Stapleton Elder Law

Who Will Take Care of Fido or Fluffy When You are Gone?

We love our pets as much as any member of our family, but if you want to protect your companion animal after you die, you’ll need to put special protection into place.

Animal shelters see it all the time: a family brings in a dog or cat whose owner has died because they are unable or unwilling to care for the pet. Those are the lucky ones. Many beloved animals are abandoned, when there’s no plan in place to care for them. At the other extreme are multi-million dollar trusts set up for the care of a pet. What if you wanted to leave your entire estate to your pet?

Sorry, but no, you can't leave an estate directly to your pet.

NJ.com’s recent article, “Can you leave an estate to a pet?”, explains that animals can’t own property. Your cat doesn’t have the necessary legal capacity. However, your estate or part of an estate can be left for the benefit of a pet. There are two options.

Pet Trust. This is a trust document that establishes the purpose of the trust, who it will benefit and how the assets held in the trust are to be administered for the beneficiary. Think of Leona Helmsley. She was a hotel heiress who left $12 million to her dog. Technically, she left the money in trust and a trustee managed the funds for the life of her Maltese.

The trust should also state who receives any money left in the trust, when the pet dies. That’s known as a remainder beneficiary.

From a legal standpoint, animals are considered property, even though pet lovers consider them furry friends or family members. You need to name someone to take ownership and care for your pet.

You can also forego a trust and simply leave your pet and a sum of money to care for the pet to a designated person without a trust. But there’s no guarantee that after you die, the person you selected won’t just pocket the money and give the pet away. There’s less structure and certainty in this, but it’s a less expensive option to set up.

Animal Rescue and Adoption Agencies. Many animal organizations have a plan in place that allow you the peace of mind of knowing that your pet will be cared for, if you predecease your pet. The process usually involves making a donation to the organization and they, in turn, make a commitment to either finding a loving home for your pet or caring for your pet at their facility. Do your homework: visit the organization and make sure that you are comfortable with their level of care before adding these instructions into your will.

Reference: NJ.com (July 12, 2017) “Can you leave an estate to a pet?”

Please visit our website to learn more about including your pet in your estate plan.

Britney Spears Pets Live Large, but Without a Pet Trust, Their Luxe Life Is Vulnerable

Britney Spears five dogs enjoy the same quality of life as she does, but without a pet trust, if anything happened to her, their lavish lifestyle would be at risk.

Pet trusts are no longer the exclusive province of the rich and famous, but a recent article in Trust Advisor reports that while Americans spend lavishly on our pets, they are still considered property and don’t have legal status or protection. According to “Britney Spears Pet Fetish Feeds New Estate Planning Craze,” whether you’re talking about protecting Britney’s pampered pooches or just an average American pet, you’ll need a pet trust to protect companion animals, if you become incapacitated or pass away.

While most of us want to ensure that our pets have loving care, rumors of the expense of Britney’s dogs gives us a view of some of the upper limits—or lack thereof—of how much modern pet pampering can cost. Britney spends about $30,000 a year on her dogs. This is enough to support over 100 typical American pets. One haircut for one of her dogs would feed an average animal for a year.

While the amount that Americans spend on our pets has skyrocketed 73% over the past 10 years, a real animal lover really must push hard to spend what Britney does on her young, healthy dogs. But if something were to happen to her, there would be no certainty that her furry kids would receive any of her millions. That money would likely go to her human children. Guardianship and custody arrangements aren’t binding when the “pet parent” passes away. Britney’s will could bequeath the dogs to a friend or relative, but there’s no assurance they’d care for them in the same way she did. That is why a pet trust can be vital.

Like a trust for human beneficiaries, the goal of a pet trust is to create a structure that can continue after the original pet parent or owner dies. Pet trusts typically are revocable. The money would transfer into the trustee’s control in the event of death or disability.

A pet trust should provide for the appointment of successor trustees and designated caretakers for the animals. This may not always be a concern because we will usually outlive even puppies and kittens. Nonetheless, it’s always good to be thorough. Britney will probably survive all of her current dog pack. But to make sure nobody gets left out, she should define the beneficiaries for all of her pets when she dies. Dogs won’t likely outlive the trust wherever it’s set up, but horses, birds, and reptiles can live for several decades.

