Paul R. Tierney Law

Have You Considered Estate Planning for Fido?

“Whether referred to as companion animals, service animals or simply as pets, they play an important part in the lives of many. Owners can use estate planning tools to ensure their pets continue to receive proper care, if the owner becomes incapacitated or dies.”

In Montana, a pet is “any domesticated animal normally maintained in or near the household of its owner.” In Kansas, the statutes define an “animal" as “any live dog, cat, rabbit, rodent, nonhuman primate, bird or other warm blooded vertebrate or any fish, snake, or other cold-blooded vertebrate.”

Wealth Advisor’s recent article entitled “Estate Planning For Pets” explains that a pet is tangible personal property—just like guns, cars, or jewelry. When a pet owner passes away, pets pass to beneficiaries by provisions in an owner’s will, by directives in an owner’s trust document, or by a priority list of heirs contained in the state probate laws, if an owner does not have a will or a trust.

Pet owners should select a willing care giver and make a care plan for their pet that will lower the pet’s stress in the first days after you are gone. Writing down your wishes can help your heirs avoid potential problems, if there is a need to cover expenses for food, medical requirements and transportation of the pet to the beneficiary.

For example, in Montana, an honorary trust for pets is valid for only 21 years, no matter if a pet owner writes a longer term in the trust document. As a result, the trust terminates the earlier of 21 years or when the pet dies. Unless indicated in the trust document, the trustee may not use any portion of the principal or income from the trust for any other use than for the pet’s care.

Pet owners have options, when funding a pet trust. Funds could come from a payable on death (POD) designation on financial accounts to the pet trust. Another option is a transfer on death (TOD) registration with the pet trust as beneficiary for stocks, bonds, mutual funds and annuities. The pet owner could also direct the trustee in the pet trust document to sell assets, like a vehicle, house, or  boat, and place those funds in the trust for the care of the pet.

Life insurance is perhaps another option for funding for a pet’s care. States typically do not consider a pet to be a “person,” so Puffball cannot be a beneficiary of a life insurance policy. A pet owner can fund a living or testamentary pet trust, by naming the trustee of the trust as the beneficiary of a life insurance policy. As an alternative, a pet owner may have a certain percentage of an existing policy payable to the pet trust.

Pet owners should talk to an experienced estate planning attorney about the best way of naming the trustee of a pet trust as a beneficiary of a life insurance policy.

Reference: Wealth Advisor (June 14, 2021) “Estate Planning For Pets”

What Does an Estate Planning Attorney Actually Do?

“Estate planning is crucial, setting up a peace of mind for you, as you enter your senior years. Most people don’t create a will because they are afraid to even think about the possibility of death. It feels like too big of a responsibility.”

It’s critical to understand what will happen to your estate after your death. That’s where the help of an experienced estate planning attorney comes in, says VENTS Magazine’s recent article entitled “What Does an Estate Lawyer Do Exactly?”

An experienced estate planning attorney is a legal professional, upon whom you can rely to help protect your estate after your death or in the event that you become incapacitated.

He or she will make certain that your assets and property are handled correctly.

In addition to assisting you with your estate, an estate planning attorney can help handle any family members trying to get involved in your legal affairs.

It may be difficult to please everyone when creating your will. Having an estate planning attorney will help you make the best decisions, when it comes to distributing your wealth.

Estate planning is critical—especially if you’re older, experiencing chronic illness, or just want to be smart about protecting your assets.

As we grow older, we can accumulate a long list of stressful issues and responsibilities. You may worry that your estate will be gobbled up by creditors once you pass away, or that your children will fail to distribute your assets as you intended.

Much of this stress is eliminated with the guidance and counsel of an experienced estate planning attorney. Having an estate plan allows you to enjoy a better quality of life, once you’re older. You won’t have to live every day with worry or stress about the future after you’re gone.

An experienced estate planning attorney is a valuable resource for your family, in the event someone tries to contest the will after your death.

Estate planning attorneys also aid in distributing the wealth, protecting your property from creditors and lowering estate taxes.

Reference: VENTS Magazine (Sep. 28, 2020) “What Does an Estate Lawyer Do Exactly?”

Does Your Estate Plan Include Furry or Feathered Family Members?

“Do you have a friend or family member who is that pet owner? Expensive toys. Over the top sweaters. A Facebook or Instagram account filled solely with pet pictures. Maybe you are that pet owner, if you are reading this article.”

Here’s a sad fact: The Humane Society of the United States estimates that as many as 100,000 to 500,000 pets end up in shelters, after their owners die or become incapacitated. So, while we spend upwards of $60 billion on food, supplies and veterinary care, says The National Law Review in “Estate Planning For Your Pets,” we also allow many beloved pets to end their lives in shelters.

