About Trusts
You may be asking yourself: “Why do I need a Pet Trust?” First and foremost, a Pet Trust allows you to provide direction for the care of your pets in the event of your death. A trust is different from a will. For purposes of estate planning, you may not want to leave money directly to a pet in a Last Will or a Living Trust as the law generally classifies pets as personal property. As such, pets cannot directly receive money. A Pet Trust, on the other hand, allows for money from your estate to be managed—as you direct—by a person of your choosing for the purpose of providing long-term care for your pets.
Although laws regulating Pet Trusts may differ from state to state, currently 29 states and the District of Columbia have adopted uniform language with regards to the establishment of a Pet Trust. The states include: Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Hawaii, Illinois, Kansas, Maine, Michigan, Missouri, Montana, Nebraska, New Hampshire, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming. The sample form of trust document provided with your PetTrustPlus account is based on this uniform language.
But don't worry if you live in one of the following states that haven't adopted uniform language: California, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New Jersey, New York, North Dakota, Oklahoma, Vermont, West Virginia and Wisconsin. Federally-insured deposits kept in a PetTrustPlus account, along with a completed Pet Trust and Pet Profile, may still serve as an invaluable resource and guide for those you’ve designated to care for your pets. By designating a “trustee” as the pay on death beneficiary of your PetTrustPlus account, that individual will still be able to access your account upon your death and withdraw monies as needed to provide for the care of your pets.
Designating a Trustee
In many cases, people choose individuals as trustees with whom the pet is already familiar. That is why family members are commonly chosen to serve as trustees. If you have more than one pet, you may want to name a different trustee for each pet. If this is the case, you will need to create a separate PetTrustPlus account for each pet, designating a specific trustee. You will also need to deposit an amount of money in each PetTrustPlus account that is appropriate for the long-term care of that specific pet. See FAQ for more details.
How Much Is Enough?
The question of how much money will be required for the ongoing care of a pet often arises when establishing a Pet Trust. Essentially, you must consider all expenses related to the pets care, including daily feeding, regular grooming and periodic medical care. Calculate how much money you currently spend throughout an average year and multiple that by the expected lifetime of your pet. Industry figures indicate that horse owners spend $3,000 to $5,000 annually per pet, on average, to cover overall care expenses. Your expenses may be more or less than that the stated average. Whatever amount you choose, it’s important to remember that you can add to or withdraw funds from your account at any time. You can also build up your account over time with an easy to establish automatic draft from another account you have with us or at another bank. You can even close your account at any time without penalty. In all cases, you are in control of your money and the decisions about how your pets will be cared for throughout their lifetimes.
Trust Fraud
With a Pet Trust you may designate an Enforcer who is able to legally replace a trustee who is not properly performing his or her duties under the terms of the trust. In extreme cases, the Enforcer can even take legal action in connection with the Trust. That’s why it’s a good idea to choose an alternate trustee, just in case your first choice doesn’t work out as expected. There have also been cases of replacement pets purchased as stand-ins after the death of the original pet. This is typically done to allow a trustee continued access to trust funds after the death of the original pet.
The good news is that there are ways to protect yourself and your pet. For pets with a microchip implant, be sure to record the serial number within the Pet Profile supplied with your PetTrustPlus account. If your pet does not have a microchip, DNA testing kits are available from several online vendors. Remember to keep all such records with your Pet Trust and Pet Profile in a safe place, preferably in a safety deposit box.
See FAQ for more details about Pet Trusts.
See Pet Profile for more information on documenting the needs of your pets.
