Ohio § 5816.05

§ 5816.05.

A legacy trust may allow or provide for any or all of the following rights, powers,

interests, or provisions, none of which grants, or is considered to be, either alone

or in any combination, a right or power to revoke a trust or to voluntarily or involuntarily

transfer an interest in that trust: (A) A provision that, upon the happening of a defined event or a stated contingency,

results in the termination of a transferor's right to mandatory income or principal; (B) The power of a transferor to veto a distribution from the trust; (C) A power of appointment, other than a power to appoint to a transferor, a creditor

of the transferor, the estate of the transferor, or a creditor of the transferor's

estate, that is exercisable by will or by other written instrument of a transferor

effective upon the death of the transferor or during the lifetime of the transferor; (D) The right of a transferor to receive trust income as set forth in the trust instrument. (E) Both of the following: (1) A transferor's potential or actual receipt of income or principal from a charitable

remainder unitrust or charitable remainder annuity trust as those terms are defined

in section 664 of the Internal Revenue Code ; (2) The transferor's right, at any time and from time to time by written instrument delivered

to the trustee, to release the transferor's retained interest in that unitrust or

annuity trust, in whole or in part, in favor of one or more charitable organizations

that have a succeeding beneficial interest in that unitrust or annuity trust; (F) The power of a transferor to consume, invade, or appropriate property of the trust,

but only if limited in each calendar year to five per cent of the value of the trust

principal at the time of the exercise of the power; (G) A transferor's potential or actual receipt or use of principal or income of the trust

if the potential or actual receipt or use is or would be the result of any of the

following that applies with respect to one or more of the qualified trustees: (1) A qualified trustee's acting in the trustee's discretion.  For purposes of division (G)(1) of this section, a qualified trustee shall have

discretion with respect to the distribution or use of principal or income unless the

discretion is expressly denied to the trustee by the terms of the trust instrument. (2) A qualified trustee's acting pursuant to a standard in the trust instrument that

governs the distribution or use of principal or income; (3) A qualified trustee's acting at the direction of an advisor who is acting in the

advisor's discretion or pursuant to a standard in the trust instrument that governs

the distribution or use of principal or income.  If an advisor is authorized to direct that distribution or use, the advisor's authority

shall be discretionary unless otherwise expressly stated in the trust instrument. (H) The right of a transferor to remove any advisor and appoint a new advisor who satisfies

the eligibility criteria set forth in division (A) of section 5816.11 of the Revised Code ; (I) The right of a transferor to remove any trustee and appoint a new trustee; (J) A transferor's potential or actual use of real property or tangible personal property,

including, but not limited to, property held under a qualified personal residence

trust as described in section 2702(c) of the Internal Revenue Code and regulations promulgated under that section, or a transferor's possession and

enjoyment of a qualified interest as defined in section 2702(b) of the Internal Revenue Code ; (K) Any provision requiring or permitting the potential or actual use of trust income

or principal to pay, in whole or in part, income taxes due on the income of the trust,

including, but not limited to, any provision permitting that use in the discretion

of any one or more of the qualified trustees acting in the qualified trustee's discretion

or at the direction of an advisor who is acting in the advisor's discretion; (L) The ability of a qualified trustee, whether pursuant to the qualified trustee's discretion

or the terms of the legacy trust instrument or at the direction of an advisor, to

pay after the death of a transferor all or any part of the debts of the transferor

outstanding on or before the transferor's death, the expenses of administering the

transferor's estate, or any estate, gift, generation skipping transfer, or inheritance

tax; (M) Any provision that pours back after the death of a transferor all or part of the

trust property to the transferor's estate or any trust; (N) A power held by a transferor allowing the transferor, while acting in a nonfiduciary

capacity, to substitute property of equivalent value for any property that is part

of the principal of the legacy trust; (O) Any other rights, powers, interests, or provisions permitted or allowed by any other

section of this chapter.