Brown & Associates - Attorneys & Counselors at Law, P.L.L.C.

ESTATE PLANNING FOR PETS
(8/25/02)

A couple of weeks ago, I told you about some recent activity in the law involving custody of pets. This week, I want to continue with the pet theme and tell you how to provide for your pets after you are gone.

There are essentially two types of people in the world, those who love pets and those who don't. Pet lovers can be broken down into more categories, such as cat lovers, dog lovers, cat and dog lovers, horse lovers, bird lovers, and so on. If you do not love pets, you may want to skip my column this week.

People love pets for many different reasons. Some enjoy their companionship. Others love riding horses, taking their dogs for long walks or playing frisby with them. One thing every expert agrees on is that pet ownership is healthy. A pet can even shorten your recovery time after you have been hospitalized.

Your Pet As A Family Member

Over two-thirds of pet owners treat their animals as members of their families. As I noted in my last pet article, disagreements over pets have led to separations and even divorces.

USA Today reported that pet owners brag about their pets as much if not more than their children. Almost 80% allow their pets to sleep with them, a third carry pictures of their pets in their wallets, and a third take off time from work to stay with sick pets.

Pet Ownership On The Increase

How many people own pets anyway? Would you believe almost 34 million households own dogs, 28 million own cats, 11 million own fish, 6 million own birds, and 8 million own hamsters, rabbits, and reptiles. With all these pets, it isn't surprising that many provide for them in their estate plans.

Until recently, courts did not look with favor on such provisions. Although English courts have recognized gifts to animals since the late 1800's, U.S. courts have been less accommodating. Gifts to pets have failed for a number of reasons, including being an unenforceable honorary trust without a human or "legal" entity as a beneficiary.

Recently, state courts and legislatures have begun working with pet owners. In 1990, the Uniform Probate Code was amended to approve trusts for pets and the change has been adopted by a number of states.

How Can I Protect My Loyal Companion?

Between 12% and 27% of pet owners provide for their pets in their Wills. A number of well-known people have left fortunes to care for their pets, including actress Betty White, who is leaving her $5 million estate to hers.

Most pet owners want their pets taken care of if they become disabled or die. To be sure your wishes are carried out, keep an "animal card" with you at all times. The card should list your pet's name, type of animal, where it is located, any special care it might need, and who to contact to gain access to your pet. I still remember a bad experience during Desert Shield/Desert Storm. I was deployed in Germany and my unit received orders for Saudi Arabia. The first contingent departed and four days later I received a call from a soldier's landlord asking if I knew one of my troop had left his dog tied to the refrigerator with a large bag of dog food and a big rubber tub full of water. This was the only arrangement he had made for his pet, even though he didn't know how long he would be gone. Fortunately, the landlord checked the house to make sure everything was okay and found the dog before anything serious happened.

What would happen to your beloved companion if you were in an automobile accident and bedridden in the hospital? Would anyone take care of your pet or would it be left to try to survive on its own? If you don't have a plan in place, now is the time to act.

You should also prepare an "animal document" listing the same information as your animal card and attach copies of your pet's shot and veterinarian records. Keep this with your estate planning documents and give a copy to someone who will care for your pet.

Finally, as a safety measure place signs around your residence. This warns visitors that you have pets, but more importantly alerts fire fighters and police officers that an animal is present. You can obtain adhesive door and window signs from the Humane Society of the U.S.

How Can I Take Care of My Pet In My Will or Trust?

I recommend you put a clause in your Trust or Will giving a trusted friend or family member charge of taking care of your pet after you are gone. Authorize the trustee to distribute funds to the person who will care for your pet so long as he is doing the job. This way, the money is going to a person, not an animal, which overcomes a main objection to gifts for animals. It is also more flexible and provides greater guarantees that the money will be used as you intended, rather than becoming a gift to the recipient. Your trust can be an inter vivos (living) trust or a testamentary one created in your Will.

Be sure the person you select to care for your pet is willing and able to do the job and the person you select as your trustee is someone who will carry out your wishes. Don't stop with one each. Name at least one or two successor caretakers and trustees in case the first one is unable or unwilling to serve. Also, bequeath your pet directly to the trustee, in Trust, with directions to deliver your pet to the designated caretaker.

Spell out the standard of care you want your pet to receive and leave sufficient funds for the caretaker to comply with your wishes. Provide detailed instructions to the trustee so he knows what is expected of the caretaker and the purposes for which the Trust funds may be used. One creative caretaker bought a new car so he could transport the pet dog. The Court intervened and decided this was unreasonable, but the problem could have been avoided with clearer instructions in the trust.

Explain how the funds are to be distributed. Will the trustee be paid an amount each month or only be reimbursed specified expenses? Be sure your caretaker agrees. If he expects a monthly stipend and the trustee only reimburses out of pocket expenses, both will be unhappy with you.

I'll conclude this pet series next week. Stay tuned.

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