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.
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