New Jersey, Michigan, Montana, and Alaska will terminate the trust after 21 years, even if the pets are still alive. Otherwise, Britney’s pups would continue to enjoy their lavish lifestyle until the funds run dry. In Britney’s case, if she dies a day after adopting a newborn puppy, with a 30-year lifespan, the luxury would cost about $1 million by the time the trust term ends.

The average pet does not need such a large pet trust as Britney’s pack. An experienced estate planning attorney will be able to explain how pet trusts work in your state and how to set up and fund a pet trust.

Reference: Trust Advisor (May 1, 2017) “Britney Spears Pet Fetish Feeds New Estate Planning Craze”

To learn more about planning for your pets and how pet trusts work in Virginia, please visit our website.

Minnesota Legislator Proposes Pet Trusts

You can leave money for a pet in your will, but you cannot protect it with a pet trust if you live in Minnesota. One pet parent is trying to change this.

A number of states—including California, Wisconsin and New York—have adopted laws that allow pet owners to create pet trusts, which allow pet owners to designate money to be used for the care of their beloved animal companions after the owners pass away. As of this writing, Minnesotans may leave money for their pet, but there is no way to ensure that the money is spent on the pet's care.

WDAY.com reported in "Who will care for your pet when your die? Trust bill proposed" that Rep. Dennis Smith, most likely along with his dog Reagan (serving as a special four-legged lobbyist), planned to make the case to his colleagues that it was time for Minnesota to end its unique designation.

Smith is an animal lover who has at least two photos of his golden retriever mixed-breed pup in his legislative office in Saint Paul. He also has Reagan, along with his wife and children, on his campaign website. As an attorney, Smith commented that he sees his clients make gifts to their animals in their estate planning about one third of the time.

Under current state law in Minnesota, residents may designate money in their wills for their pets, but there's no legal requirement that the cash be spent on the animals. This is not the same as in other states that allow for animal trusts. In a trust, any cash left for the care of an animal must legally be spent on Fido or Spot. When he, she or it dies, any money remaining in the trust could go to other heirs or be distributed as instructed in the trust or as determined by the probate court.

Wisely, the terms of the animal trust could be prepared to ensure that payment for care is made if the owner becomes incapacitated. The pet trust can't be used to avoid debt or shrink estate taxes, which means that the state will not lose any estate tax revenue by passing the law.

Reference: WDAY.com (April 7, 2016) "Who will care for your pet when your die? Trust bill proposed"

To learn more about pet trusts, please visit our website. 

 

Planning to Care for Beloved Pets Who Outlive Owners

Not every pet whose owner passes away is as lucky as those owned by a woman in the Raleigh area. While she was in home hospice care and two days before she passed away, at a point when she was no longer aware of her surroundings, the founder of a no-kill cat shelter and adoption agency came to her home and with care and gentleness, took her beloved cats to SAFE Haven for Cats. Two months later, the cats were in new homes. Pam Miller, who founded the organization 23 years ago, said she did not want to think what would have happened to the cats otherwise. Most older cats or cats with medical issues who survive their owners do not enjoy such a happy ending.

Pam Miller, founder of a no-kill cat shelter and adoption agency, brought two cats to her shelter just days before their owner passed away so that they could find new homes. She encourages pet owners to include pets in their estate planning, as described in The (Raleigh, NC) News Observer, "Providing for your pets after you're gone."

Caring for and finding new homes for the pets of the recently departed is something SAFE Haven does frequently, but there must be a plan and funds set aside. It takes planning and resources. Many folks make assurances that their pets will be cared for after their owners pass. After a loved one's death, with so many things to do, it's easy to forget about the pets.

Put a card in your wallet detailing how many pets you have and their location. It should include the contact info for your vet, a pet-sitter, and a trusted friend to whom you've spoken about caring for your pets if something unfortunate occurs. If you want to do this and leave a trust for your pets, speak with an estate planning attorney.

Pets can't legally inherit money, but with a pet trust, the money is set aside for the care of the pet. After the pet dies, the remainder can be designated for a nonprofit.

Finding the right attorney means choosing an estate planning attorney who knows how to include pets in an estate plan and has experience doing so.

