“Man’s best friend”
Ironically, the phrase “man’s best friend” was coined by an attorney. In 1869, a man’s dog was shot and killed by his neighbor; he hired three attorneys to sue the man who shot his dog. One of the three attorneys used the phrase “man’s best friend” during his closing argument to the jury. The jury awarded the plaintiff $5 for the loss of his dog, which was a lot of money at the time.
Leaving money to Fido isn’t so easy
The view of dogs as “man’s best friend” has not changed since 1869. Pets, in general, have a long standing place in the American family. Currently, sixty-two percent (62%) of U.S. households own a pet.
Pet owners treat their animals as members of the family or surrogate children. As such, it should come as no surprise that many people want to ensure the care and custody of their pet in the event of their incapacity or death. The extent of such inclusion in a pet owner’s estate plan varies significantly, from some wanting to leave millions (literally) to those simply wanting to make sure that the animal has a good home.
The law governing the care of pets varies greatly state-to-state. Generally, pet owners seek to provide for their pet(s) by either leaving money in a Will to the animal or leaving money in a Will to an individual for the care of an animal. Neither of these options is recommended. The former (leaving money to the pet) is void under law as a pet cannot be a beneficiary under a Will and the latter (leaving money to a person for the pet’s care) is unenforceable.
What’s a pet owner to do?
Approximately seventy-five percent (75%) of states allow pet trusts (in varying degrees). A pet trust is similar to any trust whereby a sum of money (or other assets) is managed by a trustee for the benefit and care of a beneficiary, the pet in this case. Minnesota, however, is among the twenty-five percent (25%) of states that do not recognize pet trusts.
So, what can a Minnesotan do to ensure the care of a pet? If you are concerned about the care and custody of your pet upon your passing, you have options (some options carry more risk and expense than others):
- Establish a statutory pet trust in another state. One option is to establish a pet trust under the laws of a state that recognizes and accepts pet trusts. This option may include additional expense in setting up the trust and impose requirements that simply cannot be met (i.e., a requirement that the trustee be located in the state under whose laws it would be formed).
- Establish a conditional inter vivos (created during life) trust. A conditional inter vivos trust is a standard trust created during the grantor’s lifetime. Within the trust, the grantor’s pet and a sum of money may be left to the trustee for the benefit of a human beneficiary/caretaker. Distributions to the beneficiary are conditioned upon his/her taking care of the pet.
- Coordinate care with a qualified animal care facility. Various organizations will, for a fee, promise to care for your pet after your passing. Several organizations in Minnesota offer such a service, including the University of Minnesota College of Veterinary Medicine. Other veterinary schools allow pet owners to establish a scholarship for a student who will in turn care for a pet in the event of the owner’s incapacity or death. (Pet owners should be aware, however, that such programs are not cheap.)
The continued care and custody of a pet is a concern for many and can be addressed in your estate planning.
Photo by shayanlinux
