Support Your Local No-Kill Animal Shelter
I had the pleasure this past week of meeting with Mr. Andy Reed, the Director of Development for The Humane Society of Naples.
Over a cup of coffee, we discussed the challenges of his organization and others like his, in a similar position, during these times of uncertainty and the apparently declining economic climate.
Andy pointed out that the vast majority of funds that come into the shelter are from private individuals and animal lovers in general.
“We are very pleased that The Humane Society of Naples is Collier County’s only physical no-kill animal shelter,” said Reed. “We do our best to work with owners and prospective adoptees to place the animals that we receive in a good and safe environment.”
Reed said that they have established a “Remaining Best Friends” Program at The Naples Humane Society.
Andy and this staff will work with families, their financial advisers and their estate planning attorneys to help guide and shape the future of their pets.
Reed suggest to all animal owners, that they follow at least three simple steps for their pet's future;
Set up a plan for an emergency caregiver for pets using the appropriate legal documentation and instructions for necessary care.
Use a will to properly provide for the long term care of pets after the owners are no longer around to do so.
Set up a Pet Trust that can be used for the pet if the owner becomes incapacitated or ill during their lifetime.
Northern Trust recently published a survey of wealthy families. In Wealth in America 2008, Findings from a Survey of Millionaire Households, they reported that charitable giving among families with $10,000,000.00 to invest decreased dramatically from 2005 to 2006.
Many individuals (42%), not surprisingly, reported in the survey that they supported causes in which they personally believed.
The survey also reported that 60% of those families would eventually give 10% or less of their estate assets to charities. One-half of that same group plans on no charitable bequests at all, from their estate assets.
Reed told me that approximately 30 to 40 % of the private support for his shelter comes as gifts from estates.
Your monetary support is invaluable to animal shelters.
Your monetary support is absolutely necessary to maintain animal shelters.
We often outline the vital components of estate planning for your pets, here and here.
You will need to choose a beneficiary who will receive any remaining funds that are not used by the Pet Trust.
If you designate an animal shelter as that alternate beneficiary, you can be sure that you provide the necessary care and protection for the well being of your pet and, just maybe, leave a legacy as well.
Burial, Cremation or Alkaline Hydrolysis for Your Pet?
We have discussed before, here, that one issue to consider as a key component of your Pet Trust drafting is the final disposition of your pet.
After you are long gone, eventually your pet will also die and someone or some entity will be responsible for following the final directives that you have set out in your Pet Trust or will.
We usually talk about two options after death; burial or cremation.
However, recently the web is a buzz about a new option…dissolving bodies in lye and flushing the brownish, syrupy residue down a drain.
BioSAFE Engineering LLC, located in the small town of Brownsburg, Indiana, is producing cylinders for a process called alkaline hydrolysis.
According to the BioSAFE website…
...Alkaline hydrolysis is a process of an elevated temperature and pressure to convert the proteins, nucleic acids, and lipids of all cells and tissues, as well as infectious microorganisms, to a sterile aqueous solution of small peptides, amino acids, sugars, soaps, and electrolytes. The alkali itself is consumed in the process by generating the salts of the hydrolysis products. The only byproducts of the process are the mineral constituents (ash) of the bones and teeth of vertebrates. These are soft enough after the organic matter has been degraded to be easily crushed (even by bare hands) and recovered as calcium phosphate powder (sterile bone meal).
The WR2 Tissue Digestor™ consists of an insulated stainless steel pressure vessel with a manually or hydraulically clamped lid. The unit is supplied with a basket to contain bone remnants. All wetted parts are 316-L stainless steel alloy, and all vessels are ASME pressure rated and certified. All electrical components are built according to NEMA standards. The system is fully automated; allowing unattended operation after the unit is loaded...
What does this mean?
The equipment that they manufacture provides the access for a process that converts animal, human, and microbial tissues into a sterile, neutral, aqueous solution suitable for disposal to a sanitary sewer.
Apparently the time and cost for this procedure depends on the size and weight of the human or animal being processed.
The Associated Press recently reported in a story by reporter Norma Love that
..."No funeral homes in the U.S. — or anywhere else in the world, as far as the equipment manufacturer knows — offer it. In fact, only two U.S. medical centers use it on human bodies, and only on cadavers donated for research.
