How Much Money Is Needed To Fund A Pet trust?
I am often asked how much money is enough to adequately fund a pet trust.
Of course, there is no easy or simple answer.
There are many variables involved in the amount required and it certainly depends upon the type of life style that you anticipate for your pet and the specific animal involved.
Your pet turtle may live for 120 years and your parrot for 80, while your little mouse Michele, will provably have a relatively short time here of about four years.
I you want to review some guidelines for the life span of various animals go here and look.
It may provide some guidance to the answer to this difficult question.
You Need a Power of Attorney For Your Pet
I recently had a call from a client regarding the preparation of a power of attorney for her cat, Cecelia.
I have written before on the benefits of a power of attorney for your pet.
If your pet is boarded or being kept by a friend when you are away, the power of attorney provides for emergency decisions for medical treatment and other needs.
in the event that you cannot be contacted in a timely manner, this simple document is legal and binding and may well be a lifesaver for your pet.
Consider preparing a power of attorney for your pet and appoint a trusted friend, family member or even your local vet as the agent.
Check Out FloridaPets.net !
We have previously written on numerous occasions about one of our favorite web publications, FloridaPets.net.
It is an abundant source of reliable and valuable information for pet owners, not only for Florida, but also throughout the United States.
The owner, editor and head honcho for this site is Patricia Collier and she has been kind enough to add our blog to her monthly newsletter.
Go here, sign up for the informative publication and check out the picture of Anna on the front page.
Thanks, Patricia.
Pet Trusts in Tough Times
Yesterday, a reader responded to a previous post that had expressed opposition to the newly offered statutory pet trust in the state of Connecticut.
The new response to the legislation is below:
"The economy is a major reason why people should be worrying about things like the care of their pets after they are gone. If everyone else is hurting financially then they cannot depend on friends and family to just willingly care for their animals. As I understand it, a pet trust will pay for the care of the animal instead of adding an additional burden on another person. Whether or not the statute is a priority at this time. It needs to be done. It is part of the whole picture."
Let us know your thoughts on this subject…do these tough economic times change your comfort level for your pet’s future?
Reader Opposes Pet Trust Legislation in Connecticut
On Thursday, March 12, in the Ridgefieldpress.com, a reader responded to a follow–up story that I posted about here on March 11.2009.
The reader’s response is to the filing of a bill in the Connecticut Legislature by State Senator Toni Boucher calling for the introduction oa statutory Pet Trust.
The readers comment is below:
"#1 marthamad
2009-03-1206:37:37 You kidding me? The world is falling apart and Boucher is worried about trust funds for dogs? People can't pay their mortgages and she's working to make sure Fido doesn't run out of Grey Poupon! This is why we elected her to the Senate?"
Let us know your response.
New Jersey Court Rules On Pet Custody
Doreen Houseman and Eric Dane lived together for over 13 years. They bought a house, became engaged and then purchased a pug named Dexter.
Then like many couples do, they split.
Their oral agreement was that Dexter would go with Doreen when she left the residence.
After one occasion when Eric was taking care of the pug, he refused to return the dog to Doreen.
When she sued for specific performance*, the lower court denied her claim and instead, awarded her $1,500.00 or the original purchase price of the pug.
On appeal, the New Jersey court reversed the lower ruling and wrote that Doreen would have the right to pursue specific performance for the return of her dog.
In reaching its decision, the Court relied on case law that recognizes that animals have a subjective value to their owners. This value is more than the purchase price or replacement cost.
However, that same Court declined to adopt a best-interests-of-the-pet standard as urged by The Animal Legal Defense Fund in the case.
I have seen cases where a guardian has been appointed for animals and custody cases involving dissolutions where pets are involved, in fact, I wrote about one custody case in North Carolina,just last month.
And although I am aware of at leaset one case involving a pet dispute and a writ of replevin, I believe that this is one of the few cases where specific performance is involved.
*Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead. The most common reason courts grant specific performance is that the subject of the contract is unique. When a contract is for the sale of a unique property, mere money damages will not remedy the purchaser's situation.
Connecticut Is The Latest State to Propose a Statutory Pet Trust
Just recently, I wrote that Maryland was the latest state attempting to pass legislation for a statutory pet trust
Now, it seems, that Connecticut may follow that trend.
Connecticut Senator Toni Boucher has proposed a bill that provides for the creation of trusts for the care of domestic animals. The bill would allow pet owners to create a trust that terminates when the last animal named dies or 90 years after its creation.
"The question of who cares for a pet after the death of its owner is troubling to many people," said Boucher in a press release.
"Some pets, like parrots, can live for 40 to 80 years," she said. "If a pet owner becomes ill, incapacitated or dies, it makes sense to have already decided ahead of time how to provide one's beloved pets with food, shelter, veterinary care and companionship."
