Setting Up A Pet Trust

Posted by Victor Dela Casa

Awww, cute...

Death is an unavoidable reality of life. Setting up wills and trusts are ways to prepare for the inevitable. Traditionally, an estate plan only includes children, relatives and other important people relevant to the testator. With the recent expansion of estate planning laws, forty-six U.S. states are offering animal-related extensions and allowing the creation of specialized pet trusts.

A trust is a legal entity that manages the allocation and distribution of assets to the benefit of others, usually the testators’ heirs. A pet trust allows owners to set aside money for the care of their pets. Since pets cannot directly inherit money, a trust can be set up to pay for pet care and supplies. A person is paid to care for the animals. Trust administration is performed by a trustee who oversees the arrangements.

While many pet-lovers may find this quite revolutionary, the trust doesn’t come with legal impregnability. A judge in 2007 reduced the amount of a pet trust worth $12 million to $2 million after it was determined excessive. Most pet owner’s concern is practical in nature that is assuring the animal’s welfare. By setting aside money, the need to send a pet to a shelter, a pound or putting them to sleep becomes unnecessary.

Unlike before, pet trust and pet insurance have gained wide popularity in recent years. An estimated 62 percent of American households have a pet—that’s about 73 million households. According to experts, people spend a lot of money on their pets because they’ve become a part of the family unit.

The field is still in its infancy but legal experts believe that over time, the law will develop even more to give way to an increasing number of pet owners that will use pet trusts as a tool to ensure their pets future once they die.

Talk to a trusted and knowledgeable legal professional on all matter about estate planning including wills and trusts that are designed specifically to meet individual needs.

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Degree in Economics from the University of the Philippines and Honours Diploma from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.