5801.10 Agreement among interested parties regarding trust matters.
(A) As used in this section, “creditor” means any of the following:
(1) A person holding a debt or security for a debt entered into by a trustee on behalf of the trust;
(2) A person holding a debt secured by one or more assets of the trust;
(3) A person having a claim against the trustee or the assets of the trust under section 5805.06 of the Revised Code;
(4) A person who has attached through legal process a beneficiary’s interest in the trust.
(B) The parties to an agreement under this section shall be all of the following, or their representatives under the representation provisions of Chapter 5803. of the Revised Code, except that only the settlor and any trustee are required to be parties to an amendment of any revocable trust:
(1) The settlor if living and if no adverse income or transfer tax results would arise from the settlor’s participation;
(2) All beneficiaries;
(3) All currently serving trustees;
(4) Creditors, if their interest is to be affected by the agreement.
(C) The persons specified in division (B) of this section may by written instrument enter into an agreement with respect to any matter concerning the construction of, administration of, or distributions under the terms of the trust , the investment of income or principal held by the trustee, or other matters. The agreement may not effect a termination of the trust before the date specified for the trust’s termination in the terms of the trust , change the interests of the beneficiaries in the trust except as necessary to effect a modification described in division (C)(5) or (6) of this section, or include terms and conditions that could not be properly approved by the court under Chapters 5801. to 5811. of the Revised Code or other applicable law. The invalidity of any provision of the agreement does not affect the validity of other provisions of the agreement. Matters that may be resolved by a private settlement agreement include, but are not limited to, all of the following:
(1) Determining classes of creditors, beneficiaries, heirs, next of kin, or other persons;
(2) Resolving disputes arising out of the administration or distribution under the terms of the trust , including disputes over the construction of the language of the trust instrument or construction of the language of other writings that affect the terms of the trust ;
(3) Granting to the trustee necessary or desirable powers not granted in the terms of the trust or otherwise provided by law, to the extent that those powers either are not inconsistent with the express provisions or purposes of the terms of the trust or, if inconsistent with the express provisions or purposes of the terms of the trust , are necessary for the due administration of the terms of the trust ;
(4) Modifying the terms of the trust , if the modification is not inconsistent with any dominant purpose or objective of the trust;
(5) Modifying the terms of the trust in the manner required to qualify the gift under the terms of the trust for the charitable estate or gift tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by the Internal Revenue Code and regulations promulgated under it in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;
(6) Modifying the terms of the trust in the manner required to qualify any gift under the terms of the trust for the estate tax marital deduction available to noncitizen spouses, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the Internal Revenue Code and regulations promulgated under it in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;
(7) Resolving any other matter that arises under Chapters 5801. to 5811. of the Revised Code.
(D) No agreement shall be entered into under this section affecting the rights of a creditor without the creditor’s consent or affecting the collection rights of federal, state, or local taxing authorities.
(E) Any agreement entered into under this section that complies with the requirements of division (C) of this section shall be final and binding on the trustee, the settlor if living, all beneficiaries, creditors who are parties to the agreement, and their heirs, successors, and assigns.
(F) Notwithstanding anything in this section, in division (D) of section 5803.03 of the Revised Code, or in any other rule of law to the contrary, a trustee serving under the terms of the trust shall only represent its own individual or corporate interests in negotiating or entering into an agreement subject to this section. No trustee serving under the terms of the trust shall be considered to represent any settlor, beneficiary, or the interests of any settlor or beneficiary in negotiating or entering into an agreement subject to this section.
(G) Any party to a private settlement agreement entered into under this section may request the court to approve the agreement, to determine whether the representation as provided in Chapter 5803. of the Revised Code was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
(H) If an agreement entered into under this section contains a provision requiring binding arbitration of any disputes arising under the agreement, the provision is enforceable.
(I) Nothing in this section affects any of the following:
(1) The right of a beneficiary to disclaim under section 5815.36 of the Revised Code;
(2) The termination or modification of a trust under section 5804.10, 5804.11, 5804.12, 5804.13, 5804.14, 5804.15, or 5804.16 of the Revised Code;
(3) The ability of a trustee to divide or consolidate a trust under section 5804.17 of the Revised Code.
