Pet Trusts

Approximately 20% of Americans include their companion animals in their wills, hoping to secure them a safe future. Many animal guardians consider their cat or dog to be a member of the family and worry about their care were something unexpected to happen.

Q. What happens to my beloved companions if something happens to me?

A. Without a plan, your companion animal is more likely to wind up in a shelter than with a family member or neighbor.

 

Today “pet trusts" are increasingly a part of financial planning. A pet trust is a specific legal arrangement that provides for the care of companion animals in the event of the owner’s death or incapacitation.

Although not recognized under federal tax law, pet trusts are currently allowed under law in 28 states. Click here to learn about the need for federal legislation.

Be Prepared, Make a Plan

Below are the general steps to prepare a pet trust. We strongly advise speaking with an attorney to ensure this aspect is properly incorporated into your overall estate plans. Check out the Resources section for more tips.

1. Select a trustee.
2. Select a primary and secondary caregiver.
3. Identify your pet(s) in a way to prevent fraud (microchip, DNA).
4. Put your pet care instructions in writing (food preferences, exercise routine, whether certain pets need to stay together etc.).
5. Identify any health problems, medications or treatments, schedule of vet visits.
6. Require regular inspections by the trustee.
7. Provide sufficient resources to cover pet care expenses and specify how funds are to be distributed (annually, quarterly). You do not want to overfund the trust as this can be challenged in court.
8. Provide the funding needed to administer the trust.
9. Specify how any funds remaining after the death of your companion animal(s) should be distributed (person, charity), known as the “remainder beneficiary.”
10. Provide for the final disposition of your companion animal(s).