Too Much Legalese for Your Pets?
I had a long conversation Friday afternoon with Kathleen Pender.
Ms. Pender is a well written and well respected writer for the San Francisco Chronicle.
She regularly reports on local, national and international economic and business events.
Recent stories have covered the failure of IndyMac Bank, the influx on foreign money and investment inroads into the United States, the still declining housing market, how the downgrading of bond insurers has a direct effect on the sock market and the basics of heath savings plans.
Our conversation was a little less complicated, as we discussed the newly passed California Pet Trust Statute.
As we talked about pet ownership, estate planning and the role of the Trustee and the Caretakers, she posed an interesting question.
Why, she queried, should the courts take up valuable time dealing with pet trusts, statutes, Trustees, estate issues with probate, emotional distress trials for pet owners, custodial disputes and other pet issues.
Surely there were more important items for the judges and courts to entertain.
My only response was that the courts are currently reviewing more and more of these issues, whether we like this change or not.
More households have pets than have children.
If pet owners did not have the passion and concern for their pets, they would not seek help from the courts.
If these cases were not brought in to the legal arena, they would not have the same import and legislators would not feel the need to enact more laws as the behest of their voters.
The Courts interpret the laws.
Legislators write the laws.
Laws that they deem necessary; to please their constituents.
The voters.
The role of pets in our lives will only increase as time passes.
California Enacts New Pet Trust Legislation
It has been said many times, that as California goes…so goes the country.
Well, in the area of estate planning for pets, California has not been a leader, but recently joined the enlightened ranks of numerous other states.
We originally wrote about the proposed legislation here
The Legislative Counsel’s Digest ( of California) states the following on the proposed changes;
"Existing law provides that a trust for the care of a designated domestic or pet animal may be performed by the trustee for the life of the animal, whether or not there is a beneficiary who can seek enforcement or termination of the trust and whether or not the terms of the trust contemplate a longer duration. ..
"This bill would repeal the provisions regarding domestic or pet animal trusts and would provide instead that a trust for the care of a designated domestic or pet animal is for a lawful noncharitable purpose and terminates when no…designated animal is living on the date of the…settlor’s death…unless otherwise provided in the trust …The bill would require a court to liberally construe a pet trust to bring it within the bill's provisions, to presume against an interpretation that would render the disposition a mere request or an attempt to honor the pet, and to carry out the general intent of the trust. The bill would provide an order of disposition of trust property upon termination of the trust and would provide authority for the court to name a trustee and to transfer trust property, as specified. This bill would permit…any person interested in the welfare of the pet animal or any nonprofit charitable organization…that has as its principal activity…the care of animals to… petition the court regarding the trust, as specified…"
We are now pleased to inform you that as of July 22, the proposed legislation has been passed and assigned by Governor Schwarzenegger.
The full legislation can be found here.
Welcome California, to the new millennium.
Put the new statute to use for you and your pets.
Changes Coming to California Pet Trust?
Although California has recognized some form of a Pet Trust since 1991, the enforceability has been minimal and it has been an “honorary trust.”
That may soon change.
A recently proposed amendment is moving forward in the California legislature to amend Section 15212 of the Probate Code
The Legislative Counsel’s Digest states the following on the proposed changes;
"Existing law provides that a trust for the care of a designated domestic or pet animal may be performed by the trustee for the life of the animal, whether or not there is a beneficiary who can seek enforcement or termination of the trust and whether or not the terms of the trust contemplate a longer duration. ..
"This bill would repeal the provisions regarding domestic or pet animal trusts and would provide instead that a trust for the care of a designated domestic or pet animal is for a lawful noncharitable purpose and terminates when no…designated animal is living on the date of the…settlor’s death…unless otherwise provided in the trust …The bill would require a court to liberally construe a pet trust to bring it within the bill's provisions, to presume against an interpretation that would render the disposition a mere request or an attempt to honor the pet, and to carry out the general intent of the trust. The bill would provide an order of disposition of trust property upon termination of the trust and would provide authority for the court to name a trustee and to transfer trust property, as specified. This bill would permit…any person interested in the welfare of the pet animal or any nonprofit charitable organization…that has as its principal activity…the care of animals to… petition the court regarding the trust, as specified…"
In addition, the bill would provide a process for an accounting of the trust, to be waived if the value of the trust assets do not exceed $40,000.00.
These are major changes in a state with a huge population and clearly show the continuing trend in recognizing the wants and needs of pet owners.
We will keep you advised as these matters move forward through the grinding legal process.
