Florida To Hold Statewide Activities for Animal Week
Governor Rick Scott officially proclaimed that the 4th Annual Florida Week for the Animals would be February 4-12, 2012.
This statewide event is designed to celebrate and build awareness on behalf of all animals, as well as recognize the Florida organizations and citizens who support them.
According to Michelle Buckalew,the Florida Week for The Animals team leader, Florida Week for the Animals is bringing together educators, advocates, animal shelters, rescue organizations, sanctuaries, businesses, students, artists and community leaders in an exciting week of community-building activities. Over 100 events will be featured throughout the State of Florida.
If you would like to learn more, become involved or list an event visit the official website at http://www.floridaanimals.org/.
This is a good thing for animal lovers and the State of Florida.
Maybe your State has a similar program?
Want To Be In The Movies?
I had a very interesting conversation last week with Emma Goddard, the Head of Development of Wild Pictures based in London, England
Wild Pictures is a documentary production company and is currently developing a documentary idea looking at pets that have been left a legacy/trust fund by their owner
They are also looking for owners who currently indulge and pamper their four-legged friends and who are or would seriously think about including their pet in their trust or will.
If they secure the necessary funding the documentary will move forward.
If you are interested in participating in the background or perhaps even being on the screen, contact me and give me your story.
Money To Care For My Pet After I Am Not Around
I recently received this question from a reader:
I want to devise a form of whole life insurance for companion animals, whereby their caretakers pay a reasonable monthly premium and/or flat sum upon their death, in exchange for a lifelong home for their pet(s). Can you help?
I am not aware of any current program that specifically provides for this. However, many caretakers do buy a separate life insurance policy on themselves that is then payable to the pet trust upon their death, for the benefit of their animal
Connecticut Pet Trust Legislation?
I recently received an email from an attorney in Connecticut. He wanted to know if there was a good statutory cite to the Connecticut Pet Trust.
Signed into law in 2009, The Statute on Trusts provides:
Sec. 45a-489a. Trust to provide for care of animal: Creation. Administration. Jurisdiction. Termination. (a) A testamentary or inter vivos trust may be created to provide for the care of an animal or animals alive during the settlor's or testator's lifetime. The trust shall terminate upon the death of the last surviving animal. A trust created pursuant to this section shall designate a trust protector in the trust instrument whose sole duty shall be to act on behalf of the animal or animals provided for in the trust instrument. A trust protector shall be replaced in the same manner as a trustee under section 45a-474.
(b) Except as otherwise provided in this section, the provisions of the laws of this state that govern the creation and administration of trusts shall apply to a trust created to provide for the care of an animal or animals pursuant to this section.
(c) (1) The Superior Court, or a probate court described in subdivision (2) of this subsection, shall have jurisdiction over any trust created pursuant to this section.
(2) A probate court shall have jurisdiction over any trust created pursuant to this section if the trustee of the trust is otherwise subject to the jurisdiction of such probate court, or the trust is an inter vivos trust and the trust is or could be subject to the jurisdiction of such probate court for an accounting pursuant to section 45a-175.
(d) The trustee of a trust created pursuant to this section shall annually render an account for the trust, signed under penalty of false statement, to the trust protector.
(e) Any individual identified as a trust protector pursuant to this section may file a petition in the Superior Court or a probate court having jurisdiction pursuant to subsection (c) of this section to enforce the provisions of the trust, remove or replace any trustee of the trust, or require a trustee to render an account as required under subsection (d) of this section. The court may award costs and attorney's fees to the trust protector, from the trust property, if the trust protector prevails on a petition filed under this subsection and the court finds that the filing of the petition was necessary to fulfill the trust protector's duty to act on behalf of the animal or animals provided for in the trust instrument.
(f) If the trust protector determines that the trustee has used trust property for personal use or has otherwise committed fraud with respect to the trust, the trust protector may request the Attorney General to file a petition in the Superior Court or a probate court having jurisdiction pursuant to subsection (c) of this section to enforce the provisions of the trust, remove or replace any trustee of the trust or seek restitution from the trustee with respect to such trust property. The Attorney General may file such petition if the Attorney General determines that the circumstances warrant such filing.
(g) Trust property may be applied only to its intended use, subject to proper trust expenses including trustee fees, except to the extent the Superior Court or a probate court having jurisdiction pursuant to subsection (c) of this section, upon application by the trustee or trust protector, determines that the value of the trust property exceeds the amount required for its intended use. Trust property not required for its intended use, including trust property remaining upon termination of the trust, shall be distributed in the following order of priority:
(1) As directed by the terms of the trust instrument;
(2) To the remainder beneficiaries identified in the trust instrument, under the same terms provided in the trust for the remainder interest;
(3) To the settlor, if then living;
(4) Pursuant to the residuary clause of the settlor's or testator's will; or
(5) To the settlor's or testator's heirs in accordance with the laws of this state governing descent and distribution.
Indeed, there appears to be the necessary legislation in place.
Pet Lovers Spend Lavishly
Despite the economic recession, if not depression, that has currently engulfed the United States, the American Pet Products Association recently reported that animal lovers will spend a record $50 Billion Dollars on their pets this year.
In addition, pet ownership continues to increase year over year, and now almost two-thirds of all U.S. households co-exist with pets.
In a time when even the most affluent are allowing mortgage payments to go unpaid, opting not to carry medical insurance and stressing about how they will cope with dwindling retirement accounts, the seemingly necessary relationship between humans and companion animals seems to continue to grow.
Leona Helmsley's Dog Trouble Is Gone
Leona Helmsley became infamous, when she who died in 2007 and left her dog Trouble, a $12 million trust in her will.