(J) Nothing in this section restricts or limits the jurisdiction of any court to dispose of matters not covered by agreements under this section or to supervise the acts of trustees appointed by that court.
(K) This section shall be liberally construed to favor the validity and enforceability of agreements entered into under it.
(L) A trustee serving under the trust instrument is not liable to any third person arising from any loss due to that trustee’s actions or inactions taken or omitted in good faith reliance on the terms of an agreement entered into under this section.
(M) This section does not apply to any of the following:
(1) A charitable trust that has one or more charitable organizations as qualified beneficiaries;
(2) A charitable trust the terms of which authorize or direct the trustee to distribute trust income or principal to one or more charitable organizations to be selected by the trustee, or for one or more charitable purposes described in division (A) of section 5804.05 of the Revised Code, if any of the following apply:
(a) The distributions may be made on the date that an agreement under this section would be entered into.
(b) The distributions could be made on the date that an agreement under this section would be entered into if the interests of the current beneficiaries of the trust terminated on that date, but the termination of those interests would not cause the trust to terminate.
(c) The distributions could be made on the date that an agreement under this section would be entered into if the trust terminated on that date.
5801.10 Agreement among interested parties regarding trust matters.
(A) As used in this section, “creditor” means any of the following:
(1) A person holding a debt or security for a debt entered into by a trustee on behalf of the trust;
(2) A person holding a debt secured by one or more assets of the trust;
(3) A person having a claim against the trustee or the assets of the trust under section 5805.06 of the Revised Code;
(4) A person who has attached through legal process a beneficiary’s interest in the trust.
(B) The parties to an agreement under this section shall be all of the following, or their representatives under the representation provisions of Chapter 5803. of the Revised Code, except that only the settlor and any trustee are required to be parties to an amendment of any revocable trust:
(1) The settlor if living and if no adverse income or transfer tax results would arise from the settlor’s participation;
(2) All beneficiaries;
(3) All currently serving trustees;
(4) Creditors, if their interest is to be affected by the agreement.
(C) The persons specified in division (B) of this section may by written instrument enter into an agreement with respect to any matter concerning the construction of, administration of, or distributions under the terms of the trust , the investment of income or principal held by the trustee, or other matters. The agreement may not effect a termination of the trust before the date specified for the trust’s termination in the terms of the trust , change the interests of the beneficiaries in the trust except as necessary to effect a modification described in division (C)(5) or (6) of this section, or include terms and conditions that could not be properly approved by the court under Chapters 5801. to 5811. of the Revised Code or other applicable law. The invalidity of any provision of the agreement does not affect the validity of other provisions of the agreement. Matters that may be resolved by a private settlement agreement include, but are not limited to, all of the following:
(1) Determining classes of creditors, beneficiaries, heirs, next of kin, or other persons;
(2) Resolving disputes arising out of the administration or distribution under the terms of the trust , including disputes over the construction of the language of the trust instrument or construction of the language of other writings that affect the terms of the trust ;
(3) Granting to the trustee necessary or desirable powers not granted in the terms of the trust or otherwise provided by law, to the extent that those powers either are not inconsistent with the express provisions or purposes of the terms of the trust or, if inconsistent with the express provisions or purposes of the terms of the trust , are necessary for the due administration of the terms of the trust ;
(4) Modifying the terms of the trust , if the modification is not inconsistent with any dominant purpose or objective of the trust;
(5) Modifying the terms of the trust in the manner required to qualify the gift under the terms of the trust for the charitable estate or gift tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by the Internal Revenue Code and regulations promulgated under it in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;
(6) Modifying the terms of the trust in the manner required to qualify any gift under the terms of the trust for the estate tax marital deduction available to noncitizen spouses, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the Internal Revenue Code and regulations promulgated under it in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;
(7) Resolving any other matter that arises under Chapters 5801. to 5811. of the Revised Code.
