Pet Planning with Trusts
By Laura J. Martin, Esq.
A trust may be used to provide for and protect your pet during your lifetime, preserve your own continuing relationship with your pet, transfer ownership of your pet upon your death, or maintain your pet with a designated caregiver throughout your pet’s remaining lifetime.
In general, a trust is a relationship where the trustee manages and distributes trust property for the benefit of a trust beneficiary or to fulfill a trust purpose. The trust relationship is created by agreement between the settlor or grantor and the trustee regarding how the property held in trust will be managed and distributed for the benefit of a trust beneficiary or to fulfill a trust purpose.
The trust agreement sets forth the settlor’s intentions and instructions to the trustee on how trust property should be managed, used, and distributed for the benefit of a trust beneficiary or trust purpose. The trustee is considered the legal owner of trust property, but the trustee must follow the settlor’s intentions, any instructions, and the trust terms. A trust agreement is legally binding on the trustee and trust beneficiaries and will be enforced by a court if necessary. However, a trust does not go through probate, so it is not automatically subject to the same court oversight, review, or formal administration process as a will.
A trust offers flexibility and permits you to tailor a plan to your specific goals and needs, no matter how simple or complex. There are many different types of trusts that serve a diverse array of purposes. The two types of trusts that are most often used for Pet Planning purposes are general or traditional estate planning trusts and Pet Trusts. We will cover both types in this article series.
In prior newsletter articles, we considered the various ways we can plan for pets using powers of attorney and wills. Everything you can do with a power of attorney or will, you can also do with a trust. In addition, a traditional estate planning trust or Pet Trust can be used for the following extra or “bonus” purposes:
Avoiding post-death gap in authority and pet care – a will becomes effective only when probated, while a trust is effective right away
Avoiding probate – transfer your pet to a family member, friend, rescue, sanctuary, etc., without going through probate
Exercising post-death control over how your pet will be treated and cared for
Future monitoring of the pet’s beneficiary or caregiver, the pet, and the level of care provided
Maintaining a home, farm, vehicle, trailer, or other property for animal care
Removing and rehoming a pet that is not being appropriately cared for, or replacing the pet’s beneficiary or caregiver
Protecting money and property for pet care from a spendthrift beneficiary, a beneficiary’s creditors, or other misuse
Designating successor pet beneficiaries and pet caregivers in case the original beneficiary or caregiver is or becomes unable to care for a pet (ensuring continuity of pet care)
Ensuring money and property for pet care will be available for future successor pet beneficiaries and pet caregivers
In the next newsletter article, we will consider how to use general or traditional estate planning trusts to provide for pets and when this type of trust structure is most appropriate for Pet Planning. In future articles, we will examine the differences between traditional estate planning trust and Pet Trusts exactly what makes Pet Trusts so ultra-protective for our furry and feathered (and scaled) family members.
This is the sixth article in the OAA Animal Insider newsletter continuing series about Pet Planning. Additional information about Pet Planning and the planning options available to you is included in the Introduction to “Pet Planning” for Animal Owners guide.
Disclaimer: This information is provided for educational purposes only and is not legal advice. For Pet Planning assistance, please consult with an experienced estate planning attorney.
