Still Need a Caregiver For Your Pet Trust?
Who will be the caregiver?
This is the most difficult question that needs to be answered when doing estate planning for animals.
Most of us do not want to impose those daunting responsibilities on unwilling friends or families.
If you cannot find someone to appoint as the caregiver for your pet trust, you might consider a Homeless Animal Rescue Team or H.A.R.T.
There are many H.A.R.T locations throughout the United States.
These are 501(c) (3) non-profit organizations formed to provide care and shelter for neglected, abused and abandoned animals.
They are generally local and actively engaged in monitoring the animals in the area and assisting in the placement in temporary and then permanent homes.
Although there is no national headquarters that I know of, you should be able to find a local H.A.R.T. in your area.
Who do You Appoint as the Caregiver in Your Pet Trust?
The choice of a Caregiver for your pet is always a tough decision in the estate planning process for animals.
The Caregiver is essentially the person that you choose to be the Guardian of your pet when you cannot.
He or she will be responsible for the daily care and decisions made on behalf of your pet.
The issues of diet, exercise, medical treatment and ultimately even death and this individual must make follow-up decisions.
They should be expected to follow your wishes and directives regarding the care of your pet and must be willing to assume the responsibilities associated with caring for your pet.
Many times another family member will be appointed as the Caregiver. Nevertheless, you need to discuss the situation completely with them in advance, to make sure that they are will to accept this responsibility.
Tough choice.
How Much Do I Pay the Caregiver in My Pet Trust?
How much should I pay the caregiver of my pet trust?
Betsy Naples, Florida
Betsy, this is a very good question and one that I cannot easily answer.
You obviously need to make some type of arrangement in your pet trust for payment to your pet’s caregiver.
The amount can vary greatly.
It depends upon the number of pets in the trust, the expected duration of the life off the pets, the relationship between you-the caregiver-and the pets and the expectations of duties and responsibilities that you place upon the caregiver.
The fee may be as small as a few dollars every week or can increase to several hundred dollars per month.
Remember, that no matter how much the caregiver likes your pets, it is still a chore for them to provide this service.
Discuss the potential caregiver fee with your attorney, pet panel and maybe even your trustee.
What Happens if My Pet Trust Runs Out of Money?
What happens if I set up a pet trust and the trust runs out of property before my parrot, Pedro dies?
Pepe Estero, Florida
Pepe, if there is no money, assets or property remaining in the trust, obviously the trustee will not be able to pay for Pedro’s care. The trustee is not responsible and not likely to pay for Pedro out of his or her own pocket.
Depending upon the circumstances and the relationship involved, the caregiver may continue to pay for Pedro' care with his or her own funds.
In case the caregiver is unwilling or unable to do so, you should have a clause in your pet trust that states the name of the person or organization to which you would like to donate your pet.
The last thing that you would want, is that for lack of proper planning, Pedro ends up in a shelter where he might be euthanized.
Alternatives to Individual Caregivers in a Pet Trust
I want to provide for my three cats upon my death, but I have no friends or relatives that I can be comfortable to nominate as a caregiver. Any suggestions?
Andy Scottsburg, Indiana
Andy, I am pleased that you are taking the time to plan for the care of your cats after you can no longer do so.
The first obvious choice is a local humane society.
You can meet with the officials and view the physical surroundings to see if you approve. Is the facility too large or too crowded? Will you cats be caged for extended periods of time or are there free roaming areas available? What is the ratio of employees/volunteers to the number of animals? Does the society require a minimum amount of monetary donation to care for your cats? Is there an active adoption program available?
If the local humane society does not meet your standards; you can contact local non-profit animal protection groups, private sanctuaries or university veternarian programs.
There are viable alternatives to individual caregivers.
Tax Issues With Pet Trusts
Are there any tax concerns to address with estate planning for animal owners?
Dottie Piqua, Ohio
Dottie, indeed there are…
We always recommend that you involve your CPA or tax adviser when you are planning for your pets.
Depending upon the type of trust or will clause that you use and the state where you reside, there may be gift, income, inheritance or estate tax consequences involved with this estate planning.
