Pet Trusts

Friday, July 29, 2011

Recent Press Coverage of Estate Planning (July 29, 2011)

Saabira Chaudhuri of the Wall Street Journal notes that when completing your estate plan, you shouldn’t lose focus of some of the smaller, but important, details. One area often overlooked is what will happen to your pets. There are approximately 165 million dogs and cats in this country, and roughly 400,000 need to find a new home every year because their owners die. Also, if you have engaged in preserving sperm, eggs or embryos because you had cancer, were in the military or other high-risk occupation, don’t forget to spell what should happen to the cryopreserved gametes if you should die. See When Estate Plans Fail (July 23, 2011).

Kelly Greene of the Wall Street Journal stresses the importance of taking 15 minutes to write down your important user names and passwords for online accounts, including financial accounts, social networking accounts, and photo sites, among others. Without this information, your survivors could spend months trying to locate and access your important accounts. See PINs That Needle Families (July 23, 2011).

Paul Sullivan of the New York Times writes about charitable lead trusts (CLT) and why they are becoming popular again. The $5 million exemption level for the federal estate taxes alongside record low interest rates make CLTs good vehicles to pass more money to your heirs tax free. See A Trust Surges, Heirs and Taxes in Mind, But Mind the Details (July 22, 2011).

Friday, March 25, 2011

Press Coverage of Estate Planning this Week (March 25, 2011)

Anne Tergesen of the Wall Street Journal reviews which states allow a person, while still living, to defend their will against challenges. One handicap of wills is that they traditionally do not become effective until the person’s death, and then wills are sometimes challenged when the will writer is not there to say what they really intended. Some states now allow will writers to notify beneficiaries and the disinherited of the contents of their will, and if those notified do not contest it within a certain time period, they are barred from contesting it in the future. See A Will and a Way (Mar. 21, 2011).

Ms. Tergesen also writes about qualified personal residence trusts (QPRT) and suggests that depressed real estate values, combined with recently passed estate and gift tax law changes, make this an opportune time for homeowners to consider transferring their homes to their children to save on future estate taxes. See A Matter of Trust: Giving Away the Home (Mar. 19, 2011).

Robert Frank of the Wall Street Journal writes about the increasing use of pet trusts. A pet trust is a legal arrangement that sets aside money for a pet’s care if their owner predeceases them. Leaving too much money to your pet can invite problems, such as that experienced by Leona Helmsley’s dog Trouble, who lost $10 million of a $12 million inheritance after lengthy legal battles. See Trust Funds for Pets Are on the Rise (Mar. 17, 2011).

Friday, January 15, 2010

Press Coverage of Estate Planning this Week (Jan. 15, 2010)

Paul Sullivan of the New York Times discusses some of the complexities of not having an estate tax in 2010, including the modified carryover basis rules that are applicable in lieu of the estate tax. See A Bizarre Year for the Estate Tax Will Require Extra Planning (Jan. 9, 2010).

Kathleen Pender of the San Francisco Chronicle writes that many people who die in 2010, when there is no estate tax, may be worse off than had they died in 2009, because the modified carryover basis rules will impact many middle class families that would not have been affected under the 2009 estate tax. See Death of Estate Tax Leaves Some Heirs Worse Off (Jan. 10, 2010).

Ashlea Eberling of Forbes writes about steps you can take to ensure your pets are cared for if you should die. Advice ranges from basic instructions on the pet’s care for the new pet owner, to including your pet in your estate plan. See Caring For Fido After You’re Gone (Jan. 13, 2010).

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.

Friday, May 29, 2009

Press Coverage of Estate Planning This Week (May 29, 2009)

Tim Grant of the Pittsburgh Post-Gazette discusses issues that arise in estate planning for blended families and some of the traps that catch those unprepared, such as deciding who inherits IRA accounts.  See Divorce, Remarriage Can Make Estate Planning Especially Challenging (May 29, 2009).

Melissa Korn of Dow Jones Newswires writes about leaving money to children in ways that encourage prudent behavior, in other words not having the beneficiary spend it all on a fancy car.  One method is to test your children by leaving them a small amount now to see what they do with it.  See Redesigning Trusts to Keep Kids Working (May 28, 2009).

Betsy Brill of Forbes reviews what to consider when naming charities in your estate plan, and whether specific charities should still be on your list.  She offers some questions to ask charities and advises that fact checking may turn up some surprises.  See Giving While Living . . . And Beyond (May 29, 2009).

Frances Carlisle of Law.com discusses pet trusts, and why Leona Helmsley's dog "Trouble" really does require a $2 million pet trust.  One word of caution: money in pet trusts is not a charitable contribution and thus may remain part of your taxable estate.  See Helmsley Pet Trust Helps Highlight Issues for Lawyers (May 29, 2009).

Friday, March 06, 2009

Press Coverage of Estate Planning This Week (March 6, 2009)

The Washington Post moderated an online discussion of pet trusts, with Attorney Peter King of Hauswiesner King LLP. King discussed the advantages of setting up a pet trust, what usually goes in the pet trust, and what happens to trust assets after the death of the pet, among other issues. See Advice for Pet Owners (Mar. 4, 2009).

Dow Jones Newswires reporter Arden Dale writes that passage of new estate tax legislation would make gifting sizable assets to children more popular as an estate planning strategy.  The technique fell out of favor in recent years because of the uncertainty regarding repeal of the estate tax. See Why Children May Get More Gifted (Mar. 5, 2009).

Toledo (OH) Free Press writers Nolan Baker and Mark Clair discuss the importance of maintaining your estate plan, much like you maintain your car.  The writers discuss how law changes and life changes can require updating your plan, and suggest regular estate plan checkups. See It's Time to Dust Off the Estate Plan (Mar. 6, 2009).