1671

(3) Waive any requirement of notice to the beneficiaries of	1672
the trust of the trustee's exercise of the power conferred under	1673
the terms of the trust instrument or described in division (A) or	1674
(B) of this section;	1675

(4) Otherwise include any terms and conditions governing the	1676
distribution in further trust that the settlor of the trust	1677
determines.	1678

(O)(1) Division (A) of this section is intended to be a	1679
codification of the common law of this state in effect prior to	1680
the enactment of this sectionMarch 22, 2012, and applies to	1681
distributions, whenever made, from any trust that is governed by	1682
the law of this state or that has its principal place of	1683
administration in this state, whether that trust was created	1684
before, on, or after the effective date of this sectionMarch 22,	1685
2012.	1686

(2) Division (B) of this section applies to distributions	1687
made on or after the effective date of this sectionMarch 22,	1688
2012, from any trust that is governed by the law of this state or	1689
that has its principal place of administration in this state,	1690
whether that trust was created before, on, or after the effective	1691
date of this sectionMarch 22, 2012.	1692

Sec. 5815.24.  (A) As used in this section, "fiduciary" means	1693
a trustee under any expressed, implied, resulting, or constructive	1694
trust; an executor, administrator, public administrator,	1695
committee, guardian, conservator, curator, receiver, trustee in	1696
bankruptcy, or assignee for the benefit of creditors; a partner,	1697
agent, officer of a public or private corporation, or public	1698
officer; or any other person acting in a fiduciary capacity for	1699
any person, trust, or estate.	1700

(B) A fiduciary, or a custodian, who is a transferee of real	1701
or personal property that is held by a fiduciary other than the	1702
person or entity serving as the transferee, is not required to	1703
inquire into any act, or audit any account, of the transferor	1704
fiduciary, unless the transferee is specifically directed to do so	1705
in the instrument governing the transferee or unless the	1706
transferee has actual knowledge of conduct of the transferor that	1707
would constitute a breach of the transferor's fiduciary	1708
responsibilities.	1709

(C) If a trustee is authorized or directed in a trust	1710
instrument to pay or advance all or any part of the trust property	1711
to the personal representative of a decedent's estate for the	1712
payment of the decedent's legal obligations, death taxes,	1713
bequests, or expenses of administration, the trustee is not liable	1714
for the application of the trust property paid or advanced to the	1715
personal representative and is not liable for any act or omission	1716
of the personal representative with respect to the trust property,	1717
unless the trustee has actual knowledge, prior to the payment or	1718
advancement of the trust property, that the personal	1719
representative does not intend to use the trust property for such	1720
purposes.	1721

(D) Regardless of whether a beneficiary is subject to the	1722
claims of any creditor, a trustee may pay any expense incurred by	1723
a beneficiary to the extent that payment is permitted by the	1724
instrument governing the trust, and the trustee may make those	1725
payments even if the payments exhaust the income and principal of	1726
the trust. A trustee is not liable to any creditor of a	1727
beneficiary for paying the expenses of a beneficiary as allowed by	1728
this division.	1729

Sec. 5815.25.  (A) As used in this section, "fiduciary" means	1730
a trustee under any testamentary, inter vivos, or other trust, an	1731
executor or administrator, or any other person who is acting in a	1732
fiduciary capacity for any person, trust, or estate.	1733

(B) WhenIf an instrument or other applicable written	1734
agreement describes, appoints, or directs a fiduciary to handle	1735
only the administrative duties and responsibilities of a trust,	1736
that administrative fiduciary shall not have any duties,	1737
responsibilities, or liabilities to the trust beneficiaries or to	1738
other persons interested in a trust except for those	1739
administrative duties and responsibilities specifically described	1740
in the instrument or written agreement. The administrative duties	1741
and responsibilities of a trust under this division may include	1742
any of the following:	1743

(1) Opening and maintaining bank, brokerage, financial, or	1744
other custodial accounts to receive trust income or contributions	1745
and from which trust expenditures, bills, and distributions may be	1746
disbursed;	1747

(2) Maintaining and handling trust records, reports,	1748
correspondence, or communications;	1749

(3) Maintaining an office for trust business;

1750

(4) Filing any trust tax returns;

1751

(5) Employing agents in connection with the fiduciary's	1752
administrative duties;	1753

(6) Taking custody of or storing trust property;

1754

(7) Any other similar administrative duties for the trust.

1755

(C) If an instrument under which a fiduciary acts reserves to	1756
the grantor, or vests in an advisory or investment committee or in	1757
one or more other persons, including one or more fiduciaries, to	1758
the exclusion of the fiduciary or of one or more of several	1759
fiduciaries, any power, including, but not limited to, the	1760
authority to direct the acquisition, disposition, or retention of	1761
any investment or the power to authorize any act that an excluded	1762
fiduciary may propose, any excluded fiduciary is not liable,	1763
either individually or as a fiduciary, for either of the	1764
following:	1765

(1) Any loss that results from compliance with an authorized	1766
direction of the grantor, committee, person, or persons;	1767

(2) Any loss that results from a failure to take any action	1768
proposed by an excluded fiduciary that requires a prior	1769
authorization of the grantor, committee, person, or persons if	1770
that excluded fiduciary timely sought but failed to obtain that	1771
authorization.	1772

(C)(D) Any administrative fiduciary as described in division	1773
(B) of this section or any excluded fiduciary as described in	1774
division (B)(C) of this section is relieved from any obligation to	1775
perform investment reviews and make recommendations with respect	1776
to any investments to the extent the grantor, an advisory or	1777
investment committee, or one or more other persons have authority	1778
to direct the acquisition, disposition, or retention of any	1779
investment.	1780

(D)(E) This section does not apply to the extent that the	1781
instrument under which an administrative fiduciary as described in	1782
division (B) of this section or an excluded fiduciary as described	1783
in division (B)(C) of this section acts contains provisions that	1784
are inconsistent with this section.	1785

Sec. 5815.36.  (A) As used in this section:

1786

(1) "Disclaimant" means any person, any guardian or personal	1787
representative of a person or estate of a person, or any	1788
attorney-in-fact or agent of a person having a general or specific	1789
authority to act granted in a written instrument, who is any of	1790
the following:	1791

(a) With respect to testamentary instruments and intestate	1792
succession, an heir, next of kin, devisee, legatee, donee, person	1793
succeeding to a disclaimed interest, surviving joint tenant,	1794
surviving tenant by the entireties, surviving tenant of a tenancy	1795
with a right of survivorship, beneficiary under a testamentary	1796
instrument, or person designated to take pursuant to a power of	1797
appointment exercised by a testamentary instrument;	1798

(b) With respect to nontestamentary instruments, a grantee,	1799
donee, person succeeding to a disclaimed interest, surviving joint	1800
tenant, surviving tenant by the entireties, surviving tenant of a	1801
tenancy with a right of survivorship, beneficiary under a	1802
nontestamentary instrument, or person designated to take pursuant	1803
to a power of appointment exercised by a nontestamentary	1804
instrument;	1805

(c) With respect to fiduciary rights, privileges, powers, and	1806
immunities, a fiduciary under a testamentary or nontestamentary	1807
instrument. Division (A)(1)(c) of this section does not authorize	1808
a fiduciary who disclaims fiduciary rights, privileges, powers,	1809
and immunities to cause the rights of any beneficiary to be	1810
disclaimed unless the instrument creating the fiduciary	1811
relationship authorizes the fiduciary to make such a disclaimer.	1812

(d) Any person entitled to take an interest in property upon	1813
the death of a person or upon the occurrence of any other event.	1814

(2) "Personal representative" includes any fiduciary as	1815
defined in section 2109.01 of the Revised Code and any executor,	1816
trustee, guardian, or other person or entity having a fiduciary	1817
relationship with regard to any interest in property passing to	1818
the fiduciary, executor, trustee, guardian, or other person or	1819
entity by reason of a disclaimant's death.	1820

(3) "Property" means all forms of property, real and	1821
personal, tangible and intangible.	1822

(B)(1) A disclaimant, other than a fiduciary under an	1823
instrument who is not authorized by the instrument to disclaim the	1824
interest of a beneficiary, may disclaim, in whole or in part, the	1825
succession to any property by executing and by delivering, filing,	1826
or recording a written disclaimer instrument in the manner	1827
provided in this section.	1828

(2) A disclaimant who is a fiduciary under an instrument may	1829
disclaim, in whole or in part, any right, power, privilege, or	1830
immunity, by executing and by delivering, filing, or recording a	1831
written disclaimer instrument in the manner provided in this	1832
section.	1833

(3) The written instrument of disclaimer shall be signed and	1834
acknowledged by the disclaimant and shall contain all of the	1835
following:	1836

(a) A reference to the donative instrument;

1837

(b) A description of the property, part of property, or	1838
interest disclaimed, and of any fiduciary right, power, privilege,	1839
or immunity disclaimed;	1840

(c) A declaration of the disclaimer and its extent.

