Modify trust and probate laws

hb446_02_PH

As Passed by the House

136th
General Assembly

Regular
Session
Sub. H. B. No. 446

2025-2026

Representatives Mathews, A.,
Stewart

Cosponsors: Representatives Odioso,
Brennan, Dovilla, Hall, D., Hiner, Piccolantonio, Ray, Sigrist,
Somani, Synenberg, Williams, Young

To
amend sections 1336.04, 1336.05, 1336.09, 1337.34, 1337.36, 1337.42,
1337.52
,
2109.21, 2113.06
,
2117.02
,
5301.071
,
5701.11, 5801.04, 5801.07, 5806.02, 5806.03, 5808.19, 5810.08,
5812.43, 5815.25, and 5816.11; to enact sections 5808.161, 5818.01,
5818.011, 5818.02, 5818.03, 5818.04, 5818.05, 5818.06, 5818.07,
5818.08, 5818.09, 5818.10, 5818.11, 5818.12, 5818.13, 5818.14,
5818.15, 5818.16, 5818.17, 5818.18, 5818.19, 5818.20, 5818.21,
5818.22, 5818.23, 5818.24, 5818.25, 5818.26, 5818.27, 5818.28,
5818.29, 5818.30, 5818.31, 5818.32, 5818.33
,
5818.34, 5818.35, 5818.36, and 5818.37
;
and to repeal section 5808.08 of the Revised Code
to
modify trust and probate laws.

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

Section
1.
That
sections 1336.04, 1336.05, 1336.09, 1337.34, 1337.36, 1337.42,
1337.52
,
2109.21, 2113.06
,
2117.02
,
5301.071
,
5701.11, 5801.04, 5801.07, 5806.02, 5806.03, 5808.19, 5810.08,
5812.43, 5815.25, and 5816.11 be amended and sections 5808.161,
5818.01, 5818.011, 5818.02, 5818.03, 5818.04, 5818.05, 5818.06,
5818.07, 5818.08, 5818.09, 5818.10, 5818.11, 5818.12, 5818.13,
5818.14, 5818.15, 5818.16, 5818.17, 5818.18, 5818.19, 5818.20,
5818.21, 5818.22, 5818.23, 5818.24, 5818.25, 5818.26, 5818.27,
5818.28, 5818.29, 5818.30, 5818.31, 5818.32, 5818.33
,
5818.34, 5818.35, 5818.36, and 5818.37

of the Revised Code be enacted to read as follows:

Sec.
1336.04.
(A)

A

Subject
to division (C) of this section, a
transfer
made or an obligation incurred by a debtor is fraudulent as to a
creditor, whether the claim of the creditor arose before, or within a
reasonable time not to exceed four years after, the transfer was made
or the obligation was incurred, if the debtor made the transfer or
incurred the obligation in either of the following ways:

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

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

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

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

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

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

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

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

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

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

(6)
Whether the debtor absconded;

(7)
Whether the debtor removed or concealed assets;

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

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

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

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

(C)
No transfer made or obligation incurred by a debtor due to or as a
result of the debtor's death is actionable under division (A)(2) of
this section.

Sec.
1336.05.
(A)

A

Subject
to division (C) of this section, a
transfer
made or an obligation incurred by a debtor is fraudulent as to a
creditor whose claim arose before the transfer was made or the
obligation was incurred if the debtor made the transfer or incurred
the obligation without receiving a reasonably equivalent value in
exchange for the transfer or obligation and the debtor was insolvent
at that time or the debtor became insolvent as a result of the
transfer or obligation.

(B)

A

Subject
to division (C) of this section, a
transfer
made or an obligation incurred by a debtor is fraudulent as to a
creditor whose claim arose before the transfer was made or the
obligation was incurred if the transfer was made to or the obligation
was incurred with respect to an insider for an antecedent debt, the
debtor was insolvent at that time, and the insider had reasonable
cause to believe that the debtor was insolvent.

(C)
No transfer made or obligation incurred by a debtor due to or as a
result of the debtor's death is actionable under this section.

Sec.
1336.09.
A

(A)
Subject to division (B) of this section, a
claim
for relief with respect to a transfer or an obligation that is
fraudulent under section 1336.04 or 1336.05 of the Revised Code is
extinguished unless an action is brought in accordance with one of
the following:

(A)
(1)

If the transfer or obligation is fraudulent under division (A)(1) of
section 1336.04 of the Revised Code, within four years after the
transfer was made or the obligation was incurred or, if later, within
one year after the transfer or obligation was or reasonably could
have been discovered by the claimant;

(B)
(2)

If the transfer or obligation is fraudulent under division (A)(2) of
section 1336.04 or division (A) of section 1336.05 of the Revised
Code, within four years after the transfer was made or the obligation
was incurred;

(C)
(3)

If the transfer or obligation is fraudulent under division (B) of
section 1336.05 of the Revised Code, within one year after the
transfer was made or the obligation was incurred.

(B)
Notwithstanding division (A) of this section, any claim for relief
based on a transfer made or obligation incurred by a debtor due to or
as a result of the debtor's death is extinguished unless an action is
brought within six months after the debtor's death.

Sec.
1337.34.
(A)
Notwithstanding provisions in the power of attorney, an agent that
has accepted appointment shall
do
all of the following
act
in accordance with all of the following mandatory duties, none of
which can be waived
:

(1)
Act in accordance with the principal's reasonable expectations to the
extent actually known by the agent and, otherwise, in the principal's
best interest;

(2)
Act in good faith;

(3)
Act only within the scope of authority granted in the power of
attorney;

(4)
Attempt to preserve the principal's estate plan to the extent
actually known by the agent if preserving the plan is consistent with
the principal's best interest based on all relevant factors,
including all of the following:

(a)
The value and nature of the principal's property;

(b)
The principal's foreseeable obligations and need for maintenance;

(c)
Minimization of taxes, including income, estate, inheritance,
generation-skipping transfer, and gift taxes;

(d)
Eligibility for a benefit, a program, or assistance under a statute
or regulation.

(B)
Except as otherwise provided in the power of attorney, an agent that
has accepted appointment shall do all of the following:

(1)
Act loyally for the principal's benefit;

(2)
Act so as not to create a conflict of interest that impairs the
agent's ability to act impartially in the principal's best interest;

(3)
Act with the care, competence, and diligence ordinarily exercised by
agents in similar circumstances;

(4)
Keep a record of all receipts, disbursements, and transactions made
on behalf of the principal;

(5)
Cooperate with a person that has authority to make health-care
decisions for the principal to carry out the principal's reasonable
expectations to the extent actually known by the agent and,
otherwise, act in the principal's best interest.

(C)
An agent that acts in good faith is not liable to any beneficiary of
the principal's estate plan for failure to preserve the plan.

(D)
An agent that acts with care, competence, and diligence for the best
interest of the principal is not liable solely because the agent also
benefits from the act or has an individual or conflicting interest in
relation to the property or affairs of the principal.

(E)
If an agent is selected by the principal because of special skills or
expertise possessed by the agent or in reliance on the agent's
representation that the agent has special skills or expertise, the
special skills or expertise must be considered in determining whether
the agent has acted with care, competence, and diligence under the
circumstances.

(F)
Absent a breach of duty to the principal, an agent is not liable if
the value of the principal's property declines.

(G)
An agent that exercises authority to delegate to another person the
authority granted by the principal or that engages another person on
behalf of the principal is not liable for an act, error of judgment,
or default of that person if the agent exercises care, competence,
and diligence in selecting and monitoring the person.

(H)
Except as otherwise provided in the power of attorney, an agent is
not required to disclose receipts, disbursements, or transactions
conducted on behalf of the principal unless ordered by a court or
requested by the principal, a guardian, a conservator, another
fiduciary acting for the principal, a governmental agency having
authority to protect the welfare of the principal, or, upon the death
of the principal, by the personal representative or successor in
interest of the principal's estate. If so requested, within thirty
days the agent shall comply with the request or provide a writing or
other record substantiating why additional time is needed and shall
comply with the request within an additional thirty days.

Sec.
1337.36.
(A)
Any of the following persons may petition a court to construe a power
of attorney or review the agent's conduct and grant appropriate
relief:

(1)
The principal or the agent;

(2)
A guardian, conservator, or other fiduciary acting for the principal,
including an executor or administrator of the estate of a deceased
principal;

(3)
A person authorized to make health-care decisions for the principal;

(4)
The principal's spouse, parent, or descendant;

(5)
An individual who would qualify as a presumptive heir of the
principal;

(6)
A person named as a beneficiary to receive any property, benefit, or
contractual right on the principal's death or as a beneficiary of a
trust created by or for the principal that has a financial interest
in the principal's estate;

(7)
A governmental agency having regulatory authority to protect the
welfare of the principal;

(8)
The principal's caregiver or another person that demonstrates
sufficient interest in the principal's welfare;

(9)
A person asked to accept the power of attorney.

(B)
Upon motion by the principal, the court shall dismiss a petition
filed under this section, unless the court finds that the principal
lacks capacity to revoke the agent's authority or the power of
attorney.

(C)
In a judicial proceeding under this chapter involving the
administration of a power of attorney, including actions under this
section, the court, as justice may require, may award costs and
expenses, including reasonable attorney's fees, to any party, to be
paid by another party.

