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.