These various taxes may be assessed against either the Settlor of the Trust, the Trustee, the Caregiver or the Estate, via the Executor.
Careful tax planning is essential with any form of estate planning.
What Happens When the Pet Trust Goes Bust?
What happens if the money that I set aside for my dog Lenny in a pet trust runs out before Lenny dies? Does the Trustee or Caregiver have to pay monies out of their own pocket?
Gina Las Vegas, Nevada
If that happens, Lenny will probably, unfortunately be turned over to a pet organization or euthanized, unless someone volunteers to adopt him.
Fortunately, at least, the trustee or caregiver would not be obligated to pay for any of Lenny’s expenses. An adequately funded trust will avoid this problem.
Your Pet Trust Needs Liability Insurance
When you set up your Pet Trust, you need to consider the total amount of money that you will need to adequately fund the trust.
This will include calculations for yearly food, supplies and veternarian bills.
Alternatively, there may be costs for boarding, for pet insurance or to pay the caregiver or the Trustee.
Do not forget the possible costs of liability insurance.
This insurance should be purchased by the Trustee to protect the Trust assets, the Trustee, and the caretaker from potential liability for money damages that may be caused by your pet.
Whether accidental or by design, your pet may cause harm to property or to individuals.
Plan ahead and protect the Trust that you have established to protect your pet.
Give Your Pet Caregiver Some Guidance
When you establish your Pet Trust, you should be clear and provide very specific information about your pet to your caregiver.
Even if the new caregiver knows your pet very well, they still need as much information as possible to make a new and happy home for your pet.
At the very least, the following information should be provided;
Identify any specific behavior or habits of your Pet,
Is your pet basically an indoor or outdoor Pet,
Identity the Breeder of your Pet (if applicable),
Identify the brand of food that you feed this Pet,
What are the usual feeding time schedules and the amount of food for each meal,
Identify any special medications, supplements or other dietary needs,
Identify the location of all medical records, inoculation and spay/neuter certificates,
Identify the daily routine for your Pet including the specific (if any) location for sleeping, eating, baths, grooming, walking or exercise locations and interaction with other local animals, special play activities, how to calm your pet when it is disturbed or in fear and adaptations to travel, and
Identify the favorite toys or play objects for your Pet.
The more information given to the caregiver, the smoother the transfer for all parties.
Add a Pet Trust to Your Estate Planning
If I have provided for my dog Derron in my will, why do I need to consider a Trust Agreement?
Chandra, Milroy, Indiana
Chandra, first of all, I applaud you for including your pet in your estate planning.
Second, keep in mind, that a will only becomes operative and effective when you die.
It can direct who will take care of your pets and how those tasks will be completed only after your death.
A valid Trust can provide for immediate care of Derron in the event that there is an emergency and you become ill or incapacitated.
You can nominate alternate caregivers for your pet and establish methods to fund and pay for the Trust.
A provision for your pet in your will is a good start; now begin the New Year with some planning and thoughts for a Pet Trust.
Seperate the Caregiver and the Trustee in Your Pet Trust
I want to appoint my accountant as the Trustee for my Pet Trust because she has a full background and understanding of my financial condition. However, the accountant insists that she should also be the caregiver for Moxy, my terrier, so that she can combine duties to save time. Is this a good idea?
Rex Lavergne, Tennessee
The animal caregiver, custodian or guardian is an important component in the Pet Trust.
Usually a family member or close friend is appointed to this position. Someone who knows and cares for the pet. Perhaps, someone who has a history with your animal.
Professor Gerry W. Beyer has taken this position on the appointment of the Trustee as the caregiver. In 2008, he wrote:
"This is the most important decision because this person will provide the pet’s care. The pet, the prospective caregiver, and the caregiver’s family (human and nonhuman) should make sure they get along. It is important to name alternates in case the designated person is unable to care for the pet. The trustee may be given the ability to select a good home for the pet if none of the named beneficiaries can care for the animal. But the trustee must not be permitted to appoint him- or herself, as this would eliminate the checks-and-balances aspect of separating the caregiver from the money provider."
Heed the words of the experts in this field.
Separate the powers, duties and appointment of the caregiver and the Trustee in your pet trust.
