Pet Trusts Are Not Equal, For Good Reason
California law now recognizes a trust for the care of a domestic or pet animal as a legal purpose.
A pet trust protects the pet, but is the trust protected from the heirs? Mark W.
Bidwell, Esq.
suggests pet owners consider three options; instructional pet trusts, springing pet trusts, and stealth pet trusts.
An Instructional Pet Trust has within the typical trust or will instructions on the care of the pet, the person to provide care and possibly an amount of money to be given to the care giver.
There really is no control, just instructions of who will provide care and how and the amount of money available for the pet's care.
This type of "trust" is strictly on the honor system.
An Instructional Pet Trust is appropriate when the pet owner has confidence in a relative or friend to provide proper care and all persons who will receive assets or have the potential to receive assets from the will or trust will not challenge the trust or will.
A Springing Pet Trust is created on the death of the pet owner according to instructions found within a typical trust or will document.
All assets of the trust are distributed to human beneficiaries except for a specified amount of money that remains in the trust for the care of the pet.
Upon the death of the pet, the remaining assets of the trust are distributed to heirs as directed by the trust.
The beneficiaries will become aware of the pet trust due to California law requiring notice to them on the death of the pet owner.
This type of trust is appropriate when the pet owner wants control, but there is also no concern of family discord or litigation by the heirs to the trust.
A Stealth Pet Trust is a separate and distinct trust document from any other trust or will.
It is created when the person is alive.
The Stealth Pet Trust has its own assets.
The beneficiary to receive any assets after the pet has died is a charitable organization.
A logical charitable organization would be the one providing care to the pet, such as a no-kill shelter or rescue society.
Because there are no human heirs who will have any potential interest in the trust, no one is noticed.
The trust operates in secret.
This type of trust is appropriate when there is concern of litigation or family discord among the heirs due to the bequest for the benefit of the pet.
Major issues to consider for trusts for pets are: 1.
Who or what entity will have the duty of care 2.
Who will be the designated person to monitor the care of the pet 3.
Who may challenge the trust 4.
Dollar amount to be set aside for care.
If the value of the assets in the trust does not exceed $40,000, no filing, report, registration, periodic accounting, or separate maintenance of funds is required.
A pet trust protects the pet, but is the trust protected from the heirs? Mark W.
Bidwell, Esq.
suggests pet owners consider three options; instructional pet trusts, springing pet trusts, and stealth pet trusts.
An Instructional Pet Trust has within the typical trust or will instructions on the care of the pet, the person to provide care and possibly an amount of money to be given to the care giver.
There really is no control, just instructions of who will provide care and how and the amount of money available for the pet's care.
This type of "trust" is strictly on the honor system.
An Instructional Pet Trust is appropriate when the pet owner has confidence in a relative or friend to provide proper care and all persons who will receive assets or have the potential to receive assets from the will or trust will not challenge the trust or will.
A Springing Pet Trust is created on the death of the pet owner according to instructions found within a typical trust or will document.
All assets of the trust are distributed to human beneficiaries except for a specified amount of money that remains in the trust for the care of the pet.
Upon the death of the pet, the remaining assets of the trust are distributed to heirs as directed by the trust.
The beneficiaries will become aware of the pet trust due to California law requiring notice to them on the death of the pet owner.
This type of trust is appropriate when the pet owner wants control, but there is also no concern of family discord or litigation by the heirs to the trust.
A Stealth Pet Trust is a separate and distinct trust document from any other trust or will.
It is created when the person is alive.
The Stealth Pet Trust has its own assets.
The beneficiary to receive any assets after the pet has died is a charitable organization.
A logical charitable organization would be the one providing care to the pet, such as a no-kill shelter or rescue society.
Because there are no human heirs who will have any potential interest in the trust, no one is noticed.
The trust operates in secret.
This type of trust is appropriate when there is concern of litigation or family discord among the heirs due to the bequest for the benefit of the pet.
Major issues to consider for trusts for pets are: 1.
Who or what entity will have the duty of care 2.
Who will be the designated person to monitor the care of the pet 3.
Who may challenge the trust 4.
Dollar amount to be set aside for care.
If the value of the assets in the trust does not exceed $40,000, no filing, report, registration, periodic accounting, or separate maintenance of funds is required.