1841

(4) The guardian of the estate of a minor or an incompetent,	1842
or the personal representative of a deceased person, whether or	1843
not authorized by the instrument to disclaim, with the consent of	1844
the probate division of the court of common pleas may disclaim, in	1845
whole or in part, the succession to any property, or interest in	1846
property, that the ward, if an adult and competent, or the	1847
deceased, if living, might have disclaimed. The guardian or	1848
personal representative, or any interested person may file an	1849
application with the probate division of the court of common pleas	1850
that has jurisdiction of the estate, asking that the court order	1851
the guardian or personal representative to execute and deliver,	1852
file, or record the disclaimer on behalf of the ward, estate, or	1853
deceased person. The court shall order the guardian or personal	1854
representative to execute and deliver, file, or record the	1855
disclaimer if the court finds, upon hearing after notice to	1856
interested parties and such other persons as the court shall	1857
direct, that:	1858

(a) It is in the best interests of those interested in the	1859
estate of the person and of those who will take the disclaimed	1860
interest;	1861

(b) It would not materially, adversely affect the minor or	1862
incompetent, or the beneficiaries of the estate of the decedent,	1863
taking into consideration other available resources and the age,	1864
probable life expectancy, physical and mental condition, and	1865
present and reasonably anticipated future needs of the minor or	1866
incompetent or the beneficiaries of the estate of the decedent.	1867

A written instrument of disclaimer ordered by the court under	1868
this division shall be executed and be delivered, filed, or	1869
recorded within the time and in the manner in which the person	1870
could have disclaimed if the person were living, an adult, and	1871
competent.	1872

(C) A partial disclaimer of property that is subject to a	1873
burdensome interest created by the donative instrument is not	1874
effective unless the disclaimed property constitutes a gift that	1875
is separate and distinct from undisclaimed gifts.	1876

(D) The disclaimant shall deliver, file, or record the	1877
disclaimer, or cause the same to be done, prior to accepting any	1878
benefits of the disclaimed interest and at any time after the	1879
latest of the following dates:	1880

(1) The effective date of the donative instrument if both the	1881
taker and the taker's interest in the property are finally	1882
ascertained on that date;	1883

(2) The date of the occurrence of the event upon which both	1884
the taker and the taker's interest in the property become finally	1885
ascertainable;	1886

(3) The date on which the disclaimant attains eighteen years	1887
of age or is no longer an incompetent, without tendering or	1888
repaying any benefit received while the disclaimant was under	1889
eighteen years of age or an incompetent, and even if a guardian of	1890
a minor or incompetent had filed an application pursuant to	1891
division (B)(4) of this section and the probate division of the	1892
court of common pleas involved did not consent to the guardian	1893
executing a disclaimer.	1894

(E) No disclaimer instrument is effective under this section	1895
if either of the following applies under the terms of the	1896
disclaimer instrument:	1897

(1) The disclaimant has power to revoke the disclaimer.

1898

(2) The disclaimant may transfer, or direct to be	1899
transferred, to self the entire legal and equitable ownership of	1900
the property subject to the disclaimer instrument.	1901

(F)(1) Subject to division (F)(2) of this section, if the	1902
interest disclaimed is created by a nontestamentary instrument,	1903
including, but not limited to, a transfer on death designation	1904
affidavit pursuant to section 5302.22 of the Revised Code, the	1905
disclaimer instrument shall be delivered personally or by	1906
certified mail to the trustee or other person who has legal title	1907
to, or possession of, the property disclaimed. If the interest	1908
disclaimed is created by a transfer on death designation affidavit	1909
pursuant to section 5302.22 of the Revised Code, the disclaimer	1910
instrument shall be filed with the county recorder of the county	1911
in which the real property that is the subject of that affidavit	1912
is located.	1913

(2) If the interest disclaimed is created by a testamentary	1914
instrument, by intestate succession, or by a certificate of title	1915
to a motor vehicle, watercraft, or outboard motor that evidences	1916
ownership of the motor vehicle, watercraft, or outboard motor that	1917
is transferable on death pursuant to section 2131.13 of the	1918
Revised Code, the disclaimer instrument shall be filed in the	1919
probate division of the court of common pleas in the county in	1920
which proceedings for the administration of the decedent's estate	1921
have been commenced, and an executed copy of the disclaimer	1922
instrument shall be delivered personally or by certified mail to	1923
the personal representative of the decedent's estate.	1924

(3) If no proceedings for the administration of the	1925
decedent's estate have been commenced, the disclaimer instrument	1926
shall be filed in the probate division of the court of common	1927
pleas in the county in which proceedings for the administration of	1928
the decedent's estate might be commenced according to law. The	1929
disclaimer instrument shall be filed and indexed, and fees	1930
charged, in the same manner as provided by law for an application	1931
to be appointed as personal representative to administer the	1932
decedent's estate. The disclaimer is effective whether or not	1933
proceedings thereafter are commenced to administer the decedent's	1934
estate. If proceedings thereafter are commenced for the	1935
administration of the decedent's estate, they shall be filed	1936
under, or consolidated with, the case number assigned to the	1937
disclaimer instrument.	1938

(4) If an interest in real estate is disclaimed, an executed	1939
copy of the disclaimer instrument also shall be recorded in the	1940
office of the recorder of the county in which the real estate is	1941
located. The disclaimer instrument shall include a description of	1942
the real estate with sufficient certainty to identify it, and	1943
shall contain a reference to the record of the instrument that	1944
created the interest disclaimed. If title to the real estate is	1945
registered under Chapters 5309. and 5310. of the Revised Code, the	1946
disclaimer interest shall be entered as a memorial on the last	1947
certificate of title. A spouse of a disclaimant has no dower or	1948
other interest in the real estate disclaimed.	1949

(G) If a donative instrument expressly provides for the	1950
distribution of property, part of property, or interest in	1951
property if there is a disclaimer, the property, part of property,	1952
or interest disclaimed shall be distributed or disposed of, and	1953
accelerated or not accelerated, in accordance with the donative	1954
instrument. In the absence of express provisions to the contrary	1955
in the donative instrument, the property, part of property, or	1956
interest in property disclaimed, and any future interest that is	1957
to take effect in possession or enjoyment at or after the	1958
termination of the interest disclaimed, shall descend, be	1959
distributed, or otherwise be disposed of, and shall be	1960
accelerated, in the following manner:	1961

(1) If intestate or testate succession is disclaimed, as if	1962
the disclaimant had predeceased the decedent;	1963

(2) If the disclaimant is one designated to take pursuant to	1964
a power of appointment exercised by a testamentary instrument, as	1965
if the disclaimant had predeceased the donee of the power;	1966

(3) If the donative instrument is a nontestamentary	1967
instrument, as if the disclaimant had died before the effective	1968
date of the nontestamentary instrument;	1969

