New Pet Projects Amid Tropical Storm Fay
We have a couple of things happening in the world of the pet owner at this time that are generating some excitement.
Last week, I spoke with Andrea Levine, the Associate Producer of the television show ,“Animal Planet”.
Check it out here, if you have not been viewing the programs.
Ms. Levine has asked me to assist her, if I can, with some background information for a future show segment.
I am please that she thought of us in this area and look forward to working with her.
In addition, I am going to meet with some entrepreneurial pet lovers to discuss a novel idea for the use of pet trusts and an expanded role for caretakers.
I do not mean to be secretive, but there currently is a confidentiality issued involved.
I will provide further information of this project when given the opportunity.
Finally, as I write this, Tropical Storm Fay is just leaving Cuba and heading toward south Florida.
Floridians have been warned to keep a close eye on this possible weather problem for the next 48 hours.
We are preparing to do whatever becomes necessary, if we are forced to react to adverse weather.
We have been here before and know the drill and routine.
Hope to contact you soon.
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.
How Much Is Too Much For Your Pet?
We have written extensively about the role of the Trustee and the Caretaker in your pet’s estate planning process, here here here and here.
The more written information and clarification that you can provide for them will only assist the process of caring for your pet after you have gone.
We have also discussed Leona Helmsley’s will and the millions of dollars that she left to her dog, Trouble.
A recent article in the New York Times now reports that the “mission statement” of Ms. Helmsley specifically states that her entire estate, of some $8 billion, is to be used for the care and welfare of animals.
With this much money at stake, we can be assured that the litigation in this probate process is set to continue for years, If not decades, to come.
You can read the entire article, here .
We fully encourage estate and emergency planning for owners of pets and companion animals.
But, we also urge you to use good sense in your planning.
Perhaps, just perhaps, that $8 billion, or a part of it, could be used for a different need or cause.
Just a thought.
Plan well for your pets and plan now.
Pet Trusts In Ohio
Okay, I have been following your information regarding estate planning for my dog, Sir Dickerson. I live in Ohio and have not heard anything about estate planning in my state. Do you have any information to help me in this area? Thanks.
Judy Piqua, Ohio
Judy, although somewhat late to the party, since January of 2007, Ohio has had Pet Trust legislation.
We turned to the Ohio State Bar Association for more information in this matter. According to Cleveland attorney, Marc L. Stolarsky, the following question and answers will provide some guidance for you in this area:
"Q.: Is there some kind of legal device I can use to make sure my pet is cared for after I’m gone?
A.: Yes. House Bill 416 has been passed by the Ohio legislature and signed into law. Effective January 1, 2007, Ohio Trust Code (O.R.C.) Section 5804.08 allows you to create a trust specifically for the care of your pet.
Q.: Does the law cover all types of pets, or only dogs and cats?
A.: The law covers all animals, including dogs, cats, and even your pet tarantula if you choose to have one. However, the law covers only animals that were living when the person who created the trust (called the settler or grantor) was still alive. Also, the trust is effective for no longer than the duration of the lives of the animals it names.
Q.: Why didn’t Ohio law allow for pet trusts before now?
A.: Historically, pet trusts were invalid for two reasons. First, there was no human beneficiary who could be identified in definite and certain terms to enforce the trust. Second, the rule against perpetuities (a legal doctrine that was designed to prevent property ownership from being tied up for unreasonably long periods) requires a human “life-in-being” (the life of a person who can affect the vesting of the property interest) against which to measure the duration of the trust. Under the 2007 law, a pet trust is valid in its own right and is no longer considered an “honorary” trust. This means that the trustee no longer has the option of whether or not to enforce the pet trust. The trustee must administer the trust and make distributions for the benefit of the pet, or the court will appoint a successor trustee. In the past, trustees have sometimes taken money provided through honorary trusts that was intended to be used for the care of pets, and used it for other purposes, instead.
Q.: How does a pet trust work?
