Use a Charitable Remainder Trust in Your Estate Planning For Your Pets
Can I use a charitable remainder trust in my estate planning for my four dogs?
Ron Troy, Ohio
Ron, with a charitable remainder trust, you set up a trust and transfer to it the property you want to donate to a charity.
The charity needs to have a tax-exempt status under the Internal Revenue Code and must be fully accepted and approved by the IRS.
The charity serves as trustee of the trust, and manages or invests the property so it will produce income for you
The charity then pays to your Trustee of your pet trust, a portion of the income generated for a certain number of years, or for the duration of your pet trust.
When the trust ends, the remainder of the property goes to the charity.
There can be some beneficial tax treatment and this is a very popular type of trust.
Consult your attorney and your accountant before you begin this process.
Set Up a Pet Trust For Your Horses
Can I set up a trust for my horses?
Valerie Mesa, Arizona
Valerie, you can indeed set up a trust for your horses.
In fact, Wendy Feldman recently wrote an article on Arizona Bridle and Bit website.
Ms. Feldman, CLU®, ChFC®, CASL® recently wrote:
… the state of Arizona has recently passed legislation making trusts for animals legal and enforceable. That means when you take the time to put a written plan in place to care for your horses they will be cared for according to your wishes.
…you need to sit down with a qualified professional to write down your specific goals and wishes with regard to your animals. While the Arizona statute is in place allowing you to write the plan, you must include many details that a professional estate planning attorney can provide for you.
...How detailed can you be in this plan? Very detailed. For example, the plan can determine who will be the caregiver, the options for keeping, selling or finding good homes for the animals and how much money is available for their care. Additionally, the care plan for each horse can be spelled out individually. Of course, most horse owners also have many other animals. The plan can be written to provide for them all…
Read more on this issue here.
Condo Rules For Pet Owners
Do you have good examples of Condo Pet Policies or Rules that you could send to me? We are in the process of revising our condo pet rules, as we have had a number of complaints and some of our rules seem to be somewhat vague. Thanks.
Cathy
Cathy, I do not have enough information to provide specifics for your particular condominium and you would obviously need your counsel to prepare any amendments.
Nevertheless, here are some generic condominium rules for pets.
The maintenance, keeping, boarding and/or raising of animals, livestock or poultry of any kind, regardless of number, shall be and is hereby prohibited within any condominium unit or Common Elements, except that this shall not prohibit the keeping of small dogs, cats, and/or caged birds as domestic pets, provided they are not maintained, kept or bred for commercial purposes and provided further that the keeping of small dogs, cats and/or caged birds will not constitute such type of noxious or offensive activity.
All pets shall be kept leashed and under the control of their owner whenever they are outside the unit, and shall not be allowed to run free or unleashed at any time, or to otherwise interfere with the rights, comfort or convenience of other residents.
Dogs may only be walked in the following areas: wherever this particular condo community decides; ex: the grassy area along the fence by City Blvd. and Town
Terrace.
Dogs may not be walked on grassy areas near your neighbors' units, and must be cleaned up after.
Pets must be vaccinated and kept in accordance with the County Health Department laws and regulations.
Owners are responsible for all damages caused by their pets to common areas and to the property of others.
Consult with you association counsel and you can accomplish your new goals.
How Do You Find That New Pet?
Okay, you have finally decided that you just must have a new doggie.
What is next?
Well, according to Nancy Kay, DVM:
"Here are some good options for finding your new dog (hopefully, we are in agreement that pet store and site unseen online purchases are not good options…If you are open to adopting an adult dog, let the staff of your local shelter or humane society know what you are looking for- a surprising number of purebred dogs wind up there…I also encourage you to contact breed-specific rescue organizations (Google the name of your breed along with the word “rescue”)… Life’s unforeseen circumstances (death, divorce, financial woes, etc.) cause many wonderful dogs to end up with rescue groups..."
For additional tips and information for selecting your new pet, visit her site here.
Good picking.
Is There A New Tax Break for Pet Owners?
Did the Happy Law Pass? Am I able to take the 3500 off my 2009 taxes?
Terri
Terri, as well as one can understand the machinations of congressional activity, it appears that the "Humanity and Pets Partnered Through The Years", also known as the Happy Pet Bill, has gone nowhere.
The proposed bill would amend the Internal Revenue Code to allow pet owners to take a deduction for pet care for up to $3,500.00 a year.
I will keep you advised of any progress on this legislation sponsored by Rep. Thaddeus McCotter (R., Mich.).
Use An Insurance Policy to Fund Your Pet Trust
Can I use an insurance policy to fund the trust for my cat, Candy?
Donna Cleveland, Ohio
Donna, insurance policy proceeds are one of the most common, popular and acceptable methods to fund a trust for Candy.