Trustees fought over the provisions and the amount of money was later reduced by the court and an agreement among the Trustees to around $2 million.
Now it has been reported that Trouble apparently died last December, without any fanfare, and the remaining monies reverted to the Helmsley Charitable Trust.
After all of the angst and outcry, it seems as though Leona got her wish and achieved her goals.
Trouble continued to live a pampered life-just as Leona wanted and planned.
And the Helmsley Charitable Trust received the remainder of the trust funds- just as Leona wanted and planned.
What Is A Pet Panel?
I recently gave a seminar about pet trusts to a group of veterinarians and the use of a Pet Panel was one of the main interests of the attendees.
I have written before on the pet panel and maybe now is good time to review the process. A pet panel is a group of individuals appointed by you, in your Trust and they have various duties as you and your counsel shall provide.
Some example of duties as established for a pet panel, as are follows:
Work with the Pet Trustee to select an appropriate Pet Guardian for each pet;
Make the final decision on accepting or rejecting the choice for Pet Guardian;
Review the Pet Trustee’s performance;
Authorize financial bonuses for the Pet Guardian pursuant to the Trust;
Assist the Pet Trustee and Pet Guardian with major medical decisions affecting the health and lives of the pets;
Select a new successor Pet Trustee to replace the then serving Pet Trustee if there are no other Pet Trustees named or if there are none that are willing or able to serve;
Make occasional, unannounced, in-home visits to monitor the care of the pets;
Assist with end-of-life decisions for the pets, including euthanasia, based on the pets' quality of life, pain and suffering, and chances of meaningful recovery.
The pet panel can have as much or as little powers a your determine.
Your counsel can assist you with a Pet Panel when you complete your estate planning for your pets.
Pet Trust Dispute Lands In Georgia Court Room
Very few pet trusts have found their way into the court system.
This case could proved to be an interesting test of the validity of pet trust:
A fifty -three year old, terminally ill, woman set up a $1 million trust fund to care for her cats and dogs when she was gone.
When the deceased’s will was probated, a Georgia Probate Judge held that she was "unduly influenced" by a lawyer who made his girlfriend the largest beneficiary of the estate.
The will set up the million dollar trust fund to provide for the animals, however, it also bequeathed a home and seven acres of land to the lawyer's girlfriend.
The girlfriend was also to be paid $50,000 a year, plus additional fees, for taking care of the 50 cats and six dogs that were alive at the time of the owners death.
You will not be surprised to learn that the family of the owner of the pets who set up the trust, are challenging the validity of the will.
Stay tuned.
Pet Sitters Speak Out
Our recent post on pet sitters brought a great response from numerous readers.
Two are set out below:
..."It amazes me how many people consider their pets children yet don't think they have to pay for pet sitting services, especially if you stay at their home. While being able to stay "for free," when you are taking care of a pet your time is not your own. You have to accommodate the pets' schedule of walks and feedings. I really don't understand why people don't think
pet sitters deserve to be compensated for putting their pets first..."
..."I am a pet sitter and these are very good tips to give travelers. I also require my pet sitting clients to fill out a veterinary release form authorizing me to seek medical care should the need arise while the owners are away..."
You thoughts are still welcome.
Readers React to Pet Sitter Rules
I received some very different comments from pet owners regarding their experiences with pet sitters.
Also, some professional pet sitters joined the discussion.
Some of the comments of one sitter are below:
"It's nice to see you write about pet sitters. You have great points. I started my pet sitting business seven years ago and I have seen a lot of new pet sitters come and go. Pet sitting sounds like a lot of fun and it is, but there is a LOT of responsibility. Most of us love our pets like our children. They are family. One thing other than meeting the sitter and feeling comfortable with them is the sitter should have liability insurance. I have several sitters so we are all bonded and insured.
I do background checks on my sitters too."
Pet sitters should be professional and not a neighbor doing a favor.
What Are The Requirements for a Good Pet Sitter
One of the most frequently asked questions that we hear concerns the use of a pet sitter when traveling.
When you engage someone to care after you pet, you should consider the following:
Your Name;
Your email address;
Your cell phone numbers;
Your travel plans and dates;
The name of the hotel or location you are visiting along with all local email, cell phone and facsimile information;
The name and address of your veterinarian;
The business and cell phone of your veterinarian;
Driving instructions to you veterinarian;
The name and number of a local personal contact for emergency purposes, and
An updated power of attorney for that local contact.
There are many qualified pet sitters. Make sure that yours is one of them.
Charitable Remainder Trust Confusion
My last post was on the use of a charitable remainder trust in the context of a pet trust.
My posting was unclear to many readers and may not be a good guideline for some pet owners.
Although many do use a charitable remainder trust, there is no tax deduction as with a normal trust that is given for testamentary gifts left to qualified charitable organizations
In fact, The Internal Revenue Service has specifically ruled that amounts passing to a pet trust for the lifetime benefit of a pet do not qualify for the charitable deduction given under estate tax regulations.
In Revenue Ruling 78-105, the IRS stated the ruling even affects pet trusts that name a qualified charity as its remainder beneficiary.
I am sorry for the confusion and it just another reminder to use a good estate planning attorney and accountant with all of your estate planning, pets included.
What Is The Role Of The Pet Trustee?
I had an extensive conversation this week with a local attorney regarding the scope of duties of a Trustee in a Pet Trust.
I have previously written about the role of the Trustee as follows:
Generally speaking, the duties and responsibilities of a Trustee for a Pet Trust are no more or less than any other Trustee.
