Ohio Uniform Trust Code

An article in the Sept./Oct. Probate Law Journal of Ohio overviews key provisions of the Ohio Uniform Trust Code, still in embryonic form at this time. Adoption of the OUTC is intended to constitute a comprehensive codification of trust law in Ohio.

The article cites three principal areas for discussion. First is a trustee’s duty to inform. Under the new provisions “a new trustee must notify current beneficiaries of its acceptance of trusteeship and the trustee’s name, address, and telephone number within 60 days.”

Trustees will no longer be able to maintain a settlor’s desire for complete secrecy, the OUTC seeming to favor a beneficiary’s right to information over the settlor’s intent. OUTC will, however, allow the settlor to waive or modify mandatory notice provisions if a “’beneficiary surrogate’ to receive notices, reports or other information required to go to a current beneficiary is designated.”

The OUTC “allows for modification or termination of noncharitable irrevocable trusts if both settlor and beneficiaries consent, even if inconsistent with the material purpose of the trust.

The Ohio Bar Association has a draft copy of Trust Code posted, along with a corresponding report.

The ABA has a 2003 white paper entitled, “Enacting the Uniform Trust Code,” by Michelle Clayton, legislative counsel with the National Conference of Commissioners on Uniform State Laws, available online which promotes NCCUSL's trust code concept.