Sec.
1337.42.
(A)
An agent under a power of attorney may do any of the following on
behalf of the principal or with the principal's property only if the
power of attorney expressly grants the agent the authority and if
exercise of the authority is not otherwise prohibited by another
agreement or instrument to which the authority or property is
subject, and, with respect to a revocable trust of which the
principal was the settlor, if the trust agreement

also

expressly authorizes the agent to exercise the principal's powers
with respect to the revocation, amendment, or
distribution
withdrawal
of trust property, or the ability to direct the distribution of trust
property
:

(1)
Create, amend, revoke, or terminate an inter vivos trust to the
extent permitted by section 5801.05 of the Revised Code or any other
provision of Title LVIII of the Revised Code;

(2)
Make a gift;

(3)
Create or change rights of survivorship;

(4)
Create or change a beneficiary designation;

(5)
Delegate authority granted under the power of attorney;

(6)
Waive the principal's right to be a beneficiary of a joint and
survivor annuity, including a survivor benefit under a retirement
plan;

(7)
Exercise fiduciary powers that the principal has authority to
delegate.

(B)
Notwithstanding a grant of authority to do an act described in
division (A) of this section, unless the power of attorney otherwise
provides, an agent that is not an ancestor, spouse, or descendant of
the principal may not exercise authority under a power of attorney to
create in the agent, or in an individual to whom the agent owes a
legal obligation of support, an interest in the principal's property,
whether by gift, right of survivorship, beneficiary designation,
disclaimer, or otherwise.

(C)
Subject to divisions (A), (B), (D), and (E) of this section, if a
power of attorney grants to an agent authority to do all acts that a
principal could do, the agent has the general authority described in
sections 1337.45 to 1337.57 of the Revised Code.

(D)
Unless the power of attorney otherwise provides, a grant of authority
to make a gift is subject to section 1337.58 of the Revised Code.

(E)
Subject to divisions (A), (B), and (D) of this section, if the
subjects over which authority is granted in a power of attorney are
similar or overlap, the broadest authority controls.

(F)
Authority granted in a power of attorney is exercisable with respect
to property that the principal has when the power of attorney is
executed or acquires later, whether or not the property is located in
this state and whether or not the authority is exercised or the power
of attorney is executed in this state.

(G)
An act performed by an agent pursuant to a power of attorney has the
same effect and inures to the benefit of and binds the principal and
the principal's successors in interest as if the principal had
performed the act.

(H)
Notwithstanding a grant of authority to perform any of the acts
enumerated in division (A) of this section, an agent is bound by the
mandatory fiduciary duties set forth in division (A) of section
1337.34 of the Revised Code, including the duty to attempt to
preserve the principal's estate plan, as well as the default duties
set forth in division (B) of section 1337.34 of the Revised Code that
the principal has not modified.

Sec.
1337.52.
(A)
As used in this section, "estate, trust, or other beneficial
interest" means a trust, probate estate, guardianship,
conservatorship, escrow, or custodianship or a fund from which the
principal is, may become, or claims to be entitled to a share or
payment.

(B)

Unless

Subject
to division (E) of section 5806.02 and division (A) of section
1337.42 of the Revised Code, unless
the
power of attorney otherwise provides, language in a power of attorney
granting general authority with respect to estates, trusts, and other
beneficial interests authorizes the agent to do all of the following:

(1)
Accept, receive, receipt for, sell, assign, pledge, or exchange a
share in or payment from an estate, trust, or other beneficial
interest;

(2)
(2)(a)

Demand or obtain money or another thing of value to which the
principal is, may become, or claims to be entitled by reason of an
estate, trust, or other beneficial interest, by litigation or
otherwise;

(b)
With respect to a revocable trust of which the principal is the
settlor, an agent shall not exercise a right reserved by the
principal to withdraw, or to direct the distribution of, trust
property unless specifically permitted by the trust instrument.

(3)
Exercise for the benefit of the principal a presently exercisable
general power of appointment held by the principal;

(4)
Initiate, participate in, submit to alternative dispute resolution,
settle, oppose, or propose or accept a compromise with respect to
litigation to ascertain the meaning, validity, or effect of a deed,
will, declaration of trust, or other instrument or transaction
affecting the interest of the principal;

(5)
Initiate, participate in, submit to alternative dispute resolution,
settle, oppose, or propose or accept a compromise with respect to
litigation to remove, substitute, or surcharge a fiduciary;

(6)
Conserve, invest, disburse, or use anything received for an
authorized purpose;

(7)
Transfer an interest of the principal in real property, stocks and
bonds, accounts with financial institutions or securities
intermediaries, insurance, annuities, and other property to the
trustee of a revocable trust created by the principal as settlor;

(8)
Reject, renounce, disclaim, release, or consent to a reduction in or
modification of a share in or payment from an estate, trust, or other
beneficial interest.

Sec.
2109.21.
(A)
An
(A)(1)(a)
Except as provided in division (A)(1)(b) of this section, an

administrator,
special administrator, administrator de bonis non, or administrator
with the will annexed shall be a resident of this state

and shall be removed on proof that the administrator is no longer a
resident of this state
.

(b)
An administrator, special administrator, administrator de bonis non,
or administrator with the will annexed may be a nonresident of this
state if the administrator, special administrator, administrator de
bonis non, or administrator with the will annexed is related to the
decedent by consanguinity or affinity.

(2)
An administrator, special administrator, administrator de bonis non,
or administrator with the will annexed under division (A)(1) of this
section shall not be refused appointment or be removed solely because
the administrator, special administrator, administrator de bonis non,
or administrator with the will annexed is not a resident of this
state.

(3)
The court may require that a nonresident administrator, special
administrator, administrator de bonis non, or administrator with the
will annexed assure that all of the assets of the decedent that are
in the county at the time of the death of the decedent will remain in
the county until distribution or until the court determines that the
assets may be removed from the county.

(B)(1)(a)
To qualify for appointment as executor or trustee, an executor or a
trustee named in a will or nominated in accordance with any power of
nomination conferred in a will, may be a resident of this state or,
as provided in this division, a nonresident of this state. To qualify
for appointment, a nonresident executor or trustee named in, or
nominated pursuant to, a will shall be one of the following:

(i)
An individual who is related to the testator by consanguinity or
affinity;

(ii)
A private trust company or family trust company organized under the
laws of any state;

(iii)
A person who resides in a state that has statutes or rules that
authorize the appointment of a nonresident person who is not related
to the testator by consanguinity or affinity, as an executor or
trustee when named in, or nominated pursuant to, a will.

(b)
No executor or trustee under division (B)(1)(a) of this section shall
be refused appointment or removed solely because the executor or
trustee is not a resident of this state.

(c)
The court may require that a nonresident executor or trustee named
in, or nominated pursuant to, a will assure that all of the assets of
the decedent that are in the county at the time of the death of the
decedent will remain in the county until distribution or until the
court determines that the assets may be removed from the county.

(d)
The court may require a nonresident private trust company or family
trust company appointed under division (B)(1)(a)(ii) of this section
to appoint a resident agent to accept service of process, notices,
and other documents.

(2)(a)
In accordance with this division and section 2129.08 of the Revised
Code, the court shall appoint as an ancillary administrator a person
who is named in the will of a nonresident decedent, or who is
nominated in accordance with any power of nomination conferred in the
will of a nonresident decedent, as a general executor of the
decedent's estate or as executor of the portion of the decedent's
estate located in this state, whether or not the person so named or
nominated is a resident of this state.

To
qualify for appointment as an ancillary administrator, a person who
is not a resident of this state and who is named or nominated as
described in this division, shall be one of the following:

(i)
An individual who is related to the testator by consanguinity or
affinity;

(ii)
A private trust company or family trust company organized under the
laws of any state;

(iii)
A person who resides in a state that has statutes or rules that
authorize the appointment of a nonresident of that state who is not
related to the testator by consanguinity or affinity, as an ancillary
administrator when the nonresident is named in a will or nominated in
accordance with any power of nomination conferred in a will.

(b)
If a person who is not a resident of this state and who is named or
nominated as described in division (B)(2)(a) of this section so
qualifies for appointment as an ancillary administrator and if the
provisions of section 2129.08 of the Revised Code are satisfied, the
court shall not refuse to appoint the person, and shall not remove
the person, as ancillary administrator solely because the person is
not a resident of this state.

(c)
The court may require that an ancillary administrator who is not a
resident of this state and who is named or nominated as described in
division (B)(2)(a) of this section, assure that all of the assets of
the decedent that are in the county at the time of the death of the
decedent will remain in the county until distribution or until the
court determines that the assets may be removed from the county.

(d)
The court may require a nonresident private trust company or family
trust company appointed under division (B)(2)(a)(ii) of this section
to appoint a resident agent to accept service of process, notices,
and other documents.

(C)(1)
A guardian of the estate shall be a resident of this state, except
that the court may appoint a nonresident of this state as a guardian
of the estate if any of the following applies:

(a)
The nonresident is named in a will by a parent of a minor.

(b)
The nonresident is selected by a minor over the age of fourteen years
as provided by section 2111.12 of the Revised Code.

(c)
The nonresident is nominated in or pursuant to a durable power of
attorney under section 1337.24 of the Revised Code or a writing as
described in division (A) of section 2111.121 of the Revised Code.

(2)
A guardian of the estate, other than a guardian named in a will by a
parent of a minor, selected by a minor over the age of fourteen
years, or nominated in or pursuant to a durable power of attorney or
writing described in division (C)(1)(c) of this section, may be
removed on proof that the guardian of the estate is no longer a
resident of this state.

