For some people, whose animals are closer to them than any family, there is a way to ensure that their pets receive the kind of care that the owner would like them to receive after the owner dies. For other people it can be a crucial planning necessity in order to ensure that their expensive animal can be cared for by the person to whom they have left the animal.
Consider the situation of someone who has a horse which requires boarding, large amounts of food, significant maintenance and expensive veterinary care, this is a perfect situation in which to leave money for the care of that animal after the owner’s death. Leaving funds in trust for the care of the animal so that boarding, food and veterinary care are not an additional burden can mean the difference between having to give the animal to a refuge or being able to keep the animal with the person the owner wanted to have it.
There are also situations in which someone may not necessarily have an expensive pet, but anyone who has owned a pet understands that they can be costly over time. Making a provision for some funds to be allocated to the continued care of the pet may result in more certainty about where that animal may end up and the quality of care they may receive. Making sure that the funds are held in trust can ensure that the funds truly go towards the care of the animal pursuant to the terms that the Grantor (trust creator/owner) wanted, rather than hoping that the person to whom the animal is left is also going to use any funds inherited on the care of the animal.
New Hampshire has allowed people to create Trusts to care for their pets since 2004. The law is located at New Hampshire Revised Statutes Annotated 564-B:4-408. The criteria for a Pet Trust are: that it must be set up for the care of an animal that is alive during the Grantor’s life and that it terminates when the animal, or last animal named if the trust is for more than one animal, passes.
The law allows the Grantor to appoint someone to oversee and ensure that the terms of the Trust are being followed. In the Trust, the Grantor may appoint or select that person themselves, or anyone who has an interest in the animal can ask the Court to appoint someone to review and make sure the funds are being used pursuant to the purpose and “rules” the Grantor has set up. Not using the funds in the way that they were intended to be used can result in the removal of the person managing these funds and the possibility that they may have to reimburse the trust for the funds improperly used.
The animal caregiver and the person managing the money (Trustee) do not have to be the same person, but they can be. If they are the same person, the Owner may want to specify someone else that oversees the expenditures of the Trust to ensure they are being used for the pet named. When choosing the caregiver, the owner should also consider whether the caregiver has a stable home and that any pets that the caregiver has will get along with the owner’s pets.
When creating this type of trust, it is important to evaluate how much money would make sense for the continued care of the animal, and to have a plan for the remainder of the money in the event that the animal(s) do not use all of it before they pass. You can consider leaving the remainder to the caregiver or to a favorite charity in the name of the pet. You can fund the trust in a variety of different ways, however, in all cases the owner is going to want to specify how much money is being set aside for the care of the pet.
For more information or to schedule an appointment to discuss your situation and your options, contact us.