Pieces of the Pet Trust Puzzle
By Laura J. Martin, Esq.
A “Pet Trust” is a statutorily enforceable trust relationship for the care of one or more animals. If you die or become permanently unable to care for your animals, a Pet Trust can be used to maintain and protect your animals throughout their remaining lifetimes. A Pet Trust is the most protective estate planning option available for pets. If you are considering a Pet Trust to ensure the future care of your animals, you may have questions about the structure and components, or pieces of the puzzle that make up a Pet Trust.
Pet Trust Purpose – The general purpose of a Pet Trust is to provide for the care of one or more animals, usually throughout their remaining lifetimes. Unlike a traditional estate planning trust, a Pet Trust does not have current human beneficiaries. The purpose of a Pet Trust is to benefit animals rather than people.
Pet Trust People – A Pet Trust does not work without people! People are needed to manage trust property, care for animals, and enforce the trust terms for a pet’s benefit. There are three primary roles people fill:
Trustee: The Trustee manages trust property and may also be responsible for pet care. A Pet Trust must have a trustee.
Pet Caregiver: A Pet Caregiver cares for the animals provided for in trust. A separate caregiver is not required – the trustee may also provide animal care.
Enforcer: A Pet Trust Enforcer oversees the Trustee and Pet Caregiver and enforces the trust for a pet’s benefit if needed. A designated enforcer is not required but is highly recommended.
These roles may be filled by three separate individuals, or one person may serve in multiple roles. For example, a very simple Pet Trust may have a Trustee-Pet Caregiver who manages trust property and provides pet care, and no designated enforcer. This Pet Trust structure is appropriate only when you have a very high degree of trust and confidence in the trustee. A moderately complex Pet Trust may have a Trustee-Pet Caregiver who is supervised by a Trust Enforcer, or a separate Trustee and Pet Caregiver who report to each other. Pets are afforded a higher level of protection when someone is appointed to ensure the Trustee and Pet Caregiver are fulfilling their responsibilities. However, the more people involved, the more complex and costly the Pet Trust.
Standards of Pet Care and Care Instructions – The people who will be responsible for caring for your pet must follow the standards and instructions you leave. For example, you may require your pet to be maintained in a lifestyle that is similar to what you provide. Or you may leave specific pet care instructions. Keep in mind that your pet’s needs may change with time and circumstances. A two-mile daily walk may be necessary to keep a young Labrador from chewing the furniture but will be completely inappropriate when that same dog is a senior with arthritis or a cardiac condition.
Pet Trust Property – The Trustee will manage and disburse money held in trust for pet care expenses, compensation, and other Pet Trust administration costs. The Trustee may also manage other property used to care for animals, including equipment, a home or farm, a vehicle, trailers for larger animals, etc. We will examine Pet Trust funding, or how much money and property to set aside for future pet care in an upcoming OAA Animal Insider newsletter.
Remainder Beneficiaries – Any money or other property remaining after all animals have died will be distributed to the remainder beneficiaries. Family members, animal welfare charities, and others can be designated as remainder beneficiaries of Pet Trust property. Be careful who you designate – these beneficiaries have the power to sue to for the early distribution of Pet Trust property while the animals are still alive! Designating a trusted local animal charity as the remainder beneficiary of a Pet Trust is the safer option. Unfortunately, family members are sometimes tempted to put their own needs ahead of a pet’s needs.
In the next OAA Animal Insider newsletter article, we will take another look at some of the relative advantages of Pet Trust planning and consider when a Pet Trust is the best planning option for the future care and protection of your pet.
This is the ninth 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.