But because of its environmental advantages, some in the funeral industry say it could someday rival burial and cremation.
"It's not often that a truly game-changing technology comes along in the funeral service," the newsletter Funeral Service Insider said in September. But "we might have gotten a hold of one."
Currently, only the states of Minnesota and New Hampshire have legalized this process for humans.
Apparently, some 40 to 50 facilities use the cylinders developed by BioSAFE on human medical waste, animal carcasses or both. The users include veterinary schools, universities, such as the University of Florida (for cadavers) pharmaceutical companies and even the U.S. government.
The liquid residue from human tissue and animal carcasses can simple be poured down the drain.
I am not, in any manner, advocating the use of the process.
The thought of pouring my pet down the drain is a little appalling.
However, many people retain the ashes from a cremation of both humans and pets and place them on the mantle or a shelf.
I am not sure how much different this would be…a little decorative bottle, rather than an urn.
I don’t know…
It is your choice.
I am just presenting another viable option for your consideration.
Estate planning for your pet. Think about it, discuss it, make some decisions and then act on your plan.
No Pet Trusts in Connecticut
I live in Barkhamsted, Connecticut and have a two year old Otterhound named Oscar. Can you tell me if my state recognizes pet trusts?
Kacey
Kacey, we went straight to the source on this one.
According to Sandra Norman-Eady, Chief Attorney, during the 2005 regular session of the Connecticut General Assembly, an Act Concerning the Creation of Trusts for the Care of Domestic Animals, was introduced to the legislature.
“The bill authorized trusts for the care of domestic animals that are alive when the person who created the trust dies. It allowed a natural person, corporation, limited liability company, trust, partnership, incorporated or unincorporated association, or any other legal entity to be selected as trustee.
Under the bill, the trust would have terminated on the earlier of the following occurrences: (1) when the animal died, or if the trust was created to provide for the care of more than one animal, when the last surviving animal died; or (2) 90 years after its creation.
A person appointed in the trust could enforce it. If no one was named, the bill allowed a court to appoint someone to enforce it. It allowed a person having an interest in the animal's welfare to ask the court to appoint a person to enforce the trust or to remove a person appointed.
The bill specified that trust property authorized to care for an animal could be applied only for its intended use, except to the extent the court determined that the trust's value exceeded the amount required for the intended use. Except as otherwise provided in the trust, property not required for the intended use had to be distributed to the settlor, if living. (A settlor is the person who creates a trust and transfers property to it. ) Otherwise, it had to be distributed to the settlor's successors in interest. The bill permitted a trustee to be designated as the person who received the trust assets when the animal the trust benefits died.
The bill was referred to and voted out of the Judiciary Committee. However, it ultimately died in the Judiciary Committee upon recommitment by the Senate.”
No additional legislation has been passed in this area.
Therefore, Connecticut remains in the minority as one of only eleven states that does not recognize a statutory pet trust.
We have written before however, here , that you can still provide for your pet's future with an inter vivos trust or with a will provision in your current estate plan.
Contact your legislators if your want Connecticut to join the main stream of thought in this area.
With or without a statutory pet trust, you can do estate planning for your pets.
It is the responsible thing to do.
No Pet Trust In Delaware?
Although pet lovers in Delaware have been trying for over five years, the legislature has consistently failed to pass a Statutory Pet Trust in that jurisdiction.
Nevertheless, pet owners in Delaware are not out of options in the event that they want to provide estate planning for their pets.
Professor Gerry W. Beyer is a faculty member of the Texas Tech University School of Law. Professor Beyer is an invaluable source and resource for all involved in the field of estate planning for animal owners. His website is full of updated information regarding this area.
A prolific author and public speaker, Dr. Beyer writes that the “traditional pet trust” is effective in all states, even those without the Statutory Pet Trust.
According to Professor Beyer,” Many pet owners will prefer the traditional pet trust because it provides the pet owner with the ability to have tremendous control over the pet’s care. For example, you may specify who manages the property (the trustee), the pet’s caregiver (the beneficiary), what type of expenses relating to the pet the trustee will pay, the type of care the animal will receive, what happens if the beneficiary can no longer care for the animal, and the disposition of the pet after the pet dies.”
