The Shocking
Truth:
Over a Half a
Million Pets are Euthanized
Every Year
–
Don’t Let That Happen to Your
Beloved Companion
Have you seriously considered what will become of your faithful companion – your beloved pet – upon your death or disability? If not, now is the time. If you don’t have a plan that quickly and easily provides for your pet’s food, shelter, and care, please keep reading.
One of the main goals of estate planning is to provide for your loved ones, and for many of us, “loved ones” includes our pets. While you can always ask a friend or relative to look out for your pet, they aren’t legally obligated to unless you set up an estate plan for this.
The specific estate planning method you use will depend on your state laws, your pet’s needs, your goals and financial resources. Working together, you and your attorney can plan for the best method to ensure that your pet will continue to have a quality life.
Consider these frequently asked questions and be sure to ask your attorney for more details. Don’t wait until it’s too late …
Can I provide
for my pet in my estate
plan?
Yes. However, even though you
consider your pet as a
companion and devoted friend,
legally, your pet is ‘personal
property’ – and is not given
the status of a person. That
makes it critical to choose the
right planning method. You
could provide for your pet in
your last will and testament or
by creating a trust.
Isn’t my will
the easiest place to plan for
the care of my
pet?
Even though it may seem ‘easy’
to include a bequest for your
pet within your will, it may
not be the best approach. Why?
Because your will must go
through probate before it takes
effect. This can be time
consuming and uncertain, and
your pet will need immediate
attention. Your pet is not like
your spouse, adult children or
your siblings – they can take
care of themselves until the
probate process is
complete.
But since your pet needs food, water, shelter, and love every day, this may not be the best way to provide for your pet.. During probate, your pet’s care, or even ownership, can be in jeopardy. So, while you may want to include provisions in your will for your pet, first consider other methods. Many people are now using a ‘trust’ to provide funds and direction for the care of their pet.
How does setting
up a trust help me provide for
my pet?
Unlike a will that is subject
to the probate process, a trust
becomes effective immediately
upon the terms outlined in your
trust – usually death or
disability. Your trust
specifies the details
concerning the care and control
of your pet, as well as making
funds available. Your trust can
also give specific directions
about the daily care, medical
attention, physical control,
and even burial of your
pet.
What is a trust
and how does it work to provide
for the care of my
pet?
A trust is a legal entity set
up to accomplish a particular
purpose. You and your attorney
will outline the specifics that
detail when and under what
circumstances the trust will
take effect. This includes how
the trust will be funded, who
will be the trustee, successor
trustee, beneficiary, and
caretaker, and how the trustee
or caretaker will manage your
pet and the funds for your
pet.
You want your loving pet to be fed, cared for, and to receive medical attention. You may also want to designate funds for pet insurance, or even to enforce the trust. In your trust, you can also leave real property for housing your beloved companion.
What types of
trusts are available to provide
care for my
pet?
A ‘pet trusts’ is really a
generic term and is applied to
a trust that provides for your
pet. A pet cannot be a
beneficiary of a traditional
legal trust because one of the
legal requirements for a trust
is that there must be a
beneficiary, and that
beneficiary must be able to
enforce the terms of the trust.
Obviously, a pet cannot enforce
a trust. So, the choice and
structure of a trust must take
this into account and be
properly worded to accomplish
your goals.
Most trusts for the care of pets include the following:
- Statutory Pet Trust – Some states are enacting statutes that allow for enforceable pet trusts. This generally means that the trust can designate a third party who will have the power to enforce the terms of the trust – to compel the caretaker or trustee to use the trust funds for your pet. Some issues that arise with these trusts include whether the amount of funds in the trust is ‘reasonable’ according to court standards, and who the designated third party to enforce the trust would be.
- Honorary Trust – This is a type of trust set up for a specific purpose (such as to provide for a pet) but without a definite beneficiary. The problem with an honorary trust is that without a statute specifically authorizing it as a pet trust, it is essentially unenforceable.
- Traditional Legal Trust – One of the best methods to ensure the care of your beloved pet is to set up a traditional legal trust. Your attorney can carefully add language to avoid problems. One method used is to actually place the pet and sufficient funds into the trust. The pet and the funds are the body of the trust. Your attorney then names the caretaker of your pet as the ‘beneficiary’ of the trust. You name a trustee – the party responsible for managing the funds and the caretaker.
How much should I leave for the care of my pet?
You and your attorney will work together to evaluate the factors that influence this decision. You need to consider your finances, your pet, and the amount of care that will likely be involved for the pet’s anticipated lifespan. Obviously, providing for the care of some pets will be more expensive than for others. If your pet is an elderly dog, you will not need to designate as much as you would for a young horse.