DONATE

Pet Trusts

By Angela R

Although people hate to think about it, proper estate planning is essential to ensure the proper handling of final affairs – including providing for one’s animals. Moreover, providing for one’s animals after death is part of being a responsible animal caregiver. Pet trusts were established to make this legally possible, as one cannot leave assets to an animal outright.

Before the creation of pet trusts, the law did not fully recognize a person’s desire to provide for their animals. Even today, not everyone appreciates such intentions. The preparation and implementation of a pet trust should involve individuals who take these intentions seriously. Not all states have them, but fortunately Virginia, Maryland, and the District of Columbia, do have pet trusts.

What is a trust?

A trust is a legal instrument used to manage property, established by a person (the “grantor”) for the benefit of another (the “beneficiary”). The trust is managed by a trustee. Trusts are commonly part of overall estate plans and are becoming more popular.

What is a pet trust?

A “pet trust” is a trust established specifically for the care of one or more animals. The animals are the beneficiaries, and the trustee is legally obligated to use trust funds for the animals’ benefit as instructed. The pet trust is established according to state law to ensure that it is valid and enforceable.

What terms should be included in a pet trust?

Identify Beneficiaries. The animal beneficiaries must be living or in vitro at the grantor’s time of death. Since you can have multiple and different animals throughout life, when a trust is created, the animals should not be designated by name or description. Instead, a phrase such as “any animals owned by [grantor] at the time of death” should be used. Microchips are one effective method to identify which animals were owned by the decedent without imposters expanding the class of beneficiaries.

Select a Trustee

A trustee and one or more alternates should be designated in the pet trust. A separate “caretaker” also can be named. However, it is usually the trustee, unless the trustee is an organization or someone incapable of living with and caring for the animals. Sometimes an “enforcer” is designated to ensure the trustee follows the terms of the trust. In any case, these parties should be trustworthy, responsible, and willing to see to the well-being of the animals.

Identify Remaindermen

A “remainderman” is one entitled to the remains of a trust. Often, an organization dedicated to helping animals is designated as the remainderman of a pet trust.

Fund the Trust

Any money or other assets designated to a pet trust must be based on the class of animal beneficiaries. If the funding is challenged by, e.g., a relative, the court will order that any funding considered excessive will pass to the remainderman, or to the successors in interest, in the grantor’s probate estate.

It is impossible to say the number, ages and needs of one’s future animal beneficiaries. However, guidelines exist to help calculate reasonable provisions for the trust including veterinary expenses, caretaker stipends, trustee insurance, etc. Also, including a house or farm in the pet trust will be considered reasonable only if for the benefit of a large class of animals. These include those belonging to an animal rescuer. If only one or two animals are involved, it will be difficult to justify use of an entire house. The house may be bequeathed directly to the caregiver instead.

Understand the Timing

A trust should remain in effect until the last animal beneficiary dies. Any funds left in the trust at that time will pass to the remaindermen. One benefit of a trust is that it can be prepared to go into effect immediately, instead of waiting until probate is completed.

Consider other Trust Provisions

There are more provisions that can be included in a pet trust than are discussed here. A qualified attorney can help someone establish a trust appropriate for their circumstances and desires – this includes avoiding drafting pitfalls.

What if I do not have a Pet Trust?

Without a pet trust, animals are treated like any other estate property. An animal can be bequeathed to a particular person, or pass with the residual (i.e., property that remains in an estate after all specific gifts are made).

Is there any reason one would not want a pet trust?

A pet trust may not be worth the effort if one has a small estate. Also, a trust must be enforced over the life of the animal beneficiaries to be effective. It might be better to identify someone who would genuinely care for the animals in a will. However, the risk exists where this person prematurely may meet their own demise or some other circumstance that prevents them from caring for the animal.

How much does it cost to establish a pet trust?

The estate planning needs of each person are different. Preparation cost is determined by the time it takes to review personal and financial information and to prepare the will and trust.

For more information, visit sites such as:

Edited by Erica W.