Caring For Your Pet – Is a Pet Trust Right for Me?”
This Friday, Apr. 11, is National Pet Day -- the perfect time to think about your furry, scaly, or fishy loved ones in the context of your estate plan! Who will take care of your pets? What happens if the person you want to take care of your pets doesn’t want to take care of them? What kind of guidelines and funds will be available to the person(s) taking care of your pets?
Most people remember the story of Leona Helmsley – the hotel magnate who left the bulk of her $12,000,000 estate to her Maltese, Trouble. And New Jerseyans may remember philanthropist Geraldine Rockefeller Dodge, renowned for her love of dogs, who in 1939 founded St. Hubert’s Animal Welfare Center. BUT – you do not need to have millions to provide care for your pets after your demise!
Not Bacon the Bank
People spend anywhere from $500 to $5,000 (depending on the pet) per year on their pets for regular expenses – food, veterinary care, grooming, toys, etc. Depending on your pet’s lifespan, your furry friend may require upwards of $50,000 for adequate care! A pet trust is ideal for anyone who wants to ensure that their dog, cat, gerbil, goldfish, or other pet is well cared for after his or her death.
Fetching the Right People
New Jersey law recognizes pet trusts as a formal way to provide care for your pet. You may create a pet trust during life or as part of your Last Will and Testament. A pet trust names a trustee who is responsible for overseeing the funds placed into the pet trust. This trustee may or may not be the same person as the caregiver who is responsible for the physical care and comfort of the pet.
Paws in the Right Direction
The pet trust can provide guidance to the caregiver and the Trustee. This is especially important if your pet has health issues that require specific medications or feeding requirements. Your pet trust can also set forth who should take care of your pet if your chosen caregiver does not want that responsibility. Many nonprofit organizations will either provide care for your pet or help your personal representative or trustee find them a suitable home.
Dog-gone it!
You can also name a remainder beneficiary of your pet trust who will receive the funds upon your pet’s death (if excess funds remain in the trust). It is important to keep Inheritance Tax in mind as you plan your pet trust – New Jersey may consider the trust a Class D beneficiary, subjecting the trust to Inheritance Tax rates of 15% or 16%. With proper planning, however, you can mitigate the tax burden of the trust so that your funds go to your desired purpose – caring for your pet.
If you have a pet and have not yet considered them in your estate plan, contact us to discuss establishing a pet trust or other method of caring for your pet. If you don’t have an estate plan, we can help you get started – with or without a pet!