The Trust Agreement itself will set out the specific role of the Trustee and set the parameters of the powers of the Trustee.
The Uniform Trust Code also defines in detail, the duties and powers of the Trustee that have been accumulated as established by the courts and the legislatures throughout the years.
Beginning with Section 801, DUTY TO ADMINISTER TRUST, which states…
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this [Code].
The Code sets out in great detail the expectations of the Trustee, including definitions and explanations of the needed loyalty and impartiality of the Trustee as well as the accumulation, control and accounting of the Trust property.
Your choice of a Trustee for your Pet Trust, whether an organization or an individual should not be taken lightly. Although their responsibilities are set high and can be closely monitored by your Pet Caretaker, you will be out of the picture and the decisions will be made by someone else
You will no longer have control of the property that you have set aside for the care and protection of your pet.
Chose your Pet Trustee wisely.
Excellent Information On Pet Cemeteries
Reader Edward C Martin, III, recently responded to my post about possible problems with pet cemeteries.
He wrote:
For those who want to ensure that their pets remains will always be at the pet cemetery the pet owner should do the following prior to bringing their pet to the pet cemetery:
1. Use a pet cemetery that owns the land (rather than leases it);
2. Ensure that the land is deed restricted so that it can only be used for pet burials and no other purpose (i.e., it can't be sold to a real estate developer);
3. Use a well-established pet cemetery that is a member of the International Association of Pet Cemeteries;
4. Ensure that the pet cemetery has restricted trust funds earmarked for permanent maintenance and that the amount in those trust funds are sufficient;
5. Purchase perpetual maintenance for your plot (as opposed to annual maintenance) to ensure that your title/interest in the grave will never be lost should the annual bills not be paid due to your own death, incapacity, etc
6. Determine if the pet cemetery is regulated by state law (some states regulate pet cemeteries, some don't)
7. Do your own research on the pet cemetery you intend to use. Visit the grounds. Speak to the owners. Ask questions. Read their contracts. Educate yourself so that this scenario does not happen to you.
Great advice for those of you considering this alternative for your pets.
More on Military Power of Attorney For Pets
I received a nice email from estate planning attorney Deirdre Wheatley-Liss, of New Jersey, on my recent post on Military Powers of Attorneys for Pets.
She wrote:
Great post - came under the heading of "things I didn't know" - so much so that this is the basis for my blog post tomorrow. I really enjoy how you keep tying your points to pets.
Well, true to her word, her blog post of Tuesday has some good information in this area and other tips for estate planning.
Visit her site here and become more educated.
Military Power Of Attorney Especially for Pets
I was speaking with a law professor this past week and she asked about a military power of attorney for pets.
There is a specific statute that can apply in this area.
The United States Code, Title 10, Armed Forces, Section 1044 b provides for Military Powers of Attorney.
The Code provides in part…
A military power of attorney is exempt from any requirement of form, substance, formality, or recording that is provided for powers of attorney under the laws of a State; and shall be given the same legal effect as a power of attorney prepared and executed in accordance with the laws of the State concerned.
For purposes of this section, a military power of attorney is any general or special power of attorney that is notarized in accordance with section 1044a of this title or other applicable State or Federal law.
Under regulations prescribed by the Secretary concerned, each military power of attorney shall contain a statement that sets forth the provisions of subsection (a).
…shall not be construed to make inapplicable the provisions of subsection (a) to a military power of attorney that does not include a statement described in that paragraph.
In this section, the term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and a possession of the United States.
A Special Military Power of Attorney for Pets can designate an individual or individuals to care for and maintain your pet (s) during your absence, and authorize any and all medical care necessary, including major surgery and humane disposal, as deemed necessary by the Veterinary Service:
The Military Power of Attorney can be for a time certain or until written revocation.
Or, as an alternative, The Military Power of Attorney can also be set up to state that if the Declarant shall be, or has been, carried in a military status of “missing”, “missing-in-action” or “prisoner of war,” then the power of attorney shall automatically remain valid and in full effect until sixty (60) days after the individual has returned to the United States Military control following termination of such status.
Massachusetts Governor Signs Pet Trust Legislation
According to a report by the Boston Herald, Governor Deval Patrick, of Massachusetts, has finally signed a law authorizing the creation of a trust to provide for the care of one or more pets, if the owner becomes disabled or dies.
The new law, dubbed "An Act Relative to Trusts for the Care of Animals," will become effective in 90 days.
It will authorize the creation of an enforceable trust with the pet as the beneficiary and can specify and designate the caretaker for the animal.
More than 43 states now have effective pet trust statute legislation.
Read more on the story here.
Will Massachusetts Governor Sign Pet Trust Legislation?
Massachusetts Governor, Deval Patrick, has until Sunday to sign pet trust legislation, that was first introduced in January of 2009.
Donna Turley, a Boston-based attorney helped draft the legislation that would provide for the enforcement of pet trusts.
Currently Massachusetts is in the minority of states that do not allow for estate planning for animal owners.
What Is The Status Of The Massachusetts Pet Trust Legislation?
A reader recently asked, “Do you know if the Massachusetts pet trust law was signed into law this year? Thanks.”
The simple answer is no.
A trust that would provide for the care of animals passed in the House in June of this year, but is currently stalled in the Senate.
Maybe a call to your legislator would help the cause.
Happy New Year For You And Your Pets
Happy New Year!
Enjoy the new year with your family and pets.
Have fun and be safe.
Happy New Year For You And Your Pets
Happy New Year!
Enjoy the new year with your family and pets.
Have fun and be safe.
