Ohio § 5816.08
Full text of Ohio Ohio Revised Code § 5816.08, with citation guidance and answers to common questions.
§ 5816.08.
All of the following apply in connection with any action brought pursuant to this
section or division (A) of section 5816.07 of the Revised Code : (A) If a qualified disposition is wholly or partially avoided, all of the following apply: (1) That specific qualified disposition shall be avoided only to the extent necessary
to satisfy a transferor's debt to the creditor who brought the action pursuant to division (A) of section 5816.07 of the Revised Code , and any part of the qualified disposition that is not used to satisfy that debt
shall remain subject to the legacy trust in question. (2) All other qualified dispositions to any trustee of the legacy trust in question,
including, but not limited to, any qualified disposition of a partial, co-ownership,
or undivided interest in property by a transferor other than the transferor whose
qualified disposition is avoided, together with the legacy trust itself, shall remain
valid and effective. (3) If the court is satisfied that a trustee has not acted in bad faith in accepting
or administering the property that is the subject of the avoided qualified disposition,
all of the following apply: (a) The trustee shall have a first and paramount lien against the property that is the
subject of the qualified disposition in an amount equal to the entire cost, including
attorney's fees, properly incurred by the trustee in the defense of the action or
proceedings to avoid the qualified disposition. (b) The qualified disposition shall be avoided subject to the proper fees, costs, and
pre-existing rights, claims, and interests of the trustee and of any predecessor trustee
that has not acted in bad faith. (c) For purposes of division (A)(3) of this section, no trustee shall be considered to
have acted in bad faith merely because the trustee accepted the property that is the
subject of the qualified disposition. (4) If the court is satisfied that a beneficiary of a legacy trust has not acted in bad
faith in receiving a distribution from that trust, the avoidance of the qualified
disposition shall be subject to the right of the beneficiary to retain that distribution
if the distribution was made upon the exercise of a trust power or discretion vested
in a trustee or advisor and that power or discretion was exercised prior to the creditor's
commencement of the action to avoid the qualified disposition. For purposes of division (A)(4) of this section, no beneficiary, including a beneficiary
who is also a transferor of the trust, shall be considered to have acted in bad faith
merely because the beneficiary accepted a distribution made in accordance with the
terms of the trust instrument. (5) A creditor has the burden of proving by clear and convincing evidence that a trustee
or a beneficiary acted in bad faith under division (A)(3) or (4) of this section. Division (A)(5) of this section is construed as providing a substantive rather than
a procedural rule or right under the law of this state. (B) The court shall award reasonable attorney's fees and costs to any prevailing party
in any final judgment rendered in any action wholly or partially brought under this
section or division (A) of section 5816.07 of the Revised Code .
Frequently Asked Questions About Ohio § 5816.08
What does Ohio Revised Code § 5816.08 cover?
Section 5816.08 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Ohio § 5816.08?
A common citation format is "Ohio Revised Code § 5816.08" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 5816.08 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.