2131.09 Exemption of certain trusts.
2131.09 Exemption of certain trusts.
(A) A trust of real or personal property created by an employer as part of a stock bonus plan, pension plan, disability or death benefit plan, or profit-sharing plan, for the benefit of some or all of the employees, to which contributions are made by the employer or employees, or both, for the purpose of distributing to the employees or their beneficiaries the earnings or the principal, or both earnings and principal, of the fund so held in trust is not invalid as violating the rule against perpetuities, any other existing law against perpetuities, or any law restricting or limiting the duration of trusts; but the trust may continue for the time that is necessary to accomplish the purposes for which it was created.
The income arising from any trust within the classifications mentioned in this division may be accumulated in accordance with the terms of the trust for as long a time as is necessary to accomplish the purposes for which the trust was created, notwithstanding any law limiting the period during which trust income may be accumulated.
No rule of law against perpetuities or the suspension of the power of alienation of the title to property invalidates any trust within the classifications mentioned in this division unless the trust is terminated by decree of a court in a suit instituted within two years after June 25, 1951.
(B)(1) No rule of law against perpetuities or suspension of the power of alienation of the title to property, any other existing law against perpetuities, or any law restricting or limiting the duration of trusts shall apply with respect to any interest in real or personal property held in trust if the instrument creating the trust specifically states that the rule against perpetuities or the provisions of division (B) of section 2131.08 of the Revised Code shall not apply to the trust and if either the trustee of the trust has unlimited power to sell all trust assets or if one or more persons, one of whom may be the trustee, has the unlimited power to terminate the entire trust.
(2) Division (B) of this section shall apply to the interpretation of a testamentary or inter vivos trust instrument that creates an interest in real or personal property in relation to which one or more of the following conditions applies:
(a) The testamentary or inter vivos trust is executed in this state.
(b) The sole trustee or one of the trustees is domiciled in this state.
(c) The testamentary or inter vivos trust is administered in this state or the situs of a substantial portion of the assets subject to the testamentary portion of the testamentary or inter vivos trust is in this state, even though some part or all of those assets are physically deposited for safekeeping in a state other than this state.
(d) The instrument creating the testamentary or inter vivos trust states that the law of this state is to apply.
(3) Division (B) of this section shall be effective with respect to all of the following:
(a) An interest in real or personal property in trust created by wills of decedents dying on or after the effective date of this amendment;
(b) An interest in real or personal property created by an inter vivos or testamentary trust instrument executed on or after the effective date of this amendment;
(c) An interest in real or personal property in trust created by the exercise of a general power of appointment on or after the effective date of this amendment.
(4) Division (B) of this section shall not apply to the exercise of a power of appointment other than a general power of appointment.
(C) For purposes of this section, “general power of appointment” means a power that is exercisable in favor of the individual possessing the power, the person’s estate, the person’s creditors, or the creditors of the person’s estate.
Effective Date: 03-22-1999