A Different Opinion On Pet Airways
With the holiday season upon us, we recently wrote here about a reader who had used Pet Airways and was one satisfied customer.
Today we received another opinion on this carrier.
..."We used them last holiday season and they were fine. This year however, it is a different story. Snow on the DC beltway...3.5 hrs attempting to get to BWI, called ahead 2 hrs to explain the gridlock, in short by 2 mins missed the van that takes pets to aiplane...out of luck no one calls you and they lock the lounge. Did learn 5 other pets missed the flt. It seems they are not able to flex..will see if there is a way to recoup some of the cost.
They are more than twice as expensive this year as last and with only one flt a week westbound...you are out of luck if weather slows you. On the other side, however, you also assume the problem if weather alters their flt schedules..."
In the interest of full disclosure, I have never used Pet Airways or any other airline to transport my dog, Anna.
A Testamentary Pet Trust Has Limited Benefits
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 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
Holiday Gifts For the Animals-Just Not Your Animals
Someone recently suggested to me, that if you run out of holiday gift ideas, especially for that person that has everything, you could always remember the animals.
You can give your gift to the organization of your choice and provide notification to a friend or relative that you have donated in “their name.”
Your local humane society, shelter or animal relief agency is always in need of money and donations.
You can plan your giving to benefit homeless animals, provide supplies, adoption fees or monies directly to the shelter.
Just another form of estate planning for pets, in this case, just not your pets.
A Response From A Pet Airways Consumer
Last week, I wrote about Pet Airways and asked if anyone had any experiences to relate about the company or if any pet owners were planning to use their services.
I received this response from Chris:
"I actually just helped transport a woman and her dog from the LI to Manhattan who had used Pet Airways. She had the dog fly from FL to NY without any problems. In fact, when we arrived at the airport there were many happy dogs and happy owners, the crew was very pleasant. Overall, it seemed like a good experience. I know its only one example, but I hope this helps."
At least there is one satisfied pet owner.
Good to know.
Adopt A Pet and A Plan This Holiday Season
As we head full steam into the holiday season, I am reminded of what a friend and reader wrote to us just about one year ago.
"Pets have been proven to have positive mental and physical health benefits for the elderly. But often senior citizens forgo this benefit for fear their pets will be killed upon the owner's death. Pet trusts give peace of mind to the elderly and also help reduce the number of homeless animals. Getting old is hard enough. Why deny this comfort to the elderly? Maybe those who disagree are greedy relatives who hope to get something for nothing."
Maybe adopting a rescue animal would be a good thing for your family.
Nice, cheap present for Christmas?
And then prepare a nice pet trust for peace of mind.
Estate Planning For Pets Includes Year End Gifting
Gifts come in all shapes.
Many pet lovers are now engaged in year-end planning for charitable gifting to their favorite animal charity or non-profit organization.
Remember, that gifts can be made in a variety of ways.
- A cash contribution by check (for receipt purposes) is still the most popular.
- You can also give a gift by using your credit card.
- You may pledge to give a gift at some time in the future.
- You may transfer tangible personal property.
- You may transfer real property.
- You may gift securities.
Plan your year-end charitable giving now and your tax return next April will look better to you.
A Pet Trust Or A Clause In A Will?
I am often asked about the difference between a pet trust and the use of a will for estate planning .
Clearly a statutory pet trust is more easily enforceable than a general will clause.
An example of such a will clause is as follows:
...I give my cat, and any other animals that I may own at the time of my death, to Bill presently residing at 123 Main Street, Nowheresville, PP, with the request that he treat them as companion animals. If he is unable or unwilling to accept my animals, I give such animals to Bob, presently residing at 124 Main Street, Nowheresville, PP with the request that he treat them as companion animals. If he is unable or unwilling to accept my animals, my Executor shall select an appropriate person to accept the animals and treat them as companion animals, and I give my animals to such person.
I direct my Executor to give $1000.00 from my estate to the person who accepts my animals, and I request (but do not direct) that these funds be used for the care of my animals...
You will note that the money goes directly to the caregiver and the clause only requests that the funds by used for the care of the animals.
Not very strong.
Remember over forty states have a statutory pet trust on their books. A much more effective and efficient document for your pets.
The Sacramento Bee on Pet Trusts
I would like to give a big thank you to writer Claudia Buck of the Sacramento Bee.
She recently authored an articled entitled,” Personal finance: legal trusts provide for pets after owner dies.”
Ms. Buck was kind enough to interview me regarding my thoughts and some opinions on pet trusts and even used some material for the article.
You can read the entire story here.
Thanks again to Ms. Buck for providing the opportunity to spread the word on the growing usage of pet trusts.
Estate Plans For Service Dogs?
We have had some recent inquiries regarding estate planning for services dogs.
Our friend from north of the border, Attorney Lynn Butler, Senior Will & Estate Planner, Scotia Private Client Group, recently lead a discussion as to whether people do something different in their wills for guide dogs or service dogs than they do for a pet.
Remember that in most states, a service animal is not considered a pet.
There are specific state and federal laws need to be followed in this regard, including the Americans with Disabilities Act.
For example, the Florida law states, in part…
Florida State Law: Title 30 - 413.08 Rights of Physically Disabled Persons
(b) "Individual with a disability" means a person who is deaf, hard of hearing, blind, visually impaired, or otherwise physically disabled. As used in this paragraph, the term:
1. "Hard of hearing" means an individual who has suffered a permanent hearing impairment that is severe enough to necessitate the use of amplification devices to discriminate speech sounds in verbal communication.
