The duty to inform and report under Ohio law

Keeping the current beneficiaries informed

R.C. 5808.13(A) provides that a trustee keeps the current beneficiaries reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests, and, unless unreasonable under the circumstances, promptly responds to a beneficiary's request for information related to the administration. On request the trustee promptly furnishes a copy of the trust instrument — a redacted copy limited to the provisions the trustee determines relevant to the beneficiary's interest, unless the beneficiary expressly requests the entire instrument, in which case the whole follows (R.C. 5808.13(B)(1)). Where the settlor completely restated the trust, the restated instrument is the one furnished.

The trustee's report: at least annually and at termination

R.C. 5808.13(C) provides that a trustee of a trust with a fiscal year ending on or after January 1, 2007 sends to the current beneficiaries, and to other beneficiaries who request it, at least annually and at the termination of the trust, a report of the trust property, liabilities, receipts and disbursements — including the source and amount of the trustee's compensation — a listing of the trust assets and, if feasible, their respective market values. On a vacancy in a trusteeship, unless a cotrustee remains in office, the former trustee sends a report for the period served; a personal representative or guardian may send it for a deceased or incapacitated trustee.

The statute prescribes contents, not a form. A testamentary trustee under the probate court accounts to the court as well, at least once in each two years, with vouchers and principal and income separately identified (R.C. 2109.303); R.C. 5808.13 applies to a testamentary trust whether or not it conflicts with Chapter 2109 (R.C. 2109.69(B)).

The waiver, the surrogate and the revocable period

A beneficiary may waive the right to a trustee's report or other information the section requires, and may withdraw a waiver previously given as to future reports and information (R.C. 5808.13(D)); the trustee may provide information to beneficiaries it is not required to inform (R.C. 5808.13(E)). The settlor may waive or modify the notices and the response to a current beneficiary who has attained twenty-five only by designating in the instrument one or more beneficiary surrogates, who receive the notices, information and reports in the beneficiary's place and act in good faith to protect that beneficiary's interests (R.C. 5801.04(B)(8), (9), (C)).

During the lifetime of the settlor of a revocable trust, whether or not the settlor has capacity to revoke, the duties under the section are owed exclusively to the settlor (R.C. 5808.13(G); R.C. 5806.03(A)).

The two-year period a report can start

R.C. 5810.05(A) provides that a beneficiary may not commence a proceeding against a trustee for breach of trust more than two years after the date the beneficiary, a representative or a beneficiary surrogate is sent a report that adequately discloses the existence of a potential claim for breach of trust and informs the recipient of the time allowed for commencing a proceeding. A report adequately discloses a potential claim if it provides sufficient information that the beneficiary knows, or should know, of it (R.C. 5810.05(B)). Where that rule does not apply, the proceeding is commenced within four years after the first of the trustee's removal, resignation or death, the termination of the beneficiary's interest, the termination of the trust, or the time the beneficiary knew or should have known of the breach (R.C. 5810.05(C)).

Whether a particular report adequately disclosed a claim, and when a period began, are questions a licensed Ohio attorney of your choosing answers from the report itself.

The statutes, verbatim

• Testamentary trustee rendering account

  R.C. 2109.303 ↗

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

• Trustee powers, duties, and relations - beneficiaries' rights

  R.C. 5801.04 ↗

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

• Keeping beneficiaries informed - requests - required reports

  R.C. 5808.13 ↗

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

• Limitations period for action against trustee

  R.C. 5810.05 ↗

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

Common questions

Frequently asked questions

Who receives an Ohio trustee's report?

The current beneficiaries — the distributees and permissible distributees of income or principal on the date of determination (R.C. 5801.01(F)) — and other beneficiaries who request it (R.C. 5808.13(C)), plus any beneficiary who has sent the trustee a request for notice (R.C. 5801.09(A)); a beneficiary surrogate the instrument designates receives it in a current beneficiary's place (R.C. 5801.04(C)).

What must an Ohio trustee's report contain?

The trust property, liabilities, receipts and disbursements, including the source and amount of the trustee's compensation, a listing of the trust assets and, if feasible, their respective market values (R.C. 5808.13(C)). No form is prescribed.

Can a beneficiary give up the report?

A beneficiary may waive the right to a trustee's report or other information and may withdraw the waiver as to future reports (R.C. 5808.13(D)). The settlor cannot waive the duties for a current beneficiary who has attained twenty-five except by naming a beneficiary surrogate in the instrument (R.C. 5801.04(B)(8), (9), (C)).

General information about Ohio law, not legal advice.