To amend sections 2127.38 and 5721.10 of the Revised Code to amend the law related to fees for the administration of a probate estate.
Summary
HB55 amends Ohio law governing how proceeds from a court-ordered sale of real property in a probate or guardianship matter are distributed. The bill revises section 2127.38 to clarify and expand when probate courts may authorize payment of costs, expenses, and attorney fees from sale proceeds before liens are paid, including in insolvent estates or when the estate’s remaining assets are insufficient to cover administration costs for the entire estate. It also preserves the existing priority structure for taxes, mortgages, judgments, legacies, and estate debts, while reaffirming that any surplus proceeds are treated as real property for legal purposes.
The bill also makes a related change to section 5721.10, the state’s delinquent tax lien and foreclosure statute, by cross-referencing the probate-sale provisions and preserving the state’s first lien for delinquent taxes except where other statutes apply. In practical terms, the measure is aimed at aligning tax-foreclosure rules with probate administration rules so that court-approved probate expenses can be paid ahead of certain liens in specified circumstances. The bill is narrowly focused on estate administration and lien priority rather than broadly changing probate procedure.
Impact
HB55 would amend two sections of the Revised Code: section 2127.38, which governs distribution of proceeds from sales of real property by executors, administrators, or guardians, and section 5721.10, which governs the state’s lien and foreclosure authority for delinquent taxes. The main legal effect is to give probate courts clearer authority to prioritize certain administration costs and attorney fees from sale proceeds, including additional estate-wide administration expenses when the estate is insolvent or underfunded. It also adjusts the interaction between probate sales and tax lien enforcement by preserving the state’s tax lien framework while recognizing the probate-sale priority rules in the amended section.
Sentiment
The available voting history suggests the bill was broadly supported and noncontroversial. It received unanimous favorable passage in the House Judiciary Committee and passed the House 95-0, then later received unanimous favorable passage in the Senate committee and passed the Senate 32-0. No committee transcripts were provided, but the unanimous votes indicate general agreement that the bill is a technical or clarifying change to probate and tax-lien law rather than a politically divisive measure.
Contention
No significant opposition is reflected in the provided record. The only potentially sensitive issue is the bill’s expansion of the circumstances in which probate administration costs and attorney fees may be paid ahead of liens, which could affect lienholders, including mortgagees and other creditors, by reducing the amount available to satisfy their claims in some insolvent or underfunded estates. However, the unanimous committee and floor votes suggest that any such concern did not rise to a level of recorded contention during consideration.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
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