What is... a Pet Trust?

This is part of an on-going series of blog posts titled the "What Is..." series, where we attempt to explain, in simple terms, common estate planning terms and concepts. To read other posts in this series, click here.

If you have a pet, you may be concerned about who cares for your pet when you are no longer able.

One approach is to create a pet trust. This is a special type of trust for the care of domestic animals or pets for the lifetime of the animal. 

The pet trust functions as a trust for a human beneficiary, like one’s children, except that the funds are used to support the animal’s life instead. Since we are not dealing with human beneficiaries, there are some looser requirements. For example, there is no reporting or accounting requirement for a trust with assets less than $40,000. Pet trusts also don’t have a duration limitation as other trusts do. 

Some things to consider: what if the pet dies before the money is all spent? Or before you do (and you forget to call us to update your documents)? Where would you want the leftover (residuary) to go? 

People like to have a pet trust in place because it provides a structure for caring for the pet, as well as funds for that to happen. Pet trusts are not the only way to care for pets. Check back for our upcoming post about caring for your pets!