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.
HB446 is a broad trust-and-probate modernization bill. It revises Ohio’s fraudulent transfer statutes to clarify when transfers made before or after a creditor’s claim can be challenged, including special rules for transfers connected to a debtor’s death. It also updates power-of-attorney provisions by strengthening an agent’s fiduciary duties, clarifying when an agent may act with respect to trusts and beneficiary designations, and expanding who may petition a court to review an agent’s conduct.
A major portion of the bill creates a new Ohio Trust Protector and Directed Trust Act. That new chapter authorizes the use of trust protectors, defines their powers and duties, sets rules for directed trusts and trust directives, and establishes liability standards, removal procedures, compensation rules, and information-sharing limits between trustees and protectors. The bill also amends existing trust code provisions on revocable trusts, trustee duties, tax reimbursement, administrative fiduciaries, and legacy trusts, while adding or clarifying rules on beneficiary notice, trust administration, and the effect of exculpatory clauses.
The bill’s impact on state law is substantial because it would add an entirely new framework for directed trusts and trust protectors while also revising several existing chapters governing powers of attorney, estates, and trusts. It would affect trustees, protectors, agents under powers of attorney, settlors, beneficiaries, probate practitioners, and creditors. In practical terms, it gives Ohio trust instruments more flexibility, especially for sophisticated estate planning, tax planning, and asset administration, while also setting boundaries on fiduciary misconduct and court oversight.
The general sentiment reflected by the bill’s structure is pro-estate-planning and pro-flexibility. Although there are no committee transcripts or recorded votes in the provided materials, the bill’s language strongly favors freedom of disposition, private ordering, and the enforceability of trust terms. At the same time, it preserves judicial remedies and liability for bad faith, reckless conduct, and willful misconduct, suggesting an attempt to balance autonomy with accountability.
The main points of contention likely concern the expanded authority given to trust protectors and agents, the reduced or limited duties in some circumstances, and the degree to which trust terms can override default statutory protections. Potential concerns include whether beneficiaries will have enough transparency, whether directed trusts could complicate accountability, and whether the bill’s retroactive or broad applicability could affect existing estate plans. Creditors and parties concerned about abuse of transfers or fiduciary powers may also focus on the bill’s interaction with fraudulent transfer rules and exculpatory provisions.
HB446 would amend multiple sections of the Ohio Revised Code governing fraudulent transfers, powers of attorney, probate claims, trust administration, revocable trusts, fiduciary duties, tax reimbursement, and legacy trusts, while repealing section 5808.08 and enacting a new Chapter 5818 on trust protectors and directed trusts. It would create new statutory authority for protectors to direct trustees, define fiduciary and nonfiduciary roles, establish liability and removal standards, and set rules for trust directives, notice, compensation, and information-sharing. The bill would directly affect trustees, protectors, agents, settlors, beneficiaries, creditors, and probate courts, and would give trust instruments greater ability to customize administration and governance.
No committee testimony or vote history was provided, so there is no recorded public debate to summarize. Based on the bill text alone, the measure appears generally favorable to estate-planning flexibility, private trust design, and clearer fiduciary rules. The bill also includes safeguards against bad faith and willful misconduct, indicating an effort to make the changes acceptable to both planners and oversight-minded stakeholders.
The likely areas of contention are the breadth of authority granted to trust protectors and agents, the extent to which trust terms can limit duties or liability, and the reduced monitoring and disclosure obligations in some circumstances. Beneficiaries may be concerned about transparency and accountability, while creditors may focus on the fraudulent transfer amendments and the bill’s treatment of transfers connected to death. Practitioners may also debate whether the new directed-trust framework creates clarity or adds complexity, especially where protectors, trustees, and advisors have overlapping powers.