(d) "Service animal" means an animal that is trained to perform tasks for an individual with a disability. The tasks may include, but are not limited to, guiding a person who is visually impaired or blind, alerting a person who is deaf or hard of hearing, pulling a wheelchair, assisting with mobility or balance, alerting and protecting a person who is having a seizure, retrieving objects, or performing other special tasks. A service animal is not a pet.
(4) Any person, firm, or corporation, or the agent of any person, firm, or corporation, who denies or interferes with admittance to, or enjoyment of, a public accommodation or otherwise interferes with the rights of an individual with a disability or the trainer of a service animal while engaged in the training of such an animal pursuant to subsection (8), commits a misdemeanor of the second degree, punishable as provided
in s. 775.082 or s. 775.083.
Estate planning for a service dog is indeed a very different process.
More to follow…
Family Fighting Over Millions In Pet Trust
I wrote earlier this year about the Gail Posner estate and the bequest to her Chihuahua, Conchita, of three million dollars.
Well the final chapter on this estate is not yet closed.
Ms. Posner'sson, who received only one million dollars, is contesting the will.
According to the Miami Herald,
“Whether Conchita keeps her millions will be decided in Miami-Dade Circuit Court, where Gail Posner's only living child, son Bret Carr, launched a legal battle this month over his mother's estate. Carr claims his mother was manipulated into changing her will in 2008, leaving millions to her dogs and hired help.”
You can read more here, but this large bequest for a family pet is not yet finalized.
Stay tuned.
Alternatives To The Traditional Pet Trust
There are some other viable options with estate planning for your pets, in addition to the traditional pet trust.
You can leave your pet to an animal sanctuary and hope that it remains open after your demise.
Or, you may leave your pet to a veterinarian program or humane society, but it will probably be at a considerable financial cost.
You may also leave your pet to a life-care center or rescue organization, but it will not have the same home setting atmosphere for your pet.
In addition, of course, you can leave a bequest in your will, but it will not take affect until your death.
Is Freeze Dry a Part Of Your Estate Planning For Your Pets?
Okay, some say that pet owners are obsessed with their pets and that even thinking about a pet trust or estate planning for a pet is a silly idea.
Well, maybe so, but I think that there may be even sillier ideas to consider.
Perpetual Pet, a West Virginia company, posts on their website that:
"We at Perpetual Pet know that the loss of a dearly loved pet is a very difficult experience. Through the use of new techniques in freeze dry technology, we can offer a "Loving and Lasting" alternative to burial cremation or traditional taxidermy. Freeze-dry pet preservation creates a lasting memorial and more importantly, preserves your pet in a natural state thereafter, without any alteration in appearance. This allows pet owners to see, touch and hold their pets, and in a sense, "never have to let go." Best of all, freeze-dry pet preservation results in the preservation of your pet's actual, physical body. This is in sharp contrast to the conventional method of taxidermy, in which only the outer hide of the animal typically remains, attached to a plastic form or other type of artificial mounting."
If this is your idea of estate planning for your pets, you might want to visit their site here.
I will pass.
Can I leave My Pet To My Veterinarian?
I am trying to begin my estate planning for my pets. I want to have my vet take care of my boxer, Max after I die. Is this a good alternative to preparing a pet trust?
Bob Lewisville, Colorado
Bob, this is an option that is available to you. You can leave Max and enough money for his care to your veterinarian or animal shelter.
However, keep in mind that Max will probably live the rest of his life in a clinic or shelter-like situation
He will not be a part of a family and will not receive the same amount of love and attention that he has found in your home. Carefully weigh these differences before you make your decision for Max.
A Constant Dilemma-How Much is Needed to Fund My Pet Trust?
To determine how much money you will need to fund your pet trust, Gerry W. Beyer, the Governor Preston E. Smith Regents Professor of Law for Texas Tech University, suggests that you consider some of the following issues:
The type of animal
The animal’s life expectancy (especially important in case of long-lived animals)
The standard of living you wish to provide for the animal (including food and grooming
The need for potentially expensive medical treatment
Payment for the caregiver
Whether the trustee is to be paid for his or her services, and
Adequate funds should also be included to provide the animal with proper care, be it an animal-sitter or a professional boarding business, when the caregiver is on vacation, out-of-town on business, receiving care in a hospital, or is otherwise temporarily unable personally to provide for the animal.
This question always arises when discussing pet trusts and never has a simple or easy answer.
How Much Should You Pay A Pet Trustee?
This week, I had the pleasure of meeting with a group of estate planning attorneys and financial advisers in Naples, Florida, to exchange ideas and then to present a seminar on Estate Planning for Animal Owners.
The two main areas of concern were the payment of trustee fees and the amount of money needed to fund the trust.
I discussed the first issue recently in a post.
Unless the trust instrument has some type of specific prohibition, the trustee is entitled to "reasonable compensation" for their services as a trustee.
What is reasonable compensation?
That is a good question and is usually based upon an hourly rate or a percentage fee of the total amount of the trust.
Bank trust departments will customarily charge an annual fee equal to approximately one percent (1%) of the current value of the trust's assets. They may charge a lower fee, but then add on transaction charges for every action.
If the trust instrument provides for specific compensation, you should follow the dictates of that document. If you feel that the compensation provided for in the trust is unreasonable or unduly burdensome, you can either resign as the trustee or petition the court for additional compensation.
The trustee’s fee is normally paid on a quarterly basis. Remember, compensation (but not expense reimbursements) that is received as a trustee, is taxable to the trustee, usually as self-employment income.
Some trustees want to waive the compensation because of their love for the family or animals involved. If you want to do this, make sure that you consult with your accountant about how to document this compensation in the correct manner. Otherwise, you may have taxable income imputed to you even though you do not actually receive it.
