Ohio Code § 5812.07

§ 5812.07.

After a decedent dies, in the case of an estate, or after an income interest in a

trust ends, all of the following apply: (A) The fiduciary of the estate or of the terminating income interest shall determine,

under the provisions of sections 5812.12 to 5812.47 of the Revised Code that apply to trustees and under division (E) of this section, the amount of net

income and net principal receipts received from property specifically given to a beneficiary.  The fiduciary shall distribute the net income and net principal receipts to the

beneficiary that is to receive the specific property. (B) A fiduciary shall determine the remaining net income of a decedent's estate or a

terminating income interest under the provisions of sections 5812.12 to 5812.47 of the Revised Code that apply to trustees and by doing all of the following: (1) Including in net income all income from property used to discharge liabilities; (2) Paying from income or principal, in the fiduciary's discretion, fees of attorneys,

accountants, and fiduciaries;  court costs and other expenses of administration;  and

interest on death taxes.  However, the fiduciary may pay those expenses from income of property passing to

a trust for which the fiduciary claims an estate tax marital or charitable deduction

only to the extent that the payment of those expenses from income will not cause the

reduction or loss of the deduction. (3) Paying from principal all other disbursements made or incurred in connection with

the settlement of a decedent's estate or the winding up of a terminating income interest,

including debts, funeral expenses, disposition of remains, family allowances, and

death taxes and related penalties that are apportioned to the estate or terminating

income interest by the will, the terms of the trust, or applicable law. (C) A fiduciary shall distribute to a beneficiary that receives a pecuniary amount outright

the interest or any other amount provided by the will, the terms of the trust, or

applicable law from net income determined under division (B) of this section or from

principal to the extent that net income is insufficient.  If a beneficiary is to receive a pecuniary amount outright from a trust after an

income interest ends and no interest or other amount is provided for by the terms

of the trust or applicable law, the fiduciary shall distribute the interest or other

amount to which the beneficiary would be entitled under applicable law if the pecuniary

amount were required to be paid under a will. (D) A fiduciary shall distribute the net income remaining after distributions required

by division (C) of this section, in the manner described in section 5812.08 of the Revised Code , to all other beneficiaries, including a beneficiary that receives a pecuniary amount

in trust, even if the beneficiary holds an unqualified power to withdraw assets from

the trust or other presently exercisable, general power of appointment over the trust. (E) A fiduciary shall not reduce principal or income receipts from property described

in division (A) of this section because of a payment described in section 5812.42 or 5812.43 of the Revised Code to the extent that the will, the terms of the trust, or applicable law requires the

fiduciary to make the payment from assets other than the property or to the extent

that the fiduciary recovers or expects to recover the payment from a third party.  The net income and principal receipts from the property are determined by including

all of the amounts the fiduciary receives or pays with respect to the property, whether

those amounts accrued or became due before, on, or after the date of a decedent's

death or an income interest's terminating event, and by making a reasonable provision

for amounts that the fiduciary believes the estate or terminating income interest

may become obligated to pay after the property is distributed.