Providing for your pets after your death Editor’s note: This is part two of a two-part column. Last month, Karen Baldwin discussed ways pet owners can use trusts to provide for their pets after their death. This month, Baldwin discusses
Providing for your pets after your death
Editor’s note: This is part two of a two-part column. Last month, Karen Baldwin discussed ways pet owners can use trusts to provide for their pets after their death. This month, Baldwin discusses funding the pet trust, choosing a caregiver for a pet and choosing a trustee for the trust.
Funding means to transfer money or other property into your trust for the care of your pet. There are a number of factors to consider when deciding how much money or other property to place in your pet trust. You must consider the type of animal, the animal’s life expectancy — especially important for pets with a long life expectancy — the standard of living to provide for the animal, the need for medical treatment and payment for the trustee’s services. You should also include enough money to pay an animal-sitter when the caregiver is on vacation or is otherwise unable to temporarily care for the animal.
The size of your estate is another factor to consider when making funding decisions. If your estate is large you may be able to care for the pet using only income from the property while a smaller estate will use income and invade principal. Avoid transferring an unreasonably large amount to the trust as heirs and beneficiaries may be more likely to contest the trust.
The timing of the funding depends on the type of trust you establish for your pet. If you create a trust that takes effect during your life (an inter vivos trust), you need to fund the trust when it is created. If your trust is created in your will (a testamentary trust), then you need to fund the trust by a provision in your will.
There are a number of methods for funding a pet trust, including direct transfer of money or other property to the trustee, a life insurance policy naming the trustee as beneficiary or a pay-on-death account.
Choosing the pet’s caregiver is an extremely important decision. Some critical considerations include the individual’s willingness to assume the responsibilities of caring for your pet, his or her ability to provide a stable home for your pet and whether a harmonious relationship exists between the caregiver’s family members and your pet. Of course, you should name at least one and preferably two alternate caregivers. Naming a pet sanctuary or no-kill shelter as your last choice assures your pet a home for its lifetime.
The trustee must be an individual or corporation that you trust to manage your property well and ensure that the caregiver is doing a good job caring for your pet. If you choose a family member or friend as trustee, they may be willing to act as trustee without compensation. If you decide on a professional trustee, then you will need to pay a fee for the services. At least one alternative trustee should be named in case your first choice is unable or unwilling to serve. The trustee has many responsibilities so you should make sure that the trustee is willing to do the job.
A remainder beneficiary should be named in the event there is property remaining in the trust after your pet dies. Pet owners often decide to leave any remaining property to a charitable organization that assists the same type of animal covered in the trust. If no property remains in the trust your pet may not be cared for, therefore it is a good idea to direct that your pet be donated to a person or organization.
You can establish a pet trust by contacting an attorney who specializes in estate planning and, if possible, one who has experience with pet trusts.
• Karen Baldwin received her doctor of jurisprudence from the University of Denver College of Law in 1970. Her practice is limited to wills, trusts, probate and asset protection. You may contact her at 826-7888 or by email at kbaldwinattny@hotmail.com with questions or comments. Consult an estate planning attorney to discuss your specific needs.
