Kim Cutler is an OSBA Certified Specialist in Estate Planning, Trusts and Probate Law

Ohio Trust, Estate Planning and Probate Attorneys

On Jan. 1, 2007, there was a new set of rules that took effect, called the Ohio Trust Code, for all trusts in the state. Some very important notice provisions make trust agreements less confidential than they once were. A trust agreement will also become less attainable by financial institutions or other entities since trustees can now provide a certification of trust instead of the trust agreement to show that he/she as trustee has the authority to take action for the trust. These entities can only request a copy of a trust if they have a good-faith reason for doing so. Finally, the code provides ways for quicker trust administration.

What will be required under the code? The notification and information requirements are much stricter than before. As it stood before 2007, Ohio law only required a trustee to provide certain trust beneficiaries with trust information, if they request it, every six months. Starting Jan. 1, 2007, a trustee is required to provide information any time it is requested by certain groups of beneficiaries, unless the trust maker overrides this requirement in the trust document. The trustee still will have the authority to delay providing this information if it is unreasonable under the circumstances.

Provide copies

Under the code, trust agreements will become much less confidential than they once were. If a beneficiary of your trust requests a copy of the trust, the trustee is required to provide him/her with a copy, even if this beneficiary is a remote beneficiary whose receipt of trust property depends on the happening of a certain event. For example, if a spouse is the

current beneficiary and the children arethe future beneficiaries, a child could request a copy of the trust document at any time. This beneficiary could also request an annual financial report from the trust, and the trustee would be required to provide it.

There are many notification and informational provisions within the code in addition to the above. Some of these provisions can be overridden in your trust so that the information does not have to be provided. If you presently have a trust, it is unlikely that these notification and informational items are covered in your trust. If you do not wish to have these required notices apply, you must amend the trust accordingly.

Certification accepted

Although the trustee's job is more difficult for notification requirements, the code makes a trustee's job easier in other ways. For example, the code now allows for a certification of trust. The trustee can furnish this certification instead of a full copy of the trust to persons, including banks, requiring the trustee to prove that he/she is the trustee and has the required authority under the trust instrument. This certificate gives the name of the trust maker, the name and address of the trustee, the powers of the trustee, etc. If a person, including a bank, still requires the trust instrument, he/she must have a good faith basis for doing so.

The trustee's job can also become shorter with the new trust termination provision. Prior to the trust code change, Ohio law allowed a trustee to terminate a trust with assets under the amount of $100,000 and meeting certain other conditions only after court approval. The code changes this rule by allowing a trustee to close down a trust with assets under the amount of $100,000 without court approval if the trust meets certain other conditions.

The Ohio Trust Code will make trust administration more complex in some ways and simpler in others. Trusts have become more popular as many people have taken steps to avoid probate. You should see your attorney to set up your new trust correctly or to make certain that your already existent trust will be administered properly.