(4) If the disclaimer is of a fiduciary right, power,	1970
privilege, or immunity, as if the right, power, privilege, or	1971
immunity was never in the donative instrument.	1972

(H) A disclaimer pursuant to this section is effective as of,	1973
and relates back for all purposes to, the date upon which the	1974
taker and the taker's interest have been finally ascertained.	1975

(I) A disclaimant who has a present and future interest in	1976
property, and disclaims the disclaimant's present interest in	1977
whole or in part, is considered to have disclaimed the	1978
disclaimant's future interest to the same extent, unless a	1979
contrary intention appears in the disclaimer instrument or the	1980
donative instrument. A disclaimant is not precluded from	1981
receiving, as an alternative taker, a beneficial interest in the	1982
property disclaimed, unless a contrary intention appears in the	1983
disclaimer instrument or in the donative instrument.	1984

(J) The disclaimant's right to disclaim under this section is	1985
barred if the disclaimant does any of the following:	1986

(1) Assigns, conveys, encumbers, pledges, or transfers, or	1987
contracts to assign, convey, encumber, pledge, or transfer, the	1988
property or any interest in it;	1989

(2) Waives in writing the disclaimant's right to disclaim and	1990
executes and delivers, files, or records the waiver in the manner	1991
provided in this section for a disclaimer instrument;	1992

(3) Accepts the property or an interest in it;

1993

(4) Permits or suffers a sale or other disposition of the	1994
property pursuant to judicial action against the disclaimant.	1995

(K) Neither a fiduciary's application for appointment or	1996
assumption of duties as a fiduciary nor a beneficiary's	1997
application for appointment as a personal representative or	1998
fiduciary waives or bars the disclaimant's right to disclaim a	1999
right, power, privilege, or immunity as a personal representative	2000
or fiduciary or the beneficiary's right to disclaim property.	2001

(L) The right to disclaim under this section exists	2002
irrespective of any limitation on the interest of the disclaimant	2003
in the nature of a spendthrift provision or similar restriction.	2004

(M) A disclaimer instrument or written waiver of the right to	2005
disclaim that has been executed and delivered, filed, or recorded	2006
as required by this section is final and binding upon all persons.	2007

(N)(1) The right to disclaim and the procedures for	2008
disclaimer established by this section are in addition to, and do	2009
not exclude or abridge, any other rights or procedures that exist	2010
or formerly existed under any other section of the Revised Code or	2011
at common law to assign, convey, release, refuse to accept,	2012
renounce, waive, or disclaim property.	2013

(2) A disclaimer is not considered a transfer or conveyance	2014
by the disclaimant, and no creditor of a disclaimant may avoid a	2015
disclaimer.	2016

(3) This section shall take precedence over any other section	2017
of the Revised Code that conflicts with this section.	2018

(O)(1) No person is liable for distributing or disposing of	2019
property in a manner inconsistent with the terms of a valid	2020
disclaimer if the distribution or disposition is otherwise proper	2021
and the person has no actual knowledge of the disclaimer.	2022

(2) No person is liable for distributing or disposing of	2023
property in reliance upon the terms of a disclaimer that is	2024
invalid because the right of disclaimer has been waived or barred	2025
if the distribution or disposition is otherwise proper and the	2026
person has no actual knowledge of the facts that constitute a	2027
waiver or bar to the right to disclaim.	2028

(P)(1) A disclaimant may disclaim pursuant to this section	2029
any interest in property that is in existence on September 27,	2030
1976, if either the interest in the property or the taker of the	2031
interest in the property is not finally ascertained on that date.	2032

(2) No disclaimer executed pursuant to this section destroys	2033
or diminishes an interest in property that exists on September 27,	2034
1976, in any person other than the disclaimant.	2035

(Q) This section may be applied separately to different	2036
interests or powers created in the disclaimant by the same	2037
testamentary or nontestamentary instrument.	2038

Sec. 5815.37. (A) If any interest in real property held by	2039
any trustee of an express trust that is wholly or partially	2040
governed by a law of this state or any interest in real property	2041
located in this state that is held by the trustee of a trust	2042
wholly governed by the law of one or more jurisdictions other than	2043
this state is temporarily conveyed to any beneficiary of that	2044
trust and reconveyed back to any trustee of that trust, the	2045
interest in the real property shall be subject to divisions (B)	2046
and (C) of this section if all of the following apply:	2047

(1) That temporary conveyance is for the principal purpose of	2048
enabling some or all of that interest in the real property to be	2049
used as collateral in a loan transaction.	2050

(2) The loan proceeds will be delivered to the trustee of the	2051
trust or will otherwise be principally used for the benefit of one	2052
or more beneficiaries of the trust.	2053

(3) The interest in the real property is reconveyed back to	2054
one or more trustees of the trust within a reasonable time after	2055
the reconveying beneficiary acquired actual notice that the lender	2056
has perfected the lender's collateral rights in and to the	2057
interest in the real property.	2058

(4) The lender in question is any of the following:

2059

(a) A bank, thrift, savings bank, savings and loan	2060
association, credit union, or any other similar financial	2061
institution if the activities of the other similar financial	2062
institution are subject to supervision by the Ohio superintendent	2063
of financial institutions, the federal deposit insurance	2064
corporation, the comptroller of the currency, the office of thrift	2065
supervision, any other comparable state or federal regulatory	2066
agency or entity, or a successor of any of them;	2067

(b) An insurance company subject to supervision by the Ohio	2068
department of insurance or any comparable agency established by	2069
the law of any other jurisdiction;	2070

(c) Any other corporation, limited liability company,	2071
partnership, or other similar or comparable entity the routine and	2072
regular business activities of which commonly include the making	2073
of commercial or residential loans that are wholly or partially	2074
secured by real property.	2075

(B) If a temporary conveyance and reconveyance of an interest	2076
in real property is made for the principal purpose of allowing a	2077
lender to acquire, perfect, foreclose on, or exercise collateral	2078
rights in and to the real property interest in question, the	2079
temporary conveyance to a beneficiary shall be disregarded for all	2080
other purposes, and the reconveyance back to a trustee shall	2081
relate back to the date immediately preceding that reconveyance on	2082
which the interest in the real property was transferred to any	2083
trustee of the trust in a transaction other than a loan	2084
transaction described in division (A)(1) of this section.	2085

(C) In connection with any temporary conveyance and	2086
reconveyance of an interest in real property pursuant to division	2087
(A) of this section, the following shall survive unimpaired after	2088
any reconveyance back to a trustee made pursuant to division	2089
(A)(3) of this section:	2090

(1) The rights, duties, and obligations of a lender under the	2091
documents governing the loan transaction, including, but not	2092
limited to, any of the following to the extent they are provided	2093
for in those documents:	2094

(a) A lender's collateral rights in and to any interest in	2095
real property that is reconveyed to a trustee;	2096

(b) The lender's rights under any mortgage, deed of trust,	2097
lien, encumbrance, or any other similar or comparable instrument	2098
or arrangement used to give the lender collateral rights in and to	2099
the interest being reconveyed, including, but not limited to, a	2100
lender's right to foreclose on that interest in real property;	2101

(c) The lender's obligations to make loans or advances or to	2102
provide any person with any notice called for by the documents	2103
governing the loan transaction.	2104

(2) The rights, duties, and obligations of any debtor under	2105
any documents governing the loan transaction, including, but not	2106
limited to, the following to the extent they are provided for in	2107
those documents:	2108

(a) The duty to repay the lender or any other person who is	2109
entitled to receive payments under the documents governing the	2110
loan transaction;	2111

(b) The duty to honor any agreements or covenants made by the	2112
debtor in the documents governing the loan transaction;	2113

(c) The right to receive any advances, loans, notices, or	2114
other benefits called for by the documents governing the loan	2115
transaction.	2116

(D) The following apply for purposes of division (A)(1) of	2117
this section:	2118

