Bob and Laura were ready to move forward with their estate plan to save estate taxes and avoid probate. The only hitch was who would take care of their beloved pets, Samson, the dog and Delilah, the cat, after Bob and Laura passed away.
Under New York law, trusts for the care of our pets are valid and enforceable. You can set up a pet trust in either a trust or a will. A trust is a private document that generally does not go to court, so if you create a pet trust within your own trust, it’s a private affair. A will, once submitted to court, is a public document and the court oversees the directions in your will, including your pet trust provisions.
Bob and Laura created pet trusts in their own living trusts. After more searching and discussion, they chose Bob’s brother, Rich, to be the trustee, or manager, of the pet trusts, meaning Rich will oversee and keep account of the money allocated to care for Sampson and Delilah. Rich will also be the caretaker. The trustee and caretaker do not have to be the same person but often that is the arrangement.
According to their trusts, after Bob and Laura are both gone, they leave $10,000 for each of their surviving pets. The trust money is to be used for the “proper medical care, support and maintenance” of their pets until the last pet dies. Then, the remainder of the money, called the “trust balance,” is distributed according to Bob’s and Laura’s wishes.
Instead of leaving a specific amount of money, a technique developed by Ettinger Law Firm may be preferable. What we suggest is that an amount to care for the annual feeding and medical care of the pet be placed in a trust, based on the actuarial life expectancy of the pet as determined by a local veterinarian. After all, the amount needed varies greatly depending on the age of the pet. To that, an average of five thousand or more may be added for unseen expenses. Consideration should also be given as to what a fair fee may be for the trustee.
Our free review of your estate plan every three years assures that the pet trust will be updated as circumstances change.