ADVISING TRUSTEES
Advising and Representing Trustees in Ohio: What You Need to Know
Serving as a trustee is an honor, but it is also a serious legal responsibility. I regularly tell clients that being named trustee means you are stepping into a fiduciary role that carries legal, financial, and ethical obligations. Many trustees are surprised by the scope of their duties, and the potential personal liability that comes with the position. My role is to help trustees understand those responsibilities, comply with Ohio law, and administer trusts confidently and correctly.
Whether you are a family member, a trusted friend, or a professional fiduciary, my goal is to guide you through the trust administration process while protecting both you and the beneficiaries you serve.
Understanding the Trustee’s Role Under Ohio Law
In Ohio, trust administration is governed primarily by the Ohio Trust Code ( Ohio Revised Code Chapter 5801 et seq). This body of law defines what trustees must do, what beneficiaries are entitled to receive, and how disputes are resolved.
At its core, a trustee is required to act as a fiduciary. This means you must act in the best interests of the beneficiaries at all times, not in your own interest and not based on convenience. Ohio law imposes several fundamental duties on trustees, including:
- The duty of loyalty: requires you to avoid conflicts of interest
- The duty of prudence: trust assets must be managed responsibly
- The duty of impartiality: Particularly when there are multiple beneficiaries
- The duty to inform and report: ensure beneficiaries receive appropriate information
These duties apply whether the trust is large or small, simple or complex. Even well-intentioned trustees can run into trouble if they are unaware of these obligations, or fail to follow proper procedures.
Common Challenges Trustees Face
Most trustees I work with did not seek out the role. They were named by a loved one who trusted them. Unfortunately, that trust does not come with a roadmap.
Some of the most common issues trustees encounter include:
- Understanding the terms of the trust document
- Determining what assets are part of the trust
- Managing investments and real estate
- Making distributions appropriately and on time
- Handling beneficiary questions and/or disputes
- Keeping accurate records and accountings
Trustees often worry about making mistakes that could expose them to personal liability. That concern is justified. Under Ohio law, beneficiaries can bring legal claims against trustees for breaches of fiduciary duty, even when the trustee believed they were acting reasonably.
This is where legal guidance becomes not just helpful, but essential.
How I Help Trustees Navigate the Process
Step One: Reviewing the Trust
Every trust administration begins with a careful review of the trust document itself. The trust controls nearly every aspect of administration, such as how assets are managed, who receives distributions, when distributions occur, and what discretion the trustee has.
I walk trustees through the document in plain language, explaining key provisions and highlighting areas where Ohio law imposes specific requirements or limitations.
Step Two: Identifying and Securing Trust Assets
Next, we identify and secure all trust assets. This may include:
- Bank and investment accounts
- Real estate
- Business interests
- Personal property
- Life insurance or retirement benefits payable to the trust
Step Three: Fulfilling Notice and Reporting Obligations
Ohio law requires trustees to provide certain information to beneficiaries, including notice of the trust’s existence and ongoing accountings. Failing to meet these obligations is one of the most common and avoidable mistakes trustees make.
I help trustees determine:
- Who must receive notice
- What information must be disclosed
- When reports are required
- How detailed accountings should be
Step Four: Managing and Distributing Trust Assets
Trustees are responsible for managing trust assets prudently. This may involve working with financial advisors, maintaining insurance, managing real estate, or overseeing business operations.
When it comes time to make distributions, trustees must follow the trust terms precisely. Some trusts require mandatory distributions, while others grant discretion. In either case, distributions must be handled fairly and consistently.
I advise trustees on:
- Exercising discretion appropriately
- Documenting decisions
- Balancing competing beneficiary interests
- Avoiding claims of favoritism or self-dealing
Handling Disputes and Reducing Risk
Not all trust administrations are smooth. Beneficiaries may disagree with decisions, question investments, or challenge distributions. In some cases, disputes escalate into litigation.
My role is to help trustees:
- Respond to beneficiary concerns effectively
- Resolve conflicts before they become lawsuits
- Defend against claims of fiduciary breach when necessary
When litigation cannot be avoided, I represent trustees in probate court and work to protect them from personal financial exposure.
When Trustees Need Extra Protection
Ohio law allows trustees to seek court guidance in certain situations. This can be a powerful tool when trust language is unclear or when beneficiaries disagree.
I frequently assist trustees with:
- Petitions for instructions from the court
- Approval of accountings
- Modification or termination of trusts when permitted by law
Taking proactive steps often provides trustees with legal protection and peace of mind.
Why Trustees Choose to Work with Me
Trust administration is not something most people do every day. Trustees deserve experienced guidance that is practical, responsive, and focused on preventing problems, not just reacting to them.
Clients appreciate that I:
- Explain complex legal concepts in straightforward terms
- Provide clear, step-by-step guidance
- Help trustees fulfill their duties efficiently and ethically
- Focus on minimizing conflict and liability
Most importantly, I see my role as a partner in the process. Trustees should not feel overwhelmed or alone while carrying out a loved one’s wishes.
Serving as a trustee is a meaningful responsibility, but it is also a legal role that demands care and attention. With the right guidance, trustees can administer trusts confidently, comply with Ohio law, and honor the intentions of the person who created the trust.
If you have been named as a trustee or expect to serve in that role, I encourage you to seek legal advice early. Doing so can save time, reduce stress, and protect you from unnecessary risk. My legal practice is dedicated to helping trustees do their jobs well and with confidence.
Call Bart Leonardi today to advise you on your important role as a trustee. Call 440-937-8364
Contact Bart Today
440-937-8364