(1) A court shall liberally construe the temporary conveyance	2119
to a beneficiary of the trust in question in determining whether	2120
the principal purpose of the temporary conveyance is to enable	2121
some or all of the interest in the real property to be used as	2122
collateral in a loan transaction.	2123

(2) An interest in real property shall be considered to be	2124
used as collateral if, as part of a lending transaction, that	2125
interest is wholly or partially made subject to a mortgage, deed	2126
of trust, lien, encumbrance, or any other similar or comparable	2127
instrument or arrangement used to give the lender collateral	2128
rights in and to that interest.	2129

(E) A court shall liberally construe division (A)(2) of this	2130
section in determining whether the loan proceeds referred to in	2131
that division will be principally used for the benefit of one or	2132
more beneficiaries of the trust in question.	2133

(F) For purposes of division (A)(3) of this section, any	2134
reconveyance to a trustee shall be considered to have occurred	2135
within a reasonable time if it is made within one hundred twenty	2136
days of the date on which the reconveying beneficiary acquired	2137
actual notice that the lender has perfected the lender's	2138
collateral rights in and to the interest in the real property. In	2139
all other cases, a court shall consider all relevant facts and	2140
circumstances in determining whether a beneficiary has reconveyed	2141
the interest in the real property back to a trustee within a	2142
reasonable time after the reconveying beneficiary acquired that	2143
actual notice.	2144

(G)(1) A court shall liberally construe division (A)(4) of	2145
this section in determining whether a corporation, limited	2146
liability company, partnership, or other similar or comparable	2147
entity qualifies as a lender within the meaning of that division.	2148

(2) Subject to the rule of liberal interpretation set forth	2149
in division (G)(1) of this section, the Ohio superintendent of	2150
financial institutions may from time to time issue regulations	2151
setting forth a nonexhaustive list of entities that qualify as a	2152
lender within the meaning of division (A)(4) of this section and	2153
also may from time to time issue regulations setting forth	2154
specific entities or classes of entities that do not qualify as a	2155
lender within the meaning of that division.	2156

(H) An interest in real property may be subject to or	2157
involved in more than one loan transaction undertaken pursuant to	2158
this section.	2159

Sec. 5816.01.  This chapter may be cited as the Ohio legacy	2160
trust act.	2161

Sec. 5816.02.  As used in this chapter, unless the context	2162
otherwise requires:	2163

(A)(1) "Advisor" means a person to whom both of the following	2164
apply:	2165

(a) The person satisfies the eligibility criteria specified	2166
in division (A) of section 5816.11 of the Revised Code.	2167

(b) The person is given the authority by the terms of a	2168
legacy trust to remove or appoint one or more trustees of the	2169
trust or to direct, consent to, or disapprove a trustee's actual	2170
or proposed investment, distribution, or other decisions.	2171

(2) Any person to whom division (A)(1) of this section	2172
applies is considered an advisor even if that person is	2173
denominated by another title, such as protector.	2174

(B) "Asset" means property of a transferor but does not	2175
include any of the following:	2176

(1) Property to the extent it is encumbered by a valid lien;

2177

(2) Property to the extent it is exempt at the time of a	2178
qualified disposition under any applicable nonbankruptcy law,	2179
including, but not limited to, section 2329.66 of the Revised	2180
Code;	2181

(3) Property held in the form of a tenancy by the entireties	2182
to the extent that, under the law governing the entireties estate	2183
at the time of a qualified disposition, it is not subject to	2184
process by a creditor holding a claim against only one tenant;	2185

(4) Any property transferred from a nonlegacy trust to a	2186
legacy trust to the extent that the property would not be subject	2187
to attachment under the applicable nonbankruptcy law governing	2188
that nonlegacy trust.	2189

(C) "Bankruptcy Code" means the United States Bankruptcy	2190
Code, 11 U.S.C. Chapter 11, as amended.	2191

(D) "Beneficiary" has the same meaning as in section 5801.01	2192
of the Revised Code.	2193

(E) "Claim" means a right to payment, whether or not the	2194
right is reduced to judgment or is liquidated, unliquidated,	2195
fixed, contingent, matured, unmatured, disputed, undisputed,	2196
legal, equitable, secured, or unsecured.	2197

(F) "Creditor" means a person who has a claim against a	2198
transferor and any transferee or assignee of, or successor to,	2199
that claim.	2200

(G) "Debt" means a liability on a claim.

2201

(H) "Disposition" means a transfer, conveyance, or assignment	2202
of property, including, but not limited to, a partial, contingent,	2203
undivided, or co-ownership interest in property. "Disposition"	2204
includes the exercise of a general power so as to cause a transfer	2205
of property to a trustee or trustees but does not include any of	2206
the following:	2207

(1) The release or relinquishment of an interest in property	2208
that, until the release or relinquishment, was the subject of a	2209
qualified disposition;	2210

(2) The exercise of a limited power so as to cause a transfer	2211
of property to a trustee or trustees;	2212

(3) A disclaimer of an interest in a trust, bequest, devise,	2213
or inheritance.	2214

(I) "Internal Revenue Code" means the "Internal Revenue Code	2215
of 1986," 100 Stat. 2085, 26 U.S.C. 1 et seq., as amended.	2216

(J) "Investment decision" means any participation in any	2217
decision regarding the retention, purchase, sale, exchange,	2218
tender, or other transaction affecting the ownership of or rights	2219
in investments.	2220

(K)(1) "Legacy trust" means a trust evidenced by a written	2221
trust instrument to which all of the following apply:	2222

(a) The trust has, names, or appoints at least one qualified	2223
trustee for or in connection with the property that is the subject	2224
of a qualified disposition.	2225

(b) The trust expressly incorporates the laws of this state	2226
to wholly or partially govern its validity, construction, and	2227
administration.	2228

(c) The trust expressly states that it is irrevocable.

2229

(d) The trust has a spendthrift provision applicable to the	2230
interests of any beneficiary in the trust property, including any	2231
interests of a transferor in the trust property.	2232

(2) A trust that satisfies the criteria specified in division	2233
(K)(1) of this section is considered a legacy trust even if the	2234
trust instrument also allows for one or more nonqualified trustees	2235
and regardless of the language used to satisfy those criteria.	2236

(L) "Lien" has the same meaning as in section 1336.01 of the	2237
Revised Code.	2238

(M) "Nonlegacy trust" means any trust other than a legacy	2239
trust.	2240

(N) "Nonqualified trustee" means any trustee other than a	2241
qualified trustee.	2242

(O) "Person" has the same meaning as in section 5801.01 of	2243
the Revised Code.	2244

(P) "Property" has the same meaning as in section 5801.01 of	2245
the Revised Code.	2246

(Q) "Qualified affidavit" means an affidavit that meets the	2247
requirements of section 5816.06 of the Revised Code.	2248

(R) "Qualified disposition" means a disposition by or from a	2249
transferor to any trustee of a trust that is, was, or becomes a	2250
legacy trust.	2251

(S) "Qualified trustee" means a person who is not a	2252
transferor and to whom both of the following apply:	2253

(1)(a) The person, if a natural person, is a resident of this	2254
state.	2255

(b) The person, if not a natural person, is authorized by the	2256
law of this state or by a court of competent jurisdiction of this	2257
state to act as a trustee and whose activities are subject to	2258
supervision by the Ohio superintendent of banks, the federal	2259
deposit insurance corporation, the comptroller of the currency, or	2260
the office of thrift supervision or a successor of any of them.	2261

(2) The person maintains or arranges for custody in this	2262
state of some or all of the property that is the subject of the	2263
qualified disposition, maintains records for the legacy trust on	2264
an exclusive or nonexclusive basis, prepares or arranges for the	2265
preparation of required income tax returns for the legacy trust,	2266
or otherwise materially participates in the administration of the	2267
legacy trust.	2268

