Everything to know about pet trusts

Pets are becoming an increasingly important part of our lives: a recent study shows that the number of pets outnumbers children in U.S. households. Pets provide us with devoted companionship and emotional support, so we often come to love them like our own family. It is crucial, therefore, that pets get necessary treatment and care in the event of the owner’s hospitalization or death. To promote the safety and well being of pets during these unfortunate events, the establishment of a pet trust is a must. 

What is a pet trust?

A pet trust specifies how your pet would be cared for and taken care of financially. It is a legal arrangement that is based on laws specific to each state; every state and the District of Columbia has laws concerning pet trusts.

A pet trust works like any other trust. The money or assets in the trust is mainly used to care for pets in multiple ways, including, but not limited to:

• feeding and boarding costs

• regular health checkups

• grooming costs

• emergency veterinary care, and

• end of life treatment.

In several states, the trust remains in place for the pet’s life expectancy. In others, it is valid for no more than 21 years. 

The types of pets which are generally covered by a pet trust are cats, dogs, hamsters, birds, turtles, snakes, lizards, and similar small animals. However, you could also set up a pet trust for larger animals that are not listed above.

There are two main types of pet trusts: enforceable and honorary. In the creation of an enforceable trust, a trustee and caregiver are assigned. The trustee manages the financial aspects of the trust, while the caregiver mainly focuses on pet care. These two people form a system of checks and balances to ensure that the money in the trust is not exploited and appropriate care is being provided for the pet.

For an honorary trust, however, a single trustee is usually assigned. This trustee is not necessarily obliged to follow the wishes of the pet owner: they could, in extreme cases, decide to dispose of the pet and do anything they desire with the money in the trust. Honorary trusts were often created when courts believed that pet trusts were unenforceable, as they lack a legal entity as a beneficiary. It would be ideal, therefore, to form an enforceable trust if you want a more secure future for your pet. But you should keep in mind that only certain states allow the creation of an enforceable trust. Click here to find out if your state is one of these states.

Establishing a pet trust

To establish a pet trust, you first need to identify who will be the trustee and/or caregiver. The trustee is the one who holds the legal title of the assets in the trust. You may want to designate a successor trustee if you think your pet may outlive your primary trustee. 

Next, you will choose a caregiver. This person will use the assets in the trust to provide care for your pet. The caregiver should be someone who has shown affection towards your pet in the past. Choosing possible candidates for the position and interviewing them is an effective way for you to find out who will be the best fit for the job. 

While you are deciding on the trustee or caregiver, keep in mind that the caregiver can be the same person as the trustee, but designating different people to each role may be wiser so that the two can keep each other accountable. 

After making this decision, you will need to decide the type of trust you want to create. As mentioned before, you have the choice of creating either an honorary or enforceable trust. Remember that some states have restrictions regarding the type of pet trust you can create, so make sure you take a look at this website to see if your state allows the creation of an enforceable trust.

Now you are ready to set up your trust. You will likely need an estate planning attorney to help you with drafting documents. (For help in finding an attorney who is right for the job, we offer a free service of vetted legal professionals, which you can access by clicking here.)

In the trust, you should detail how you would want your pet to be taken care of. These instructions can be as specific as you want. For example, you could make note of certain foods that should be avoided or parks the pet should be walked around. At the end of these instructions, make sure to include what should happen to any remaining money in the trust once your pet passes away.

Important things to consider in regards to pet trust

• Consider microchipping your pet so that it can clearly be identified. Otherwise, someone may abuse the terms of the trust and fraudulently gain access to the money in the trust. If you do decide to microchip your pet, record the chip number in the pet trust document with a photo of your pet. 

• You might be considering including your pet in your will rather than setting up a pet trust. However, creating a pet trust is preferable because it is a quicker and less troublesome process. Sometimes the money in a will cannot be accessed before a court ruling, and this may lead to a lapse in pet care.

Still have questions about pet trusts? If you are looking for additional assistance, talk to our concierge service here at Peacefully. The concierge service can help with referrals to trusted professionals, offering case-specific advice, recommendations, and coordination for you. For more about our concierge service or to schedule a free consultation, click here.

— Lucy Jung