Sub. S. B. No. 175 - Ohio Family Trust Company Act Summary

• Creates the Ohio Family Trust Company Act, allowing corporations and limited liability companies to operate as family trust companies serving only designated family members and related parties without being subject to standard trust company regulations.

• Establishes two operational pathways: unlicensed family trust companies (submitting annual affidavits to the superintendent) and licensed family trust companies (filing applications with a $5,000 non-refundable fee and pledging $100,000 in interest-bearing securities).

• Licensed family trust companies must maintain minimum stockholders' equity of $200,000-$500,000, hold at least two annual board meetings in Ohio with at least one resident director, employ at least one part-time individual in Ohio, and perform at least three trust administration activities in the state.

• Permits family trust companies to engage in extensive fiduciary activities and self-dealing transactions with affiliated entities and family members after full disclosure to the governing board, including investments in family affiliates and loans to family members.

• Grants licensed family trust companies the same rights and exemptions as traditional trust companies under state law, subjects them to superintendent examination and supervision, and establishes grounds for license suspension, revocation, and receivership proceedings.