The duties and responsibilities of a pet trustee are serious and legally binding. Receiving reasonable compensation for the performance of this role is fair and anticipated.
Does Your Pet Need Life Insurance?
I spoke with a client recently regarding estate planning for her pets and she asked about life insurance for her cats.
We have found that some companies will provide life insurance coverage for your pet, including VPI Pet Insurance, PetPlan Pet Insurance, PetCare Insurance, National Insurance Company and the Oriental Insurance Company Limited.
Benefits can range from $200 to $750 for non-show pets, while higher limits of $1,000 to $10,000 are available.
I am not sure if the plans are a good value, but the insurance may be worthwhile to some pet owners.
If you have any interest in these policies for your pets, be smart, shop around, compare policies and companies, and then decide if it is right for you.
Pet Health Insurance Is Part of Estate Planning For Your Pets
One question that I constantly receive concerns pet health insurance.
I have stated on many occasions that I have no opinion either way, although I personally do not have any pet heath insurance for our dog, Anna.
There are numerous plans for you to review and compare as to coverage and rates.
This site is a good place to begin your inquiries.
Let me know what you decide.
Massachusetts May Be Next To Adopt Statutory Pet Trust
Massachusetts is in line to become the next state to enact a statutory pet trusts.
Presented in 2009, House Bill No. 1467 is entitled An Act Relative to trusts for the care of animals:
SECTION 1. Notwithstanding any general or special law or regulation to the contrary, Chapter 203 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting after section 3B the following section: -Section 3C.A trust for the care of one or more animals alive during the settlor's lifetime is valid. Unless the trust instrument provides for an earlier termination, 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.
(a) Except as expressly provided otherwise in the trust instrument, no portion of the principal or income may be converted to the use of the trustee, other than reasonable trustee fees and expenses of administration, or to any use other than for the benefit of a covered animal or animals.
(b) A court may reduce the amount of property held by the trust if it that amount substantially exceeds the amount required for the intended use and the court finds that there will be no
Substantial adverse impact in the care, maintenance, health, or appearance of the animal or animals. The amount of the reduction shall pass as unexpended trust property in accordance with paragraph (c) of this Section.
(c) Upon reduction or termination, the trustee shall transfer the unexpended trust property in the following order:
(1) As directed in the trust instrument;
(2) To the settler, if living;
(3) If the trust was created in a no residuary clause in the transferor's will or in a codicil to the transferor's will, under the residuary clause in the transferor's will; or(4) To the settlor's heirs in accordance with G.L. c. 190.
(d) If a trustee is not designated by the trust instrument or no designated trustee is willing or able to serve, the court shall name a trustee. The court may order the transfer of the property to another trustee if the transfer is necessary to ensure that the intended use is carried out. The court may also make other orders and determinations as are advisable to carry out the intent of the settlor and the intended use of the trust.
(e) The intended use of the principal or income may be enforced by an individual designated for that purpose in the trust instrument, by the person having custody of an animal for which care is provided by the trust instrument, by a remainder beneficiary, or by an individual appointed by a court upon application to it by an individual or charitable organization.
(f) The settlor or other custodian of an animal for whose benefit the trust was created may transfer custody of the animal to the trustee at or subsequent to the creation of the trust.
(g) Any trust created under this Section shall be exempt from G.L. c. 184A and the common law rule against perpetuities.
If it becomes law, it will be the 45th state, along with the District of Columbia to have pet trust legislation.
Georgia Enacts Pet Trust Legislation
Welcome Georgia!
Georgia became the forty-fourth state to officially recognize pet trust legislation.
Effective July 1, 2010, a new Revised Georgia Trust Code contains the following clause:
53-12-28.
(a) A trust may be created to provide for the care of an animal that is alive during the settlor's lifetime. The trust shall terminate upon the death of such 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.
(b) A trust authorized by this Code section may be enforced by a person appointed in the trust instrument or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.
(c) Upon termination of a trust authorized by this Code section, the trustee shall transfer any unexpended trust property in the following order:
(1) As directed in the trust instrument;
(2) If the trust was created in a nonresiduary clause in the settlor's will or in a codicil to the settlor's will, under the residuary clause in the settlor's will; and
(3) If no taker is produced by the application of paragraph (1) or (2) of this subsection, to the settlor, if living, and if not, to the settlor's heirs, as determined under Code Section 53-2-1.
Concerned About Choosing A Caregiver for Your Pet Trust?
Pet owners often complain to me that they are not comfortable with picking a friend or family member to be the caregiver for their pets.
Many local Humane Societies are a viable alternative to choosing an individual pet caregiver.
They usually offer a number of programs that include providing care and shelter for the remaining life of your pets.
Some offer to secure a good adopting family for a new home for your pets.
These organizations will require some type of monetary arrangement with your to ensure proper planning. A yearly donation to the Society and then a clause for an additional bequest in your will are normal minimum requests.
If you can afford the financial burden, Humane Societies are excellent choices for the future of your pets, long after you are gone.
Just plan ahead.
Life Insurance Can Fund Your Pet Trust
There is no “one best” way to fund a pet trust.
You may specify a bank account, a savings or money market account, an annuity, an IRA, a payable on death bank account or other form of contractual agreement to fund a pet trust.
Of course, one of the most common forms of funding is through the purchase of a life insurance policy.
Generally, the trustee is named as the beneficiary of the life insurance proceeds to be placed into the pet trust
However, you should consult with your attorney, insurance broker, commodity broker or banker to correctly determine the name that should be placed on these accounts for the benefit of the trustee and your pets.
