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.
What Is Reasonable Compensation For A Trustee of a Pet Trust?
Why would anyone chose to serve as a Trustee of pet trust?
Well, for one thing, 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.
How Much Does A Pet Trust Cost?
I recently received an inquiry regarding the appropriate cost for a pet trust.
I have written many times on this subject and the answer is generally the same.
It depends...upon a number of issues.
Will you provide for the trust in a clause of a new will that you are writing?
Will it be a completely new simple trust of five or six pages or one of twenty to thirty pages for numerous animals?
If you already have your estate plan in place, is this a new document or a codicil (addition) to those documents?
Are you establishing numerous specific rules for the caretaker, or allowing a great deal of latitude?
If you are leaving your pet to an institution, do they have guidelines for your documents, do they prepare form documents or will they accept those of your counsel?
The needs and desires of each individual is different and therefore each estate plan will be different.
A competent professional legal adviser will be open and clear about the costs of the pet trust and how it interacts with the totality of your specific estate plan.
Ask your questions!
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.
Another View on Pet Euthanasia
I recently wrote that euthanasia should be a part of your estate planning for your pets.
A reader responded with her ideas to this post:
"I would want my 14 cats euthanized if i died because
#1-they have never spent more than a few hours in a cage. I believe cages damage the spirit of animals and if they could speak English would rather be euthanized to start their spirit on a new journey!
#2- I realize that cruel people adopt animals from the shelters-never do i want my cats to suffer cruelty!!!
#3-some people loose animals. i never want my guys to EVER be lost!
I've had as many as 28 cats at one time and never had a lost one in 30 years.
Yes all of mine are neutered, get shots and vet care as needed!
I believe in humane euthanasia for feral and strays. How long could a human hang out in a cage without going bonkers? why do we think animals that sometimes have had a territory of miles and miles can do so and be healthy?
Euthanasia is a good thing and we need more vets to do it willing if that is what the owner wants!
why are humans so afraid of death? It is something everyone and everything is going to do-why not do it at a good time instead of after the suffering has set in!!!!!!!!!!!!!"
Your thoughts on this difficult issue are welcome.
Use A Will Or A Pet Trust For Your Pet Estate Planning?
Should I use a will or a pet trust to plan for my dogs after I am gone?
Donna Cincinnati, Ohio
Donna, a will is a legal document that contains your instructions and wishes as to how to distribute your assets and property after your death. The person who writes a will is called a testator. The will can also appoint individual’s that can serve, if necessary, as a guardian for your minor children and nominate a personal representative to carry out the instructions of your will.
Each state has minimal legal requirements that must be followed for a will to be valid and accepted by the courts. But generally, the will must be made by a competent adult, it must be in writing and signed by the testator and witnessed by a least two other individuals and a notary.
You can include a clause for your pets in your will with the appropriate language, but you need to be fully aware of the possible limitations and drawbacks. In some circumstances, the preparation of a pet trust is more appropriate in your estate planning for your pet. Today the majority of states accept and recognize some form of a pet trust.
Planning For The Future With Pet Trusts
I have to readily admit that I am inept with Facebook and Twitter.
I can barely text.
However, I was please to be mentioned in a recent post, concerning the use of pet trusts, with the esteemed Gerry W. Beyer, the Governor Preston E. Smith Regents Professor of Law Texas Tech University.
A Facebook site called Sidewalk Dog, recently posted about planning for the future with pet trusts.
Attorney Kortney Nordrum of Minneapolis-based Nordrum Law was quoted in the post:
“The purpose of a pet trust is to create a plan for your pets in the event you are unable to care for them. Each year, many pets are euthanized because their owners have become incapable of caring for them,” Nordrum says. “Pet trusts try to keep this from happening.”
You can read the entire post and learn more on 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.
Euthanasia May Be a Necessary Part of Your Pet Estate Planning
I receive many inquiries regarding the need to euthanize pets when the unfortunate time arrives.
Generally both the animal owner, as well as the pet, know when it is time to consider other alternatives to medical treatment.
Although each state differs on their mandated legislation for this process, the optimal procedures to be followed are outlined below.
Procedures for Euthanasia
A warm-blooded animal may be euthanized only by administering sodium pentobarbital, a sodium pentobarbital derivative, or a substance or procedure, which acts on the central nervous system and is clinically proven to be humane. When euthanasia is accomplished by adding a lethal solution to water or food, adequate installations shall be provided for feeding and watering which are sufficiently enclosed in order to provide for protection from contamination by feces, uric acid, feathers, and any other debris.
