Is a Pet Trust Right for You?
Even if your not as wealthy, or eccentric, as Leona Helmsley, a “Pet Trust” can ensure that someone will care for your beloved pet when you are no longer able to. A “pet trust” is a term that is used to describe an arrangement whereby an individual establishes a trust for the benefit of his or her pet(s), to take effect at the time of that individual’s death or incapacity.
These types of trusts can be stand-alone documents, but are most commonly contained within an individual’s primary trust. In a trust of this kind, directions are provided regarding the care of the pet(s), and a certain sum of money is set aside for a caretaker to use in the care and maintenance of the pet(s). Directions are also provided regarding the disposition of the pet’s remains at the pet’s death, as well as the distribution of any funds that remain in the pet trust at the death of the last pet.
The term “pet trust” generally refers to one of the following legal arrangements: (1) an honorary trust, in which money is left for a pet caretaker, and where the pet caretaker can either use the monies for the care of the pets or immediately distribute the monies to the non-pet beneficiaries; and (2) a statutory pet trust, in which money is left in trust for a pet caretaker, and where virtually any third party can compel the pet caretaker to use the monies for the benefit of the pet(s) according to the deceased or disabled pet owner’s wishes.
If you are thinking about creating a pet trust, either as a stand-alone document or within your primary trust, you should provide your estate planning attorney with the following information:
1. Identity of the pet caretaker, and an alternate pet caretaker;
2. Written information describing the pet(s);
3. Amount of money that will be left in trust for the care of the pet(s);
4. Description of care that should be provided to the pet(s);
5. Identity of a trustee to oversee the use of the pet caretaking fund;
6. The amount of regular monthly distributions;
7. Whether monies will be available for extraordinary or unforeseen needs;
8. Whether the pet caretaker will be compensated for services;
9. Direction on the disposition of the pet’s remains; and
10. Direction on the disposition of any monies that remain in the pet trust at the death of the last pet.
