Disputes · 5 min read
The private settlement agreement
R.C. 5801.10 provides that two or more of the settlor (if living), the beneficiaries, the serving trustees and affected creditors — or their representatives under Chapter 5803 — may by written instrument agree on any matter concerning the construction, administration or distributions of the trust or the investment of its property: determining classes of persons, resolving disputes including over the instrument's language, granting the trustee powers, and modifying the terms where not inconsistent with a material purpose. The agreement may not terminate the trust before the date the terms specify or include terms a court could not approve; a trustee represents only its own interests in negotiating it; any party may ask the court to approve it (R.C. 5801.10(F), (G)).
The court, and arbitration
A court may intervene in the administration of a trust to the extent an interested person invokes its jurisdiction, and a proceeding may concern any matter of the administration, including a request for instructions and an action to declare rights (R.C. 5802.01). The probate division of the court of common pleas has concurrent jurisdiction over any action involving an inter vivos trust (R.C. 5802.03), and an action under the code is a civil action commenced by complaint (R.C. 5802.04). A provision in the terms requiring arbitration of disputes between beneficiaries and a fiduciary — other than over the instrument's validity — is enforceable (R.C. 5802.05), and a trustee may resolve a dispute by mediation or arbitration (R.C. 5808.16(W)). The court may award costs and attorney's fees as justice and equity require (R.C. 5810.04).
Closing the administration, and the remedies for breach
A trustee concluding an irrevocable trust's administration may use the optional process of R.C. 5801.22: a written notice and trustee's reports served on the necessary parties, a forty-five-day objection period, and, absent a timely objection, a bar of claims with the effect of a court's order settling a full account; a timely objection goes to the court or is resolved with the objector (R.C. 5801.22(D)). Where a beneficiary alleges a breach, the court may compel performance, enjoin, compel redress, order an accounting, appoint a special fiduciary, suspend or remove the trustee, reduce compensation or order other relief (R.C. 5810.01); the trustee is liable for the greater of the loss and the profit (R.C. 5810.02), and the periods of R.C. 5810.05 apply.
The statutes, verbatim
Agreement among interested parties regarding trust matters
R.C. 5801.10 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Termination of irrevocable trust as a result of trust-terminating distributions
R.C. 5801.22 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Concurrent jurisdiction regarding inter vivos trust
R.C. 5802.03 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Breach of trust defined - judicial remedies
R.C. 5810.01 ↗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 Ohio beneficiaries settle a trust dispute without court?
Yes, by a written private settlement agreement among the interested persons on the matters R.C. 5801.10 lists, within its limits; any party may ask the court to approve it (R.C. 5801.10(G)).
Which Ohio court hears a trust dispute?
The probate division of the court of common pleas has concurrent jurisdiction with the general division over any action involving an inter vivos trust (R.C. 5802.03; R.C. 2101.24(B)(1)(b)); an action under the code is a civil action commenced by complaint (R.C. 5802.04).
Can an Ohio trustee be removed?
The settlor, a cotrustee or a beneficiary may ask the court to remove a trustee, or the court may act on its own, for a serious breach of trust, a lack of cooperation among cotrustees that substantially impairs the administration, or unfitness, unwillingness or persistent failure to administer effectively (R.C. 5807.06).
Related reading
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 Ohio beneficiaries settle a trust dispute without court?
- Yes, by a written private settlement agreement among the interested persons on the matters R.C. 5801.10 lists, within its limits; any party may ask the court to approve it (R.C. 5801.10(G)).
- Which Ohio court hears a trust dispute?
- The probate division of the court of common pleas has concurrent jurisdiction with the general division over any action involving an inter vivos trust (R.C. 5802.03; R.C. 2101.24(B)(1)(b)); an action under the code is a civil action commenced by complaint (R.C. 5802.04).
- Can an Ohio trustee be removed?
- The settlor, a cotrustee or a beneficiary may ask the court to remove a trustee, or the court may act on its own, for a serious breach of trust, a lack of cooperation among cotrustees that substantially impairs the administration, or unfitness, unwillingness or persistent failure to administer effectively (R.C. 5807.06).
General information about Ohio law, not legal advice.