If you live in a state that has not authorized a specific Statutory Pet Trust, you can still plan to provide for the care of your pets with the preparation of the correct legal documents. There are alternate methods that will be accepted and approved by the courts.
Yes Virginia, there is a state Pet Trust
Does Virginia have pet a trust law? I am concerned about my little dog, Alice, who is an Affenpinscher.
Maybelle, Manassas, Virginia
Yes, Virginia…sorry I could not resist…yes, Maybelle, Virginia does have a Pet Trust Statute. However, I have to admit that I knew that, but I had no idea what an Affenpinscher was until I looked it up.
The Animal Welfare League of Arlington Virginia reported that in 2006,
“Virginia proudly joined 37 other states with a pet trust statute. This means that Virginia is also a little late to the game, but at least now Virginians can rest assured that their furry friends will be taken care of in case something ever happens to the pet's guardian. Pet owners may now designate a caretaker for their pet(s) and a trustee who ensures that the money is spent on the pet. Previously, if a pet's guardian passed away and left money in their will to take care of the pet, anyone could contest the provision and the pet could find himself in the shelter -- no cash, no home, no guardian. This statute puts an end to this injustice."
In its 2005 Session, the Virginia General Assembly enacted Senate Bill 891, the Uniform Trust Code (“UTC”), with modifications.
It provides that a trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the 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.
The instrument creating the trust shall be liberally construed to bring the transfer within the scope of trusts governed by this section, to presume against the merely precatory or honorary nature of the disposition, and to carry out the general intent of the transferor.
A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
Except as ordered by a court or required by the trust instrument, no filing, report, registration, periodic accounting, separate maintenance of funds, appointment, or surety bond shall be required by reason of the existence of the fiduciary relationship of the trustee.
Property of a trust authorized by this section may be applied only to its intended use, except to the extent the 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, property not required for the intended use shall be distributed to the settlor, if then living. If the settlor is deceased, such property shall be distributed pursuant to the residuary clause of the settlor's will if the trust for the animal was created in a preresiduary clause in the will or pursuant to the residuary provisions of the inter vivos trust if the trust for the animal was created in a preresiduary clause in the trust instrument; otherwise, such property shall be distributed to the settlor's successors in interest.
Those of you that are regular readers of this Blog will certainly note that the Virginia Pet Statute outline is very similar if not identical to other state Pet Statutes.
Attorneys are Active Animal Advocates
Some attorneys classify themselves as animal attorneys or attorneys that work in the area of animal law.
What exactly is this critter called animal law?
Attorney Emily A. Gardner of Hawaii, in her website, states that she is an attorney devoted to animal law.
Ms. Gardner defines the field here,
“…Animal law has become a distinct legal discipline, with its own body of case law and a growing number of practitioners and academics. The practice of animal law deals primarily with resolving legal issues and situations in which the nature of animals–including their legal status, behavior or biology–is an important factor. Although animals themselves typically do not have standing (meaning the right to sue and be sued on their own behalf) people who care about animals, or who own them or have suffered harm by them often do. As a general rule, if a person or a group of people can show that they have a real and tangible stake in a legal claim involving animals, they can have their grievances heard in a court of law…”
Ms. Gardner proposed the current Hawaii Pet Trust legislation that was adopted by the state in 2005.
She was also invited to testify before the Hawaiian House Judiciary committee concerning her legislation.
She provided insightful reasoning for the passage of the bill when she testified before the Committee;
“…There are many good, caring, intelligent people in Hawaii who want to be able to provide for their pets through the creation of a trust. H.B. 1453 will give them, and their attorneys, the certainty of creation of an enforceable document -- it will do away with all the uncertainties surrounding pet trusts that currently exist.
At the same time, the legislation contains a provision which would allow a court to reduce a bequest deemed in excess of the reasonable needs of the pet-beneficiary, thereby providing a mechanism to prevent excesses which might bring the law into criticism. An attorney counseling their clients would surely inform them of this provision and advise them accordingly…”
She further testified that the bill also contained a provision exempting the trust from the common law against perpetuities, which would allow for the provision of care for long-lived pets such as birds and reptiles and that the legislation would have little administrative burden, as Court appointed enforcement of the trust would be available only by petition.
