As a pet owner, you have several to provide for your pets when you die. The best option for most people is to create a trust in favor of a caretaker and then direct the trustee to distribute money to the caretaker for the pet’s care. Even if you live in a state that allows trusts in favor of your pet, you may find that this option provides greater flexibility.
The pet owner who chooses this option has several related decisions to make such as:
Who will be the caretaker?
You’ll want to pick someone who you trust to care for your pet at a level you find acceptable. This person should also have a basic understanding of the trust and his or her rights to enforce it. You should carefully discuss the responsibilities and level of care you expect with the caretaker. You’ll also want to name one or more backup caretakers.
Who will act as trustee?
The trustee manages the assets you place in trust. This person must have the time and skill level necessary to administer the trust. The trustee will be called upon to ensure that the caretaker is doing a good job, so they too need to understand the level of care you find acceptable. As with the caretaker, you will want to have one or more backup trustees.
What standard of care do you expect?
In the trust document, you should describe the level of care you expect for your pet. For example, discuss medical checkups and visits, food, grooming, housing, boarding, pet sitting, etc. As an alternative, you can leave these details up to the trustee and provide general guidelines.
What assets will be placed in trust?
Carefully consider the type and amount of assets you place in trust. Take into consideration the pet’s life expectancy, general health and special needs. Many pet owners want to place everything into trust for the life of the pet, and then give any remaining assets to other family members. This is usually not the best approach because it may encourage litigation by other family members and courts have been known to reduce amounts found to be excessive.
Who gets paid and when?
For example, you may direct the trustee to only reimburse the caretaker for expenses or you may want the caretaker to get a monthly distribution. You can also decide whether the caretaker and/or trustee should be compensated for their time.
How will the trustee assess the level of care?
The trustee ultimately decides if the caretaker is doing a good job. You can specify that the trustee make random visits to the pet at the caretaker’s home.
Who gets any remaining assets?
You should name a person or persons to get the assets remaining upon the death of your last pet. You can also name a charity or other organization.
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