An insurance policy on your life can be issued and the proceeds will generally be paid to “_________________” as the Trustee of the Candy Cat Trust.
Candy should obviously not be the beneficiary of the insurance policy.
In most states, pets are still considered to be personal property and a piece of personal property certainly cannot be a beneficiary under an insurance policy.
If it is properly established, there should be no tax consequence as a result of the policy being paid to the Trust.
Good for you, for planning for the future of both you and Candy.
Military Moving to Protects Pets
There are been many news release in the past few months regarding U.S. military men and women and the abusive treatment of animals.
Article 134 of The Uniform Code of Military Justice (UCMJ) punishes abuse of a “public animal”.
However, there are no specific laws addressing the treatment of military pets. Pets or companion animals are generally considered “non-public animals.”
The Commission on Military Justice now says that criminal charges should be brought against service men and women that abuse, kill or abandon their pets.
In a report to congress last fall, they ask that specific language be placed in The Uniform Code of Military Justice that specifically states that animal cruelty towards non-public animals be determined a crime.
The Congress, of course, is free to accept any or all of the suggestion of the Commission and it remains to be determined if they indeed will act to close this loophole.
Animal lovers will be watching their actions closely
When Can I Tell My Pet Is In Pain?
I often times forget that my dog is a dog and not a real person. However, are there any ways that I can actually tell if Max is in real pain and not just something within my imagination? Thanks.
Connie Palm Beach, Miami
Connie, obviously pets like humans are going to differ from species to species.
However, according to Eric Barchas, a veterinarian who lives and works in San Francisco, here are some common symptoms:
Cats instinctively hide pain. Therefore, signs of pain in cats are usually subtle. A cat in pain may:
o Hide or act quiet and withdrawn.
o Lose its appetite.
o Breathe rapidly or pant.
o Act agitated or refuse to lie down, rest, or sleep.
o Become aggressive or suffer personality changes.
o Limp, favor a painful area, or resent it when a painful area is touched.
Vocalization (howling or crying) may be a sign of anxiety, agitation, fear, hunger, or severe pain. Most cats suffering from pain do not vocalize. Lack of vocalization should not be construed as absence of pain.
Dogs' responses to pain vary. Some dogs are very stoic, and will show few outward signs even when in extreme pain. Others are more dramatic, and will make their pain quite clear. A dog in pain may:
o Whine, whimper, or vocalize. This occurs less often in cats.
o Pant.
o Limp, favor a painful area, or resent it when a painful area is touched.
o Act agitated or refuse to lie down, rest, or sleep.
o Become aggressive or suffer personality changes.
o Lose its appetite.
o Stand with its back arched.
o Hide or act quiet and withdrawn.
You can receive additional information from Dr. Barchas here.
What is The Value For The Loss Of A Pet?
The Vermont Supreme Court is currently considering the facts of a case to determine whether the owners of a dog that was fatally shot by a neighbor should be able to collect damages for loss of companionship and emotional distress.
The dog of Denis and Sarah Scheele was shot when it wandered upon the property of another person.
The Scheele’s asked the Court to value the loss of their pet as to the emotional value of a family member and companion and not as a replacement piece of property.
I will follow this case and advise as a decision is reached in this very important changing area of the law.
Euthanasia May Be a Necessary Part of Your Pet Estate Planning
I receive many inquiries regarding the need to euthanize pets when the unfortunate time arrives.
Generally both the animal owner, as well as the pet, know when it is time to consider other alternatives to medical treatment.
Although each state differs on their mandated legislation for this process, the optimal procedures to be followed are outlined below.
Procedures for Euthanasia
A warm-blooded animal may be euthanized only by administering sodium pentobarbital, a sodium pentobarbital derivative, or a substance or procedure, which acts on the central nervous system and is clinically proven to be humane. When euthanasia is accomplished by adding a lethal solution to water or food, adequate installations shall be provided for feeding and watering which are sufficiently enclosed in order to provide for protection from contamination by feces, uric acid, feathers, and any other debris.
A lethal solution must be administered in the following order of preference:
1. By intravenous injection by hypodermic needle;
2. By intraperitoneal injection by hypodermic needle;
3. By intracardial injection by hypodermic needle; or
4. By solution or powder added to food.
The animal shall be tranquilized with an approved, humane substance before euthanasia is performed.
Euthanasia must be performed by a licensed veterinarian or a licensed or registered veterinary technician under the supervision of a licensed veterinarian.
At least two people must be present for administration of an injection, one to hold the animal and one to perform the procedure.
An animal may not be left unattended between the time euthanasia procedures are commenced and the time death occurs, nor may its body be disposed of until death is confirmed by a qualified person.
If you find yourself in this difficult position, demand that these procedures are followed.
