Georgia Enacts Pet Trust Legislation
Welcome Georgia!
Georgia became the forty-fourth state to officially recognize pet trust legislation.
Effective July 1, 2010, a new Revised Georgia Trust Code contains the following clause:
53-12-28.
(a) A trust may be created to provide for the care of an animal that is alive during the settlor's lifetime. The trust shall terminate upon the death of such animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal.
(b) A trust authorized by this Code section may be enforced by a person appointed in the trust instrument or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.
(c) Upon termination of a trust authorized by this Code section, the trustee shall transfer any unexpended trust property in the following order:
(1) As directed in the trust instrument;
(2) If the trust was created in a nonresiduary clause in the settlor's will or in a codicil to the settlor's will, under the residuary clause in the settlor's will; and
(3) If no taker is produced by the application of paragraph (1) or (2) of this subsection, to the settlor, if living, and if not, to the settlor's heirs, as determined under Code Section 53-2-1.
What Is The Value Of A Pet?
Many pet owners, veterinarians, attorneys and other professionals have tried to describe the relationship and bond between an animal owner and their pets.
Despite the many attempts, I believe a paragraph that was written almost 20 years ago is still one of the best explanations that I have ever seen or heard.
California Supreme Court Justice Arabian wrote the following, in his dissenting opinion in Nahrstedt v. Lakeside Village Condominium Ass’n., 8 Cal. 4th 361, 390 (1994):
"The value of pets in daily life is a matter of common knowledge and understanding as well as extensive documentation. People of all ages, but particularly the elderly and the young, enjoy their companionship. Those who suffer from serious disease or injury and are confined to their home or bed experience a therapeutic, even spiritual, benefit from their presence. Animals provide comfort at the death of a family member or dear friend, and for the lonely can offer a reason for living when life seems to have lost its meaning… Single adults may find certain pets can afford a feeling of security. Families benefit from the experience of sharing that having a pet encourages."
That description essentially covers many phases and aspects of life.
Sounds good to me.
Do you have a better one to offer?
Concerned About Choosing A Caregiver for Your Pet Trust?
Pet owners often complain to me that they are not comfortable with picking a friend or family member to be the caregiver for their pets.
Many local Humane Societies are a viable alternative to choosing an individual pet caregiver.
They usually offer a number of programs that include providing care and shelter for the remaining life of your pets.
Some offer to secure a good adopting family for a new home for your pets.
These organizations will require some type of monetary arrangement with your to ensure proper planning. A yearly donation to the Society and then a clause for an additional bequest in your will are normal minimum requests.
If you can afford the financial burden, Humane Societies are excellent choices for the future of your pets, long after you are gone.
Just plan ahead.
Life Insurance Can Fund Your Pet Trust
There is no “one best” way to fund a pet trust.
You may specify a bank account, a savings or money market account, an annuity, an IRA, a payable on death bank account or other form of contractual agreement to fund a pet trust.
Of course, one of the most common forms of funding is through the purchase of a life insurance policy.
Generally, the trustee is named as the beneficiary of the life insurance proceeds to be placed into the pet trust
However, you should consult with your attorney, insurance broker, commodity broker or banker to correctly determine the name that should be placed on these accounts for the benefit of the trustee and your pets.
Do You Have a Pet Power of Attorney?
Did you know that in the event that you ate unable to provide for the care of your pets, that you can authorize an Agent to act on your behalf.
The Pet Power of Attorney would allow the Agent to take emergency and temporary possession and custody of your pets and spend such amounts of your money as may be necessary for their health, care and welfare.
The Power can also give the Agent the ability to pay for food, veterinary care or insurance, toys and other recreational activities, and temporary boarding and pet-sitting fees.
It can also specify that the Agent makes sure that your pets receive the same standard of care as you would normally provide.
When your emergency has ended, you can simply rescind the Power of Attorney and return to taking personal care of your pet.
It will only be used in an emergency and is for the protection of you and your pets.
If you do not have a Pet Power of Attorney, now is the right time to have one prepared.
See your attorney for the correct assistance and direction.
What Is Reasonable Compensation For A Trustee of a Pet Trust?
Why would anyone chose to serve as a Trustee of pet trust?
Well, for one thing, unless the Trust Instrument has some type of specific prohibition, the Trustee is entitled to "reasonable compensation" for their services as a Trustee.
What is reasonable compensation?
That is a good question and is usually based upon an hourly rate or a percentage fee of the total amount of the Trust.
Bank trust departments will customarily charge an annual fee equal to approximately one percent (1%) of the current value of the trust's assets. They may charge a lower fee, but then add on transaction charges for every action.
If the Trust Instrument provides for specific compensation, you should follow the dictates of that document. If you feel that the compensation provided for in the trust is unreasonable or unduly burdensome, you can either resign as the Trustee or petition the court for additional compensation.
The trustee’s fee is normally paid on a quarterly basis. Remember, compensation (but not expense reimbursements) that is received as a Trustee, is taxable to the trustee, usually as self-employment income.