A lethal solution must be administered in the following order of preference:
1. By intravenous injection by hypodermic needle;
2. By intraperitoneal injection by hypodermic needle;
3. By intracardial injection by hypodermic needle; or
4. By solution or powder added to food.
The animal shall be tranquilized with an approved, humane substance before euthanasia is performed.
Euthanasia must be performed by a licensed veterinarian or a licensed or registered veterinary technician under the supervision of a licensed veterinarian.
At least two people must be present for administration of an injection, one to hold the animal and one to perform the procedure.
An animal may not be left unattended between the time euthanasia procedures are commenced and the time death occurs, nor may its body be disposed of until death is confirmed by a qualified person.
If you find yourself in this difficult position, demand that these procedures are followed.
How Much Does It Cost For A Pet Trust?
What is the normal cost for the preparation of a pet trust?
Marin San Francisco, California.
Marin, like any legal service, this is not a question that can be easily answered.
There are many variables involved including some of the following:
A. your geographical location
B. the number of animals that will be placed into the trust agreement
C. the total amount of funding for the trust
D. the duties, responsibilities and the number of trustees, caregivers and trust protectors
E. whether the trust is a stand-alone document or part of an overall estate planning package.
Meet with your attorney and discuss the outline of your needs for your estate planning for your pets. Ask questions and be sure that you have a clear understanding of the total legal costs and the services that you will receive.
I am please that you are completing the estate planning for your pets.
Time For Estate Planning For Your Aging cat
My Bengal cat Billy, is 15 years old and undergoing some serious changes in his behavior. Are there some common signs that I can look for to see if his actions are natural or need medical attention?
Shannon New Orleans, Louisiana
Shannon, most Bengal cats live from 10 to 15 years.
According to PetPeoplesPlace.com, common signs of cat aging include:
"cloudy eyes, hearing loss; thinning fur; feels the cold; loose skin; prominent spine, shoulders and hips; loss of muscle tone; stiff joints or lameness and gray hairs around the muzzle and in coat. Behavioral signs include: less tolerance of environmental changes; sleeping more deeply and more often and generally being less active. Some older cats become more irritable or cantankerous due to deafness and/or joint pain, while others mellow with age. Most become more laid back and sociable with those they regard as friends. These are all age-related changes, but sudden mood changes may indicate illness or injury. A cat which starts hiding, becomes unsociable or which seeks constant reassurance may be unwell, so ask your vet to check that all is well..."
Billy is probably at the downside of his life, make sure that any arrangements that you need for and with him, are complete in his and your estate planning.
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.
New Book For Planning For Your Pets
Ashley R. Dobbs is an Alexandria, Virginia attorney who focuses on animal-related issues, including pet trusts and pet care planning documents.
Ms. Dobbs is an animal rescue volunteer and a former owner of a pet services business and works with the KeepThePromiseToPets non-profit organization.
The Mission statement of KeepThePromiseToPets is:
"Our Mission is to provide everyone a plan so they can KEEP THE PROMISE to love and care for their pets for life. Our goal will be met when healthy pets are no longer “euthanized” due to a lack of planning or expressed wishes."
Ms. Dobbs is finishing a new book titled, “KEEP THE PROMISE : A Complete Guide to Planning for Your Pet’s Care When You Can’t Be There.”
If you are interested, you can preview and order her book at the website.
Prepare for the Unthinkable; Plan For Your Pets
I wrote earlier this week about Dr. Nancy Kay and her blog Speakingforspot.com, as a great site for medical advocacy for your pets.
She recently wrote an article about planning for your pets called, Preparing for the Unthinkable.
Urging her readers to complete the appropriate estate planning for their pets, she wrote, ”As my Grandma Goldie used to tell me, People plan and God laughs. My husband and I have made plans for our animals, should the unthinkable happen. How about you?”
I would also like to give a shout out to her, as she was kind enough to mention this blog in a recent post.
"I recently happened upon a wonderful website (www.pettrustlawblog.com) that will help you with all legal matters pertaining to pets, including trusts and guardianship. Attorney Danny Meek presents material that is thoughtful, comprehensive, and easy to understand. (This says a lot, as I am rarely able to comprehend attorney-speak.) It is also clear that this guy really loves animals. I encourage you to pay Mr. Meek a visit."