When asked who might possibly be opposed to the newly proposed legislation, she responded,
“I have wracked my brain for an answer. The only one I've come up with is "The nieces and nephews who didn't care enough to visit auntie, and who are passed over for a bequest in favor of Spot and Fido."
Shouldn't we permit people to care for those most dear to them in the event of their untimely demise, even if those are dogs, cats, or birds rather than people?”
There are many devoted animal owners and lovers throughout the United States.
Fortunately, there are also many attorneys who are included in this group and are willing to share their time, energy and efforts to further the various causes for you and your pets.
A Pet Trust can be Inter Vivos or Testamentary
A pet trust can be established thorough a testamentary trust or with an inter vivos trust.
An inter vivos trust is one that takes place immediately upon the completion and execution of the document. We generally think of this type of trust as a living trust and it is usually revocable by the trust grantor, creator or settlor (all of these terms are used interchangeably).
The living trust can be used to plan for unforeseen circumstances such as incapacity, disability and eventually the death of the grantor.
The grantor also usually serves as the original trustee or co-trustee. In the case where two or more co-trustees serve, the trust instrument can provide that either trustee may act alone on behalf of the trust or require both co-trustees to actor sign.
The trust may never actually be needed or used until the death of the grantor, but it is always available if necessary. It can be changed or altered or even revoked by the grantor at any time.
In a pet trust, this provides that there will be no lapse of care or treatment for your pet and no delay because of any probate process.
On the other hand, a testamentary trust is one that is created in a will.
Since a will is an ambulatory instrument, in that it never is effective until the testator (the one who writes the will) actually dies, this trust will not spring to use until the pet owner is no longer around.
Additionally, a will must go through the probate process, see here, and there may well be some time delays.
This delay may cause issues for the ability of your pet caretaker to secure the means and authority to take care of your pet.
One advantage of this type of trust is that is may be less expensive than the living trust. The trust clauses can be incorporated into the will of the pet owner and thus, become an integral part of the overall estate planning process.
Issues to Consider for Your Pet Trust Planning
The American Society for the Prevention of Cruelty to Animals ( ASPCA) is another invaluable site to reference estate planning needs for your pet.
Kim Bressant-Kibwe, Esq. the ASPCA Trusts & Estates Counsel offers assistance to attorneys, financial advisers and executors on all aspects of planning.
Ms. Bressant-Kibwe writes,
“…A pet trust is a legally sanctioned arrangement that provides for the care and maintenance of one or more pets in the event of their owner’s disability or death. The person who creates the trust is commonly referred to as the ‘settlor’. The person who is entrusted with the funds is called the ‘trustee’. A trust can take effect either during a person’s lifetime or after their death. Typically, a trustee will hold property (cash, for example) “in trust” for the settlor’s pet or pets. When the time comes, the trustee will make payments on a regular basis to a designated caregiver. In some states, the trust may continue for the rest of the animal’s life or for 21 years, whichever comes first. Other states allow a pet trust to continue for the rest of the animal’s life without regard to the 21-year limitation. This is especially advantageous when planning for companion animals such as horses and parrots, who have longer life expectancies than cats and dogs.”
She suggests that you contact your attorney to discuss the needs and future estate plans for your pets to establish a pet trust.
Additional areas of concern that she notes that you, your family and your attorney need to consider include;
The appointment of the trustee and successor;
The appointment of the caretaker and successor;
The need to adequately identify your pets in order to prevent fraud;
A description of your pet’s standard of living and care in detail;
A requirement that the trustee ensures the caregiver is providing the pet with regular, thorough veterinary check-ups;
The need to determine the amount of cash or assets needed to adequately cover the expenses for your pet’s care;
The need to determine the amount of cash or assets needed to adequately cover the expenses of administering the pet trust;
Choosing a beneficiary who will receive any remaining funds that were not used by the pet trust; and
Providing directions for your pet’s burial or cremation.
The ASPCA is on one of the many valuable sources of information available to the public regarding the estate planning process for your pets.
If your advisers need assistance or direction, you can help show them the way.