(T) "Spendthrift provision" has the same meaning as in	2269
section 5801.01 of the Revised Code.	2270

(U) "Spouse" and "former spouse" means only the person to	2271
whom a transferor was married on or before a qualified disposition	2272
is made.	2273

(V) "Transferor" means a person who directly or indirectly	2274
makes a disposition.	2275

(W) "Valid lien" has the same meaning as in section 1336.01	2276
of the Revised Code.	2277

Sec. 5816.03.  (A) In addition to any other method allowed by	2278
law, the spendthrift provision of a legacy trust may be stated as	2279
provided in division (B) of section 5805.01 of the Revised Code.	2280

(B) Except as otherwise provided in this section, the	2281
spendthrift provisions of a legacy trust shall restrain both	2282
voluntary and involuntary transfer of a transferor's interest in	2283
that trust. Any spendthrift provision in a legacy trust is	2284
enforceable under any applicable nonbankruptcy law within the	2285
meaning of section 541(c)(2) of the Bankruptcy Code regardless of	2286
whether or not the relevant legacy trust instrument makes any	2287
reference to that enforceability. In addition to the restraints	2288
required by this division, a legacy trust and its spendthrift	2289
provisions may provide for any other restraints on alienation that	2290
are permitted by any law of this state.	2291

(C) Notwithstanding division (B) of this section or the terms	2292
of any spendthrift provision, but subject to divisions (D), (E),	2293
and (F) of this section, a transferor's interest in property that	2294
is the subject of a qualified disposition may be attached or	2295
otherwise involuntarily alienated in connection with any debt that	2296
the transferor owes pursuant to an agreement or court order for	2297
either of the following:	2298

(1) The payment of child or spousal support or alimony to or	2299
for the transferor's spouse, former spouse, child, or children, or	2300
to any governmental agency that is designated by statute, rule, or	2301
regulation to be the payee of that child or spousal support or	2302
alimony;	2303

(2) The division or distribution of property in favor of the	2304
transferor's spouse or former spouse.	2305

(D) A transferor's interest in property that is transferred	2306
pursuant to a qualified disposition and the transferor's	2307
beneficial interest in a legacy trust shall not be subject to any	2308
claim for forced heirship or legitime.	2309

(E) A transferor's interest in property that is transferred	2310
pursuant to a qualified disposition and the transferor's	2311
beneficial interest in a legacy trust shall not be subject to a	2312
distributive award under section 3105.171 of the Revised Code or	2313
to any similar award under the law of another jurisdiction, to any	2314
person other than the transferor's spouse or former spouse. A	2315
court shall liberally construe and apply this provision in finding	2316
that such similarity exists.	2317

(F) Nothing in this section shall deprive any beneficiary of	2318
any exemption rights that the beneficiary may have under any	2319
applicable law after the trust property is received by that	2320
beneficiary.	2321

Sec. 5816.04.  To the extent conferred by the governing	2322
legacy trust instrument, a transferor to a legacy trust may have	2323
any or all of the rights, powers, and interests described in	2324
section 5816.05 of the Revised Code. A transferor shall have no	2325
rights, powers, or interests in, over, to, or regarding the corpus	2326
or income of a legacy trust unless those rights, powers, or	2327
interests are granted, permitted, or recognized by both section	2328
5816.05 of the Revised Code and the governing legacy trust	2329
instrument. Any written, verbal, tacit, express, or implied	2330
agreement or understanding or any other agreement or understanding	2331
purporting to grant, permit, or recognize any greater rights,	2332
powers, or interests than are provided in this section or the	2333
governing legacy trust instrument is void. Any portion of a legacy	2334
trust instrument that is not voided under this section shall	2335
remain valid and effective.	2336

Sec. 5816.05.  A legacy trust may allow or provide for any or	2337
all of the following rights, powers, interests, or provisions,	2338
none of which grants, or is considered to be, either alone or in	2339
any combination, a right or power to revoke a trust or to	2340
voluntarily or involuntarily transfer an interest in that trust:	2341

(A) A provision that, upon the happening of a defined event,	2342
results in the termination of a transferor's right to mandatory	2343
income or principal;	2344

(B) The power of a transferor to veto a distribution from the	2345
trust;	2346

(C) A power of appointment, other than a power to appoint to	2347
a transferor, a creditor of the transferor, the estate of the	2348
transferor, or a creditor of the transferor's estate, that is	2349
exercisable by will or by other written instrument of a transferor	2350
effective upon the death of the transferor or during the lifetime	2351
of the transferor;	2352

(D) The right of a transferor to receive trust income as set	2353
forth in the trust instrument.	2354

(E) Both of the following:

2355

(1) A transferor's potential or actual receipt of income or	2356
principal from a charitable remainder unitrust or charitable	2357
remainder annuity trust as those terms are defined in section 664	2358
of the Internal Revenue Code;	2359

(2) The transferor's right, at any time and from time to time	2360
by written instrument delivered to the trustee, to release the	2361
transferor's retained interest in that unitrust or annuity trust,	2362
in whole or in part, in favor of one or more charitable	2363
organizations that have a succeeding beneficial interest in that	2364
unitrust or annuity trust;	2365

(F) The power of a transferor to consume, invade, or	2366
appropriate property of the trust, but only if limited in each	2367
calendar year to five per cent of the value of the trust principal	2368
at the time of the exercise of the power;	2369

(G) A transferor's potential or actual receipt or use of	2370
principal or income of the trust if the potential or actual	2371
receipt or use is or would be the result of any of the following	2372
that applies with respect to one or more of the qualified	2373
trustees:	2374

(1) A qualified trustee's acting in the trustee's discretion.	2375
For purposes of division (G)(1) of this section, a qualified	2376
trustee shall have discretion with respect to the distribution or	2377
use of principal or income unless the discretion is expressly	2378
denied to the trustee by the terms of the trust instrument.	2379

(2) A qualified trustee's acting pursuant to a standard in	2380
the trust instrument that governs the distribution or use of	2381
principal or income;	2382

(3) A qualified trustee's acting at the direction of an	2383
advisor who is acting in the advisor's discretion or pursuant to a	2384
standard in the trust instrument that governs the distribution or	2385
use of principal or income. If an advisor is authorized to direct	2386
that distribution or use, the advisor's authority shall be	2387
discretionary unless otherwise expressly stated in the trust	2388
instrument.	2389

(H) The right of a transferor to remove any advisor and	2390
appoint a new advisor who satisfies the eligibility criteria set	2391
forth in division (A) of section 5816.11 of the Revised Code;	2392

(I) The right of a transferor to remove any trustee and	2393
appoint a new trustee;	2394

(J) A transferor's potential or actual use of real property	2395
or tangible personal property, including, but not limited to,	2396
property held under a qualified personal residence trust as	2397
described in section 2702(c) of the Internal Revenue Code and	2398
regulations promulgated under that section, or a transferor's	2399
possession and enjoyment of a qualified interest as defined in	2400
section 2702(b) of the Internal Revenue Code;	2401

(K) Any provision requiring or permitting the potential or	2402
actual use of trust income or principal to pay, in whole or in	2403
part, income taxes due on the income of the trust, including, but	2404
not limited to, any provision permitting that use in the	2405
discretion of any one or more of the qualified trustees acting in	2406
the qualified trustee's discretion or at the direction of an	2407
advisor who is acting in the advisor's discretion;	2408

(L) The ability of a qualified trustee, whether pursuant to	2409
the qualified trustee's discretion or the terms of the legacy	2410
trust instrument or at the direction of an advisor, to pay after	2411
the death of a transferor all or any part of the debts of the	2412
transferor outstanding on or before the transferor's death, the	2413
expenses of administering the transferor's estate, or any estate,	2414
gift, generation skipping transfer, or inheritance tax;	2415

(M) Any provision that pours back after the death of a	2416
transferor all or part of the trust property to the transferor's	2417
estate or any trust;	2418

