AARP explains pet trusts
Laura Daily in her article In Pets We Trust, AARP, June 2008, discusses the importance of planning for your pets. Here are some excerpts from her article:
Animals who outlive their owners face uncertain fates. Under the best circumstances, a family member or friend cares for your pet for the rest of its life. If not, your pet goes to a shelter, is euthanized, or is simply let out the front door. * * *
While owners may simply include their pets as provisions in their wills, Michael Markarian of the Humane Society believes a trust is a better option in case of disability. He said, “Wills may take weeks to be executed and could be contested, but a living trust can be written to immediately take effect.”
Creating one does take time. Select a pet-friendly lawyer or estate planner and expect to pay from $500 to $1,000 for their services. Be sure to consider your pet’s financial future. Some owners make outright gifts of cash for their animals’ care. * * *
Some animal lovers don’t advertise the fact that money is part of the deal. One pet owner who wishes to remain anonymous reveals that upon her death, there are 10 people listed as potential trustees to take care of her male cat. What the new caregiver won’t know at first is that the estate is instructed to award the person $10,000 if the feline is still with him or her after six months. “I want someone to take him out of the kindness of their heart and be rewarded if they keep him and fall in love with him like I did,” she explains.
Others leave money to be distributed over time—monthly, annually, or as reimbursement for expenses.
Want even more security for your pet? Name someone other than the caregiver as trustee to dole out the cash. This reduces the risk of someone taking the money, but selling or destroying your pet.
Special thanks to Robyn Katz (J.D. Candidate, Texas Tech University School of Law) for bringing this article to my attention.
For more information about estate planning for pet owners, see Estate Planning for Pet Owners.