Ohio Code § 5812.47

§ 5812.47.

(A) A fiduciary may make adjustments between principal and income to offset the shifting

of economic interests or tax benefits between income beneficiaries and remainder beneficiaries

that arise from any of the following: (1) Elections and decisions, other than those described in division (B) of this section,

that the fiduciary makes from time to time regarding tax matters; (2) An income tax or any other tax that is imposed upon the fiduciary or a beneficiary

as a result of a transaction involving or a distribution from the estate or trust; (3) The ownership by an estate or trust of an interest in an entity whose taxable income,

whether or not distributed, is includable in the taxable income of the estate, trust,

or beneficiary. (B) If the amount of an estate tax marital deduction or charitable contribution deduction

is reduced because a fiduciary deducts an amount paid from principal for income tax

purposes instead of deducting it for estate tax purposes, and as a result estate taxes

paid from principal are increased and income taxes paid by an estate, trust, or beneficiary

are decreased, each estate, trust, or beneficiary that benefits from the decrease

in income tax shall reimburse the principal from which the increase in estate tax

is paid.  The total reimbursement shall equal the increase in the estate tax to the extent

that the principal used to pay the increase would have qualified for a marital deduction

or charitable contribution deduction but for the payment.  The proportionate share of the reimbursement for each estate, trust, or beneficiary

whose income taxes are reduced shall be the same as its proportionate share of the

total decrease in income tax.  An estate or trust shall reimburse principal from income.