Use An Insurance Policy to Fund Your Pet Trust

Posted on January 22, 2010 by Danny Meek

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.


 

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