We unashamedly love our pets here in the US. For many of us, especially seniors, perhaps divorced or widowed, childless or with grown children living out of state, pets are as much a part of our family as humans!
Pets are good for us! They can dramatically improve our health, lower blood pressure, speed up recovery after illness or injury and improve our mood and sense of wellbeing. They can also lessen feelings of loneliness and isolation, and provide a sense of purpose. When Pets are the center of our world, we worry what will happen if we become ill or pass away. Without proper planning, unfortunately, many animals end up getting euthanized.
Walsh Family Dog, Sailor – RIP 2021
The law and we estate planning lawyers recognize our client’s concern for their pets and plan for them just as seriously as we plan for their human loved ones!
In 2005, Illinois put into place the Pet Trust Act. Let me quickly say a Pet Trust is not for everyone but…for a pet lover who has resources, and either a pet that will probably outlive them or know they will they have some pet at the time of their death, a Pet Trust is a great planning vehicle. The Pet Trust can be set up as part of the Owner’s Revocable Living Trust or as a Stand Alone Trust.
A Pet Trust protects the pet owner’s intentions and money. For those who are not animal lovers, the care of a pet can seem frivolous, a waste of time and money. Pet Trusts ensure that no part of the Trust money can be converted for the use of the trustee or for a purpose other than the intended care of the pet.
A Pet Trust will typically name a caregiver, a trustee and detailed instructions for the care of the animal. An appropriate sum of money will be set aside for that care.
The Trust terminates upon the death of any animal the Trust was created to protect. Any remaining money in the Trust will go back to the caregiver, human beneficiaries or a charity of Trust maker’s choice, such as a veterinary school, humane society, shelters, PAWs etc.
There is no magic formula for how much you should leave your Pets. Amounts will depend on extent of your assets, number of pets, age, type, etc. A 10 year old Maltese will need less and for a shorter period of time than a 4 year old racehorse that could live 30 years!
A great way to gauge your pet’s needs is to keep track now of your pet costs. Typical considerations are food, toys, medical/emergency care, and insurance. We also want funds to pay a reasonable fee to the carer.
The caregiver can be a family member, a friend or fellow animal lover, or an organization that agrees in advance to care for your pet. The Trust will include your pet’s medical history, personality and foibles, and instructions for its care when you are unable to do so, either during your lifetime or after your death.
An important question to consider when drafting Pet Trusts is whether the pet’s physical caregiver and trustee (that is, the person in charge of the trust money), should be the same person?
This is a delicate balancing act. On one hand, it’s convenient to name the same person. But…what if the pet gets neglected or euthanized and the money is used for the caregiver’s own needs? There is an argument for naming a trustee independent of the caregiver, especially if a substantial sum of money is involved! The Illinois Pet Trust Act even allows for a 3rd party to be named (to monitor Trustee and caregiver, lest they collude!), to enforce the terms of the Trust and take legal action on FIDO’s behalf, if abuse is taking place.
As I stated earlier, Pet Trusts are not for everyone and there are alternatives for your pet’s care if you get sick or pass away. What we used to do before we had Pet Trusts and is still an option, is a gift in your Will of your pet to someone who will take care of it and a money to help them do so. Of course, we do not have the enforcement protection of a Trust with such a gift so we choose wisely and hope our caregiver will do the right thing.
Another alternative is naming a Pet Sanctuary in your Will and a gift of money for your pet’s care.
As a pet lover, you should also consider planning for your pets in the event of an accident or if you lose ability to care for yourself. Few assisted living facilities and no nursing homes allow pets. If you have a Pet Trust, you are already covered. If not, talk to a friend or family member about taking your pets in an emergency. Let them know how many pets you have, where in the home they are located, their names, feeding habits, etc. You can even give that person a special Durable Power of Attorney and HIPAA style release to facilitate visits to your Pet’s Vet or grooming service!
Gone are the days when professionals snickered at a senior wanting to provide for an animal like a child. We now have a social environment that respects our concern for our pets and laws that mirror and accommodate that sensitivity.
Pet Trusts are not just for Hollywood. Over the course of my career in Estate Planning, I have created Trust for dogs, cats, birds and horses. If you have wondered from time to time, what will happen to FIDO when you’re gone, you now know there are several options available to give you peace of mind! 🙂
If you have questions about Pet Trusts, or indeed any kind of Trust, you may contact my office at 708-448-5169. We are right here in your community and will be delighted to answer your questions.