Here are some pointers for setting up a trust:

• Talk to an estate planning attorney who specializes in pet trusts, and make sure they are allowed in your state.
• Have your trust cover all pets in your lifetime, instead of separate trusts for each pet.
• Be detailed about the type of care you want for your pet, such as requiring that the new caregiver provide regular veterinary care.
• Figure out the amount of money needed to cover your pet's needs and the amount of money needed to administer the trust.
• Choose a beneficiary for any funds not used by the pet trust, like a pet charity.

Reference:  The (Raleigh, NC) News Observer (October 12, 2015) "Providing for your pets after you're gone"

To learn more about planning for your pets, please visit our website.

 

 

Every Dog May Have His Day, But This Dog is Having His Day in Court

When one of the creators of The Simpsons passed away, he left his beloved dog in the care of a dear friend. But the estate of Sam Simon has so far not been able to reach an agreement with how much money is needed to care for the dog. Let's just say that the friend wants to carry on Simon's luxury level of care for the dog.

Like anyone who loves the pet members of their family, Sam Simon was a devoted animal parent and his rescue dog, named Columbo, enjoyed a comfortable lifestyle. One of Columbo's monthly bills was for acupuncture treatments, twice a week, at a monthly cost of $3,640. That was just one of his regular medical and therapeutic treatments.

Simon passed away earlier this year after a struggle with colon cancer. Most of his fortune was put in trust to be used to promote animal rights. Columbo, however, was given over to Tyson Kilmer, an animal trainer and Simon's friend. Now Kilmer and the trust that Simon created are in a bitter dispute over money to pay for the dog's care.

Kilmer claims that he needs $140,000 a year to maintain the same treatments that Simon gave Columbo. He claims that the trust refuses to give him the funds. The trust has a different story.

Its position is that it has offered appropriate funds to Kilmer, but that under the terms of the trust and the law it cannot give him whatever he wants. It also claims that Kilmer has asked for outrageous sums and that an alternative caretaker for the dog is willing to care for it for free.

The Daily Mail has more on this story in "Estate of late Simpsons co-creator Sam Simon locked in a bitter battle with the new owner of his beloved dog who says he has not received annual allowance to care for the canine." For now it appears that this dispute is only playing out in the press. It remains to be seen whether it will make it to court.

If you have a pet and want to make provisions for its care at your passing, then contact an experienced estate planning attorney to discuss a pet trust. Please visit our website to learn more!

Reference: Daily Mail (October 1, 2015) "Estate of late Simpsons co-creator Sam Simon locked in a bitter battle with the new owner of his beloved dog who says he has not received annual allowance to care for the canine."

 

 

 

Pet Trusts: Not Just for Dogs and Cats

The growing popularity of Pet Trusts in the United States is further proof that as a nation we love our pets and consider them members of our families, even if they have fur, whiskers, or in this case, feathers.

It’s one thing to love your pets. And owning 32 of any animal larger than a fish is somewhat unusual. But Leslie Ann Mandel loved her cockatiels, and her will included a mention of each and every one of them.

Mandel even put $100,000 into a trust for their care and left detailed instructions about how to care for them. She appointed her stepson as the trustee and he is now responsible for the birds.

The Wills, Trusts & Estates Prof Blog wrote about this story in a recent article,"Deceased Millionaire Leaves $100,000 to A Pet Trust for Her 32 Cockatiels."

The unusual aspect of this story is not that a wealthy woman left behind a trust for her pets or even that she left behind such a large amount of money for them. The only unusual aspect is that Mandel left behind the money to birds. Large pet trust for dogs and cats are becoming very common as state laws have changed to make them possible. In our office, Ari particularly enjoys helping clients establish small trusts to care for their horses! Throughout the nation, it’s clear that Americans love their pets almost as much as their own families.

The only way to ensure that your pets receive the same care after you pass away as they did when you are alive is to leave precise instructions and money so those instructions can be carried out. You do not have to be as wealthy as Mandel to create a pet trust. A much more modest sum can be placed into trust for the care of a beloved family pet.

If you are interested in learning more, ask your estate planning attorney or visit our website. 

Reference: Wills, Trusts & Estates Prof Blog (September 6, 2015) "Deceased Millionaire Leaves $100,000 to A Pet Trust for Her 32 Cockatiels."