A pet trust is a specialized type of revocable living trust. Like any trust, you will appoint someone as the Trustee of the trust, and you will fund the trust with sufficient assets to care for your pet in your absence. The Trustee of your trust is legally obligated to use the utmost care when managing the trust assets and to follow the trust terms just as you wrote them.
How can a pet trust help me?
The terms of a pet trust can be used to dictate how you wish your pet to be cared for in as much, or as little, detail as you wish. A pet trust provides the legal oversight you need to ensure that the funds you leave behind will be used exclusively for your pet and that your pet’s care will be continued in the manner to which your pet is accustomed. Finally, a pet trust can also address a situation wherein you are incapacitated. The Trustee can take over the care of your pet until you recover, or forever if your incapacity eventually leads to your death.
That sounds interesting, how does it work?
You establish and fund the pet trust, and you name a trustee to act as the administrator after you pass away. The trustee can be someone that you know personally, or it can be a professional fiduciary such as a bank or a trust company.
We should emphasize the fact if you name a trustee that you know, this person would not necessarily have to care for the pet.
In the trust declaration, you can leave behind specific instructions about the way that you want the pet to be cared for after you are gone. You can specify certain foods, treats, exercise times, and any other details that you want to include.
What happens without a pet plan?
Unfortunately, over half a million dogs and cats end up in shelters each year in the U.S. because of the death or incapacity of their owner. When a pet owner dies or becomes incapacitated, a beloved family pet can easily be overlooked, or be viewed as a burden, if plans were not made ahead of time to care for the animal in the event something happened to his/her human “owner.” Your loved ones may be so focused on their worry or grief over your death or health problems that your pet simply gets lost. Even if they do remember your pet, they may be unwilling to take on the practical and financial responsibilities associated with caring for your pet. Including a pet planning component in your estate plan is the only way to ensure that this doesn’t happen to your pet.
What happens to assets that are left in the trust after the pet dies?
When you establish the trust, you name a successor beneficiary. After the passing of the pet, this individual or entity would assume ownership of any resources that remain in the trust.