National Pet Day was Tuesday, April 12, 2023. For animal lovers alike, it provides a reminder to consider including pets in our estate plans, especially the use of Pet Trusts. The Specialized Pet Trust law has been developed due to the great popularity of pets in this country and the strong desire of pet owners to keep their pets, even after the owner’s death. A summary of the pet laws in the various states is attached. Many trusts were established after the highly publicized example of Leona Helmsley’s multi-million dollar trust for her dog, Trouble.
The special feature of a Pet Trust is the same special feature of the Purpose Trust used in the Patagonian Estate Plan: they have no determinable beneficiaries and therefore no one to enforce the trust. (Although some animal law advocates see the point differently, a pet is not legally considered a beneficiary, since it cannot act on its own or through a legal representative.)
The legal status of a pet
Pets are legally considered personal property, such as your car, furniture, or jewelry. Without any specific plans for your pets, your pet property is inherited by your heirs, who may or may not be willing to take care of your pet. If you have a pet, there are some steps to take right away and longer-term planning to consider.
Step One: Line up two friends or relatives who agree to serve as emergency and/or long-term caregivers. Give them the name of the vet, discuss your wishes about what should happen to your pet, and provide contacts for each. Discuss in advance how expenses will be covered. Keep in touch with your potential caregivers because circumstances can change over time. People move and have children, or situations may arise that affect your physical and financial ability to help you manage your affairs. Having two caregivers means you have alternatives when the situation arises.
Step Two: Carry a card in your wallet with emergency contact information for your animals and provide the contact information to your veterinarian and attorney.
pet planning
Pet planning has both legal and financial considerations, as well as deciding whether to involve the humane society or have strictly private trusts and agreements. Funds will likely be needed to cover the temporary or permanent costs of your animals, including boarding bills and medical care. Verbal promises are ambiguous in most cases, so it may be helpful to have a trust or power of attorney to clarify available remedies. Here are four options:
· TO life trust is a popular option because it is immediately accessible and private (no probate court delays). It can be used if you become sick or incapacitated. You set aside money for care and a designated trustee is in control. A trust is more flexible than a will, which takes effect only at death and can be a slow process.
· TO pet trust It can be included in a living trust or as a separate trust. The designated trustee receives funds and guidelines/mandates on how to manage the funds for your pet and how to distribute the remaining funds when your pet dies. A Pet Trust is now valid in all states.
· Legal power It is used in the event of physical or mental incapacity, with provisions for expenses, but ends when the owner dies, unlike a trust or will. Proxies are chosen when a person is alive and competent and must be part of any comprehensive estate plan. Otherwise, a disability event may result in the need to appoint a guardian; a lengthy process with no guarantee that your pets will be covered. Name alternates, in case the initial agent is unable or unwilling to serve. A power of attorney can be as broad or narrow as you like, so you can give a power of attorney that has power only to specific funds for the maintenance and support of specific animals, without giving them broad power over other assets. Also, you can designate more than one person to have the POA, but since the POA doesn’t take effect until you actually deliver the physical paper to the person. The Power of Attorney can be revoked at any time, you can name a person and remove and replace them with another, if you wish.
· Life insurance It is useful if you do not have enough property to support the care of your animal. Life insurance “creates” property when you die, which can be used to fund your Pet Trust.
Pet owners also have the option of including a provision in their will for the care of their pets. Such provisions designate a caretaker and typically set aside an amount of money with a request for the caretaker to use the money for pet care. Pet owners can provide alternate caregivers if the original is unable or unwilling to accept the animals and can appoint temporary guardians for pets while property issues are resolved.
Unlike a pet care trust arrangement, there is no continuing obligation on the executor under a will to look after the welfare of the pet once the estate administration is complete. The integrity and moral commitment of the caregiver will be your only guarantee that the pet’s care will continue. Therefore, he chooses his primary caregiver and alternate caregiver wisely.
Consider making arrangements with a humane society, animal rescue group, or animal “rest home” to take possession of your pet and care for it. You should review the type of care each organization provides, its facilities and staff, as well as the costs associated with that care.
Pet Protection Agreement
A Pet Protection Agreement: Created by Rachel Hirschfeld, the PPAapp is a legally enforceable contract between a minimum of two persons or entities: the pet’s parent and the pet’s guardian. No attorney is required, and it is valid in all states. (Currently available through Legalzoom.com)
Conclusion
For the care of your pet, you must take measures immediately “just in case”, to have someone take care of it, if you are not in a position to do so. In addition, you should consider alternative ways to support your pets, and finance that care, after your death.