How Much Money Is Too Much For A Pet Trust?
The question of how much money should be placed into the pet trust is a constant issue.
Unfortunately, there have been very few court decisions to give us the appropriate guidelines for this matter.
One older case, dating to 1974 entitled, In re Lyon Estate, 67 Pa. D. 7 C.2d 474 (1974), does provide some insight, as reported by Suzette Daniels of Michigan State University-Detroit College of Law here.
"Oftentimes, courts have the power to reduce the gift if it is deemed to be an unreasonable amount. Such was the case of the will written by Florence Lyon. Her will directed that the principal or income of her estate was to be used for the care of her six dogs and four horses, and the residuary was to go to Princeton University. At the time of her death, the income was deemed to be approximately $40,000 to $50,000 a year. Clearly this is an excessive amount of money to care for these animals, but there was language to suggest that Ms. Lyon might not have had any idea how large her estate was or how much it would cost to care for these animals The court determined that the life expectancy for them was anywhere from one to twenty years. It further ascertained that, “It will take five acres of land, a $22,000 shelter and $5,000 a year to care for the presently living animals.” With this information in mind, the court held that the amount indicated by the testator was excessive. It modified the provision by directing the executors to either reserve $150,000 to be held for the care of these animals or give the entire residuary to Princeton University immediately but with an agreement that Princeton provide the care for these animals.
While an excessive amount of money could lead to court interference, an amount too small to properly care for the animal could lead to financial hardship on the part of the caretaker.
Testators should not only determine an amount of money that is reasonable to cover day to day maintenance but also factor in expenses for emergency medical care and hospitalization".
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