(3)
The court may appoint a resident or nonresident of this state as a
guardian of the person.

(D)
Any fiduciary, whose residence qualifications are not defined in this
section, shall be a resident of this state, and shall be removed on
proof that the fiduciary is no longer a resident of this state.

(E)
Any fiduciary, in order to assist in the carrying out of the
fiduciary's fiduciary duties, may employ agents who are not residents
of the county or of this state.

(F)
Every fiduciary shall sign and file with the court a statement of
permanent address and shall notify the court of any change of
address. A court may remove a fiduciary if the fiduciary fails to
comply with this division.

Sec.
2113.06.
(A)
Administration of the estate of an intestate shall be granted to
persons mentioned in this division, in the following order:

(1)
To the surviving spouse of the deceased, if resident of the state;

(2)
To one of the next of kin of the deceased,
if

resident of the state.

(B)
If the persons entitled to administer the estate under division (A)
of this section fail to take or renounce administration voluntarily,
the matter shall be set for hearing and notice given to the persons.

(C)
If there are no persons entitled to administration, if they are for
any reason unsuitable for the discharge of the trust, or if without
sufficient cause they neglect to apply within a reasonable time for
the administration of the estate, their right to priority shall be
lost, and the court shall commit the administration to some suitable
person who
is
a resident of the state
fulfills
the residency requirements under section 2109.21 of the Revised Code
,
or to the attorney general or the attorney general's designee, if the
department of medicaid is seeking to recover the costs of medicaid
services from the deceased pursuant to section 5162.21 or 5162.211 of
the Revised Code. The person granted administration may be a creditor
of the estate.

(D)
This section applies to the appointment of an administrator de bonis
non.

Sec.
2117.02.
An
executor or administrator within three months after the date of
appointment
,
and before the expiration of the period prescribed for the claim by
section 2117.06 of the Revised Code,

shall present any claim the executor or administrator has against the
estate to the probate court for allowance. The claim shall not be
paid unless allowed by the court. When an executor or administrator
presents a claim amounting to five hundred dollars or more, the court
shall fix a day not less than four nor more than six weeks from its
presentation, when the testimony touching it shall be heard. The
court shall issue an order directed to the executor or administrator
requiring the executor or administrator to give notice in writing to
all the heirs, legatees, or devisees of the decedent interested in
the estate, and to the creditors named in the order. The notice shall
contain a statement of the amount claimed, designate the time fixed
for hearing the testimony, and be served upon the persons named in
the order at least twenty days before the time for hearing. If any
persons mentioned in the order are not residents of the county,
service of notice may be made upon them by publication for three
consecutive weeks in a newspaper published or circulating in the
county, or as the court may direct. All persons named in the order
shall be parties to the proceeding, and any other person having an
interest in the estate may be made a party.

Sec.
5301.071.
No
instrument conveying real property, or any interest in real property,
and of record in the office of the county recorder of the county
within this state in which that real property is situated shall be
considered defective nor shall the validity of that conveyance be
affected because of any of the following:

(A)
The dower interest of the spouse of any grantor was not specifically
released, but that spouse executed the instrument in the manner
provided in section 5301.01 of the Revised Code.

(B)
The officer taking the acknowledgment of the instrument having an
official seal did not affix that seal to the certificate of
acknowledgment.

(C)
The certificate of acknowledgment is not on the same sheet of paper
as the instrument.

(D)
The executor, administrator, guardian, assignee, attorney in fact, or
trustee making the instrument signed or acknowledged the same
individually instead of in a representative or official capacity.

(E)(1)
The grantor or grantee of the instrument is a trust rather than the
trustee or trustees of the trust if the trust named as grantor or
grantee has been duly created under the laws of the state of its
existence at the time of the conveyance and a memorandum of trust
that complies with section 5301.255 of the Revised Code and contains
a description of the real property conveyed by that instrument is
recorded in the office of the county recorder in which the instrument
of conveyance is recorded. Upon compliance with division (E)(1) of
this section, a conveyance to or from a trust shall be considered to
be a conveyance to or from the trustee or trustees of the trust in
furtherance of the manifest intention of the parties.

(2)
Except as otherwise provided in division (E)(2) of this section,
division (E)(1) of this section shall be given retroactive effect to
the fullest extent permitted under section 28 of Article II, Ohio
Constitution. Division (E) of this section shall not be given
retroactive or curative effect if to do so would invalidate or
supersede any instrument that conveys real property, or any interest
in the real property, recorded in the office of the county recorder
in which that real property is situated prior to the date of
recording of a curative memorandum of trust or March 22, 2012,
whichever event occurs later.

(F)
A memorandum of
understanding

trust

or
other instrument complying with division (A) of section 5301.255 of
the Revised Code is not recorded as required by that section, so long
as the instrument from a trustee or trust as grantor, conveying or
encumbering any interest in the real property has been of record for
more than four years.

Sec.
5701.11.
The
effective date to which this section refers is the effective date of
this section as amended by H.B. 14 of the 136th general assembly.

(A)(1)
Except as provided under division (A)(2) or (B) of this section, any
reference in Title LVII or section 149.311, 3123.90, 3770.07,
3770.071, 3770.072, 3770.073, 3772.37,
or

3775.16
,
or 5812.43

of the Revised Code to the Internal Revenue Code, to the Internal
Revenue Code "as amended," to other laws of the United
States, or to other laws of the United States, "as amended,"
means the Internal Revenue Code or other laws of the United States as
they exist on the effective date.

(2)
This section does not apply to any reference in Title LVII of the
Revised Code to the Internal Revenue Code as of a date certain
specifying the day, month, and year, or to other laws of the United
States as of a date certain specifying the day, month, and year.

(B)(1)
For purposes of applying section 5733.04, 5745.01, or 5747.01 of the
Revised Code to a taxpayer's taxable year ending after March 15,
2023, and before the effective date, a taxpayer may irrevocably elect
to incorporate the provisions of the Internal Revenue Code or other
laws of the United States that are in effect for federal income tax
purposes for that taxable year if those provisions differ from the
provisions that, under division (A) of this section, would otherwise
apply. The filing by the taxpayer for that taxable year of a report
or return that incorporates the provisions of the Internal Revenue
Code or other laws of the United States applicable for federal income
tax purposes for that taxable year, and that does not include any
adjustments to reverse the effects of any differences between those
provisions and the provisions that would otherwise apply, constitutes
the making of an irrevocable election under this division for that
taxable year.

(2)
Elections under prior versions of division (B)(1) of this section
remain in effect for the taxable years to which they apply.

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

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

(1)
The requirements for creating a trust;

(2)

The

Subject
to Chapter 5818. of the Revised Code, the
duty
of a trustee to act in good faith and in accordance with the purposes
of the trust;

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

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

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

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

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

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

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

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

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

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

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

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

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

(D)
Except as provided under divisions (B) and (C) of this section, it is
the policy of this state to give maximum effect to the principle of
freedom of disposition and to the enforceability of governing
instruments.

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

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

If there is more than one place reasonably appropriate for
administration of a trust, the trustee may administer the trust at
any of those places. The original place of administration selected by
the settlor remains an appropriate place of administration.

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

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

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

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

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

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

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

Sec.
5806.02.
(A)
Unless the terms of a trust expressly provide that the trust is
irrevocable, the settlor may revoke or amend the trust. This division
does not apply to a trust created under an instrument executed before
January 1, 2007.

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

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

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

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

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

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

(E)
An agent under a power of attorney may exercise a settlor's powers
with respect to revocation, amendment,
withdrawal
of trust property,
or

the
ability to direct the
distribution
of trust property only to the extent expressly authorized by both the
terms of the trust and the power.

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

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

Sec.
5806.03.
(A)
During the lifetime of the settlor of a revocable trust, whether or
not the settlor has capacity to revoke the trust, the rights of the
beneficiaries are subject to the control of the settlor, and the
duties of the trustee, including the duties to inform and report
under section 5808.13 of the Revised Code, are owed exclusively to
the settlor. If the trustee breaches its duty during the lifetime of
the settlor, any recovery obtained from the trustee after the settlor
becomes incapacitated or dies shall be apportioned by the court. If
the settlor is living when the recovery is obtained, the court shall
apportion the recovery between the settlor and the trust, or allocate
the entire recovery to the settlor or the trust, as it determines to
be equitable under the circumstances. If the settlor is not living
when the recovery is obtained, the court shall apportion the recovery
between the settlor's estate and the trust, or allocate the entire
recovery to the settlor's estate or the trust, as it determines to be
equitable under the circumstances.

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

(C)
While a trust is revocable, the trustee may follow a direction of the
settlor that is contrary to the terms of the trust.

Sec.
5808.161.
(A)
As used in this section:

(1)
"Protector" has the same meaning as in section 5818.01 of
the Revised Code.

(2)
"Internal Revenue Code" has the same meaning as in section
5747.01 of the Revised Code.

(B)
With respect to any trust, or portion thereof, that is treated as
being owned by a person under sections 671 to 679 of the Internal
Revenue Code or any similar federal, state, or other tax law, the
trustee, in the trustee's sole discretion, may pay to the appropriate
taxing authority or may reimburse the person being treated as the
owner any amount of the person's income tax liability attributable to
the inclusion of the trust's income, capital gains, deductions, or
credits in the calculation of the person's taxable income. In the
trustee's sole discretion, the trustee may pay such tax reimbursement
amount to the person directly or to the appropriate taxing authority.

