Leaving An Inheritance For Your Furry Family Members

For most of us who own pets, our pets are members of our family.  This is exactly how celebrity Leona Helmsley felt about her dog, Trouble, when she left $12 million for his care.  Unfortunately, she was not well advised and none of the instructions she left in her will were followed....the Court eventually reduced Trouble's inheritance to $2 million.  Leona, along with so many other pet lovers, are not well prepared and their dearly beloved pets are left behind uncared for for many reasons such as conflicts with other pets, allergies, and failed promises by family and friends.  

Estate planning for pets is a relatively new concept and estate planning attorneys are not asking clients about their pets as part of their routine intake questions.  As a pet owner and lover myself, I hope that one day, this will become a routine question since the law views pets as property and most people don't think of listing their pets as beneficiaries of their estates or trusts.

You may have received advice to list instructions or wishes in your will for someone to take care of your pet, but this is not enough to guarantee your pet's care.  Wills are not immediately effective upon death, so there will be a lag time between your death and the time your will is probated and enforced.  Also, your wishes or instructions are just that....your wishes cannot force your friend or family member to take care of your pet.  Wills also do not allow the disbursement of funds for the lifetime of a pet, so there will be no guarantee that funds will be available as long as your pet is alive.  There are ways, other than a will, to ensure long term care for your pet.  Some states recognize honorary trusts for pets, and fortunately, North Carolina is one of those states.  

The North Carolina Uniform Trust Code provides that a trust for the care of a pet alive at the time of the creation of the trust is valid, that no portion of the principal or the income of the trust may be converted to the use of the trustee or to any other use than for the benefit of the pet designated in the trust, and that the trust terminates upon the death of the animal.   Trusts are set up to provide a long term plan of care for your pet, that can start promptly upon your death and last until the pet is deceased.

There are many nuances of creating an honorary trust for your pet, such as reserving certain assets to leave out of probate, so that there are funds immediately available for your pet, naming a caretaker, and naming an alternate beneficiary upon the death of your pet.  Please contact an attorney if you have pets and are interested in ensuring their lifelong care.