(D) No agreement shall be entered into under this section affecting the rights of a creditor without the creditor’s consent or affecting the collection rights of federal, state, or local taxing authorities.
(E) Any agreement entered into under this section that complies with the requirements of division (C) of this section shall be final and binding on the trustee, the settlor if living, all beneficiaries, creditors who are parties to the agreement, and their heirs, successors, and assigns.
(F) Notwithstanding anything in this section, in division (D) of section 5803.03 of the Revised Code, or in any other rule of law to the contrary, a trustee serving under the terms of the trust shall only represent its own individual or corporate interests in negotiating or entering into an agreement subject to this section. No trustee serving under the terms of the trust shall be considered to represent any settlor, beneficiary, or the interests of any settlor or beneficiary in negotiating or entering into an agreement subject to this section.
(G) Any party to a private settlement agreement entered into under this section may request the court to approve the agreement, to determine whether the representation as provided in Chapter 5803. of the Revised Code was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
(H) If an agreement entered into under this section contains a provision requiring binding arbitration of any disputes arising under the agreement, the provision is enforceable.
(I) Nothing in this section affects any of the following:
(1) The right of a beneficiary to disclaim under section 5815.36 of the Revised Code;
(2) The termination or modification of a trust under section 5804.10, 5804.11, 5804.12, 5804.13, 5804.14, 5804.15, or 5804.16 of the Revised Code;
(3) The ability of a trustee to divide or consolidate a trust under section 5804.17 of the Revised Code.
(J) Nothing in this section restricts or limits the jurisdiction of any court to dispose of matters not covered by agreements under this section or to supervise the acts of trustees appointed by that court.
(K) This section shall be liberally construed to favor the validity and enforceability of agreements entered into under it.
(L) A trustee serving under the trust instrument is not liable to any third person arising from any loss due to that trustee’s actions or inactions taken or omitted in good faith reliance on the terms of an agreement entered into under this section.
(M) This section does not apply to any of the following:
(1) A charitable trust that has one or more charitable organizations as qualified beneficiaries;
(2) A charitable trust the terms of which authorize or direct the trustee to distribute trust income or principal to one or more charitable organizations to be selected by the trustee, or for one or more charitable purposes described in division (A) of section 5804.05 of the Revised Code, if any of the following apply:
(a) The distributions may be made on the date that an agreement under this section would be entered into.
(b) The distributions could be made on the date that an agreement under this section would be entered into if the interests of the current beneficiaries of the trust terminated on that date, but the termination of those interests would not cause the trust to terminate.
(c) The distributions could be made on the date that an agreement under this section would be entered into if the trust terminated on that date.
5801.10 Agreement among interested parties regarding trust matters.
(A) As used in this section, “creditor” means any of the following:
(1) A person holding a debt or security for a debt entered into by a trustee on behalf of the trust;
(2) A person holding a debt secured by one or more assets of the trust;
(3) A person having a claim against the trustee or the assets of the trust under section 5805.06 of the Revised Code;
(4) A person who has attached through legal process a beneficiary’s interest in the trust.
(B) The parties to an agreement under this section shall be all of the following, or their representatives under the representation provisions of Chapter 5803. of the Revised Code, except that only the settlor and any trustee are required to be parties to an amendment of any revocable trust:
(1) The settlor if living and if no adverse income or transfer tax results would arise from the settlor’s participation;
(2) All beneficiaries;
(3) All currently serving trustees;
(4) Creditors, if their interest is to be affected by the agreement.