Pet Trusts Are an Essential Part of Estate Planning For Animal Owners
I am constantly asked about the basic elements of a pet trust.
The trust is a written formal agreement where a trustor (the one writing the trust) places the ownership rights to a specific piece of property or asset under the control of another person, called a Trustee.
The Trustee is to conserve and protect the property on the behalf of someone else, called the beneficiary, who has been designated by the Trustor.
A typical trust will contain provisions for:
(1) The purpose for which the trust was established;
(2) details of the assets placed in the trust;
(3) the powers and limitations of the trustees, including all duties and responsibilities;
(4) form of trustees' compensation; and
(5) conditions and terms that will terminate the trust.
When you are doing estate planning for animal owners, the pet owner is the trustor and the pet is the specific asset to be protected by the trustee.
The trustee provides the funds to take care of the pet.
You also obviously need to appoint a caregiver to physically take care of the pet.
Any remaining monies in the trust after the death of the pet, goes to a secondarily named beneficiary of the trust.
Is Euthanasia a Viable Component of Estate Planning for Animal Owners
The issue of euthanasia for pets continues to bring new and different comments from the readers.
Here is the latest post:
As an owner of an animal, do we have the right legally to euthanize our healthy pet due to a health issue, death, or loss of income.
1) I agree caging a dog that has never been crated is cruel and they can lose sanity within a certain amount of time.
2) Risking that the adopter will be kind and loving is an ongoing torture for the previous owner. 3) Getting lost by the new owner is more mental and emotional torture for the previous owner.
Life doesn't guarantee humans a steady smooth course and sometime we must sacrifice giving away our beloved pets.
My question is as a pet owner do we have the right to put our healthy pet down if we fear for its safety and well being?
What If we feel, no one will love them and care for them the way we did?
After death we know where our pet is and our belief is that they are in a better place and at peace.
I would like to know what other readers feel about this.
Three Million Dollars Left To Fund a Pet Trust-Mansion to Caregiver
Victor Posner was an American businessperson, millionaire and philanthropist who was an original pioneer of the leveraged buyout.
Upon his death, he left a wife and son to survive him.
That wife Gail, has now passed away and left $3 million in a trust to her pet Chihuahua, Conchita and two other dogs.
Her housekeeper will be able to live, rent free, in an $8.3 Million Miami Beach mansion, as long a sheremains the caregiver of the dogs.
She also left some $26 million to house staff and bodyguards.
By the way, she left her son Carl----One million dollars.
Different Type of Pet Trusts Used in Estate Planning for Animal Owners
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.
Yet Another View on Pet Euthanasia and Estate Planning for Animal Owners
Another response on the continuing issue of euthanasia for your pets follows from a regular reader.
"Your reader's concern for preserving the life of a healthy pet when he is gone is laudable.
It is not realistic, though, to push that responsibility on to others without providing them with the means to do so.
Whether through a pet trust or informal arrangements of the sort the read describes,chosen cargivers must be provided with the financial resources to insure the pet's proper care."
Send us your thought son this issue.
A Reader's Thoughts on Pet Euthanasia and Estate Planning
I have written extensively on the various views on euthanasia for pets.
I recently received this email from one of our readers in response to a previous posting by another reader.
I can't possibly condone euthanizing perfectly healthy animals just because I'm no longer around. I would think it best to plan for your companion animals as follows: (1) Name individual(s) who can have the first option of whether to take your animals when you die; or (2) If there is no such individual, look to the place that you got your pet. Any breeder, rescue or shelter worth a lick should have had a contract stating that they would take the animal back (and should be given the opportunity to OK the individual who you name in option #1); or (3) If that fails, look to the local shelter -- or rescue if you are not satisfied with your local shelter.
The reader's blanket statements just don't hold up. First, I do not understand the statement that cruel people adopt from shelters. Many, many wonderful folks adopt many, many wonderful animals from shelters every year. Second, there are so many incredible rescue organizations out there, many of which are foster only, with no cages at all. For that matter, more and more local shelters are also setting up foster programs.
Don't get me wrong -- I believe euthanasia has its time and place. It just seems incredibly egotistical to me to think that an animal shouldn't go on because I'm no longer around. I guess I have more faith in people, shelters and rescues than this particular reader.
Your thoughts or response?
New York Improves Pet Trust Laws
In 1996, the New York legislature enacted a law to allow for the creation of trusts for pets.
However, that statute had a twenty-five year limitation for the duration of the trust.
Governor David A Patterson recently signed a new amendment to the older legislation.
New York has now joined the majority of states that recognize the longer time duration for the pet trust and conforms to the Uniform Trust and Probate Codes.
The trust may now last for the entire lifetime of the pet, without a yearly limitation.
In addition, the statute is titled "Trusts for Pets" instead of "Honorary Trusts for Pets", as honorary means unenforceable and pet trusts are presently enforceable under subparagraph (a) of the statute.
State pet trust legislation continue to evolve.
Oklahoma Is The Newest State To Allow Statutory Pet Trust
Oklahoma has become the latest state to allow for a statutory pet trust.
Governor Brad Henry recently signed House Bill1641 into law.
The law creates a new section of law that validates trusts for the care of designated pets. Unless the trust stipulates, the trust is terminated when no living animal is covered. The bill outlines the rules governing such trusts, including compensation for the trustee, accounting requirements and provisions for terminating the trust.
The measure describes how trusts for pets works, and how the issue is resolved if there is no living pets. It provides for trustee compensation and the naming of such if no trustee is designated. Any trust that does not have a value of $20,000 or more is exempt from fees, except as directed by a court or the trust instrument.
