Pet Trust Will Help Assure Your
Four-Legged Friend Is Cared For
By Linda M. Anderson, Esq.
Guest Contributor
Fido, the dog, can be a member of the family, but what happens to Fido or [insert your pet’s name] after you are gone? How can you ensure your pet will be cared for?
One option is to create a Pet Trust. While you can give directions in your Will to leave your pet to a caretaker, there is no guarantee that the caretaker will continue to care for your pet. A Pet Trust can provide a little more security for the pet because a third party — the trustee — is obligated to ensure the pet is cared for.
A Trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” With a Pet Trust, the trustee makes payments on a regular basis to your pet’s caregiver and pays for your pet’s needs as they come up.
The federal tax code does not recognize a pet as a beneficiary of a trust. However, 37 states, including Pennsylvania and New Jersey, have laws allowing Pet Trusts. When you create a trust (as the “Settlor”), you fund the trust with assets to provide for your pet’s expenses that occur during its lifetime. The person you select to hold the funds as the “trustee” has the legal obligation to follow your instructions and can be authorized to make payments to the caregiver of your pet.
Some of the preliminary issues that you should consider for your Pet Trust include:
• Caretaker. The trust will need to name a caretaker who will be willing and able to care for your pet. The caretaker should be someone who is comfortable with your animal.
• Care Instructions. The trust should include specific instructions on all aspects of the pet’s care, including the brand of food, activities the pet enjoys, and the preferred veterinarian.
• Funds. The amount of money necessary to fund the trust depends on the individual animal. Typically, you can leave the money to the trust in your Will.
If a Pet Trust isn’t right for your situation, you can also provide for your pet with conditional bequests (money given to a specific person with the condition that the person takes care of your pet) or bequeathing your pet to a specific person.
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(Linda M. Anderson, J.D., LL.M., is a Certified Elder Law Attorney practicing in the specialized areas of Elder Law, Special Needs Planning, General Estate Planning Estate and Trust Administration and Veterans Benefits. She is also accredited by the Department of Veterans Affairs to assist in the preparation of Claims for Aid & Attendance. Further information about Linda and her law firm can be found at www.AndersonElderLaw.com, or by calling 610-566-4700.)
Four-Legged Friend Is Cared For
By Linda M. Anderson, Esq.
Guest Contributor
Fido, the dog, can be a member of the family, but what happens to Fido or [insert your pet’s name] after you are gone? How can you ensure your pet will be cared for?
One option is to create a Pet Trust. While you can give directions in your Will to leave your pet to a caretaker, there is no guarantee that the caretaker will continue to care for your pet. A Pet Trust can provide a little more security for the pet because a third party — the trustee — is obligated to ensure the pet is cared for.
A Trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” With a Pet Trust, the trustee makes payments on a regular basis to your pet’s caregiver and pays for your pet’s needs as they come up.
The federal tax code does not recognize a pet as a beneficiary of a trust. However, 37 states, including Pennsylvania and New Jersey, have laws allowing Pet Trusts. When you create a trust (as the “Settlor”), you fund the trust with assets to provide for your pet’s expenses that occur during its lifetime. The person you select to hold the funds as the “trustee” has the legal obligation to follow your instructions and can be authorized to make payments to the caregiver of your pet.
Some of the preliminary issues that you should consider for your Pet Trust include:
• Caretaker. The trust will need to name a caretaker who will be willing and able to care for your pet. The caretaker should be someone who is comfortable with your animal.
• Care Instructions. The trust should include specific instructions on all aspects of the pet’s care, including the brand of food, activities the pet enjoys, and the preferred veterinarian.
• Funds. The amount of money necessary to fund the trust depends on the individual animal. Typically, you can leave the money to the trust in your Will.
If a Pet Trust isn’t right for your situation, you can also provide for your pet with conditional bequests (money given to a specific person with the condition that the person takes care of your pet) or bequeathing your pet to a specific person.
*
(Linda M. Anderson, J.D., LL.M., is a Certified Elder Law Attorney practicing in the specialized areas of Elder Law, Special Needs Planning, General Estate Planning Estate and Trust Administration and Veterans Benefits. She is also accredited by the Department of Veterans Affairs to assist in the preparation of Claims for Aid & Attendance. Further information about Linda and her law firm can be found at www.AndersonElderLaw.com, or by calling 610-566-4700.)
