Why Consider a Pet Trust?

When we think about estate planning, we often consider how our assets will be distributed among our family members and loved ones. However, for many of us, our family includes our pets, who provide us with companionship, joy, and unconditional love. But have you ever thought about what would happen to your pets if you were no longer able to care for them? This is where a pet trust comes into play.

What is a Pet Trust?

A pet trust is a legal arrangement that allows you to set aside funds and provide instructions for the care of your pets in the event of your death or incapacity. It ensures that your pets will be looked after according to your wishes, providing peace of mind that they will continue to receive the love and care they deserve.

Why Consider a Pet Trust?

1. Peace of Mind: Knowing that there is a specific plan in place for your pets can relieve a lot of anxiety. You won't have to worry about them ending up in a shelter or being taken care of by someone who doesn't understand their needs.

2. Consistency in Care: A pet trust allows you to detail the kind of care your pets should receive. This includes their diet, exercise routines, medical care, and even their favorite toys or activities. This ensures that their lifestyle remains consistent even when you're not there.

3. Avoiding Family Disputes: Sometimes, family members may have different opinions about who should take care of your pets or how they should be cared for. A pet trust removes this ambiguity by clearly stating your wishes.

How Does a Pet Trust Work?

Creating a pet trust involves a few key steps:

1. Choosing a Caregiver: This is the person who will be responsible for the day-to-day care of your pets. It's important to choose someone you trust and who is willing to take on this responsibility.

2. Appointing a Trustee: The trustee is responsible for managing the funds you set aside for your pets' care. This can be the same person as the caregiver, but it doesn't have to be. The trustee ensures that the money is used appropriately and according to your instructions.

3. Setting Up the Trust Fund: You will need to decide how much money to allocate for the care of your pets. This amount will depend on factors like the type of pet, their age, and any special needs they might have.

4. Detailing Care Instructions: Clearly outline how you want your pets to be cared for. This can include specifics about their diet, medical care, grooming, and even their social needs.

Use Cases for Pet Trusts

Pet trusts are not just for the wealthy; they can be beneficial for anyone who wants to ensure their pets are well cared for. Here are a few scenarios where a pet trust might be particularly useful:

• Single Pet Owners: If you live alone and don't have immediate family members who can take your pets, a pet trust ensures they will be cared for according to your wishes.

• Elderly Pet Owners: As we age, there may come a time when we can no longer take care of our pets. A pet trust can provide a plan for their care if you move into a facility that doesn't allow pets or if you pass away.

• Owners of Pets with Special Needs: If your pet requires special medical care or has particular behavioral needs, a pet trust allows you to specify exactly how these needs should be met.

• Pet Owners Who Travel Frequently: If you travel often for work or pleasure, a pet trust can provide instructions for the care of your pets while you're away, ensuring continuity and stability in their lives.

Setting Up a Pet Trust

Setting up a pet trust doesn't have to be complicated. You can start by talking to an estate planning attorney who can guide you through the process and ensure that your trust is legally sound. You might also want to involve your veterinarian to provide specific care instructions.

A pet trust is a valuable tool for any pet owner who wants to ensure their furry friends are cared for in the event of their death or incapacity. It provides peace of mind, consistency in care, and clear instructions that can prevent family disputes. Whether you have a dog, cat, bird, or any other type of pet, setting up a pet trust is a loving way to provide for their future.

By taking this step, you can rest assured that your pets will continue to receive the love and care they deserve, no matter what the future holds.

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!