To the public, the concept of pet trusts tends to evoke a chuckle. Why would anyone leave money to their pet?
The estate planning attorneys at Clear Counsel Law Group deal with questions about pet trusts frequently. Contrary to the exaggerated, jokey, opinion people might have, pet trusts are quite common. The key difference is that a pet trust allocates assets FOR pets, not TO pets. Nobody thinks that a pet is capable of spending some cash and having a night on the town. These trusts allow individuals to allocate funds specifically for the care of their pets after they pass away.
What is a Pet Trust?
A pet trust is a legal arrangement that allows a person to set aside funds to care for a pet. The trust appoints a trustee to manage and spend the trust’s money for the pet’s benefit. Under Nevada law, creating a pet trust is perfectly valid and legal. It isn’t often about luxury for the pet; it’s about ensuring they are cared for when you are no longer there to do so. For pets with generally high upkeep, especially those with medical conditions, a pet trust is a better way to secure a pet’s future than simply leaving the pet to a beneficiary.
There are outlier cases, like one famous story from London, where billions were left to a dog. Many times, a pet owners will discuss their plans with family members to avoid surprises and disputes after their passing. However, not all heirs are as understanding or accepting when they find out a significant portion of an estate is going to a pet instead of them.
Challenging Pet Trusts
For the potential heirs who find themselves disinherited in favor of a pet, the situation can be frustrating. They might choose to contest the trust in court, arguing that the pet owner lacked the mental capacity to make such decisions or was unduly influenced.
Proving these claims can be challenging. Caring for an animal and wanting it to be cared for are not signs of diminished capacity. If a person felt happier and safer with an animal than their family, it would be sensible for them to ensure the pet is taken care of over those people.
For a successful contestation of a pet trust, it’s essential to have a strong legal basis. Estate planning attorneys work to include strong, specific language to make a pet trust valid and it requires equally strong arguments to get around their work.
Tips for Avoiding Disputes
If you’re planning to set up a pet trust, there are ways to mitigate potential disputes:
Communication: Unlike the woman in the London story, discussing your intentions with your family is advised. This can go a long way in preventing surprises and potential disputes.
Partial Inheritance: Consider not completely disinheriting your human heirs. Leaving them a portion of your estate can reduce their incentive to contest the trust.
Court Validation: In Nevada, you have the option to go to court before you die to validate your trust. This proactive step provides room for heirs to present contests while you are around to answer them.
Understanding the Legalities of Pet Trusts
A pet trust is not just about leaving money; it’s about ensuring that your pet continues to receive care in a manner you deem appropriate. This can include specifics about their diet, living arrangements, and even medical care. Remember, the trustee you appoint will be responsible for these decisions, so choose someone who understands and respects your wishes for your pet.
Much like a trust assigned to a specific beneficiary, if they predecease you, the trust has nothing to distribute those assets to. For a person, this would trigger additional wills or intestacy laws. Assets left to a brother would go to the brother’s children, for example. Pets do not benefit from inheritance in the same way. If your beloved animal passes, the rest of the trust left for their benefit gets redistributed to other beneficiaries according to further trust instructions or state intestacy laws.
Considerations for Heirs and Pet Owners
If you’re an heir potentially affected by a pet trust, it’s crucial to understand the pet owner’s intentions and the legal standing of the trust. Conversely, if you’re considering setting up a pet trust, think carefully about the implications for your human heirs and take steps to minimize potential conflicts.
Whether you’re looking to set up a pet trust or are an heir affected by one, seeking legal guidance is essential. At Clear Counsel Law Group, we have experience in creating pet trusts and handling disputes related to them. We offer free consultations to discuss your situation and provide the advice you need to address these unique aspects of estate planning.