Ohio's Pet Trust Statute

I have asked Julie Mills, a lawyer in Worthington, Ohio to write about the new pet trust statute in Ohio.  Ohio's law, like those in other states, is based on the uniform trust law. Similar provisions may apply in your state. Louisiana does not follow the uniform trust law.  Many thanks to Julie for this information.

Ohio, in Revised Code section 5804.08, has adopted the provisions of the Uniform Trust Code section 408, “Trust for the Care of an Animal.”  While preparing a trust for the care of a pet has always been possible, such trusts were discretionary and, in the opinion of many, served as mere power of appointments with little means of enforcement.  Since there were no beneficiaries in a pet trust, there was no one with standing to enforce the trustee’s obligations. 

Now, Ohio pet owners can be assured that if they set up a pet trust properly, there will be persons with standing to enforce the trustee’s obligations.  This person could be someone named in the trust or designated by the court.  The person appointed by the court will first have to show an interest in the pet’s welfare.

A statutory trust for the care of a pet will care for one designated pet or several pets.  If the settlor, or person who creates the trust, has a statutory trust prepared to care for all animals in the settlor’s care at the settlor’s death, the trust will care for any animals in gestation as well. 

A trust for the care of a pet must be funded with an amount considered reasonable in light of what amount is needed to care for the animal or animals.  Such an amount should be calculated by the settlor using factors such as estimated veterinary bills, food expenses, recreation costs (toys, dog parks, etc.), occasional boarding costs (plan financially for one or two weeks a year), life span (a dog’s general life expectancy is 15 years, while a parrot’s can be 80 years), and burial or cremation expenses (burying or cremating a cat is much different financially—and logistically—than burying or cremating a horse). 

If a court determines that a trust’s funds are excessive and unreasonable, the court will distribute the excess to the settlor or settlor’s beneficiaries or heirs.  This might create a conflict between beneficiaries or heirs, and the welfare of the pet.  To avoid this result, do not grossly overfund the trust to lessen the chances of a beneficiary or heir challenging the trust.  Another option would be to designate any excess funds to a charity.  A good rule of thumb is to calculate the amount that would be required to board your pet for the remainder of its life and use that amount to fund the trust.

Now, in Ohio as in 34 other states, pet owners can create a trust to provide care for their pets after the pet’s owners are gone.  The new statutory trust is more enforceable and protected by statute.  This peace of mind is invaluable and immeasurable for pet owners who consider their pets to be members of the family.

Comments

[alexavier]

Very useful, excellent information..