Estate Planning - March 2011

Pet Trusts

A new Massachusetts law makes it easier to place funds into trust for the care of a pet.  If you would like to guarantee that money is available to make a beloved pet’s life easier if something happens to you, then a Pet Trust may be the answer.

Pets occupy a special place in many of our hearts – they provide comfort, companionship, and happiness and truly are members of our families.  But up until now pets were not treated like “members of the family” when it came to estate planning because, under Massachusetts law, it was very difficult for a pet owner to set money aside in a Will or Trust to take care of a pet.  But now there is good news for pet owners (and their pets).  Starting in April, Massachusetts pet owners will be able to establish “Pet Trusts” to care for their animal companions.

A Massachusetts Pet Trust is a flexible tool that can be used to care for a beloved pet for years after its owner’s death.  The new Massachusetts Pet Trust law is relatively straightforward, and it gives pet owners and their estate planning attorneys a lot of flexibility when it comes to creating the actual Pet Trust, so pet owners can craft trusts that address the needs of their individual pets.

In general, the creator of a Pet Trust will set aside a specific sum of money that will be used for the care of his or her pet.  A well-drafted Pet Trust will discuss the owner’s wishes for lodging, feeding, cleaning and other important aspects of his or her pet’s care, and the Pet Trust will also specify who should care for the animal and how the pet’s caregiver should be compensated.  If the Pet Trust does not contain these specific provisions, then the new Massachusetts Pet Trust law says that all of the funds in the trust must be used for the pet’s benefit and cannot be converted to the use of the trustee. 

One of the best things about a Massachusetts Pet Trust is that it allows the pet owner to guarantee that his or her pet will be cared for, but it also ensures that any funds remaining in the Pet Trust after the pet passes away will pass on to the owner’s human heirs, much like the pet owner’s other property. 

Pet owners may recall the recent case of New York real estate mogul Leona Helmsley, who died in 2007 and famously left $12 million in trust to care for her Maltese poodle.  While the new Massachusetts Pet Trust law is flexible, it is not completely open-ended, and it contains a special provision that deals with the would-be Leona Helmsleys among us.  According to the new law, a court may reduce the amount of money held in a Pet Trust if the court determines that the funds substantially exceed the amount needed to properly care for the pet.  (A New York court did the same with Ms. Helmsley’s trust, leaving her poor poodle with a fraction of its original trust - $2 million).  If the court does choose to reduce the size of a pet trust, then the excess funds will be distributed to the remaining human beneficiaries of the trust, or to the pet owner’s estate or heirs-at-law.

A Pet Trust may be a great option if you are a pet owner who would like to make sure that your companion is properly cared for after you are gone.  The estate planning attorneys at Brown & Brown, PC can help you design the Pet Trust that is right for you and your pet, and, while we’re at it, we can also take care of all of your other estate planning concerns.  

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