Bar association backs trust-protector and directed-trust modernization in HB446

Brian Lehman, immediate past chair of the Ohio State Bar Association's Estate Planning, Trust and Probate Law Section, testified in favor of House Bill 446, which would enact the Trust Protector and Directed Trust Act in Ohio.

Lehman said the proposal updates Ohio trust law to reflect modern trust drafting: it treats trust protectors as fiduciaries unless a trust explicitly provides otherwise, clarifies standards of authority and liability among trustees, protectors and beneficiaries, creates minimum liability thresholds for non-fiduciary protectors, permits trustee reimbursement for trust-related income taxes, and clarifies that trustees are not required to move a trust's situs out of Ohio. The bill also aims to promote finality in probate administration by clarifying time limits on claims and reverses a prior court decision to prevent certain trust provisions from lapsing when a beneficiary predeceases a grantor.

Lehman framed the measure as a consensus-built modernization designed to reduce litigation, lower administration costs and provide clarity for families and fiduciaries. The committee heard this testimony during the session’s bill hearings and accepted the witness’s request for favorable consideration.