How to Set Up A Pet Trust
Jan 27, 2012 / By: Charles B. Pyke Jr., Estate Planning Attorney / Category: Estate PlanningIf you are one of the millions of Americans who consider your pet to be part of your family, will you likely wish to include him or her in your estate planning. Just as you make plans for who will take care of your children in the event of a tragedy, you can also make provisions for who will care for your pet as well as how that care will be funded. Creating a pet trust is a legal option which will allow you to know that your pet is well taken care of for his or her natural lifetime.
A pet trust requires you to appoint a trustee to take care of the administration of the trust. Your may or may not be the same person who has the day to day care of your pet. For example, you may feel more comfortable with your attorney or your bank handling the money aspects of the trust, but want a family member to care for your pet, then you may choose to set up your trust accordingly.
You are also required to fund your pet trust. How much money or assets you decide to place in the trust is your decision. Consider the life expectancy of your pet as well as the cost of keeping your pet in the style to which he or she is accustomed to living. Also take into account the fact that your pet will age and likely need additional care and medical treatment as he or she ages.
The terms of your trust can be as flexible or as specific as you decide. The funds will be distributed to the caregiver according to your instructions. You can choose, for example, to distribute the funds on a monthly or yearly basis with a provision that additional funds can be accessed for emergencies or extraordinary medical treatment. Talk to your estate planning attorney for specific details.
Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.
Tags: pet planning, pet trusts
