Legal News

Estate Planning for Pets

By Brian Harris

By Robert H. Louis
Special to the Legal

The care of our pets after we are gone is a matter of concern for many people, but there steps that can be taken to arrange for the needed care.

Many people reacted with amusement or anger when it was revealed that Leona Helmsley had left a trust for her dog ("Trouble") in the amount of $12 million. A judge later reduced the trust to $2 million, still probably enough for a nice lifestyle for the dog's remaining days.

But many people without billions to dispose of have concerns about the care of their pets after they are gone. Numerous websites and blogs discuss pet care issues, and there are several ways of ensuring the care of pets after the owners have passed on. The simplest is just a memorandum an owner may leave, asking someone to care for the pets. More formally, the owner may leave a bequest to an individual with the request that the funds be used to care for the pets.

A provision may also be placed in a will, naming an individual as the beneficiary of trust funds to be used for the care of pets. In addition, Pennsylvania has adopted the provision of the Uniform Trust Act permitting the setting up of trusts for the benefit of pets. Such a trust can benefit pets that are living during the settlor's lifetime, and must end when the last such pet has died. The trust may be enforced by the trustee or, if there is no such person, by a person appointed by a court. If the court determines that the amount set aside in trust exceeds what is needed, it can order the balance returned to the settlor or the settlor's successors in interest. For those concerned about the well-being of their pets, a trust established under the Uniform Trust Act may be the surest way to satisfy those concerns.

Robert H. Louis is a partner and co-chairman of the personal wealth, estates and trusts department at Saul Ewing. His practice includes estate, tax and retirement planning for individuals and closely held businesses. He is a fellow of the American College of Tax Counsel and a graduate of the Wharton School and the Harvard Law School. Louis can be reached at rlouis@saul.com and 215-972-7155.

Full post as published by The Legal Intelligencer Blog on January 24, 2011 (boomark / email).