Pet Trusts

Caring for Your Pets When You’re Gone

Pets play important parts in our lives.  In 2009 the Humane Society estimated that more than 77 million Americans owned dogs and nearly 100 million Americans owned cats.  In each case the average for animal owners to spend on veterinary care annually was more than $200.  This figure doesn’t even include food, which can range from $250 to more than $1,000 per year.  There are a lot of expenses tied up in our animals for one reason, because we love them.  But what happens to our animals once we pass?

Some people have considered distributing money to a friend with the intention that they care for the animals.  This is very nice when it works out, but how do you know that your animal is truly going to be taken care of?  Texas has enacted statutes to cover pet trusts, for just such a reason.  Including your animal in your estate plan can ensure that they are taken care of long-term after you are gone.  However, you also need to be aware of how your animal will be taken care of immediately after you die.  Probating a will can take time—will your animal receive the care they deserve in the mean time?  In order to truly protect your pets, you also need to follow the 4 steps outlined below.

4 Steps to protecting your pets short-term:

1.       Carry an animal ID card.
2.       Prepare an animal care document.
3.       Prepare animal notices and post them near the entrances to your home.
4.       Include powers to take care of your pets in your Power of Attorney.

1. Animal ID Card.  An animal ID card, which can be had from the Humane Society, will alert people that you have animals.  Keep this card in your wallet for emergencies.  The card often includes the number of animals you have, their names and type.  It also provides emergency contact information for people you trust to take care of them in the event you are unable to.  When determining whom to list, it is best to find someone already familiar with the animals.  Speak with them before you put their names down and make sure they understand your decision.  Also, be sure to list more than one emergency caregiver.  You can also list the name of your veterinarian as a last resort, should no one else be available.  You can also list where in your house your animal care document is.

2. Animal Care Document.  This document outlines essentially the same information as the animal ID card, only with more detail.  It can also provide exact instructions on how to care for the animals, where the food is located, what type of cat litter, etc.  This document can be placed with your estate plan, but it is also best to keep copies near entrances to your home, as well as near your pets’ cages or food.

3. Animal Notices.  These notices are to alert anyone who may need to enter your home that there are animals in the home.   These are good to have to protect emergency personnel such as firefighters and police, should they need to access your home while you are away.  It can quickly list emergency contact information, caregivers, neighbors who are familiar with the animal and how many animals you have inside.

4. Powers of Attorney.  You should already have a Statutory Durable Power of Attorney, but if you do not, caring for your animals is another reason that you should.  It is wise to include the power to care for your pet, as well as specific instructions authorizing the agent to pay for expenses such as food and veterinary care using the owner’s own funds.  This will ensure that the animal will be protected during that crucial period between the owner’s death or incapacitation and the probate of a will or execution of a guardianship.

The animal is now protected short-term, but what about the long-term care?  For long-term care there are several options, outlined below.

4 Options to Protect Your Pets Long-Term

1. Testamentary Gift. By including a distribution of your animal in your will you ensure, at the very least, that the parties involved will know what you wanted done.  Unfortunately, you have no guarantee that (a) the beneficiary will accept the animals, or (b) that the beneficiary will care for the animals properly.  This is especially so if a sum of money is included in the gift. What is to stop the beneficiary from driving the animal to a shelter and pocketing the $10,000?  Nothing.

2. Traditional Inter Vivos (Living) Trust. An inter vivos trust is a trust executed while you are living.  There are several requirements that must be followed, but for the most part this is the best protecting for your animal.  You transfer the pet to the trustee, with the instructions that upon your death the animal should be transferred to a specified caregiver.  You can also transfer money to the trustee to be distributed to the caregiver so long as certain conditions are met.  This protects the animal from being neglected, as the trustee becomes responsible for ensuring that the animal’s needs are being met, and the caregiver has incentive to meet those needs.  A major disadvantage of an Inter Vivos trust is the costs associated with managing the trust while you are still alive.  It will be necessary for the trustee to file certain documents annually that can increase the costs.  Sometimes these costs can outweigh any potential benefits.

3. Traditional Testamentary Trust.  A testamentary trust provides the same protections for your animal that an Inter Vivos trust does, without the additional costs of managing the trust while you are alive.  The major disadvantage of a testamentary trust is dealing with the gap between when you die and when the testamentary trust becomes effective.  This gap can be dealt with far more cost-effectively than an inter vivos trust.

4. Pet Trust.  Texas recognizes pet trusts in Texas Property Code Section 112.037.  This provides for default rules for the operation of a pet trust, in the event that the trust instrument is ambiguous or unclear.  Pet trusts can be created inter vivos or testamentary.  The disadvantage is that they are (a) new, and so case law is not settled as to certain questions; and (b) pet trusts are not recognized in all states.  If you do choose a pet trust you need to make sure that if you move out-of-state you consult a local attorney in your new city to ensure that your pet will still be taken care of.

Depending on your circumstances and the circumstances of your animals, any one of the above options may be your best.  After reading over them, please contact me by email at counsel@joshuatisdale.com or by phone at (214) 519-8448 to schedule a free 20 minute consultation so we can go over your options together to make the best choice for your pets.