A draft of the proposed legislation is below:
AN ACT CONCERNING THE CREATION OF TRUSTS FOR THE CARE OF DOMESTIC ANIMALS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2009) (a) A testamentary or inter vivos trust may be created to provide for the care of a domestic animal alive during the settlor's lifetime. Such trust shall terminate upon the earlier of (1) the death of the domestic animal or, if the trust was created to provide for the care of more than one domestic animal alive during the settlor's lifetime, the death of the last surviving domestic animal, or (2) ninety years after its creation.
(b) A trust authorized by this section may be enforced by a person appointed in the terms of the trust instrument or, if no person is so appointed, by a person appointed by the Probate Court. Any person having an interest in the welfare of the domestic animal may petition the court to appoint a person to enforce the trust or to remove a person so appointed.
(c) Property of a trust authorized by this section may be applied only to its intended use for the care of the domestic animal, except to the extent the Probate Court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust instrument, property not required for the intended use shall be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.
(d) Any person designated pursuant to the terms of the trust instrument may act as trustee of a trust authorized by this section. Any such trustee may also be designated as a remainder beneficiary of such trust pursuant to the terms of the trust instrument. For the purposes of this subsection: (1) "Person" means a natural person, corporation, limited liability company, trust, partnership, incorporated or unincorporated association or any other legal entity; and (2) "remainder beneficiary" has the same meaning as provided in section 45a-542a of the general statutes.
We will keep you advised as this bill winds through the legislative corridors.
What Happens When the Pet Trust Goes Bust?
What happens if the money that I set aside for my dog Lenny in a pet trust runs out before Lenny dies? Does the Trustee or Caregiver have to pay monies out of their own pocket?
Gina Las Vegas, Nevada
If that happens, Lenny will probably, unfortunately be turned over to a pet organization or euthanized, unless someone volunteers to adopt him.
Fortunately, at least, the trustee or caregiver would not be obligated to pay for any of Lenny’s expenses. An adequately funded trust will avoid this problem.
What Do You Think Of Renting A Pet?
Can you rent a pet?
Yes.
Should you rent a Pet?
Well, obviously opinions vary.
FlexPetz is probably the pioneer in the commercial field of pet sharing or, more specifically, pet rentals.
Started in 2007, the FlexPetz website sets out the basic premise of their business
"FLEXPETZ is a shared dog ownership concept that provides our members with access to a variety of FLEXPETZ dogs. All FLEXPETZ dogs complete obedience training and some FLEXPETZ dogs are certified as therapy dogs.
Through the FLEXPETZ shared dog ownership concept, members can spend from just a few hours to a number of days with each of our dogs. FLEXPETZ dogs are available in varied breed sizes to ensure compatibility with our member's individual lifestyles and unique circumstances."
Apparently, not everyone agreed with the program.
FlezPetz is now closed, due to legislation passed in Boston.
The website explains as follows:
" In July 2008, the company put operations on temporary hold. Since launching in early 2007, the concept, while often misunderstood (or deliberately maligned as part of the agenda of others), has been a great success.
FLEXPETZ is seen by many sensible and intelligent animal lovers as a revolution in dog adoption, and has been well supported. It has helped dogs and families, and has been a financial success. However, early in 2008, politicians from Boston decided to mount a campaign specifically targeting FLEXPETZ. Their agenda was to bring in a law "banning pet rental". The proposition was introduced by these elected politicians who NEVER spoke to the company, or visited our facilities, or met our dogs or spoke with our members. If they had, they would have quickly realized that FLEXPETZ is not a "Blockbuster for dogs", but a new way of approaching responsible dog adoption and ownership.
Although this law in Boston was passed, the legislature's failure to contact FLEXPETZ ensured that the law that was brought in is ineffective and a waste of taxpayer's money - and is likely to lead to the death in shelters of hundreds of dogs that could have been placed in homes by FLEXPETZ. However, the actions of these politicians (supported by the likes of the MSPCA who perhaps fear that this new adoption model might affect their own bottom line) did come at a time when our company was ready for expansion and the pending proposed legislation did halt further investment from our main funder..."
This may have been one of the first, but it will probably not be the last to try this business arena.
What Is An Inter Vivos Pet Trust?
After a recent tennis match, my partner asked me to describe the difference between a testamentary and an inter vivos trust.
I thought that was a strange request at that time and I inquired as to his interest. Jeff said that he was contemplating a trust for his horses and had read about the two different trust types.
I explained that the testamentary trust is created in the last will of the animal owner, springs out of, and only becomes effective upon the death of the owner.
The inter vivos trust, on the other hand, takes effect immediately and thus will be in operation prior to and when the owner dies. This type of trust can avoid all of the delay between the owner's death and the probating of the will and subsequent functioning of the trust. It is also effective in emergency or temporary situations.
Instant money may be available to provide for all of the need of your pets.
In addition, the inter vivos trust can be easily amended or changed.
The downside of the inter vivos trust is generally that is it is more costly and takes longer to prepare than the traditional trust that is included as the normal process in the estate plan.
