Tuesday, August 25, 2009

Estate Planning Tip of the Week

What are Pet Trusts, and are they allowed in Vermont?

Pet trusts and related documents make arrangements for your pets in the event you become incapacitated or die.  What happens to your pet if no one is available to care for them?  Often they are put to sleep.  Pet owners frequently assume that a family member or close friend would take care of their pet, but that too often turns out to be wishful thinking.  The Humane Society of the United States estimates that 9,600 dogs and cats are euthanized in this country every day. 

If you want to plan ahead for the care of your pet, there are several ways to go about it.  You can have an informal agreement with a family member or friend that the person take over care and management of the pet.  Informal agreements often work, but be aware that two common situations sometimes get in the way.  First, sometimes more than one family member thinks they are getting the pet, or if the pet is valuable, such as a purebred dog or cat, a rare bird, or a horse, more than one family member may seek custody.

More advanced planning includes naming the person who should receive your pet in your will, setting up a pet trust, or creating an agreement whereby you list who receives the pet, whether money will be provided for the pet's care, and other information relevant to the pet's proper care, such as medical conditions, favorite toys, unusual habits, etc. Pet trusts, which became available in Vermont earlier this year, allow for naming a person to care for your pet and putting aside money that can only be spent for the pet's care, which can include funds for daily expenses and activities, boarding when necessary, pet insurance and the like. 

For more information on planning for pets, see Estate Planning and Pets on the Articles Page.