(C)
This section applies to all trusts, whether created on, before, or
after the effective date of this section, unless any of the following
apply:

(1)
Applying this section would reduce or prevent a contribution to the
trust from qualifying for a federal tax benefit, including a federal
tax exclusion or deduction, which was originally claimed or could
have been claimed for the contribution;

(2)
The trust is a grantor retained annuity trust or grantor retained
unitrust during a term interest under paragraph (c)(3) of section
2702 of the Internal Revenue Code;

(3)
Applying this section would be the only trigger that would result in
any trust, or portion thereof, as treated as being owned by a person
under sections 671 to 679 of the Internal Revenue Code or any similar
federal, state, or other tax law. This division does not prohibit
reimbursement in a subsequent year provided that the reimbursement
relates to a year in which the person was treated as an owner under
sections 671 to 679 of the Internal Revenue Code.

(D)
A trustee who acts in good faith in exercising or not exercising the
power granted by this section is rebuttably presumed to have acted in
accordance with the terms and purposes of the trust and the interests
of the beneficiaries, and no inference of impropriety shall arise as
a result of a trustee exercising or not exercising the power.

(E)(1)
If the terms of a trust require the trustee to act at the direction
or with the consent of a protector or that the decisions governed by
this section be made directly by a protector, the powers granted by
this section to the trustee shall instead or also be granted,
pursuant to the terms of the trust, to the protector.

(2)
If a protector is granted powers under division (E)(1) of this
section, that person is subject to the limitations described in this
section, which shall be applied as if the protector were a trustee.

(F)
A person shall not be considered a beneficiary of a trust solely by
reason of the application of this section or the application of a
similar provision in the trust instrument.

Sec.
5808.19.
(A)
As used in this section, unless otherwise provided in any other
provision in this section:

(1)
(1)(a)

"Beneficiary"
means

includes
the beneficiary of a primary gift,
the
beneficiary of a future interest
,

and
includes

a
class member if the future interest is in the form of a class gift.

(b)
Except as otherwise provided in this division, the amendment to
division (A)(1)(a) of this section in this act shall be given
retroactive effect to the fullest extent permitted under Ohio
Constitution, Article II, Section 28. The amendment shall not be
given retroactive effect in those instances where doing so would
invalidate or supersede any instrument that conveys real property or
any interest in the real property, recorded in the office of the
county recorder in which that real property is situated.

(2)
"Class member" means an individual who fails to survive the
distribution date by at least one hundred twenty hours but who would
have taken under a future interest in the form of a class gift had
the individual survived the distribution date by at least one hundred
twenty hours.

(3)
"Descendant of a grandparent of the transferor" means an
individual who would qualify as a descendant of a grandparent of the
transferor under the rules of construction that would apply to a
class gift under the transferor's will to the descendants of the
transferor's grandparent.

(4)
"Distribution date," with respect to a future interest,
means the time when the future interest is to take effect in
possession or enjoyment. The distribution date need not occur at the
beginning or end of a calendar day but may occur at a time during the
course of a day.

(5)
"Future interest" means an alternative future interest or a
future interest in the form of a class gift.

(6)
"Future interest under the terms of a trust" means a future
interest that was created by a transfer creating a trust or a
transfer to an existing trust, or by an exercise of a power of
appointment to an existing trust, that directs the continuance of an
existing trust, designates a beneficiary of an existing trust, or
creates a trust.

(7)
"Per stirpes" means that the shares of the descendants of a
beneficiary who does not survive the distribution date by at least
one hundred twenty hours are determined in the same way they would
have been determined under division (A) of section 2105.06 of the
Revised Code if the beneficiary had died intestate and unmarried on
the distribution date.

(8)
"Revocable trust" means a trust that was revocable
immediately before the settlor's death by the settlor alone or by the
settlor with the consent of any person other than a person holding an
adverse interest. A trust's characterization as revocable is not
affected by the settlor's lack of capacity to exercise the power of
revocation, regardless of whether an agent of the settlor under a
power of attorney, or a guardian of the person or estate of the
settlor, was serving.

(9)
"Stepchild" means a child of the surviving, deceased, or
former spouse of the transferor and not of the transferor.

(10)
"Transferor" means any of the following:

(a)
The donor and donee of a power of appointment, if the future interest
was in property as a result of the exercise of a power of
appointment;

(b)
The testator, if the future interest was devised by will;

(c)
The settlor, if the future interest was conveyed by inter vivos
trust.

(B)(1)(a)
As used in "surviving descendants" in divisions
(B)(2)(b)(i) and (ii) of this section, "descendants" means
the descendants of a deceased beneficiary or class member who would
take under a class gift created in the trust.

(b)
As used in divisions (B)(2)(b)(i) and (ii) of this section,
"surviving beneficiaries" or "surviving descendants"
means beneficiaries or descendants, whichever is applicable, who
survive the distribution date by at least one hundred twenty hours.

(2)
Unless a contrary intent appears in the instrument creating a future
interest under the terms of a trust, each of the following applies:

(a)
A future interest under the terms of a trust is contingent on the
beneficiary's surviving the distribution date by at least one hundred
twenty hours.

(b)
If a beneficiary of a future interest under the terms of a trust does
not survive the distribution date by at least one hundred twenty
hours and if the beneficiary is a grandparent of the transferor, a
descendant of a grandparent of the transferor, or a stepchild of the
transferor, either of the following applies:

(i)
If the future interest is not in the form of a class gift and the
deceased beneficiary leaves surviving descendants, a substitute gift
is created in the beneficiary's surviving descendants. The surviving
descendants take, per stirpes, the property to which the beneficiary
would have been entitled had the beneficiary survived the
distribution date by at least one hundred twenty hours.

(ii)
If the future interest is in the form of a class gift, other than a
future interest to "issue," "descendants," "heirs
of the body," "heirs," "next of kin,"
"relatives," or "family," or a class described by
language of similar import that includes more than one generation, a
substitute gift is created in the surviving descendants of the
deceased beneficiary or beneficiaries. The property to which the
beneficiaries would have been entitled had all of them survived the
distribution date by at least one hundred twenty hours passes to the
surviving beneficiaries and the surviving descendants of the deceased
beneficiaries. Each surviving beneficiary takes the share to which
the surviving beneficiary would have been entitled had the deceased
beneficiaries survived the distribution date by at least one hundred
twenty hours. Each deceased beneficiary's surviving descendants who
are substituted for the deceased beneficiary take, per stirpes, the
share to which the deceased beneficiary would have been entitled had
the deceased beneficiary survived the distribution date by at least
one hundred twenty hours. For purposes of division (B)(2)(b)(ii) of
this section, "deceased beneficiary" means a class member
who failed to survive the distribution date by at least one hundred
twenty hours and left one or more surviving descendants.

(C)
For purposes of this section, each of the following applies:

(1)
Describing a class of beneficiaries as "surviving" or
"living," without specifying when the beneficiaries must be
surviving or living, such as a gift "for my spouse for life,
then to my surviving (or living) children," is not, in the
absence of other language in the trust instrument or other evidence
to the contrary, a sufficient indication of an intent to negate the
application of division (B)(2)(b) of this section.

(2)
Subject to division (C)(1) of this section, attaching words of
survivorship to a future interest under the terms of a trust, such as
"for my spouse for life, then to my children who survive my
spouse" or "for my spouse for life, then to my then-living
children" is, in the absence of other language in the trust
instrument or other evidence to the contrary, a sufficient indication
of an intent to negate the application of division (B)(2)(b) of this
section. Words of survivorship under division (C)(2) of this section
include words of survivorship that relate to the distribution date or
to an earlier or an unspecified time, whether those words of
survivorship are expressed as condition-precedent,
condition-subsequent, or in any other form.

(3)
A residuary clause in a will is not a sufficient indication of an
intent that is contrary to the application of this section, whether
or not the will specifically provides that lapsed or failed devises
are to pass under the residuary clause. A residuary clause in a
revocable trust instrument is not a sufficient indication of an
intent that is contrary to the application of this section unless the
distribution date is the date of the settlor's death and the
revocable trust instrument specifically provides that upon lapse or
failure the nonresiduary devise, or nonresiduary devises in general,
pass under the residuary clause.

(D)
If, after the application of divisions (B) and (C) of this section
there is no surviving taker of the property, and a contrary intent
does not appear in the instrument creating the future interest, the
property passes in the following order:

(1)
If the future interest was created by the exercise of a power of
appointment, the property passes under the donor's gift-in-default
clause, if any, which clause is treated as creating a future interest
under the terms of a trust.

(2)
If no taker is produced under division (D)(1) of this section and the
trust was created in a nonresiduary devise in the transferor's will
or in a codicil to the transferor's will, the property passes under
the residuary clause in the transferor's will. For purposes of
division (D)(2) of this section, the residuary clause is treated as
creating a future interest under the terms of a trust.

(3)
If no taker is produced under divisions (D)(1) and (2) of this
section, the transferor is deceased, and the trust was created in a
nonresiduary gift under the terms of a revocable trust of the
transferor, the property passes under the residuary clause in the
transferor's revocable trust instrument. For purposes of division
(D)(3) of this section, the residuary clause in the transferor's
revocable trust instrument is treated as creating a future interest
under the terms of a trust.

