What is a Pet Trust, and why is it important?
Pets are important to our clients. Most pet owners consider their pets to be part of their families. An American Animal Hospital Association survey in 2001 found that 83 percent of pet owners refer to themselves as their pet’s “mom” or “dad”. Family photo albums and portraits often include the pets, family vacations have become pet-friendly, many hotels now welcome pets, one automobile insurance company features pet coverage in the event of a car accident, and many people choose to memorialize their pets’ death with a burial or cremation ceremony. It is fair to say that pets, whether they are horses, dogs, cats, or other animals, have become an important source of companionship and fun for the majority of Americans.

But what happens to the pet if something happens to the owner? How does a person ensure that their pet will be cared for if they become ill, disabled, hospitalized, die, or are in an accident? What will happen to Rover the dog and Chestnut the horse? What if no family member likes the animal enough, or has adequate space, to “take it in”?

One of the many effective ways for a pet owner to ensure continuity of care for a pet in the event of the owner’s disability or death is to establish a pet trust.

What can a Pet Trust do?
The benefits of a pet trust are very important. The existence of a trust can mean the difference between life and death for a pet whose owner has become incapacitated or died. Also, a pet trust helps ensure that the pet will be cared for in the manner specified by the owner (who, after all, knows the pet better than anyone else).

Establishing a pet trust also has important benefits for the pet owner, including peace of mind in knowing they have rewarded their pets for their loyalty and affection by ensuring their pet will be safe and secure and well-cared for throughout the remainder of its life.

A pet owner’s illness or disability should not necessarily spell the end of the important human-animal bond that an owner has with her pet; this is when the owner most needs the pet’s love and companionship. Many documented studies show that pets have a significant impact on a person’s physical and mental health, and even may influence a person’s ability to recover from injury or illness. As evidenced by many hospitals and patient-care facilities hiring “therapy dogs”, a pet can play an important role in an incapacitated owner’s medical treatment and quality of life. A pet trust can establish the life plan for the pet, including instructions for pet visits with an incapacitated owner if the owner’s incapacity prevents the pet and owner from living together.

What about remembering my pet in my Will? Isn’t that enough?
A Testamentary Bequest (remembering your pet in your Will) may not sufficiently protect a pet in the event of the owner’s death. While it is often believed that that a testamentary bequest to a friend or relative who will act as a “Caretaker”, with directions to use the money to care for your pet, will achieve the same goals of ensuring the pet’s comfort and continuity of care, that is not always true. A bequest to an individual in a Will may not be enforceable (or sufficient) to protect the pet when the owner dies, since the person designated to care for your pet can, in some cases, simply accept the money and dump the pet at the pound. Additionally, there may be substantial period of time between the time that the owner dies and the time that the will is probated and funds are released from the designated accounts.

Elements of a Pet Trust
A Grantor sets up the trust, and provides for a means of funding it. Every pet trust must, of course, name a Trustee. The trustee can be an individual or an institution. The trustee disburses funds to a Caretaker. The caretaker can be an individual, or a business such as a “long term care” home for pets, or an organization. The caretaker is the one who carries out the grantor’s detailed instructions concerning the pet’s care and maintenance.

The more specific the instructions, the easier it will be for the Caretaker. The pet trust can include specific instructions about all aspects of the pet’s care, from the type of food, to an exercise schedule, to preferred veterinarians and groomers. A client with more than one pet can direct that the pets must live together.

The trust can be drafted to cover all animals that the grantor owns at the time of incapacity or death. If an animal requires special care, the Grantor can designate the animal by name and description.

There are many options for funding pet trusts, from savings or checking accounts to life insurance proceeds. Although it is not technically necessary to fund the pet trust immediately, at least partially funding a trust right away is best. Since a pet trusts will play an important role if the owner becomes incapacitated, it’s recommended that the trust be fully or partially funded during the grantor’s lifetime as well and supplemented upon the grantor’s death. The named Caretaker may unwilling to undertake the responsibilities if at least part of the designated funds have not already been set aside for the pet’s care.

A little bit of planning can go a long way towards giving pet owners peace of mind, and giving pets the opportunity to live out their lives in safety and comfort.