What is a Pet Trust and How to Include One in Your Estate Plan

For many people, pets are not just animals, they are beloved members of the family. Ensuring their care and well-being after you're gone is a significant concern. One way to address this is through a pet trust. In this legal blog post, we'll discuss what a pet trust is, how to name a Trustee to care for your pet, how to outline your wishes for your pet, and why pet trusts are useful in estate planning.

What is a Pet Trust?

A pet trust is a legal arrangement that allows you to set aside funds for the care of your pet after your death. This trust specifies how the money should be used and names a Trustee responsible for managing the trust and ensuring your pet is cared for according to your wishes.

Pet trusts can be particularly beneficial because they provide clear instructions and financial resources for your pet's care, reducing uncertainty and ensuring your pet's needs are met.

How to Name a Trustee to Care for Your Pet

Choosing the right Trustee is crucial for the effective administration of a pet trust. Here are some key considerations:

• Trustworthiness: Select someone you trust implicitly, as they will be responsible for both managing the trust funds and ensuring your pet receives proper care.
• Willingness: Ensure the person you choose is willing and able to take on the responsibility. It's important to have a conversation with your potential Trustee to confirm they are prepared for the role.
• Backup Trustee: It is wise to name a backup Trustee, or even several, in case your first choice is unable or unwilling to serve. This provides an additional layer of security for your pet's future care.

Let’s use a real-life example to highlight how ambiguity in a pet trust can backfire, and prevent the owner’s actual wishes from being fulfilled. Leona Helmsley (the wife of billionaire real estate mogul Harry Helmsley) setup a pet trust as a part of her estate plan to care for her miniature Maltese dog. Upon her death in October of 2007, the pet trust included $12 million dollars to care for her dog until its ultimate death. This made her Maltese, named Trouble, the third wealthiest dog in the world at the time. Her Will included unequal shares being left to two of her grandchildren, and another two grandchildren were left out of the Will entirely. Unfortunately for Ms. Helmsley, a legal drafting error led to legal challenges which resulted in unintended consequences as to how her estate was distributed.

First and foremost, the attorneys did not specifically omit the two grandchildren whom she intended to leave nothing. As a result, this left the door open for the two grandchildren to argue that this omission was done in error, and the Judge agreed. The Court took $6 million, half of the funds in Trouble’s $12 million dollar pet trust, and granted it to the two grandchildren. This cautionary tale highlights another useful estate planning tool known as the “In Terrorem Clause.” This is known as a no-contest clause, which typically states that if any heir or beneficiary challenges or argues any provision of the Will, then they will be automatically disinherited. If the attorneys for Ms. Helmsley had included such a provision, then her beloved Trouble would have retained the intended $12 million dollars and her two grandchildren would have immediately forfeited their right to inherit by challenging the validity of the Will, leaving them with nothing, as Ms. Helmsley had originally intended.

Ms. Helmsley’s “trouble” doesn’t end there. In her pet trust she had named her brother as the sole Trustee to care for her dog, Trouble. However, her brother declined the responsibility and resigned as Trustee. Because there was no successor Trustee named in the pet trust, the Court had another problem in determining who would be responsible for caring for the dog. Trouble ultimately lived out her days at the Helmsley Sandcastle Hotel in Sarasota, Florida where a caretaker spent $100k a year for her care. After Trouble died, the remaining funds in the pet trust were left to the charities of Ms. Helmsley’s choosing that were outlined in her estate plan.

Since not all dogs have it made in the way that Trouble did, this story outlines the importance of contingency planning. Naming a successor Trustee, or even multiple Trustees, provides your friends and family with adequate alternative to ensure the wellbeing of your pet, even if your originally named caregiver declines to fulfill their duties.

