A
key purpose of “estate planning” is to ensure that our dependent
family members have access to the care and support needed after we are
gone. If pets are a part of
our family, we may want to make provisions for them as part of our estate
planning.
Until
recently, the laws made it difficult to plan for our pets. A pet owner
could set up a trust to care for pets, but there were no methods available
to enforce the trust. Money
set aside could be squandered while the pet ended up in a shelter, or
worse.
In
July,
Pennsylvania
adopted a new law that improves the planning options available to pet
owners. Act 98 of 2006 permits
pet owners to establish enforceable trusts for the care of their pets
during the owners’ incapacity or after the owner’s death.
With
a pet trust, the owner leaves care-taking funds to a trustee to manage for
the remainder of the pet’s lifetime.
The trust funds can be used only for the benefit of the pet. The
trust also names a caretaker for the pet. If the trustee fails to provide
for the pet, the trust can be enforced by the caretaker or by any other
person who is interested in the welfare of the animal.
The
trust should include general instructions on the use of the funds in the
trust for the care of your pet. More
specific additional instructions may be provided in a separate document.
A
pet trust can be created in your will or it can be a stand alone document.
If created in your will, you should also be sure to provide for the
care of your pet in a power of attorney document in the event you become
incapacitated. If you have more than one animal, all of your pets can be
protected by the trust.
You
should be thoughtful in selecting the trustee and the caretaker.
Speak with them in advance to make sure they able and willing to
serve. Make sure that the caretaker understands the burdens of caring for
your pet, especially as it ages or encounters medical problems.
Generally,
choosing one individual as trustee and another individual as caretaker is
best,. This will help to
establish checks and balances. Consider
naming alternates if the original choice is unable to serve.
Adequate
funds should be designated to provide for the proper care of your animal.
You should specify the expenses for which the caretaker can expect
reimbursement from the trust and describe the manner in which the trustee
is to make disbursements. To deal with unanticipated circumstances, you
may want to leave substantial discretion to the trustee.
The
trustee can be authorized to make inspections to ensure that the pet is
receiving appropriate care. You
should specify what is to happen to any money remaining in the trust at
the death of your pet. These
funds are often paid to either a charity or family members.
Pennsylvania
’s
adoption of a pet trust law gives owners an important new opportunity to
ensure that their pets will be cared for and protected no matter what
happens to the owner. It may be your pet’s best friend.
A
copy of Pennsylvania's statutory regulations are available at www.paelderlaw.com/pdf/Act_98.pdf
.
Jeff Marshall is
Certified as an Elder Law Attorney by the National Elder Law Foundation
and is the author of Elder Law in Pennsylvania. He is the managing
attorney of the Elder Law Firm of Marshall & Associates with offices
in Jersey
Shore, Williamsport,
Clarks Summit and Wilkes-Barre. He can be contacted at
webmail@paelderlaw.com.
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