Some Trustees want to waive the compensation because of their love for the family or animals involved. If you want to do this, make sure that you consult with your accountant about how to document this compensation in the correct manner. Otherwise, you may have taxable income imputed to you even though you do not actually receive it.
The duties and responsibilities of a Pet Trustee are serious and legally binding. Receiving reasonable compensation for the performance of this role is fair and anticipated.
How Much Does A Pet Trust Cost?
I recently received an inquiry regarding the appropriate cost for a pet trust.
I have written many times on this subject and the answer is generally the same.
It depends...upon a number of issues.
Will you provide for the trust in a clause of a new will that you are writing?
Will it be a completely new simple trust of five or six pages or one of twenty to thirty pages for numerous animals?
If you already have your estate plan in place, is this a new document or a codicil (addition) to those documents?
Are you establishing numerous specific rules for the caretaker, or allowing a great deal of latitude?
If you are leaving your pet to an institution, do they have guidelines for your documents, do they prepare form documents or will they accept those of your counsel?
The needs and desires of each individual is different and therefore each estate plan will be different.
A competent professional legal adviser will be open and clear about the costs of the pet trust and how it interacts with the totality of your specific estate plan.
Ask your questions!
Continuing Comments On Euthanasia for Pets
Our readers and posters continue to discuss the effects and affects of pet euthanasia.
..."Thanks for posting! I should also add that Virginia, where I'm located, has seen substantial changes in 2008 with its animal law provisions, along with a rash of hoarding and abuse cases.
The statute mandates standards of care, and vets and shelters (and possibly now judges) may refuse to put down a perfectly healthy animal.
I am very empathetic to the individual who, particularly given the economic climate, is unable to pay for the care of their animals.
But there are many, many rescues and shelters out there who are able to help -- and as my earlier comment notes -- often cage-free and in a foster situation."
Let us know your thoughts...
Pet Trusts Are an Essential Part of Estate Planning For Animal Owners
I am constantly asked about the basic elements of a pet trust.
The trust is a written formal agreement where a trustor (the one writing the trust) places the ownership rights to a specific piece of property or asset under the control of another person, called a Trustee.
The Trustee is to conserve and protect the property on the behalf of someone else, called the beneficiary, who has been designated by the Trustor.
A typical trust will contain provisions for:
(1) The purpose for which the trust was established;
(2) details of the assets placed in the trust;
(3) the powers and limitations of the trustees, including all duties and responsibilities;
(4) form of trustees' compensation; and
(5) conditions and terms that will terminate the trust.
When you are doing estate planning for animal owners, the pet owner is the trustor and the pet is the specific asset to be protected by the trustee.
The trustee provides the funds to take care of the pet.
You also obviously need to appoint a caregiver to physically take care of the pet.
Any remaining monies in the trust after the death of the pet, goes to a secondarily named beneficiary of the trust.
Plan For A Safe Fourth of July Weekend For Your Pets
Fourth of July weekend is here.
Beach time, picnics, and sunburns.
Fireworks, sparklers and firecrackers.
Laid back, summer time fun.
Enjoy, but don’t forget that your pets may need some extra care this weekend.
Pets911.com, has offered these tips for you and your pets.
"1. Make sure to keep your pets away from BBQ’s, sparklers, fireworks and citronella candles. As with all members of your family, these items should be used with adult supervision and should never include your pets. Not only does the noise of fireworks scare them, but accidents can happen while dealing with fire. If you can’t supervise your pet closely, please keep your animals inside, away of the festivities.
2. Do not use any sun screens or other summer sprays on your pets that are not made especially for them. If you have a high presence of insects and they are bothering your pets, or they will be out in the sun, please consult a veterinarian on inset repellents and sun screens that are safe for animals.
3. Do not place glow ropes or other festive party favors on your pets. If digested, these items could cause sever health problems or even death.
4. Do not take your pet with you to large celebrations. Excessive noise, fireworks and unsupervised food or drink can be either overwhelming or unhealthy for your animal. Leave them at home, in a peaceful and secure area. Do not leave them in your car ever.
5. Always keep and ID tag on your pet’s collar. With fireworks, comes anxiety from pets, sometimes resulting in escape attempts or bolting. The 4th of July accounts for many lost pets. Having ID on your pet will get her home faster.
6. Keep your pet hydrated. Don’t forget to refill your pet’s bowl with water during your celebration.
7. Is your pet spooked by the “boom” of fireworks? If you are leaving your pets at home, please be sure that they can’t escape by digging under or jumping over a fence. If your yard isn’t fenced at all, you certainly want to keep them inside. If your pet is normally chained, it could strangle itself. You may want to safely confine them to a room or crate if they tend to react strongly to the noise and confusion. Play music or the TV for them to help block the noise outside. You may also want to talk to your vet about medication options.
8. Above all, be patient. Be prepared for accidents on the carpet and take the time to secure your home and backyard..."
Enjoy the weekend with your family, friends and your pets.