Thanks, Dr Kay.
Why Do Pet Owners Complete Estate Planning For Their Pets?
Why do pet owners complete estate planning for their pets?
How much do owners like their pets?
A recent survey found that there are approximately 130,000,000 pets in the United States.
Some seventy-five percent of all Americans own a pet.
Forty-four percent of all cats receive Christmas presents.
Moreover, more people spend time reading the nutritional labels on food for their pets than for their own food.
Any other reasons estate planning for pets is a growing field?
Don't Horse Around With Estate Planning
While we usually focus our thoughts on dogs, cats and other smaller pets, there is really no limit on the love of animls by their owners.
The Del Camino Equestrian Academy of Scottsdale Arizona, offers the following insights into estate planning for your pets.
Most people have some life insurance and a retirement plan.
They have named beneficiaries who are family members, of course.
Most responsible people with minor children at home have made arrangements in their will or trust for those children, including naming a guardian.
Do we assume that the beneficiaries of these instruments that wisely fulfill our duties to people, will share with our pets as we would wish?
You might reasonably predict that the family dog would stay in the family. But if you are single with pets, are you certain that relatives in Nebraska will fly Fluffy out from Phoenix to join them for the rest of Fluffy’s life? If Fluffy is a St. Bernard, maybe not.
How will they know which pet adoption agency to use to find him a new home?
What if that no-kill adoption center wants a support fee until he is adopted, which would be fair?
Are they going to be willing to spend $100 per month for however many months it takes to find him a home?
Who pays for those vaccinations and groomings that might come due in the interim? Oh, ALL of my relatives would take care of Fluffy. They love Fluffy as much as their own pets. Good.
Now let’s move on to your two performance horses that are boarded at a nice training facility, or your three backyard horses that you spend 3 hours per day maintaining if not riding.
One of those, by the way, is Sweet Ole Paint, a 24 year old with Cushings who won you the State Championship 15 years ago, and is enjoying a quiet retirement just keeping the younger horses company.
What is going to happen to them, if something happens to you?
They provide some probing questions and thoughts for you to consider with your planning.
You can gain further information on these plans here.
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.
Fleas Are No Small Problem
We were on the BART train, underground in a tunnel, in San Francisco, when the dreaded “call missed” message appeared on the cell phone.
It was dreaded because the number indicated that the call was from our friends down the block at home, who were taking care of our dog, Anna, while we were away for a long weekend wedding.
As it turned out, the host dog had just been diagnosed and treated for fleas and the Vet had suggested that we needed to treat Anna as well.
All in all, a bad call, but not life threatening.
Or was it?
While not all areas of the country are faced with this tiny problem, we soon found that fleas feed on animal blood, more frequently in cats and dogs and can trigger problems including skin irritation, tapeworm, allergic reactions, anemia, the plague, typhus and in rare cases, death.
Jean Sanders of whowhatwherewhenwhy.com explains the basic problem with fleas and the inability to stop them…
"Fleas are probably the most successful creatures on the planet in terms of reproduction. There are over 2,400 species and they are difficult to control for a variety of reasons: One female flea will produce 25,000 offspring in one month. An unfed adult can live for several months. The chemicals used to eradicate adult dog fleas have no effect on the eggs. Fleas are very good at mutating to resist new pesticides.
Fleas are a menace to dogs! They cause allergic dermatitis, tapeworms, and anemia. Most of the eggs are not laid on the dog but in the dog's bedding, in the rug, and on the furniture. It is extremely difficult to eradicate fleas completely. The most you can hope for is to control them and to keep your dog reasonably comfortable during the warm, moist flea season."
There are numerous commercial products sold to pet owners to control fleas.
Generally speaking, these products may or may not be effective to control these insects.
Many pet owners use garlic or brewers yeast to attempt a more natural approach to the problem of infestation. Although again, their success rate is merely antidotal.
More frequent doggie baths are also recommended.
In any case, a seemingly mild case of irritation can eventually turn deadly if not properly and quickly treated.
In this case, estate planning for your pets includes seeking the necessary medical treatment plan from your Vet at the first sign of any flea problem.
Do not assume that the issue will simply resolve itself.
Remember, you are responsible for your pet.
Plan accordingly…