(N) Any other rights, powers, interests, or provisions	2419
permitted or allowed by any other section of this chapter.	2420

Sec. 5816.06.  (A) Except as otherwise provided in this	2421
section, a transferor shall sign a qualified affidavit before or	2422
substantially contemporaneously with making a qualified	2423
disposition.	2424

(B) A qualified affidavit shall be notarized and shall	2425
contain all of the following statements under oath:	2426

(1) The property being transferred to the trust was not	2427
derived from unlawful activities.	2428

(2) The transferor has full right, title, and authority to	2429
transfer the property to the legacy trust.	2430

(3) The transferor will not be rendered insolvent immediately	2431
after the transfer of the property to the legacy trust.	2432

(4) The transferor does not intend to defraud any creditor by	2433
transferring the property to the legacy trust.	2434

(5) There are no pending or threatened court actions against	2435
the transferor, except for any court action identified by the	2436
affidavit or an attachment to the affidavit.	2437

(6) The transferor is not involved in any administrative	2438
proceeding, except for any proceeding identified by the affidavit	2439
or an attachment to the affidavit.	2440

(7) The transferor does not contemplate at the time of the	2441
transfer the filing for relief under the Bankruptcy Code.	2442

(C) A qualified affidavit is considered defective if it	2443
materially fails to meet the requirements set forth in division	2444
(B) of this section, but a qualified affidavit is not considered	2445
defective due to any one or more of the following:	2446

(1) Any nonsubstantive variances from the language set forth	2447
in division (B) of this section;	2448

(2) Any statements or representations in addition to those	2449
set forth in division (B) of this section if the statements or	2450
representations do not materially contradict the statements or	2451
representations required by that division;	2452

(3) Any technical errors in the form, substance, or method of	2453
administering an oath if those errors were not the fault of the	2454
affiant, and the affiant reasonably relied upon another person to	2455
prepare or administer the oath.	2456

(D)(1) A qualified affidavit is not required from a	2457
transferor who is not a beneficiary of the legacy trust that	2458
receives the disposition.	2459

(2) A subsequent qualified affidavit is not required in	2460
connection with any qualified disposition made after the execution	2461
of an earlier qualified affidavit if that disposition is a part	2462
of, is required by, or is the direct result of, a prior qualified	2463
disposition that was made in connection with that earlier	2464
qualified affidavit.	2465

(E) If a qualified affidavit is required by this section and	2466
a transferor fails to timely sign a qualified affidavit or signs a	2467
defective qualified affidavit, subject to the normal rules of	2468
evidence, that failure or defect may be considered as evidence in	2469
any proceeding commenced pursuant to section 5816.07 of the	2470
Revised Code, but the legacy trust or the validity of any	2471
attempted qualified disposition shall not be affected in any other	2472
way due to that failure or defect.	2473

Sec. 5816.07.  (A) Notwithstanding any provision of law to	2474
the contrary but subject to division (G) of section 5816.10 of the	2475
Revised Code, no creditor may bring an action of any kind,	2476
including, but not limited to, an action to enforce a judgment	2477
entered by a court or other body having adjudicative authority, an	2478
action at law or in equity, or an action for an attachment or	2479
other final or provisional remedy, against any person who made or	2480
received a qualified disposition, against or involving any	2481
property that is the subject of a qualified disposition or is	2482
otherwise held by or for any trustee as part of a legacy trust, or	2483
against any trustee of a legacy trust, except that a creditor,	2484
subject to this section and section 5816.08 of the Revised Code,	2485
may bring an action to avoid any qualified disposition of an asset	2486
on the ground that a transferor made the qualified disposition	2487
with the specific intent to defraud the specific creditor bringing	2488
the action.	2489

(B) A creditor's cause of action or claim for relief under	2490
division (A) of this section to avoid any qualified disposition of	2491
an asset is extinguished unless that action is brought by a	2492
creditor of a transferor who meets one of the following	2493
requirements:	2494

(1) The creditor is a creditor of the transferor before the	2495
relevant qualified disposition, and the action is brought within	2496
the later of the following periods:	2497

(a) Eighteen months after the qualified disposition;

2498

(b) Six months after the qualified disposition is or	2499
reasonably could have been discovered by the creditor if the	2500
creditor files a suit against the transferor, other than an action	2501
under division (A) of this section to avoid the qualified	2502
disposition, or makes a written demand for payment on the	2503
transferor that in either case asserts a claim based on an act or	2504
omission of the transferor that occurred before the qualified	2505
disposition, and that suit is filed, or the written demand is	2506
delivered to the transferor, within three years after the	2507
qualified disposition.	2508

(2) The creditor becomes a creditor after the qualified	2509
disposition, and the action under division (A) of this section to	2510
avoid the qualified disposition is brought within eighteen months	2511
after the qualified disposition.	2512

(C) In any action to avoid the qualified disposition under	2513
this section, the burden is upon the creditor to prove the matter	2514
by clear and convincing evidence. This division is construed as	2515
providing a substantive rather than a procedural rule or right	2516
under the law of this state.	2517

(D) Notwithstanding any provision of law to the contrary but	2518
subject to division (G) of section 5816.10 of the Revised Code, a	2519
creditor or any other person shall have only the rights and	2520
remedies with respect to a qualified disposition that are provided	2521
in this section and section 5816.08 of the Revised Code, and the	2522
creditor or other person shall have no claim or cause of action	2523
against any trustee or advisor of a legacy trust or against any	2524
person involved in the counseling in connection with, or the	2525
drafting, preparation, execution, administration, or funding of, a	2526
legacy trust.	2527

(E) Notwithstanding any provision of law to the contrary but	2528
subject to division (G) of section 5816.10 of the Revised Code,	2529
and in addition to any other limitations, restrictions, or bars	2530
imposed by this section, no action of any kind, including, but not	2531
limited to, an action to enforce a judgment entered by a court or	2532
other body having adjudicative authority, shall be brought at law	2533
or in equity against a trustee or an advisor of a legacy trust or	2534
against any person involved in the counseling in connection with,	2535
or the drafting, preparation, execution, administration, or	2536
funding of, a legacy trust if and to the extent that, in	2537
connection with the qualified disposition that forms the basis of	2538
that action, the time in which a creditor could sue to avoid that	2539
qualified disposition would have expired under this section.	2540

(F) If more than one qualified disposition is made in	2541
connection with the same legacy trust, all of the following apply:	2542

(1) Each qualified disposition will be separately evaluated,	2543
without regard to any subsequent qualified disposition, to	2544
determine whether a creditor's claim regarding that particular	2545
qualified disposition is extinguished as provided in division (B)	2546
of this section.	2547

(2) The following apply when determining the order in which	2548
property is paid, applied, or distributed from a legacy trust:	2549

(a) Any payment, application, or distribution of money is	2550
considered to have been made from or with the money most recently	2551
received or acquired by any trustee of a legacy trust except to	2552
the extent that it is proven otherwise beyond a reasonable doubt.	2553
As used in division (F)(2)(a) of this section:	2554

(i) "Money" means cash or cash equivalents.