A.: A pet trust must be created for the continued care and maintenance of a particular animal. The trust must be funded with some amount of money or property, and a trustee must be designated to administer the trust. Although a pet trust offers a level of protection for the pet that exceeds the sort of protection that was available through the use of honorary trusts, there are limitations. For example, the court has the authority to reduce the amount of caretaking funds to an amount it deems is reasonable for the care of the pet. When creating such a trust, it is wise to name a person who would be willing and able, if necessary, to step forward to bring a legal action against the trust’s caretaker-trustee, should the trustee fail to honor the trust. The 2007 law does not change in any way O.R.C. Section 1721.12, which permits cemeteries to hold property in trust for the maintenance of animal gravesites.
Q.: What steps should I take if I want to prepare a trust for my pet?
A.: To create a workable pet trust, you should do the following:
• Select a trustee to administer the trust.
• Select a primary as well as a secondary caregiver.
• Prevent fraud by protecting your pet’s identity (for example, by inserting a microchip into your pet’s body, to provide proof that the animal named in the trust is actually the beneficiary. In one case, an unscrupulous caregiver replaced a deceased cat with one cat after another for 30 years.
• Put pet care instructions, such as food preferences and exercise routine, in writing.
• Identify any health problems, medication or treatments, and a schedule of veterinary visits.
• Require the trustee to make regular inspections.
• Provide sufficient resources to cover pet care expenses, and specify how funds should be distributed (e.g., annually, quarterly, bi-monthly). Do not invite a court challenge to your trust by over-funding it.
• Provide the funding necessary to administer the estate.
• Specify how any funds remaining after the animal’s death should be used.
• State how the animal should be treated after its death (e.g, burial, cremation, etc.). "
Ohio is now in the majority of states that recognize Statutory Pet Trusts.
Contact you local attorney for additional assistance and prepare to plan for the future for Sir Dickerson.
Remember The Guidelines For Your Pet Trust
If that amount is unreasonable or unrealistic, the Trust may be challenged. The larger the amount left for your pet, the higher the percentage of a challenge. Especially, by a disgruntled relative.
Many of you will recall that hotel heiress, Leona Helmsley, who died last year, left a $12 million Trust to her 9 year old Maltese, Trouble.
Well, Trouble, who now lives in Florida, has trouble now!
A New York Judge and the State Attorney General have signed off an agreement that reduces Trouble’s share to $2 million.
Not all of the facts have been revealed as to agreement of the parties or their reasoning, but certainly some of the heirs that were omitted from Helmsley’s will stand to see a substantial increase in their fortunes.
It appears as though the Trustee of Trouble was not opposed to the reduction of the amount.
You can see the update on the story here.
Remember these common issues when establishing you Pet Trust:
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.
But, do not forget to…establish your Pet Trust.
Share Your Tomb with Your Pet?
We write on numerous occasions about Statutory Pet Trusts, Powers of Attorney for your pet, Will Clauses to provide for your pet and the selection of an appropriate trustee and a caretaker.
We have even reviewed your ability to clone your pet.
There is also an additional option, at least in the State of Florida.
A change in the Florida Statutes, now allows for an additional authorized function for cemeteries.
Under Statute 497.273, the following power is provided.
"4) This chapter does not prohibit the interment or entombment of the inurned cremated animal remains of the decedent's pet or pets with the decedent's human remains or cremated human remains if:
(a) The human remains or cremated human remains are not commingled with the inurned cremated animal remains; and
(b) The interment or entombment with the inurned cremated animal remains is with the authorization of the decedent or other legally authorized person."
So, if you keep the remains of you and your pet separate and agree to the inurnment, in Florida at least, you can take your pet with you.
Estate planning for you and your pet?
Maybe, maybe not.
This is a little too much planning for me.
Include your Veterinarian in your Estate Plans for Your Pet
Certainly, your own family members, the potential trustee and the potential caretakers of your pet must all be in accord with your plans and wishes.
Your estate attorney and financial planer also need to be involved to make sure that your documents conform to the legal and financial standards.
But, don’t forget to meet with your Veterinarian.
Very few individuals have the same insight about the health and well being of your animal as your pet’s own Vet.
A discussion with him or her during your estate planning process can assist greatly.
Medical records and the future potential needs of your pets can be outlined for the caretakers.