Outlining Your Wishes for Your Pet

Detailing your wishes for your pet's care is a crucial part of setting up a pet trust. Consider including the following:

• Daily Care Instructions: Specify your pet’s dietary needs, exercise routines, and any special care instructions.
• Medical Care: Outline your preferences for veterinary care, including regular check-ups, vaccinations, and treatments for any existing health conditions. Make sure that any veterinarian information and a prior treatment history is left with the trust so the caregiver has detailed records to make informed decisions.
• Living Arrangements: Describe the type of environment you want your pet to live in, whether it's staying at your home, living with the Trustee, or another arrangement. You should also take these living arrangements into consideration when naming a Trustee. For example, perhaps it would be best to name a Trustee with a fenced in backyard for your dog to live compared to another sibling or friend that lives in an apartment building in the city.
• Adequate Funding: Depending on the pet’s age, you should consider how much you have spent on the animal historically to ensure enough funds are included in the trust to cover the pet throughout its lifetime. This includes food, medical bills, toys, grooming, etc. It is advisable to add funding for an additional two years of expenses on top of the average lifespan of the pet. Even if you leave too much, you can name successor beneficiaries to designate where the remaining balance should go if your pet dies and there are still funds remaining in the trust.
• Final Arrangements: Include instructions for what should happen to your pet if they outlive the trust’s funds or when they pass away. Just like with a human, you can include posthumous instructions as to cremation, or where the animal should be buried.

By providing detailed instructions, you ensure that your pet’s care will continue as closely as possible to what they are accustomed to, even after you are no longer around to provide it.

Why Pet Trusts are Useful in Estate Planning

Pet trusts offer several advantages in estate planning:

• Legal Assurance: Unlike verbal promises, a pet trust is a legally binding document that ensures your pet’s care is carried out according to your wishes.
• Financial Security: The trust sets aside funds specifically for your pet’s care, reducing the financial burden on your chosen caretaker and ensuring that resources are available for your pet’s needs. If a potential caregiver is reluctant to take on your pet for financial concerns, you can also incorporate a stipend to be paid directly to the Trustee that is taken from the pet trust funds. This of course should come secondary to the expenses needed to adequately care for the pet, but it is not uncommon to include a salary to be paid to the caregiver in exchange for taking on the responsibilities that come with caring for a new pet.
• Peace of Mind: Knowing that there is a clear, legally enforceable plan for your pet’s future can provide significant peace of mind, both for you and your loved ones.
• Avoiding Uncertainty: Without a pet trust, the fate of your pet could be uncertain, potentially leading to them being rehomed or ending up in a shelter. A pet trust helps prevent this by clearly designating who will care for your pet and how.

The increased prevalence of pet trusts has even led to the rise in pet care administration companies that will step in and care for your pets when you are gone. These companies partner with attorneys to meet the demands of their clients when someone has nobody that they trust to care for their pet after their death. Or similarly, they can step in when all Trustees renounce their appointment and resign as Trustee. This gives pet owners a backup plan to ensure that their beloved pet is not left without a caregiver. Pet Care Administration companies, such as LifePet.Care or Animal Care Trust USA, are entities that specialize in managing various aspects of pet care when it comes to estate planning. Most prevalently they help pet owners’ source and evaluate potential pet caregivers, but they also conduct regular oversight to ensure that your wishes are carried out properly when it comes to pet care. This can even include caregiver site visits, audits, and health checks to make sure that the pet is receiving the level of care that they deserve.

Contact Lane, Lane & Kelly to Discuss a Pet Trust

Incorporating a pet trust into your estate plan is a compassionate and practical way to ensure your beloved pet lives out its days comfortably. By carefully selecting a Trustee, outlining your care instructions, and legally formalizing your wishes, you can provide for your pet’s well-being long after you are gone. If you're considering a pet trust, consult with an experienced estate planning attorney, such as the attorneys at Lane, Lane & Kelly in Braintree, Massachusetts, to help you set it up correctly and ensure it meets all legal requirements. At Lane, Lane & Kelly, we understand the importance of all family members, including those with fur or feathers. Contact us today to learn how we can help secure your pet’s future as part of your comprehensive estate plan.

This blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By reading this blog you understand that there is no attorney client relationship between you and Lane, Lane & Kelly, LLP.