2555

(ii) "Cash" means the coins or currency of the United States	2556
or any other nation.	2557

(iii) "Cash equivalent" includes certified or uncertified	2558
checks; money orders; bank drafts; any electronic transfer of	2559
funds; negotiable instruments; instruments indorsed in blank or in	2560
bearer form; securities issued or guaranteed by the United States,	2561
any state of the United States, or any state or federal agency;	2562
funds on deposit in any savings or checking account or any similar	2563
account; funds on deposit in any money market account or similar	2564
account; any demand deposit account, time deposit account, or	2565
savings deposit account at any bank, savings and loan association,	2566
brokerage house, or similar institution; or any other monetary	2567
instrument or device that is commonly or routinely accepted as a	2568
cash equivalent. Division (F)(2)(a)(iii) of this section shall be	2569
liberally construed and applied.	2570

(b) Any payment, application, or distribution of fungible	2571
assets other than money is considered to have been made from or	2572
with the fungible assets most recently received or acquired by any	2573
trustee of a legacy trust except to the extent that it is proven	2574
otherwise by clear and convincing evidence. For purposes of	2575
division (F)(2)(b) of this section:	2576

(i) Any asset that can be classified as either money or a	2577
fungible asset shall be classified as money.	2578

(ii) "Fungible assets" means any assets, other than money,	2579
that are interchangeable for commercial purposes and the	2580
properties of which are essentially identical. Division	2581
(F)(2)(b)(ii) of this section shall be liberally construed and	2582
applied.	2583

(c) Division (F)(2) of this section is construed as providing	2584
a substantive rather than a procedural rule or right under the law	2585
of this state.	2586

(G) For purposes of this section, the counseling in	2587
connection with, or the drafting, preparation, execution,	2588
administration, or funding of, a legacy trust includes the	2589
counseling in connection with, or the drafting, preparation,	2590
execution, administration, or funding of, any limited partnership,	2591
limited liability company, corporation, or similar or comparable	2592
entity if the limited partnership interests, limited liability	2593
company interests, stock, or other similar or comparable ownership	2594
interests in the relevant entity are subsequently transferred to	2595
any trustee of any trust that is, was, or becomes a legacy trust.	2596

Sec. 5816.08.  All of the following apply in connection with	2597
any action brought pursuant to this section or division (A) of	2598
section 5816.07 of the Revised Code:	2599

(A) If a qualified disposition is wholly or partially	2600
avoided, all of the following apply:	2601

(1) That specific qualified disposition shall be avoided only	2602
to the extent necessary to satisfy a transferor's debt to the	2603
creditor who brought the action pursuant to division (A) of	2604
section 5816.07 of the Revised Code, and any part of the qualified	2605
disposition that is not used to satisfy that debt shall remain	2606
subject to the legacy trust in question.	2607

(2) All other qualified dispositions to any trustee of the	2608
legacy trust in question, including, but not limited to, any	2609
qualified disposition of a partial, co-ownership, or undivided	2610
interest in property by a transferor other than the transferor	2611
whose qualified disposition is avoided, together with the legacy	2612
trust itself, shall remain valid and effective.	2613

(3) If the court is satisfied that a trustee has not acted in	2614
bad faith in accepting or administering the property that is the	2615
subject of the avoided qualified disposition, all of the following	2616
apply:	2617

(a) The trustee shall have a first and paramount lien against	2618
the property that is the subject of the qualified disposition in	2619
an amount equal to the entire cost, including attorney's fees,	2620
properly incurred by the trustee in the defense of the action or	2621
proceedings to avoid the qualified disposition.	2622

(b) The qualified disposition shall be avoided subject to the	2623
proper fees, costs, and pre-existing rights, claims, and interests	2624
of the trustee and of any predecessor trustee that has not acted	2625
in bad faith.	2626

(c) For purposes of division (A)(3) of this section, no	2627
trustee shall be considered to have acted in bad faith merely	2628
because the trustee accepted the property that is the subject of	2629
the qualified disposition.	2630

(4) If the court is satisfied that a beneficiary of a legacy	2631
trust has not acted in bad faith in receiving a distribution from	2632
that trust, the avoidance of the qualified disposition shall be	2633
subject to the right of the beneficiary to retain that	2634
distribution if the distribution was made upon the exercise of a	2635
trust power or discretion vested in a trustee or advisor and that	2636
power or discretion was exercised prior to the creditor's	2637
commencement of the action to avoid the qualified disposition. For	2638
purposes of division (A)(4) of this section, no beneficiary,	2639
including a beneficiary who is also a transferor of the trust,	2640
shall be considered to have acted in bad faith merely because the	2641
beneficiary accepted a distribution made in accordance with the	2642
terms of the trust instrument.	2643

(5) A creditor has the burden of proving by clear and	2644
convincing evidence that a trustee or a beneficiary acted in bad	2645
faith under division (A)(3) or (4) of this section. Division	2646
(A)(5) of this section is construed as providing a substantive	2647
rather than a procedural rule or right under the law of this	2648
state.	2649

(B) The court shall award reasonable attorney's fees and	2650
costs to any prevailing party in any final judgment rendered in	2651
any action wholly or partially brought under this section or	2652
division (A) of section 5816.07 of the Revised Code.	2653

Sec. 5816.09.  Any successor or replacement trustees of a	2654
legacy trust shall be determined or selected in the following	2655
manners:	2656

(A)(1) Division (A)(2) of this section applies if in any	2657
action involving a legacy trust or any trustee of the legacy trust	2658
a court takes an action in which the court declines to apply the	2659
law of this state in determining any of the following matters:	2660

(a) The validity, construction, or administration of the	2661
trust;	2662

(b) The effect of any term or condition of the trust,	2663
including, but not limited to, a spendthrift provision;	2664

(c) The rights and remedies of any creditor or other suitor	2665
in connection with a qualified disposition.	2666

(2) Immediately upon the court's action under division (A)(1)	2667
of this section and without the need for any order of any court,	2668
any qualified trustee who is a party to that action shall cease in	2669
all respects to be a trustee of the legacy trust, and the position	2670
of trustee shall be occupied in accordance with the terms of the	2671
trust instrument that governed the legacy trust immediately before	2672
that cessation, or, if the terms of the trust instrument do not	2673
provide for another trustee and the trust would otherwise be	2674
without a trustee, any court of this state, upon the application	2675
of any beneficiary of the legacy trust, shall appoint a successor	2676
qualified trustee upon the terms and conditions that it determines	2677
to be consistent with the purposes of the trust and this chapter.	2678
Upon a qualified trustee ceasing to be a trustee pursuant to	2679
division (A)(2) of this section, that qualified trustee shall have	2680
no power or authority other than to convey trust property to any	2681
other trustee that is appointed, installed, or serving in	2682
accordance with that division.	2683

(3) For purposes of division (A) of this section, "court"	2684
includes a judicial tribunal, an administrative tribunal, or other	2685
adjudicative body or panel.	2686

(B) In all cases other than the situation described in	2687
division (A) of this section, both of the following apply:	2688

(1) If a legacy trust ceases to have at least one qualified	2689
trustee, the vacancy in the qualified trusteeship shall be filled	2690
pursuant to section 5807.04 of the Revised Code except to the	2691
extent that the legacy trust expressly provides otherwise.	2692

(2) If a legacy trust ceases to have at least one trustee,	2693
the vacancy in the trusteeship shall be filled pursuant to section	2694
5807.04 of the Revised Code, and the successor trustee shall be a	2695
qualified trustee unless the legacy trust instrument expressly	2696
provides otherwise.	2697

Sec. 5816.10.  (A) In the event of any conflict between any	2698
provision of this chapter and any provision of Chapter 1336. of	2699
the Revised Code or any other provision of law similar to any	2700
provision of Chapter 1336. of the Revised Code, the provision of	2701
this chapter shall control and prevail.	2702

(B) A statement in a trust instrument stating that it "shall	2703
be governed by the laws of Ohio" or other statement to similar	2704
effect or of similar import is considered to expressly incorporate	2705
the laws of this state to govern the validity, construction, and	2706
administration of that trust instrument and to satisfy division	2707
(K)(1)(b) of section 5816.02 of the Revised Code.	2708

(C) A disposition by a nonqualified trustee to a qualified	2709
trustee shall not be treated as other than a qualified disposition	2710
solely because the nonqualified trustee is a trustee of a	2711
nonlegacy trust.	2712

(D) A disposition to any nonqualified trustee of a legacy	2713
trust shall be treated as a qualified disposition if at the time	2714
of the disposition any of the following applies:	2715

(1) There is at least one qualified trustee serving pursuant	2716
to the terms of that legacy trust.	2717