(C) The persons specified in division (B) of this section may by written instrument enter into an agreement with respect to any matter concerning the construction of, administration of, or distributions under the terms of the trust , the investment of income or principal held by the trustee, or other matters. The agreement may not effect a termination of the trust before the date specified for the trust’s termination in the terms of the trust , change the interests of the beneficiaries in the trust except as necessary to effect a modification described in division (C)(5) or (6) of this section, or include terms and conditions that could not be properly approved by the court under Chapters 5801. to 5811. of the Revised Code or other applicable law. The invalidity of any provision of the agreement does not affect the validity of other provisions of the agreement. Matters that may be resolved by a private settlement agreement include, but are not limited to, all of the following:
(1) Determining classes of creditors, beneficiaries, heirs, next of kin, or other persons;
(2) Resolving disputes arising out of the administration or distribution under the terms of the trust , including disputes over the construction of the language of the trust instrument or construction of the language of other writings that affect the terms of the trust ;
(3) Granting to the trustee necessary or desirable powers not granted in the terms of the trust or otherwise provided by law, to the extent that those powers either are not inconsistent with the express provisions or purposes of the terms of the trust or, if inconsistent with the express provisions or purposes of the terms of the trust , are necessary for the due administration of the terms of the trust ;
(4) Modifying the terms of the trust , if the modification is not inconsistent with any dominant purpose or objective of the trust;
(5) Modifying the terms of the trust in the manner required to qualify the gift under the terms of the trust for the charitable estate or gift tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by the Internal Revenue Code and regulations promulgated under it in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;
(6) Modifying the terms of the trust in the manner required to qualify any gift under the terms of the trust for the estate tax marital deduction available to noncitizen spouses, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the Internal Revenue Code and regulations promulgated under it in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;
(7) Resolving any other matter that arises under Chapters 5801. to 5811. of the Revised Code.
(D) No agreement shall be entered into under this section affecting the rights of a creditor without the creditor’s consent or affecting the collection rights of federal, state, or local taxing authorities.
(E) Any agreement entered into under this section that complies with the requirements of division (C) of this section shall be final and binding on the trustee, the settlor if living, all beneficiaries, creditors who are parties to the agreement, and their heirs, successors, and assigns.
(F) Notwithstanding anything in this section, in division (D) of section 5803.03 of the Revised Code, or in any other rule of law to the contrary, a trustee serving under the terms of the trust shall only represent its own individual or corporate interests in negotiating or entering into an agreement subject to this section. No trustee serving under the terms of the trust shall be considered to represent any settlor, beneficiary, or the interests of any settlor or beneficiary in negotiating or entering into an agreement subject to this section.
(G) Any party to a private settlement agreement entered into under this section may request the court to approve the agreement, to determine whether the representation as provided in Chapter 5803. of the Revised Code was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
(H) If an agreement entered into under this section contains a provision requiring binding arbitration of any disputes arising under the agreement, the provision is enforceable.
(I) Nothing in this section affects any of the following:
(1) The right of a beneficiary to disclaim under section 5815.36 of the Revised Code;
(2) The termination or modification of a trust under section 5804.10, 5804.11, 5804.12, 5804.13, 5804.14, 5804.15, or 5804.16 of the Revised Code;
(3) The ability of a trustee to divide or consolidate a trust under section 5804.17 of the Revised Code.
(J) Nothing in this section restricts or limits the jurisdiction of any court to dispose of matters not covered by agreements under this section or to supervise the acts of trustees appointed by that court.
(K) This section shall be liberally construed to favor the validity and enforceability of agreements entered into under it.
(L) A trustee serving under the trust instrument is not liable to any third person arising from any loss due to that trustee’s actions or inactions taken or omitted in good faith reliance on the terms of an agreement entered into under this section.
(M) This section does not apply to any of the following:
(1) A charitable trust that has one or more charitable organizations as qualified beneficiaries;
(2) A charitable trust the terms of which authorize or direct the trustee to distribute trust income or principal to one or more charitable organizations to be selected by the trustee, or for one or more charitable purposes described in division (A) of section 5804.05 of the Revised Code, if any of the following apply:
(a) The distributions may be made on the date that an agreement under this section would be entered into.
(b) The distributions could be made on the date that an agreement under this section would be entered into if the interests of the current beneficiaries of the trust terminated on that date, but the termination of those interests would not cause the trust to terminate.
(c) The distributions could be made on the date that an agreement under this section would be entered into if the trust terminated on that date.
