Connecticut Set to Become the Forty-First State To Approve Pet Trusts
I have written extensively on the proposed legislation regarding the new Connecticut Pet Trust here, here, here and here.
Well, the new bill has finally been passed out of the state legislature and only awaits the signature of the governor to become a law.
The trust is very comprehensive and even includes a provision for a trust enforcer.
You can read the entire statute here and welcome Connecticut as the forty-first state to have a Pet Trust.
Update on The Newly Proposed Connecticut Pet Trust Legislation
John O’Brien is an experienced estate-planning and probate attorney in Wethersfield, Connecticut.
He is an active advocate of the newly proposed legislation regarding the passage of language to provide for Pet Trusts and has been keeping us apprised of the pending bill in that state,
In a recent post on his blog, the Connecticut Estate Planning Report, he wrote that there are actually two different bills that have been offered for adoption.
He also questions the real motive for the passage of one of the bills.
He wrote:
In large measure, the two Bills are similar. There is one significant difference from the perspective of a client that wants to establish such a trust -- any trust must be approved by the Probate Court. Apparently the Legislature sees this as an opportunity to generate revenue for the Probate Court because the Probate Courts will charge a fee of between $50-$750 to review the trust. This change creates all kinds of logistical problems for the implementation of these type of trusts, albeit ones that can be overcome, but certainly ones that are better avoided...."
You should go to his blog to view his entire article.
We will look to Mr. O’Brien to keep us in the loop as this law progresses…or not.
Connecticut Is The Latest State to Propose a Statutory Pet Trust
Just recently, I wrote that Maryland was the latest state attempting to pass legislation for a statutory pet trust
Now, it seems, that Connecticut may follow that trend.
Connecticut Senator Toni Boucher has proposed a bill that provides for the creation of trusts for the care of domestic animals. The bill would allow pet owners to create a trust that terminates when the last animal named dies or 90 years after its creation.
"The question of who cares for a pet after the death of its owner is troubling to many people," said Boucher in a press release.
"Some pets, like parrots, can live for 40 to 80 years," she said. "If a pet owner becomes ill, incapacitated or dies, it makes sense to have already decided ahead of time how to provide one's beloved pets with food, shelter, veterinary care and companionship."
A draft of the proposed legislation is below:
AN ACT CONCERNING THE CREATION OF TRUSTS FOR THE CARE OF DOMESTIC ANIMALS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2009) (a) A testamentary or inter vivos trust may be created to provide for the care of a domestic animal alive during the settlor's lifetime. Such trust shall terminate upon the earlier of (1) the death of the domestic animal or, if the trust was created to provide for the care of more than one domestic animal alive during the settlor's lifetime, the death of the last surviving domestic animal, or (2) ninety years after its creation.
(b) A trust authorized by this section may be enforced by a person appointed in the terms of the trust instrument or, if no person is so appointed, by a person appointed by the Probate Court. Any person having an interest in the welfare of the domestic animal may petition the court to appoint a person to enforce the trust or to remove a person so appointed.
(c) Property of a trust authorized by this section may be applied only to its intended use for the care of the domestic animal, except to the extent the Probate 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 instrument, property not required for the intended use shall be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.
(d) Any person designated pursuant to the terms of the trust instrument may act as trustee of a trust authorized by this section. Any such trustee may also be designated as a remainder beneficiary of such trust pursuant to the terms of the trust instrument. For the purposes of this subsection: (1) "Person" means a natural person, corporation, limited liability company, trust, partnership, incorporated or unincorporated association or any other legal entity; and (2) "remainder beneficiary" has the same meaning as provided in section 45a-542a of the general statutes.
We will keep you advised as this bill winds through the legislative corridors.
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.
