(A)¿¿Notwithstanding any other provision of law to the contrary, while acting as the fiduciary of a trust, a family trust company may do all of the following:

Terms Used In Ohio Code 1112.05

  • Affiliate: means any individual or entity controlling, controlled by, or under common control with a family trust company. See Ohio Code 1112.01
  • Another: when used to designate the owner of property which is the subject of an offense, includes not only natural persons but also every other owner of property. See Ohio Code 1.02
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Bond: includes an undertaking. See Ohio Code 1.02
  • Business entity: means a partnership, corporation, limited liability company, or other entity. See Ohio Code 1112.01
  • Contract: A legal written agreement that becomes binding when signed.
  • Control: means the power to direct or cause the direction of the management and policies of a business entity, whether through ownership of voting securities, by contract, or otherwise. See Ohio Code 1112.01
  • Family affiliate: means a business entity controlled by family members or affiliates. See Ohio Code 1112.01
  • Family member: means all of the following, provided that the designated relative is not more than ten generations removed from the youngest generation of family members:

    (a) All lineal descendants, including adopted children, stepchildren, foster children, and individuals who were a minor when another family member became a legal guardian of the individual, of the designated relative;

    (b) Such lineal descendants' spouses or spousal equivalents. See Ohio Code 1112.01

  • Family trust company: means a corporation or limited liability company organized under the laws of this state that meets all of the following requirements:

    (1)¿It is organized to serve only family clients. See Ohio Code 1112.01

  • Fiduciary: A trustee, executor, or administrator.
  • Grantor: The person who establishes a trust and places property into it.
  • Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
  • Personal property: All property that is not real property.

(1)¿Invest in a security of an investment company or investment trust for which the family trust company or a family affiliate provides services in a capacity other than as a fiduciary;

(2)¿Place a security transaction using a broker that is a family affiliate;

(3)¿Invest in an investment contract that is purchased from an insurance company or carrier owned by or affiliated with the family trust company or a family affiliate;

(4)¿Enter into an agreement with a beneficiary or grantor of a trust relative to the appointment or compensation of the fiduciary or a family affiliate;

(5)¿Transact with another trust, estate, guardianship, or conservatorship for which the family trust company is a fiduciary or in which a beneficiary has an interest;

(6)¿Make an equity investment in a nonpublicly traded entity that may or may not be marketable and that is owned or controlled, either directly or indirectly, by one or more beneficiaries, family members, or family affiliates;

(7)¿Deposit trust money in a financial institution that is owned or operated by a family affiliate;

(8)¿Delegate the authority to conduct any transaction or action under this section to an agent of the family trust company or a family affiliate;

(9)¿Purchase, sell, hold, own, or invest in any security, bond, real or personal property, stock, or other asset of a family affiliate;

(10)¿Loan money to or borrow money from a family member or the family member’s legal representative, another trust managed by the family trust company, or a family affiliate;

(11) Act as proxy in voting any shares of stock that are assets of the trust;

(12) Exercise any powers of control with respect to any interest in a business entity that is an asset of the trust, including, without limitation, the appointment of officers or directors who are family members;

(13) Receive reasonable compensation for its services.

(B) After full disclosure to the governing body of the family trust company is provided, nothing in this section prohibits a family trust company from entering into a transaction with or investing in any asset of any of the following:

(1) A trust, estate, guardianship, or conservatorship for which the family trust company is a fiduciary;

(2) A family affiliate;

(3) Any other business entity, agent, or person for which a conflict of interest may exist.

Last updated July 22, 2021 at 9:39 AM

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