Special dietary schedules or exercise or medication routines can be easily established for future reference.
You and your Vet can discuss the potential time line for the duration of the life of your pet. This can provide some guidelines for the total costs that will be necessary for the care of your pet and the necessary funding of the Pet Trust.
Your Vet can also play an integral role in the transfer of physical custody of your pet to the caretaker on a temporary or permanent basis and is indispensable when the final arrangements must be made for inevitable death of your pet.
Talk to your Vet on behalf of your pet.
It is a necessary part of your overall estate plan..
Use Door Signs for Emergency Pet Information
We try to discuss and address all issues of planning for the well being of your pets.
Estate Planning.
Emergency Powers of Attorney.
Caretaker and Trust arrangements.
Today, we remind you that your home is obviously also the home of your pets.
They deserve a safe haven as much as you.
But, you have the ability to plan and help yourself in an emergency situation and they do not.
One simple way to minimize emergency problems for you and your pets is the use of signage for your doors and windows.
These small signs act as both a warning and an alert for others.
They advise strangers entering your home that there are pets present inside.
And, in an emergency situation, as in the case of police or firefighters in your home, the signs can act as a direction arrow to increase safety measures.
In addition, these signs can contain emergency contact information for the pet owners, veterinarians, pet sitters and others.
Two free sources for this documentation are the Humane Society and PetPlace.com
You can go to these sites, download and print the stickers for free and then…use them.
Planning for you and your pets…everyday and emergency…it is a good idea.
Can I put my pet in my will
I have been reading various articles on the subject of pet trusts. I want to fully provide for my Bengal cat, Bangle, and I already have a will. Can I just add some type of addition to this will to take care of Bangle if necessary?
Cyndi, Indianapolis, Indiana
Cyndi...certainly there are some other alternatives to take care of Bangle besides setting up a Pet Trust. You can leave a direct bequest in your will. But remember that the courts, unlike you, still consider your pets to be personal property and like all of your other assets, they can be left upon your death to a friend or family member.
You can provide for a specific amount of money to take care of your pet and provide specific instructions, to a caretaker, for the care of Bangle. If the caretaker does not provide the appropriate care, then they are not entitled to the money. Someone needs to be appointed (personal representative?) to make sure that the money is being used as you intended, That is, for the care of your pet.
An addition to your will or a specific will clause are relatively simple methods to protect Bengal; however, there are some pitfalls to this method of providing for the future of your pet.
First of all, as it is a clause in your will, it will not take effect until your death. Therefore, in an emergency situation, it would not provide for the care of your pet.
Secondly, the courts have held that if you provide…let's say...a clause that gives $5,000.00 to my friend Mary Ann to take care of Bengal upon my death… and Bengal dies before you...if you have not changed your will...Mary Ann is probably still entitled to receive the $5,000.00 upon your death.
Thirdly, the probate process involving your will and the distribution of your assets will normally take a few months to conclude.
Along with the appropriate will clauses, there are other legal methods available to provide for your pets in Indiana. For almost three years, Indiana has had a Statutory Pet Trust, established by the legislature, that allows for the creation of a trust for your pet during your lifetime.
If you have additional questions regarding will clauses or Statutory Pet Trusts in Indiana, we can assist you in those matters.
What is a pet trust?
I was at a dog park the other day with my Golden Retriever, Mulligan, who was enjoying his romp in the daily rain. I overheard two ladies talking about something called a pet trust. I have heard of this from other pet owners, but do not know what this is? Can you explain the idea of a pet trust?
Dono, Seattle, WA
Dono, sure… a pet trust is a legally binding document that you can create that sets aside specific funds to take care of your pet. It can be set up to take effect immediately or automatically upon your death. The trust would specify a caretaker to physically provide for your pet and a trustee to monitor and control the funds. Under the common law such trusts were unenforceable by the courts in your state. However, the State of Washington has a statutory pet trust that has been approved by your legislature. The purpose of this law is to recognize and validate certain trusts that are established for the benefit of animals. These trusts will be recognized as valid and fully enforceable in Washington.
Contact us for more information or questions on a Washington statutory pet trust.