(4)
If no taker is produced under divisions (D)(1), (2), and (3) of this
section, the property passes to those persons who would succeed to
the transferor's intestate estate and in the shares as provided in
the intestate succession law of the transferor's domicile if the
transferor died on the distribution date. Notwithstanding division
(A)(10) of this section, for purposes of division (D)(4) of this
section, if the future interest was created by the exercise of a
power of appointment, "transferor" means the donor if the
power is a nongeneral power, or the donee if the power is a general
power.

(E)
This section applies to all trusts that become irrevocable on or
after March 22, 2012. This section does not apply to any trust that
was irrevocable before March 22, 2012, even if property was added to
the trust on or after March 22, 2012.

Sec.
5810.08.
A

(A)
As used in this section, "trust directive" has the same
meaning as in section 5818.01 of the Revised Code.

(B)
Except as provided in division (C) of this section, a
term
of a trust relieving a trustee of liability for breach of trust is
unenforceable to the extent that
it

either
of the following apply:

(1)
The term
relieves
the trustee of liability for breach of trust committed in bad faith
or with reckless indifference to the purposes of the trust or the
interests of the beneficiaries

or
;

(2)
The term
was
inserted as the result of an abuse by the trustee of a fiduciary or
confidential relationship
to

with

the
settlor.

(C)
A trustee may be relieved from liability for implementing or
complying with a trust directive to the extent that the relief meets
any of the following criteria:

(1)
The relief is permitted or allowed by Chapter 5818. of the Revised
Code.

(2)
The relief is authorized by any term of a trust that is permitted or
allowed by Chapter 5818. of the Revised Code.

(3)
The relief is otherwise allowed by the Ohio Trust Code.

Sec.
5812.43.
(A)
A trustee shall make all of the following disbursements from
principal:

(1)
The remaining one-half of the disbursements described in divisions
(A) and (B) of section 5812.42 of the Revised Code;

(2)
All of the trustee's compensation calculated on principal as a fee
for acceptance, distribution, or termination, and disbursements made
to prepare property for sale;

(3)
Payments on the principal of a trust debt;

(4)
Expenses of a proceeding that concerns primarily principal, including
a proceeding to construe the trust or to protect the trust or its
property;

(5)
Premiums paid on a policy of insurance not described in division (D)
of section 5812.42 of the Revised Code of which the trust is the
owner and beneficiary;

(6)
Estate, inheritance, and other transfer taxes, including penalties,
apportioned to the trust;

(7)
Disbursements related to environmental matters, including
reclamation, assessing environmental conditions, remedying and
removing environmental contamination, monitoring remedial activities
and the release of substances, preventing future releases of
substances, collecting amounts from persons liable or potentially
liable for the costs of those activities, penalties imposed under
environmental laws or regulations and other payments made to comply
with those laws or regulations, statutory or common law claims by
third parties, and defending claims based on environmental matters
;

(8)
Disbursements related to payments to a taxing authority or
reimbursement to a person being treated as the owner under sections
671 to 679 of the Internal Revenue Code, as defined in section
5747.01 of the Revised Code, or any similar federal, state, or other
tax law, for any amount of the person's income tax liability
attributable to the inclusion of the trust's income, capital gains,
deductions, or credits in the calculation of the person's taxable
income
.

(B)
If a principal asset is encumbered with an obligation that requires
income from that asset to be paid directly to the creditor, the
trustee shall transfer from principal to income an amount equal to
the income paid to the creditor in reduction of the principal balance
of the obligation.

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

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

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

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

(3)
Maintaining an office for trust business;

(4)
Filing any trust tax returns;

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

(6)
Taking custody of or storing trust property;

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

(C)

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

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

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

(D)

Any
administrative fiduciary as described in division (B) of this section

or
any excluded fiduciary as described in division (C) of this section

is
relieved from any obligation to perform investment reviews and make
recommendations with respect to any investments to the extent the

grantor
settlor
,
an advisory or investment committee, or one or more other persons
have authority to direct the acquisition, disposition, or retention
of any investment.

(E)
(D)

This section does not apply to the extent that the instrument under
which an administrative fiduciary as described in division (B) of
this section
or
an excluded fiduciary as described in division (C) of this section

contains
provisions that are inconsistent with this section.

Sec.
5816.11.
(A)
Any person may serve as an advisor of a legacy trust
,

except
that
a
as
follows:

(1)
A
transferor
may act as an advisor only in connection with investment decisions
.

(2)
No person shall concurrently serve as a trustee and advisor of a
legacy trust
.

(B)

If
a person concurrently serves or purports to concurrently serve as
trustee and advisor of a legacy trust in violation of division (A)(2)
of this section, then the effects, consequences, and time period of
that concurrent service are subject to section 5818.06 of the Revised
Code.

(C)

An
advisor shall be considered a fiduciary unless the terms of a legacy
trust instrument expressly provide otherwise.

Sec.
5818.01.
As
used in this chapter:

(A)(1)
"Breach of trust" means a breach of a fiduciary duty
imposed on a protector by this chapter, any other applicable laws of
this state, or the terms of a trust.

(2)
"Breach of trust" includes only acts or omissions
undertaken by a protector while acting in a fiduciary capacity, and
does not include any act or omission undertaken by a protector in a
nonfiduciary capacity.

(3)
"Breach of trust" does not encompass or include any act or
omission of a protector if the act or omission is allowed by either
of the following:

(a)
The terms of a trust, except where those terms are expressly
prohibited by this chapter or other applicable laws of this state;

(b)
This chapter, except if the trust expressly prohibits the act or
omission.

(B)
"Directed trust" means a trust that includes terms granting
a power of direction to a protector.

(C)
"Legacy trust" has the same meaning as in section 5816.02
of the Revised Code.

(D)
"Ohio legacy trust act" means Chapter 5816. of the Revised
Code.

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

(F)
"Power of direction" means a power vested in a protector by
the terms of a trust that allows a protector to do any of the
following:

(1)
Issue binding trust directives to another trust officeholder,
including trust directives that direct, order, mandate, require,
veto, bar, prohibit, or prevent any actual or proposed decisions or
actions by a trust officeholder regarding the trust or trust estate,
including decisions or actions regarding trust investments, trust
administration, or distributions to or for trust beneficiaries;

(2)
Subject to section 5818.36 of the Revised Code, remove another trust
officeholder from a trust office, or appoint another person to a
trust office;

(3)
Modify or amend the trust instrument, including amendments that do
any of the following:

(a)
Achieve favorable tax treatment;

(b)
Respond to or take advantage of any changes in any federal, state,
local, or other tax laws that affect or might affect a trust, the
trust settlor, any of the trust beneficiaries, or the administration
of the trust;

(c)
Respond to or take advantage of any changes in the circumstances of
any beneficiary.

(4)
Increase or decrease the interests of any beneficiaries to the trust;

(5)
Modify the terms of any power of appointment granted by the trust,
provided that, except to the extent the terms of a trust expressly
allow otherwise, such a modification shall not allow appointments to
any person or class of persons who are not beneficiaries of the
trust;

(6)
Terminate a trust;

(7)
Change the situs or the governing law of a trust;

(8)
Make binding interpretations of the terms of a trust;

(9)
Require a trustee to consult with the protector regarding specified
matters;

(10)
Add or remove persons as beneficiaries of a trust;

(11)
Add or remove powers and discretion granted under the terms of a
trust;

(12)
Otherwise direct the administration of a trust or the conduct of a
trust officeholder.

(G)
"Protector" means a trust officeholder, other than a
trustee, that holds a power of direction pursuant to the terms of a
trust, regardless of whether the terms of a trust refer to the person
holding a power of direction as a "protector," "adviser,"
"director," or some other name or title.

(H)
"Settlor," "state," "terms of a trust,"
"trustee," and "trust instrument" have the same
meanings as in section 5801.01 of the Revised Code.

(I)
"Trust directive" means a verbal, written, or other
directive, order, or instruction issued by a protector to another
trust officeholder whereby the protector, as part of the protector's
exercise or nonexercise of a power of direction, requires the trust
officeholder to implement, comply with, or otherwise act in a manner
consistent with the directive, order, or instruction.

(J)(1)
"Trust office" means any office, position, or role created
by the terms of a trust whereby the person holding or occupying such
office is wholly or partially responsible for either of the
following:

(a)
The management, administration, or supervision of the trust or the
trust estate;

(b)
The investment of trust property.

(2)
Without limiting the generality of division (J)(1) of this section,
"trust office" includes the offices of trustee, protector,
advisor, and investment advisor.

(3)
"Trust office" does not include the position or role of
settlor or beneficiary.

(4)
"Trust office" does not include the position or role of
beneficiary surrogate, as defined in section 5801.01 of the Revised
Code, unless the trust instrument expressly provides otherwise.

(K)
"Trust officeholder" means any person who holds a trust
office.

(L)
"Willful misconduct" means intentional wrongdoing. "Willful
misconduct" does not include negligence, gross negligence, or
recklessness.

(M)
"Wrongdoing" means malicious conduct or conduct designed to
defraud or seek an unconscionable advantage.

Sec.
5818.011.
This
chapter may be cited as the Ohio trust protector and directed trust
act.

Sec.
5818.02.
(A)
This chapter governs the rights, powers, discretion, duties, and
liabilities of a protector in connection with the protector's
exercise or nonexercise of a power of direction. Where permitted by
this chapter, the terms of a trust prevail over this chapter and may
modify, supplement, limit, eliminate, waive, or restrict the
application of this chapter.

