Pet Trust
1. What is a Pet Trust?
Arizona law permits the use of a Pet Trust to formalize the ongoing care of an animal in the event its owner becomes incapacitated or dies. Usually established after the owner’s death, a Pet Trust will set aside a specific amount of money to be managed by a named trustee for benefit of one or more surviving animals.
Any domestic or pet animal is a qualified pet trust beneficiary. This would include dogs, cats, fish, horses, and more.
The trust document should define expectations for appropriate veterinary care, a safe environment, quality diet, and proper exercise. It also should be specific regarding the diagnosis, treatment, and management of pain or disease.
The Pet Trust must terminate when there are no surviving animals that were alive and named in the trust document when the original owner died. Any remaining money would be distributed to the named trust beneficiary.
2. How much money may be set aside for the pet?
There is no minimum or maximum contribution amount when establishing a pet trust. However, a court has the right to remove funds from the trust if someone argues the amount in trust is unreasonable in light of projected costs.
3. Who should be the contingent beneficiary?
The usual approach is to name a charity as contingent beneficiary, perhaps a local Humane Society. This eliminates a conflict of interest for a trustee who might otherwise keep a tight budget while the pet is alive in order to inherit more after the pet dies.
4. Who should be the trustee?
Usually the person who takes custody of the animal would also be the trustee. However, this does not have to be the case. A trustee could safeguard the money, and then distribute money when the custodian informs the trustee of a need.
5. What must be filed with the court?
There are no filings required to be made with the court. Likewise, no annual reports or accountings are required. The court will only get involved if an interested person requests the court to get involved.
6. May a Pet Trust be established during the owner’s lifetime?
Yes, a pet owner may set aside funds in a Pet Trust at any time.
7. What if a covered pet gives birth after the trust is established?
Assuming the original owner has died, and the trust document permits it, the newborn animal may be added as a beneficiary. But the trust must end when all of the originally named animals in the trust have died, even if the newborn is still alive. If the owner is still alive, the newborn animal could be added as a beneficiary by amending the trust.
8. How much does a Pet Trust cost?
An estate planning lawyer will likely charge several hundred dollars to integrate a Pet Trust into a Will or living trust.
About the Author
Thomas J. Bouman provides legal counsel in the areas of estate planning, estate settlement, and asset protection. He brings a highly systematic approach to the practice of law, which is critically important when wading through the complex, and often bizarre, legal requirements associated with estate and trust law. Mr. Bouman is author of the Arizona Estate Administration Answer Book and a prominent member of Wealth Counsel, LLC, the nation’s premiere organization of estate planning attorneys.
Arizona law permits the use of a Pet Trust to formalize the ongoing care of an animal in the event its owner becomes incapacitated or dies. Usually established after the owner’s death, a Pet Trust will set aside a specific amount of money to be managed by a named trustee for benefit of one or more surviving animals.
Any domestic or pet animal is a qualified pet trust beneficiary. This would include dogs, cats, fish, horses, and more.
The trust document should define expectations for appropriate veterinary care, a safe environment, quality diet, and proper exercise. It also should be specific regarding the diagnosis, treatment, and management of pain or disease.
The Pet Trust must terminate when there are no surviving animals that were alive and named in the trust document when the original owner died. Any remaining money would be distributed to the named trust beneficiary.
2. How much money may be set aside for the pet?
There is no minimum or maximum contribution amount when establishing a pet trust. However, a court has the right to remove funds from the trust if someone argues the amount in trust is unreasonable in light of projected costs.
3. Who should be the contingent beneficiary?
The usual approach is to name a charity as contingent beneficiary, perhaps a local Humane Society. This eliminates a conflict of interest for a trustee who might otherwise keep a tight budget while the pet is alive in order to inherit more after the pet dies.
4. Who should be the trustee?
Usually the person who takes custody of the animal would also be the trustee. However, this does not have to be the case. A trustee could safeguard the money, and then distribute money when the custodian informs the trustee of a need.
5. What must be filed with the court?
There are no filings required to be made with the court. Likewise, no annual reports or accountings are required. The court will only get involved if an interested person requests the court to get involved.
6. May a Pet Trust be established during the owner’s lifetime?
Yes, a pet owner may set aside funds in a Pet Trust at any time.
7. What if a covered pet gives birth after the trust is established?
Assuming the original owner has died, and the trust document permits it, the newborn animal may be added as a beneficiary. But the trust must end when all of the originally named animals in the trust have died, even if the newborn is still alive. If the owner is still alive, the newborn animal could be added as a beneficiary by amending the trust.
8. How much does a Pet Trust cost?
An estate planning lawyer will likely charge several hundred dollars to integrate a Pet Trust into a Will or living trust.
About the Author
Thomas J. Bouman provides legal counsel in the areas of estate planning, estate settlement, and asset protection. He brings a highly systematic approach to the practice of law, which is critically important when wading through the complex, and often bizarre, legal requirements associated with estate and trust law. Mr. Bouman is author of the Arizona Estate Administration Answer Book and a prominent member of Wealth Counsel, LLC, the nation’s premiere organization of estate planning attorneys.