Be proactive in your life. Make your choices, plan and then proceed,
Alabama Code Protection for Pets Trusts
On January 1, 2007, Alabama became the 16th state to adopt the Uniform Trust Code. In doing so, the “Yellowhammer State”* adopted the Trust language of the Uniform Trust Code to allow for a Trust for the Care of an Animal.
The Comment to the Code states that the purpose is to validate so called honorary trusts. Unlike honorary trusts created pursuant to the common law of trusts, which are arguably no more than powers of appointment, the trusts created by this and the next section are valid and enforceable.
Additionally, the Code provides that a trust for the care of an animal may last for the life of the animal. While the animal will ordinarily be alive on the date the trust is created, an animal may be added as a beneficiary after that date as long as the addition is made prior to the Settlor’s death. Animals in gestation but not yet born at the time of the trust’s creation may also be covered by its terms. A trust authorized by this section may be created to benefit one designated animal or several designated animals.
We have recently discussed, here and here, the close relationship in the ongoing ever changing legal theories for treatments of pets as mere chattel or more akin to a family member.
It is interesting to note that additional Comments to the Alabama Code state in part…
Non-charitable trusts ordinarily may be enforced by their beneficiaries. Charitable trusts may be enforced by the state’s attorney general or by a person deemed to have a special interest. But at common law, a trust for the care of an animal or a trust without an ascertainable beneficiary created for a non-charitable purpose was unenforceable because there was no person authorized to enforce the trustee’s obligations…The intended use of a trust authorized by either section may be enforced by a person designated in the terms of the trust or, if none, by a person appointed by the court. ..If the trust is created for the care of an animal, then a person with an interest in the welfare of the animal has standing to petition for an appointment. The person appointed by the court to enforce the trust should also be a person who has exhibited an interest in the animal’s welfare. The concept of granting standing to a person with a demonstrated interest in the animal’s welfare is derived from the Uniform Guardianship and Protective Proceedings Act, which allows a person interested in the welfare of a ward or protected person to file petitions on behalf of the ward or protected person. See, e.g., UNIFORM PROBATE CODE §§ 5-210(b), 5-414(a)… (our emphasis)
We generally think of humans as seeking protection under a Guardianship or Protective Order proceeding.
In the Code the protection afforded a ward or protected person is also granted to an animal!
(Alabama has been known as the “Yellowhammer State” since the Civil War. The yellowhammer nickname was applied to the Confederate soldiers from Alabama when a company of young cavalry soldiers from Huntsville, under the command of Rev. D.C. Kelly, arrived at Hopkinsville, KY, where Gen. Forrest's troops were stationed. The officers and men of the Huntsville Company wore fine, new uniforms, whereas the soldiers who had long been on the battlefields were dressed in faded, worn uniforms. On the sleeves, collars and coattails of the new cavalry troop were bits of brilliant yellow cloth. As the company rode past Company A, Will Arnett cried out in greeting "Yellowhammer, Yellowhammer, flicker, flicker!" The greeting brought a roar of laughter from the men and from that moment the Huntsville soldiers were spoken of as the "yellowhammer company." The term quickly spread throughout the Confederate Army and all Alabama troops were referred to unofficially as the "Yellowhammers.")
Holding the Pet Trustee Accountable
We recently, visited the responsibilities of the Pet Trustee, see here and determined that their duties mirror those of other Trustees.
In addition to the restrictions imposed in the Trust Agreement , we noted that the Uniform Trust Code also sets out specific expectations for the Trustee.
What happens if the Trustee fails to adhere to the restrictions and steps outside the parameters of the power structure?
If a Trustee is believed to have breached their duties under the Trust Agreement or threatens to do so, what ability does the Court have to control the actions of the Trustee?
Under the common law there were limited remedies available for a breach of duty action again the Trustee. Only the Beneficiary and any Co-Trustee could bring the action and it was a matter for the Court to review.
The legislatures have now provided in most states, that others may represent a Beneficiary if legal action against the Trustee becomes necessary.
In the case of a Pet Trust, the Pet Caretaker would be able to bring an action of the behalf of the Pet.
Generally the Court can order the Trustee to do any number of things, including ordering the Trustee to perform the Trustee’s duties as set out in the Trust or to stop the Trustee from committing a breach of that agreement; order the Trustee to repay money or restore property to the Trust and order the trustee to account for all assets.