(2) There is no qualified trustee serving but the	2718
circumstances require the appointment or installation of a	2719
qualified trustee pursuant to division (A)(2) of section 5816.09	2720
of the Revised Code.	2721

(3) There is no qualified trustee serving but within one	2722
hundred eighty days after the date of disposition a qualified	2723
trustee fills the vacancy in the qualified trusteeship or an	2724
application to appoint a qualified trustee is filed pursuant to	2725
division (B) of section 5816.09 of the Revised Code.	2726

(E) If a disposition is made by a trustee of a nonlegacy	2727
trust to a trustee of a legacy trust, both of the following apply:	2728

(1) Except to the extent expressly stated otherwise by the	2729
terms of that disposition, the disposition shall be considered a	2730
qualified disposition for the benefit of all of the persons who	2731
are the beneficiaries of both the nonlegacy trust and the legacy	2732
trust.	2733

(2) The date of the disposition to the legacy trust shall be	2734
considered to be the date on which the property that was part of	2735
the nonlegacy trust was first continuously subject to any law of a	2736
jurisdiction other than this state that is similar to this	2737
chapter. A court shall liberally construe and apply division	2738
(E)(2) of this section in finding that such continuity and	2739
similarity exist.	2740

(F) A legacy trust may contain any terms or conditions that	2741
provide for changes in or to the place of administration, situs,	2742
governing law, trustees or advisors, or the terms or conditions of	2743
the legacy trust or for other changes permitted by law.	2744

(G) Any valid lien attaching to property before a disposition	2745
of that property to a trustee of a legacy trust shall survive the	2746
disposition, and the trustee shall take title to the property	2747
subject to the valid lien and subject to any agreements that	2748
created or perfected the valid lien. Nothing in this chapter shall	2749
be construed to authorize any disposition that is prohibited by	2750
the terms of any agreements, notes, guaranties, mortgages,	2751
indentures, instruments, undertakings, or other documents. In the	2752
event of any conflict between this division and any other	2753
provision of this chapter, this division shall control.	2754

(H) To the maximum extent permitted by the Ohio Constitution	2755
and the United States Constitution, the courts of this state shall	2756
exercise jurisdiction over any legacy trust or any qualified	2757
disposition and shall adjudicate any case or controversy brought	2758
before them regarding, arising out of, or related to, any legacy	2759
trust or any qualified disposition if that case or controversy is	2760
otherwise within the subject matter jurisdiction of the court.	2761
Subject to the Ohio Constitution and the United States	2762
Constitution, no court of this state shall dismiss or otherwise	2763
decline to adjudicate any case or controversy described in this	2764
division on the ground that a court of another jurisdiction has	2765
acquired or may acquire proper jurisdiction over, or may provide	2766
proper venue for, that case or controversy or the parties to the	2767
case or controversy. Nothing in this division shall be construed	2768
to do either of the following:	2769

(1) Prohibit a transfer or other reassignment of any case or	2770
controversy from one court of this state to another court of this	2771
state;	2772

(2) Expand or limit the subject matter jurisdiction of any	2773
court of this state.	2774

Sec. 5816.11.  (A) Any person may serve as an advisor of a	2775
legacy trust except that a transferor may act as an advisor only	2776
in connection with investment decisions.	2777

(B) An advisor shall be considered a fiduciary unless the	2778
terms of a legacy trust instrument expressly provide otherwise.	2779

Sec. 5816.12.  Except to the extent expressly provided	2780
otherwise by the terms of a legacy trust instrument, each trustee	2781
and each advisor of a legacy trust shall have the greatest	2782
discretion permitted by law in connection with all matters of	2783
trust administration, all trust distributions, and all other	2784
trustee or advisor decisions.	2785

Sec. 5816.13.  No beneficiary or other person shall be	2786
considered to have a property interest in any property of a legacy	2787
trust to the extent that the distribution of that property is	2788
subject to the discretion of one or more qualified trustees or	2789
advisors, either acting alone or in conjunction with any other	2790
person, including any person authorized to veto any distributions	2791
from the legacy trust.	2792

Sec. 5816.14.  This chapter applies to qualified dispositions	2793
made on or after the effective date of this section.	2794

Section 2. That existing sections 317.08, 317.32, 317.321,	2795
1336.04, 1701.73, 1702.38, 1703.22, 2101.24, 2131.08, 2131.09,	2796
2329.66, 2329.661, 5805.06, 5808.08, 5808.18, 5815.24, 5815.25,	2797
and 5815.36 of the Revised Code are hereby repealed.	2798

Section 3. The amendments made by this act to section 1336.04	2799
of the Revised Code shall apply to transfers made on or after the	2800
effective date of this act. The amendments made by this act to	2801
sections 2329.66 and 2329.661 of the Revised Code shall apply to	2802
claims accruing on or after the effective date of this act. The	2803
amendments made by this act to section 5815.36 of the Revised Code	2804
shall apply to disclaimers made on or after the effective date of	2805
this act. Section 5815.37 of the Revised Code as enacted by this	2806
act shall apply to conveyances made on or after the effective date	2807
of this act. The application of the amendments made by this act to	2808
section 2131.08 of the Revised Code is provided in division (F) of	2809
section 2131.08 of the Revised Code as amended by this act. The	2810
application of the amendments made by this act to section 2131.09	2811
of the Revised Code is provided for in divisions (C) and (E) of	2812
section 2131.09 of the Revised Code as amended by this act. The	2813
application of the sections of Chapter 5816. of the Revised Code	2814
as enacted by this act is provided for in section 5816.14 of the	2815
Revised Code as enacted by this act. Sections 1319.07 to 1319.09	2816
of the Revised Code, as enacted by this act, apply to the	2817
enforcement and interpretation of all nonrecourse loan documents	2818
in existence on, or entered into on or after, the effective date	2819
of this act. This act is not intended to impair any secured or	2820
unsecured creditors' claims that accrue prior to the effective	2821
date of this act.	2822

Section 4. The amendments made by this act to sections	2823
5805.06, 5808.08, 5815.24, and 5815.25 of the Revised Code, other	2824
than the references to Chapter 5815. of the Revised Code in	2825
division (A)(2) of section 5805.06 of the Revised Code as amended	2826
by this act, are intended to be a statement of the common law of	2827
this state.	2828

Section 5. The General Assembly recognizes that it is	2829
inherent in a nonrecourse loan that the lender takes the risk of a	2830
borrower's insolvency, inability to pay, or lack of adequate	2831
capital after the loan is made and that the parties do not intend	2832
that the borrower is personally liable for payment of a	2833
nonrecourse loan if the borrower is insolvent, unable to pay, or	2834
lacks adequate capital after the loan is made. The General	2835
Assembly also recognizes that the use of a postclosing solvency	2836
covenant as a nonrecourse carveout, or an interpretation of any	2837
provision in a loan document that results in a determination that	2838
a postclosing solvency covenant is a nonrecourse carveout, is	2839
inconsistent with this act and the nature of a nonrecourse loan,	2840
is an unfair and deceptive business practice and against public	2841
policy, and should not be enforced. It is the intent of the	2842
General Assembly that this act applies to any claim made or action	2843
taken to enforce a postclosing solvency covenant on or after the	2844
effective date of this act and to any action to enforce a	2845
postclosing solvency covenant that is pending on the effective	2846
date of this act, unless a judgment or final order has been	2847
entered in that action.	2848

Section 6. Section 2101.24 of the Revised Code is presented	2849
in this act as a composite of the section as amended by both Sub.	2850
S.B. 117 and Am. Sub. S.B. 124 of the 129th General Assembly. The	2851
General Assembly, applying the principle stated in division (B) of	2852
section 1.52 of the Revised Code that amendments are to be	2853
harmonized if reasonably capable of simultaneous operation, finds	2854
that the composite is the resulting version of the section in	2855
effect prior to the effective date of the section as presented in	2856
this act.	2857