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Delegation, agents and professionals under Ohio law

A trustee need not do everything personally. This guide explains what the Ohio Trust Code lets a trustee delegate and to whom, the care the statute attaches, and how an instrument may give others powers — as the statute states it.

The office · 5 min read

What may be delegated, and the care owed

R.C. 5808.07(A) provides that a trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances, exercising reasonable care, skill and caution in selecting the agent, cotrustee or other fiduciary, in establishing the scope and terms of the delegation consistent with the trust's purposes and terms, and in periodically reviewing the delegate's actions to monitor performance and compliance. The delegate owes the trust a duty of reasonable care to comply with the delegation's terms and submits to Ohio's jurisdiction by accepting; a trustee who complies is not liable for the delegate's decisions or actions (R.C. 5808.07(B) to (D)). Investment and management functions are delegated the same way (R.C. 5809.06).

Employing professionals

Among the trustee's specific powers is the power to employ agents, attorneys, accountants, investment advisors and other professionals (R.C. 5808.16(AA)), and to pay their compensation and the expenses of the administration (R.C. 5808.16(O)); a trustee incurs only costs appropriate and reasonable in relation to the assets, the purposes and the trustee's skills (R.C. 5808.05). Expenses properly incurred are reimbursed from the trust (R.C. 5807.09). A payment to the trustee's own agent or attorney for trust property is presumed a conflicted transaction (R.C. 5808.02(C)(3)).

Powers held by others under the instrument

Where the instrument reserves to the grantor, or vests in an advisory or investment committee or another person, a power such as directing investments to the trustee's exclusion, the excluded fiduciary is not liable for a loss from complying with an authorized direction or from failing to act where it timely sought but did not obtain the required authorization (R.C. 5815.25(C)); an administrative fiduciary confined to the administrative duties the instrument names has no other duties (R.C. 5815.25(B)). A person other than a beneficiary who holds a power to direct is presumptively a fiduciary (R.C. 5808.08(D)). Ohio has no directed trust act; how a particular instrument divides the work is a question for a licensed Ohio attorney of your choosing.

The statutes, verbatim

  • Delegation of powers and duties

    R.C. 5808.07 ↗

    Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

  • Specific powers of trustee

    R.C. 5808.16 ↗

    Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

  • Delegation of investment and management functions

    R.C. 5809.06 ↗

    Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

  • Administrative duties and responsibilities of trust; exclusion of fiduciaries

    R.C. 5815.25 ↗

    Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Can an Ohio trustee hire an accountant or attorney?

Yes. A trustee may employ agents, attorneys, accountants, investment advisors and other professionals (R.C. 5808.16(AA)) and pay their compensation from the trust (R.C. 5808.16(O)), incurring only costs appropriate and reasonable in relation to the trust (R.C. 5808.05).

Is an Ohio trustee liable for an agent's mistake?

A trustee who exercised reasonable care, skill and caution in selecting the agent, setting the terms and reviewing the agent's actions is not liable to the beneficiaries or the trust for the agent's decisions or actions (R.C. 5808.07(C); R.C. 5809.06(C)).

What is an excluded fiduciary in Ohio?

A fiduciary whose instrument gives the grantor, a committee or another person a power — such as directing investments — to the fiduciary's exclusion; the excluded fiduciary is not liable for a loss from complying with an authorized direction (R.C. 5815.25(C)).

Related reading

Check where you stand

The Learning Center is general information about Ohio law — not legal advice, and not a substitute for advice from a licensed Ohio attorney about your specific facts. TrusteeClear is software, not a law firm.

Frequently asked questions

Can an Ohio trustee hire an accountant or attorney?
Yes. A trustee may employ agents, attorneys, accountants, investment advisors and other professionals (R.C. 5808.16(AA)) and pay their compensation from the trust (R.C. 5808.16(O)), incurring only costs appropriate and reasonable in relation to the trust (R.C. 5808.05).
Is an Ohio trustee liable for an agent's mistake?
A trustee who exercised reasonable care, skill and caution in selecting the agent, setting the terms and reviewing the agent's actions is not liable to the beneficiaries or the trust for the agent's decisions or actions (R.C. 5808.07(C); R.C. 5809.06(C)).
What is an excluded fiduciary in Ohio?
A fiduciary whose instrument gives the grantor, a committee or another person a power — such as directing investments — to the fiduciary's exclusion; the excluded fiduciary is not liable for a loss from complying with an authorized direction (R.C. 5815.25(C)).

General information about Ohio law, not legal advice.