(B)(1)
Except as otherwise provided by the terms of a trust or section
5518.03 of the Revised Code, and to the maximum extent allowed by the
Ohio Constitution and the United States Constitution, this chapter
applies to any trust, whenever created, that is wholly or partially
administered in this state or that is wholly or partially governed by
the laws of this state.

(2)
The terms of a trust may provide that the laws of this state wholly
or partially govern some of the rights, powers, discretion, duties,
or liabilities of a protector while the laws of one or more
jurisdictions other than this state govern all other rights, powers,
discretion, duties, or liabilities of a protector.

Sec.
5818.03.
Any
person who is, within the meaning of the Ohio legacy trust act, an
"advisor" is considered a protector in connection with the
legacy trust for the purposes of this chapter. This chapter applies
to any legacy trust that provides for, permits, allows, or includes
such an advisor, except that the Ohio legacy trust act governs and
controls in the event of any conflict between the Ohio legacy trust
act and this chapter.

Sec.
5818.04.
A
protector is a fiduciary unless the terms of a trust expressly
provide otherwise.

Sec.
5818.05.
(A)
Except as otherwise provided by this section, any person who is not
at the time in question a trustee of a trust may serve as a protector
of that trust. No person shall concurrently serve as trustee and
protector of the same trust.

(B)
The terms of a trust may further restrict or limit the eligibility of
a person to serve as a protector of the trust.

(C)
If a trust instrument creates more than one trust, a person may serve
as protector of any such trust for which the person is not
concurrently serving as trustee.

(D)
The terms of a trust may provide that any rights, powers, or
authority granted to a protector may vest in and be exercised by a
trustee during any time the protector's office is vacant or upon the
occurrence of a stated contingency, but the trustee shall be treated
as holding and exercising those vested rights, powers, and
authorities in the trustee's capacity as a trustee and fiduciary.

(E)
A person that is a transferor to a legacy trust, within the meaning
of the Ohio legacy trust act, may serve as an advisor to that legacy
trust only to the extent authorized by division (A) of section
5816.11 of the Revised Code.

Sec.
5818.06.
If
a person attempts or purports to concurrently serve as a trustee and
protector of the same trust, both of the following apply:

(A)
The person shall be treated as having acted as a trustee rather than
as a protector during the time of the attempted or purported
concurrent service.

(B)(1)
The terms of a trust may provide rules and procedures that permit a
subsequent protector to wholly or partially ratify, assume, affirm,
reject, invalidate, or disavow any trust directives issued by the
person during the time of the person's attempted or purported
concurrent service as trustee and protector.

(2)
Except to the extent otherwise provided by or decided pursuant to the
terms of a trust, a subsequent protector is presumed to have ratified
and affirmed all trust directives issued by the person during the
person's time of attempted or purported concurrent service.

(3)
Any actions taken or treated as having been taken by the person in
the capacity of trustee during the person's time of attempted or
purported concurrent service shall be treated as valid and effective
to the same extent, and in the same fashion, that the trustee actions
would be if the office of protector was vacant during the time of
concurrent service.

Sec.
5818.07.
Subject
to section 5818.13 of the Revised Code, the rights, powers,
discretion, duties, and liabilities of a protector may be varied,
allocated, and limited among one or more protectors as follows:

(A)
The terms of a trust may do either or both of the following:

(1)
Provide that a protector is a fiduciary in connection with some
matters and not a fiduciary in connection with other matters;

(2)
Impose different duties and liabilities on a protector regarding
different matters.

(B)
If a trust has more than one protector, the terms of the trust may do
either or both of the following:

(1)
Allocate different rights, powers, duties, discretion, and authority
to different protectors;

(2)
Provide different standards of liability for different protectors.

(C)
Protectors with jointly held powers shall act by a majority decision,
except to the extent the terms of a trust provide otherwise.

Sec.
5818.08.
Except
to the extent otherwise provided by the terms of a trust, a protector
may take additional, supplemental, or ancillary steps that the
protector reasonably deems to be necessary or appropriate to exercise
or refrain from exercising a power of direction.

Sec.
5818.09.
Subject
to sections 5818.10, 5818.11, 5818.12, and 5818.13 of the Revised
Code, all of the following apply to the scope of a protector's
discretion:

(A)
If a protector is acting in a fiduciary capacity, then the protector
may exercise any power of direction to the same extent as, and
subject to the same fiduciary obligations and limitations applicable
to, a trustee of the trust if the trustee is authorized to exercise
the same power.

(B)
If a protector is not acting in a fiduciary capacity, then, except as
otherwise provided by the terms of the trust, the protector may
exercise any protector's power in the protector's sole and absolute
discretion.

(C)
Nothing in this section limits or impairs any power or discretion
that a person serving as protector might hold in such person's
capacity as a settlor or beneficiary.

Sec.
5818.10.
Except
to the extent that the terms of a trust expressly provide otherwise,
a person serving as protector shall not exercise a protector's power
of direction to require or compel a distribution to or for the
benefit of such person.

Sec.
5818.11.
Notwithstanding
the terms of a trust, a protector shall not use a power of direction
to do any of the following:

(A)
Require another person to release a trust officeholder from liability
for the willful misconduct of that trust officeholder;

(B)
Alter the terms of a trust in ways that exculpate a trust
officeholder from liability for the willful misconduct of that trust
officeholder;

(C)
Engage in self-dealing;

(D)
Except as provided by section 5818.33 of the Revised Code, solely
benefit the protector.

Sec.
5818.12.
(A)(1)
If a protector holds a power of direction in a fiduciary capacity,
then the protector may be found liable for breach of trust due to the
protector's exercise or nonexercise of that power of direction
whenever the protector has committed such a breach.

(2)
If a protector is found liable for breach of trust, then the
protector's liability shall be the same that would attach under the
following circumstances:

(a)
To a sole trustee holding the same power in a fiduciary capacity, if
the protector is the only protector holding that power;

(b)
To a co-trustee holding the same power in a fiduciary capacity with
another co-trustee, if the protector holds that power with one or
more other protectors.

(3)
Nothing in division (A) of this section precludes a protector from
being found liable for wrongful acts or omissions other than, or in
addition to, breach of trust.

(B)(1)
If a protector holds a power of direction in a nonfiduciary capacity,
then the protector is not liable for breach of trust or other breach
of fiduciary duty due to a protector's exercise or nonexercise of
that power of direction.

(2)
Nothing in division (B) of this section precludes a protector from
being found liable for wrongful acts or omissions other than breach
of trust or breach of fiduciary duty.

(C)
If a protector is licensed, certified, or otherwise authorized by law
to provide health care in the ordinary course of the protector's
business or practice of a profession, then, to the extent the
protector acts in the capacity of a health care provider, the
protector has no duty or liability under this chapter.

(D)
The terms of a trust may impose duties or liabilities on a protector
in addition to the duties and liabilities imposed by this chapter.

Sec.
5818.13.
(A)
Whenever a protector is not acting as a fiduciary, the terms of a
trust may vary, limit, restrict, or eliminate the duties or liability
of a protector, except that the terms of a trust shall not do either
of the following:

(1)
Eliminate a protector's liability for acts or omissions that
constitute self-dealing or willful misconduct by the protector;

(2)
Preclude a court of competent jurisdiction from removing a protector
on account of the protector's self-dealing or willful misconduct.

(B)
Whenever a protector is acting as a fiduciary, a term of a trust
relieving the protector of liability for breach of trust is
unenforceable if either of the following apply:

(1)
The term relieves the protector of liability for a breach of trust
committed through self-dealing, in bad faith, or with reckless
indifference to the purposes of the trust or the interests of the
beneficiaries;

(2)
The term is added to the trust as the result of an abuse by the
protector of a fiduciary or confidential relationship with the
settlor.

(C)
Notwithstanding any other provision of this chapter, a protector is
always liable for any act or omission that constitutes willful
misconduct or self-dealing by the protector.

(D)
In the event of any conflict between this section and any other
provision of this chapter, this section governs and controls.

Sec.
5818.14.
(A)
In any action against a protector, the protector may assert any
defense available at law or equity, including any defense available
under this chapter or under the terms of a trust.

(B)
If a protector is a fiduciary, then, in connection with any claim for
breach of trust asserted against that protector, the protector may
also assert any defense that would be available to a trustee in that
position and under similar circumstances regarding an action for
breach of trust against the trustee.

(C)
A protector who undertakes acts or omissions in a nonfiduciary
capacity is not liable for breach of trust based on such acts or
omissions.

Sec.
5818.15.
(A)(1)
Upon receipt of a trust directive, a trust officeholder shall take
reasonable steps to implement or comply with the trust directive.

(2)
A trust officeholder has no duty to implement or comply with a trust
directive until the trust directive is actually received by the trust
officeholder.

(B)
Except to the extent that a trust officeholder's conduct constitutes
willful misconduct, all of the following apply:

(1)
A trust officeholder may presume that a trust directive is valid and
appropriate.

(2)
A trust officeholder may rely upon information provided by a
protector in connection with a trust directive.

(3)
A trust officeholder may ask a protector to clarify a trust
directive.

(4)
A trust officeholder may require a protector to place a verbal trust
directive in writing before the trust officeholder implements or
complies with the trust directive.

(5)
A trust officeholder has no liability to any person for implementing
or complying with a trust directive.

