When planning for the future, many pet owners worry about what will happen to their furry friends if they pass away or become incapacitated. If no action is taken to prepare for your pet’s care after your passing, the state will decide for you, and your pet may end up in a shelter or with a family member or friend who cannot adequately care for them. Fortunately, pet trusts offer a legally binding solution to ensure that pets receive proper care and financial support for the remainder of their lives. Below, I will outline what exactly pet trusts are, how they are created, and the considerations you’ll need to keep in mind should you decide a pet trust is right for your estate planning needs.
A pet trust is a legal arrangement that allows pet owners to set aside funds and establish instructions for the care of their animals after they are no longer able to provide for them. Virginia, D.C., and Maryland all allow for the creation of pet trusts, provided that they terminate upon the death of the last surviving pet covered under the trust.[ Va. Code Ann. § 64.2-726; D.C. Code § 19-1304.08; Md. Estates and Trusts Code Ann. § 14-112] Unlike conveying a pet via a simple will, which may not guarantee that the person designated as caregiver follows the owner’s wishes, a pet trust is enforceable by law. This means that the appointed trustee has a fiduciary duty to use the funds solely for the pet’s well-being.
A pet trust can be created through a testamentary trust in your will, with the trust taking effect upon your death, or through a living, revocable trust, which takes effect during your lifetime and can be adjusted as needed. While creating a pet trust in your will may simplify your estate planning, it is important to note that the trust would only take effect upon your death and would not allow for your pet to be cared for in the event you become incapacitated. Furthermore, a living trust enables you to transfer assets to the trust while you are still living and allows for greater customization if your pet requires special care and attention.
Once you have decided what form your pet trust should take, the next step is deciding who should play the key roles in caring for your pet after your death or during your incapacity. The trustee is the person or entity responsible for managing the trust’s funds and ensuring they are used according to your instructions. The caregiver is the individual designated to provide daily care for your pet. It is important to consult with your potential candidates for both trustee and caregiver ahead of time to ensure that they are aware of your pet’s needs and are willing and able to fulfill their roles. You will also need to determine how much funding to set aside to cover your pet’s expenses, including food, veterinary care, grooming, and other needs. You may also wish to include specific instructions regarding your pet’s diet, medical care, living arrangements, and other preferences. Finally, you will need to designate a remainder beneficiary to receive any remaining funds once your pet passes away.
Pet trusts provide several advantages over informal arrangements or provisions in a will. However, pet owners have to take time to consider how they want to establish their pet trust and who they want to play the key roles in caring for their pet after their passing. Furthermore, the trust must be appropriately funded based on the pet’s expected lifespan and needs. By legally securing the future of their furry friends, pet owners can gain peace of mind knowing that their beloved companions will receive the love and support they deserve.
