Planning for Clients Who Own Horses

Clients who own a horse present special issues for attorneys, and it helps attorneys to connect with horse-owning clients to be aware of these issues.  Since a horse represents a major financial investment for clients who own one, maybe even their primary investment, planning for the horse is essential.  

The animal trust statutes for wills does not adequately provide for a horse’s total care because it is only valid at the owner’s death.  A traditional revocable living trust might be the best option to provide for the uninterrupted care of a horse.  Caring for a horse can be more complicated than caring for a dog or a cat and an equine trust allows the owner to create a detailed set of instructions to outline the aspects of the horse’s care. 

One final unique aspect of an equine trust is that it is signed by the horse’s guardian, so it creates a binding contract with the guardian.  The guardian must then follow the trust document and can only use his or her discretion when the trust authorizes it.   

See AJ Fudge, Planning for Horse-Owning Clients, Wealth Counsel Quarterly, January 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.