(C)
A trust officeholder shall not do any of the following to the extent
that such acts would constitute willful misconduct by the trust
officeholder:

(1)
Presume that a trust directive is valid or appropriate;

(2)
Implement or comply with a trust directive;

(3)
Rely upon information provided by a protector in connection with a
trust directive.

(D)
Any person who claims that a trust officeholder engaged in willful
misconduct when implementing or complying with a trust directive
bears the burden of proving that misconduct.

(E)
The terms of a trust may impose duties or liabilities on a trust
officeholder in addition to the duties and liabilities imposed by
divisions (A) to (D) of this section.

(F)
Notwithstanding any contrary provision of this chapter, a trust
officeholder that has actually received a trust directive is always
liable for any act or omission undertaken by the trust officeholder
in connection with such trust directive that constitutes willful
misconduct by the trust officeholder.

(G)
In the event of any conflict between this section and any other
provision of this chapter, this section governs and controls.

Sec.
5818.16.
A
trust officeholder may petition a court of competent jurisdiction for
instructions regarding the trust officeholder's duties under section
5818.15 of the Revised Code.

The
right conferred by this section is in addition to the trust
officeholder's rights under section 5818.15 of the Revised Code to
seek clarification of a trust directive from a protector and require
a trust directive to be in writing, and the trust officeholder's
right under section 5818.23 of the Revised Code to ask a person to
clarify the capacity in which that person is acting.

A
trust officeholder may exercise the rights granted by sections
5818.15 and 5818.23 of the Revised Code in addition to or instead of
petitioning for judicial instructions under this section.

Sec.
5818.17.
The
following rules of construction apply in connection with all
protectors, directed trusts, and trust directives:

(A)
Courts shall give effect to this state's policy of maximizing a
settlor's freedom of disposition as set forth in division (D) of
section 5801.04 of the Revised Code.

(B)
Courts shall liberally interpret, construe, and apply this chapter in
ways and means that do all of the following:

(1)(a)
Recognize and allow directed trusts;

(b)
Uphold the rights, powers, discretion, and authority of a protector;

(c)
Uphold the validity and enforceability of trust directives.

(2)
Without limiting the generality of the foregoing, the term "power
of direction" shall be liberally and broadly interpreted,
construed, and applied.

(C)
The rule of the common law that statutes in derogation of common law
are to be strictly construed does not apply to this chapter.

Sec.
5818.18.
Except
as otherwise provided by section 5818.19 of the Revised Code or the
terms of a trust, protectors and trustees have all of the following
limited duties:

(A)(1)
A trustee shall provide information to a protector to the extent that
the information is reasonably related to the powers and duties of the
protector.

(2)
A protector shall provide information to a trustee to the extent the
information is reasonably related to the powers or duties of the
trustee.

(B)(1)
Subject to division (B)(2) of this section, a protector, referred to
in division (B) of this section as a "first protector,"
shall provide information to another protector, referred to in
division (B) of this section as an "other protector," to
the extent the information is reasonably related to the powers or
duties of the other protector.

(2)
Subject to division (B)(3) of this section, the first protector need
not provide the other protector with information related to either of
the following:

(a)
Any power to direct that may be exercised by the other protector
without the consent or approval of the first protector;

(b)
Any duty that the first protector does not share with the other
protector.

(3)
Division (B)(2) of this section does not apply if the first
protector's failure to provide the information to the other protector
would constitute willful misconduct by the first protector.

Sec.
5818.19.
Except
as otherwise provided by the terms of a trust:

(A)
A trustee does not have a duty to do any of the following:

(1)
Monitor or supervise a protector;

(2)
Inform a protector of the trustee's communications with beneficiaries
regarding a protector's performance in or suitability for trust
office;

(3)
Inform a protector of matters that were communicated in confidence to
the trustee by a beneficiary, or that the trustee reasonably believes
were communicated in confidence to the trustee by a beneficiary;

(4)
Inform or give advice to a settlor, beneficiary, trustee, or
protector regarding any instance in which the trustee might have
acted differently than a protector.

(B)
A protector, referred to in this division as a "first
protector," does not have a duty to do any of the following:

(1)
Monitor a trustee or another protector;

(2)
Inform a trustee of the first protector's communications with
beneficiaries regarding a trustee's performance in or suitability for
trust office;

(3)
Inform another protector of the first protector's communications with
beneficiaries regarding the other protector's performance in or
suitability for trust office;

(4)
Inform a trustee or another protector of matters that were
communicated in confidence to the first protector, or that the first
protector reasonably believes were communicated in confidence to the
first protector, by a beneficiary;

(5)
Inform or give advice to a settlor, beneficiary, trustee, or another
protector regarding any instance in which the first protector might
have acted differently than a trustee or another protector.

(C)(1)
Subject to division (C)(2) of this section, no act, omission, or
course of conduct undertaken by a trustee or protector impairs,
limits, restricts, or waives divisions (A) and (B) of this section.

(2)
A trustee may wholly or partially assume any duty referred to or
described in division (A) of this section, and a protector may wholly
or partially assume any duty referred to or described in division (B)
of this section, by means of an express, written, and signed
agreement to wholly or partially assume that duty.

Sec.
5818.20.
(A)
A protector, referred to in this division as a "first
protector," that acts in reliance on information provided by a
trustee or another protector is not liable for any damage or loss
directly or indirectly caused by such reliance, except to the extent
that the reliance constitutes willful misconduct by the first
protector.

(B)
A trustee that acts in reliance on information provided by a
protector is not liable for any damage or loss directly or indirectly
caused by such reliance, except to the extent to that the reliance
constitutes willful misconduct by the trustee.

(C)
The terms of a trust may expressly impose on trustees and protectors
duties and liabilities greater than those imposed by divisions (A)
and (B) of this section.

Sec.
5818.21.
This
chapter does not apply to any exercise or nonexercise of a power or
authority by either of the following:

(A)
A settlor, if the power or authority is conferred on or retained by
the settlor, in the capacity of a settlor, pursuant to the terms of a
trust;

(B)
A beneficiary, if the power or authority is conferred on the
beneficiary, in the capacity of a beneficiary, pursuant to the terms
of a trust.

Sec.
5818.22.
(A)
A court shall consider both of the following factors in determining
whether a person is acting in that person's capacity as a settlor,
beneficiary, or protector:

(1)
The terms of a trust;

(2)
Any documents or communications regarding the person's exercise or
nonexercise of a power or authority.

(B)
A court shall presume that the capacity asserted or identified by the
person in a document is correctly asserted or identified when all of
the following conditions are met:

(1)
The person executes the document.

(2)
The document specifies the capacity in which a person acts.

(3)
The terms of a trust grant the person the capacity specified in the
document.

(C)
If a person's capacity as settlor, beneficiary, or protector is
unclear after applying the factors provided in divisions (A) and (B)
of this section, then a court may consider any other facts or
circumstances that may be relevant to determining the capacity in
which the person is acting.

Sec.
5818.23.
In
addition to any other rights conferred upon a trust officeholder by
this chapter or by the terms of a trust, a trust officeholder may ask
a person that issues a communication or instruction to clarify
whether that communication or instruction was issued in that person's
capacity as a settlor, beneficiary, or trust officeholder. If a
person purports to issue a communication or instruction in that
person's capacity as a trust officeholder, then any other trust
officeholder receiving the communication or instruction may ask the
issuer to specify the official capacity in which the issuer is
acting.

Sec.
5818.24.
To
the maximum extent allowed by the Ohio Constitution and the United
States Constitution, the courts of this state have personal
jurisdiction over a person who accepts an appointment to serve as a
protector of a trust subject to this chapter.

Sec.
5818.25.
(A)
No beneficiary shall commence a proceeding against a protector for
breach of trust, based on acts or omissions undertaken by the
protector in a fiduciary capacity, more than two years after the date
that a beneficiary, a representative of a beneficiary, or a
beneficiary surrogate is sent a report or accounting that adequately
discloses the existence of a potential claim for breach of trust and
informs the beneficiary, representative, or surrogate of the time
allowed for commencing a proceeding against the protector.

(B)
If a claim is brought against a protector regarding acts or omissions
undertaken by the protector in a nonfiduciary capacity, or for causes
of action other than breach of trust, then the action must be
commenced within the same limitation period that would otherwise
apply to that claim.

Sec.
5818.26.
Nothing
in this chapter requires a trust to have a protector, and the terms
of a trust may omit any requirement for or reference to a protector.

Sec.
5818.27.
(A)
The terms of a trust may set forth reasonable procedures for the
issuance or delivery of a trust directive, or any other document
related to or arising out of any of the following:

(1)
The implementation of a trust directive;

(2)
A protector's exercise or nonexercise of the protector's rights,
powers, authority, or discretion;

(3)
Any other matter related to or arising out of such protector's
duties, liabilities, or service as protector.

(B)
The terms of a trust concerning the issuance or delivery of any item
described in division (A) of this section are presumed to be both
reasonable and the exclusive means for such issuance or delivery. The
presumptions set forth in this division may be rebutted only by clear
and convincing evidence. Nothing in this division shall be construed
to impair, limit, or restrict a trust officeholder's rights to do any
of the following:

(1)
Seek clarification of a trust directive from a protector or request
that the protector put the trust directive in writing pursuant to
section 5818.15 of the Revised Code;

(2)
Seek judicial instructions pursuant to section 5818.16 of the Revised
Code;

(3)
Ask a person to clarify the capacity in which such person is acting
pursuant to section 5818.23 of the Revised Code.