The law becomes effective in approximately three months.
Good job by the Oklahoma legislature to get on board with a majority of the states that recognize pet trusts.
Use a Charitable Remainder Trust in Your Estate Planning For Your Pets
Can I use a charitable remainder trust in my estate planning for my four dogs?
Ron Troy, Ohio
Ron, with a charitable remainder trust, you set up a trust and transfer to it the property you want to donate to a charity.
The charity needs to have a tax-exempt status under the Internal Revenue Code and must be fully accepted and approved by the IRS.
The charity serves as trustee of the trust, and manages or invests the property so it will produce income for you
The charity then pays to your Trustee of your pet trust, a portion of the income generated for a certain number of years, or for the duration of your pet trust.
When the trust ends, the remainder of the property goes to the charity.
There can be some beneficial tax treatment and this is a very popular type of trust.
Consult your attorney and your accountant before you begin this process.
Now Is The Time To Plan For Your Pet's Future
Many studies support the proposition that your pets are good for you, not only emotionally, but also physically, as well.
Dr. Deborah Wells, a psychologist from Queen's University, Belfast, said dog owners tended to have lower blood pressure and cholesterol and in general, tend to be healthier than most other individuals.
According to the website www.pethacker.com, the research of Dr. Wells suggested that dog ownership produced more positive influence than cat ownership and that dogs could aid recovery from serious illnesses such as heart attacks, and act as 'early warning' to detect an approaching epileptic seizure.
Go here, to read the rest of the article.
Your pets can aid you in your lifestyle, you need to properly plan for their future, with or without you.
Do Not Forget To Revise Your Estate Plan If You Adopt A Pet
We would like to adopt a dog into our family home. I have heard that there is an application that usually is required for this procedure. Can you tell me about this?
Cathy Estero, Florida
Cathy, most agencies, either private or public require an application and review of the prospective adoptive pet parents.
For example, Southern California Giant Schnauzer Rescue is a group of dog rescuers who have banded together to help Giant Schnauzers find their forever homes.
The founder is virtual assistant, paralegal and animal lover Karalyn Eckerle of California.
They define their Forever Home as,” a home where he is loved, respected and well cared for -- a home where this intelligent working dog can love, protect and call his own.
Go to their website here, and download a copy of the adoption application.
It is a good example of the type of information that most agencies will request and require during the adoption period.
Good for you; to even consider adopting a pet.
Remember Estate Planning To Include Your Horses
I recently found this interesting post here.
Check out the site for your self…
"I put this in horse care because it's about caring for your horses.
After you die.
My friend just died.
Intestate (no will or trust)
She left no instructions for anyone.
She has a barn full of horses - some of whom are old.
I don't know what happens to us after we die, but I do know what happens to our family and friends. I saw it in my work - every day. And I see it now even though I'm retired.
They have to make decisions when they're grieving and in shock. They may be angry, confused, bereft. Often, they argue over what they think you'd want for your animals. Sometimes your animals are not considered at all - and merely hauled off.
Please don't do that do your loved ones, and don't let your horses or pets become embroiled in a tug of war. Or worse - be taken to auction or the shelter.
Please consult a licensed attorney and have your will or trust prepared.
Educate yourself on the basics of estate planning, how life insurance or other contracts pass to beneficiaries - and have your estate in order.
Review it annually or when a major event occurs (birth, death, divorce, change in other circumstances)
Please don't leave this earth without providing for your loved ones - including your animals.
You are all loved, and will be missed by someone.
And that someone is standing out in the pasture, or napping on your bed...."
Good thoughts for all animal lovers.
Use Trusted Professionals for Your Pet Trust
I want to provide the necessary estate planning after I am gone, for my Cat, Casey. I recently saw that Legalzoom.com offers online pet trusts. Would one of these trusts be adequate to protect Casey?
Cyndi Bonita Springs, Florida
I certainly cannot speak to the quality of any Legalzoom.com document or its preparation or accuracy.
I have never used the service.
I did visit the site however and read an article by a Tiffany Knight.
Part of the article reads, “But one word of caution: laws concerning pet trusts differ from state to state. Specific legal language is required to establish an enforceable trust for a pet's care. The following 19 states have adopted specific language on animal trusts: Alaska, Arizona, California, Colorado, Florida, Iowa, Kansas, Michigan, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Tennessee, Utah and Washington.”
On the other hand, Professor Gerry Professor Beyer who is on the faculty of the Texas Tech University School of Law, as the Governor Preston E. Smith Regents Professor of Law, and one of the experts in estate planning for pet owners notes that some 43 states and the District of Columbia have some form of statutory pet trust.
I would personally put my faith and trust in the writings of Professor Beyer when considering the use of their service.
But, that is simply my opinion.
Continuing Education for Professionals
Many of our active readers are also avid supporters of their local Humane Society or other similar community organization.
They support these facilities with their time and their money.
In addition to providing care and medicine for local animals, a vital part of the many programs of the various entities is education.
This applies not only to the public, but also to the professional groups, such as attorneys, financial planners and estate planners.
I have been working with the Humane Society of Naples to assist in the education process of pet trusts and estate planning for pet owners, to present to the public and the professionals.
To that end, we have been successful in preparing a Continuing Legal Education program that has received approval by the Florida Bar. The program is entitled Estate Planning For Animal Owners.
If you believe that your organization could benefit from a similar program, I will do whatever I can to assist.
Have your organization’s representative contact me directly.
This could be a long range planning strategy that benefits your pet community.
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.