In some circumstances the Court can suspend the activities of the Trustee or even remove them from their duties or deny them any compensation for their work.
Many states have also written specific remedies that are available if a Trustee is in violation of their duties. Usually, these remedies are contained within the State's Trust Code and are identical or closely similar to those of the Uniform Trust Code.
Alaska a leader in Pet Trusts
Dog sleds in Alaska…
The phrase conjures up vivid images for all of us. We think of strong, barrel-chested, huskies with thick fur, plowing through the heavy snow…straining at their harness to take their master and much needed supplies to the outpost of the wilderness, in exchange for the care and feeding of the musher.
For some of us…Sgt. Preston of the Yukon…On King On!
Maybe this unique mutually beneficial relationship is the reason that Alaska was one of the earliest proponents of Statutory Pet Trusts.
In 1996, the Alaskan legislature passed a bill that validated specific Trusts for designated domestic or pet animals.
The Trust may last for up to 21 years and terminates when a living animal is not covered by the Trust. The Pet Trust is to be liberally construed, to presume against any honorary nature and to carry out the general intent of the transferor.
The law specifically states that unless expressly provided otherwise in the Trust instrument, no portion of the principal or income may be converted to the use of the Trustee or to any use other than for the Trust's purposes or for the benefit of a covered animal.
The statue offers further protection. If an individual believes that the Trustee is not using the Trust funds in accordance with the stated purpose in the Trust instrument, then that individual may make an application with the Court for the proper enforcement of the Trust terms.
When the Trust ends, any remaining funds are distributed according to the terms of the Trust or pursuant to the other statutory requirements.
Today, an overwhelming majority of the states recognize the use of Statutory Pet Trusts for the future well being of your pet and your peace of mind.
Estate planning for your Pet...when to begin?
Pet trusts, which had their beginnings in the late 1980’s, have become widely accepted in recent years. Thirty-nine states and the District of Columbia have specific Pet Trust statutes on their books and there are other forms of documentation that can be prepared to provide for your pets in those states without Pet Statutes.
If you die without making advanced and sufficient plans for your pets, they will probably end up in a shelter and eventually euthanized.
According to the Human Society of the United States, HSUS, some 6 to 8 million cats and dogs will enter a shelter this year and nearly half of that number or 3 to 6 million will be euthanized.
As many as 25 percent of families with a pet have provided for their animals through wills or trusts, said Sara Amundson, executive director with the Humane Society Legislative Fund. "People really consider pets as members of their family," she said.
When should you begin your planning for your pet trust or the use of a will to determine your pet’s future care?
Owners should start thinking about establishing a trust "the minute" they acquire an animal, recommended Kim Bressant-Kibwe, trusts and estates counsel with American Society for the Prevention of Cruelty to Animals Bressant-Kibwe. ASPCA,
"Life isn't guaranteed to any one of us," she said. "People are particularly interested in pet trusts because they reach beyond the grave."
"Pick the right person and hope that when the time comes that they'll have enough integrity to follow your wishes," Bressant-Kibwe said. "Leaving a little money for them sweetens the deal."
Estate planning for your business, your family and your pets is essential because none of us knows what tomorrow may bring. We make plans to try to minimize the uncertainty, reduce the stress, eliminate the chaos and ease the fear of sudden life changing events.
Estate planning for your business, your family and your pets should begin today.
A Will...a way...to protect your Pets?
A will is a legal document that contains your instructions and wishes as to how to distribute your assets and property after your death. The person who writes a will is called a testator. The will can also appoint individual’s that can serve, if necessary, as a guardian for your minor children and nominate a personal representative to carry out the instructions of your will. Each state has minimal legal requirements that must be followed for a will to be valid and accepted by the courts. But generally, the will must be made by a competent adult, it must be in writing and signed by the testator and witnessed by a least two other individuals and a notary.
You can include a clause for your pets in your will with the appropriate language, but you need to be fully aware of the possible limitations and drawbacks. In some circumstances, the preparation of a pet trust is more appropriate in your estate planning for your pet. Today the majority of states accept and recognize some form of a pet trust.