(C)
If the terms of a trust do not set forth reasonable procedures for
the issuance or delivery of any item described in division (A) of
this section, or if the terms of a trust provide that those
reasonable procedures are nonexhaustive, then any such item may be
issued or delivered by any method that is consistent with section
5801.08 of the Revised Code.

Sec.
5818.28.
(A)
A person designated as a protector of a trust may accept such
designation by complying with a method of acceptance provided in the
terms of the trust, exercising powers or performing duties of the
protector, or otherwise indicating acceptance of the office and
responsibilities of the protector.

(B)
A person designated as a protector who has not yet accepted may
reject the designation. A designated protector who does not accept
within a reasonable time after knowing of the designation is deemed
to have rejected the designation.

Sec.
5818.29.
All
of the following apply to a trust except to the extent that the terms
of the trust provide otherwise:

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

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

(C)
A regulated financial-service institution or licensed trust company
qualified to do trust business in this state need not give bond.

Sec.
5818.30.
Except
as otherwise provided under the terms of the trust, a vacancy in a
protector position occurs under any of the following circumstances:

(A)
A person designated as a protector rejects the designation.

(B)
A person designated as a protector cannot be identified or does not
exist.

(C)
A protector resigns.

(D)
A protector is disqualified or removed.

(E)
A protector dies.

(F)
A guardian of the estate or person is appointed for an individual
serving as a protector.

Sec.
5818.31.
(A)
Except as otherwise provided under the terms of the trust, a
protector may resign upon at least thirty days' notice to any person
who is a qualified beneficiary as defined by section 5801.01 of the
Revised Code, the settlor, if living, and all trustees, or with the
approval of the court.

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

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

Sec.
5818.32.
Subject
to the terms of a trust instrument, all of the following apply:

(A)
The settlor, a trustee, or a beneficiary may request the court to
remove a protector, or the court may remove a protector on its own
initiative.

(B)
The court may remove a protector for any of the following reasons:

(1)
The protector has committed a serious breach of trust, but only if
the protector is a fiduciary.

(2)
Lack of cooperation among protectors substantially impairs the
administration of the trust.

(3)
Because of unfitness, willful misconduct, or unwillingness to serve
as protector, the court determines that removal of the protector best
serves the interests of the beneficiaries.

(4)
If the protector is a fiduciary, because of persistent failure of the
protector to discharge the duties imposed on the protector by the
trust instrument, the court determines that removal of the protector
best serves the interests of the beneficiaries.

(5)
The protector has engaged in self-dealing.

(C)
Pending a final decision on a request to remove a protector, or in
lieu of or in addition to removing a protector, the court may do any
of the following, as necessary to protect the trust property or the
interests of the beneficiaries:

(1)
Compel the protector to perform the protector's duties;

(2)
Enjoin the protector from engaging in acts of willful misconduct or
self-dealing;

(3)
If the protector is a fiduciary, enjoin the protector from committing
a breach of trust;

(4)
If the protector is serving in a nonfiduciary capacity, compel the
protector to redress an act of willful misconduct by paying money,
restoring property, or other means;

(5)
If the protector is a fiduciary, compel the protector to redress a
breach of trust by paying money, restoring property, or other means;

(6)
Order a protector to account;

(7)
Appoint a special fiduciary to take possession of any trust property
held by the protector;

(8)
Suspend the protector;

(9)
Reduce or deny compensation to the protector;

(10)
Void an act of the protector, impose a lien or a constructive trust
on any trust property held by the protector, or trace trust property
wrongfully disposed of by the protector and recover the property or
its proceeds;

(11)
Order any other appropriate relief.

Sec.
5818.33.
(A)
Except as provided in division (A) of section 5818.34 of the Revised
Code, if the terms of a trust do not specify the protector's
compensation, a protector is entitled to compensation that is
reasonable under the circumstances.

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

(C)
Beneficiaries of a trust shall be notified in advance of any change
in the method or rate of the trust protector's compensation.

Sec.
5818.34.
(A)
Neither of the following shall serve, or be compensated for serving,
as a protector unless that person is related to the settlor or the
attorney described by division (A)(1) of this section makes the
disclosures required under division (B) of this section:

(1)
An attorney that prepared, or supervised the execution of, the trust
instrument that appointed the attorney or a person described in
division (A)(2) of this section as a protector;

(2)
A person related to an attorney described by division (A)(1) of this
section.

(B)
An attorney that prepares, or supervises the execution of, a trust
instrument which appoints the attorney, or a person related to the
attorney, as a protector shall disclose all of the following
information to the settlor before the trust instrument is executed:

(1)
Unless specifically disqualified by the terms of the trust, any
person, including a family member or friend, is eligible to serve as
a protector.

(2)
Any person, including an attorney, who serves as a protector is
entitled to receive reasonable compensation for serving as protector.

(3)
Compensation payable to the protector is in addition to any
attorney's fees payable to the attorney that prepared, or supervised
the execution of, the trust instrument, or to that attorney's firm,
for legal services rendered to the protector.

(4)
Should compensation for the protector change, beneficiaries must be
notified.

(5)
Subject to section 5818.36 of the Revised Code, a protector may
remove trust officeholders unless otherwise restricted by the term of
the trust.

(C)
For the purposes of sections 5818.34 to 5818.37 of the Revised Code:

(1)
An attorney is deemed to have prepared, or supervised the execution
of, a trust instrument if the preparation, or supervision of the
execution, of the trust instrument was performed by an employee or
other attorney employed by the same firm as the attorney at the time
the trust instrument was executed.

(2)
A person is related to an individual if, at the time the attorney
prepared, or supervised the execution of, the trust instrument, the
person is any of the following:

(a)
A spouse of the individual;

(b)
A lineal ascendant or descendant of the individual;

(c)
A sibling of the individual;

(d)
A person related to the individual or the individual's spouse by
consanguinity or affinity, with whom the individual maintains a
close, familial relationship;

(e)
A spouse of a person described in division (C)(2)(d) of this section;

(f)
A person who cohabitates with the individual;

(g)
An employee or attorney employed by the same firm as the individual
at the time the trust instrument is executed.

(3)
An attorney that prepared, or supervised the execution of, the trust
instrument, or a person related to that attorney, is deemed to have
been appointed as protector in the trust instrument when any of the
following apply:

(a)
The trust instrument vests the power of direction in the attorney or
a person related to the attorney.

(b)
The trust instrument vests the power of direction in the attorney, or
a person related to the attorney, in the event that another person
designated as protector is unable or unwilling to accept the
designation.

(c)
The trust instrument vests the attorney, or a person related to the
attorney, with the power to appoint a protector, and the appointed
protector vests the power of direction in the attorney or a person
related to the attorney.

Sec.
5818.35.
(A)
A settlor shall execute a written statement acknowledging that the
disclosures required under section 5818.34 of the Revised Code were
made prior to executing the trust instrument. The written statement
shall be made in a separate writing from the trust instrument but may
be annexed to the trust instrument. The written statement may be
executed before or after the execution of the trust appointing the
attorney that prepared, or supervised the execution of, the trust
instrument, or a person related to that attorney.

(B)
The written statement executed under division (A) of this section
must be in substantially the following form:

"I,
________, declare that:

I
have designated my attorney, an attorney employed in the same law
firm as my attorney, or a person related to my attorney as a
protector in my trust instrument dated _________________.

Before
executing the trust, I was informed of all of the following:

(1)
Unless specifically disqualified by the terms of the trust, any
person, including a family member or friend, is eligible to serve as
a protector.

(2)
Any person, including an attorney, who serves as a protector is
entitled to receive reasonable compensation for serving as protector.

(3)
Compensation payable to the protector is in addition to any
attorney's fees payable to the attorney that prepared, or supervised
the execution of, the trust instrument, or to that attorney's firm,
for legal services rendered to the protector.

(4)
Should compensation for the protector change, beneficiaries must be
notified;

(5)
Subject to section 5818.36 of the Revised Code, a protector may
remove trust officeholders unless otherwise restricted by the term of
the trust.

Settlor
signature: _________

Settlor
name: _________

Date:
_________"

(C)
The failure to obtain a written statement under division (B) of this
section does not affect the validity of a trust instrument.

Sec.
5818.36.
(A)
An attorney that prepared, or supervised the execution of, the trust
instrument and is serving as protector of that trust that seeks to
remove a trustee of the trust shall file a petition in a court of
competent jurisdiction.

(B)
Upon a finding by the court that the attorney has shown good cause,
an attorney subject to division (A) of this section may remove the
trustee.

(C)
An attorney subject to division (A) of this section shall not remove
any trustee of the trust if the court has not issued a finding of
good cause.

Sec.
5818.37.
Except
as provided in division (A) of section 5818.34 of the Revised Code,
nothing in section 5818.34 or 5818.35 of the Revised Code shall be
construed to limit any rights or remedies that any interested person
may have at law or equity.

Section
2.
That
existing sections 1336.04, 1336.05, 1336.09, 1337.34, 1337.36,
1337.42, 1337.52
,
2109.21, 2113.06
,
2117.02
,
5301.071
,
5701.11, 5801.04, 5801.07, 5806.02, 5806.03, 5808.19, 5810.08,
5812.43, 5815.25, and 5816.11 of the Revised Code are hereby
repealed.

Section
3.
That
section 5808.08 of the Revised Code is hereby repealed.