The answer is to include your pet’s care in estate planning, just as we do for our family members. The first major consideration is to name who you would want to be responsible for your pet, if you should become incapacitated. Make sure that person is willing to take on the role of caretaker and that they have sufficient room in their homes (and their hearts) for your pets.

If they agree, then start by preparing a sheet with this basic information:

• What does your pet eat? Do you give him/her treats, and if so, what kind?
• Medical records for your pet: vaccinations, surgery, special medications.
• The name of the veterinarian and any specialists.
• What does your pet do, when she/he is nervous or anxious? What calms them down?
• What other information would you want someone to know, in your absence?

Speak with your estate planning attorney to see if they have a “Pet Care Authorization” form. This is a form that is similar to something you would use for a child staying with a relative who might need care. The form would designate the agent to act on your behalf for a variety of situations, including medical care.

For planning for your pets after you die, you can designate a caretaker. This may be the same person who agreed to care for your pet, if you became incapacitated. You can do this in a last will and testament or a revocable living trust. You’ll also need to provide funding for the care of your pet.

You can use a trust as an alternative to an outright distribution of funds to the caretaker. The pet trust would be overseen by a named trustee, who would be responsible to ensure that funds are used to benefit your pet(s). Make sure to allot a reasonable amount of money to cover the cost of veterinary care, grooming, feeding, training and any additional expenses.  

You don’t have to be a wealthy person to have this arrangement in place. It is simply a practical matter to ensure that your furry family members are taken care of, after you pass away. Another factor to consider: what is the average age expectancy of your pet? A parrot could easily live 60 to 80 years, and a horse could live for four decades. The care and feeding of a horse will be considerably higher, than for a golden retriever or house cat.

Speak with an estate planning attorney to learn how pet care can be built into your estate plan, so next time your pet welcomes you home you will know you’ve planned for their future.

Reference: The National Law Review (Feb. 18, 2019) “Estate Planning For Your Pets”

Iconic Designer Leaves a Fortune for Beloved Cat

“Perhaps all that's certain after fashion icon Karl Lagerfeld's death at age 85 on Tuesday, is that his beloved cat Choupette—a celebrity in her own right—will continue to live the cushy lifestyle she grew accustomed to under his care.”

The Burmese cat owned by Lagerfeld stands to inherit a sizable amount of the designer’s fortune, estimated at some $300 million, according to a report from CBS News titled “Karl Lagerfeld’s cat to inherit a fortune, but may not be richest pet.” The cat, named Choupette, was written into his will in 2015, according to the French newspaper Le Figaro.

Before Lagerfeld died on Feb. 19, the cat already had an income of her own, appearing in ads for cars and beauty products. She has nearly 250,000 followers on Instagram and is an ambassador for Opel, the French car maker. She is also the subject of two books. Choupette has had her own line of makeup for the beauty brand Shu Uemura.

Lagerfeld was a German citizen, but he and Choupette were residents of France, where the law prohibits pets from inheriting their human owner’s wealth. German law does permit a person’s wealth to be transferred to an animal.

There are three approaches that Lagerfeld might have taken to ensure that his beloved cat would be assured of her lifestyle, after his passing. One would have been to create a foundation, whose sole mission is to care for the cat, with a director who would receive funds for Choupette’s care.

A second way would be to donate money to an existing nonprofit and stipulate that funds be used for the cat’s care. A third would be to leave the cat to a trusted individual, with a gift of cash that was earmarked for her care.

It is not uncommon today for people to have pet trusts created to ensure that their furry friends enjoy a comfortable lifestyle, after their humans have passed. Estate laws in the U.S. vary by state, but they always require that a human have oversight over any funds or assets entrusted to a pet. Courts also have a say in this. There are reasonable limits on what a person can leave to a pet. A court may not honor a will that seeks to leave millions for the care of a pet. However, it has happened before.

Real estate tycoon Leona Hemsley left many people stunned, when she left $12 million for her Maltese dog. In 1991, German countess Carlotta Liebenstein left her dog Gunther IV a princely sum of $80 million. To date, Gunther remains number one on the “Top Richest Pets” list.

For pets who are beloved parts of regular families and not millionaires in their own right, an estate planning attorney will be able to help you plan for your pet’s well-being, if it should outlive you. Some states permit the use of a pet trust, and a no-kill shelter may have a plan for lifetime care for your pet. You’ll need to make a plan for a secure place for your pet and provide necessary funds for food, shelter, and medical care.

Reference: CBS News (Feb. 21, 2019) “Karl Lagerfeld’s cat to inherit a fortune, but may not be richest pet”

Don’t Forget to Plan for Your Furry Friends

“What would happen to your pet’s if you died tomorrow? Would a friend or relative take them? Are you sure?”

If you have pets that you consider family members, you’ll want to make sure you have made plans for their care, after you have passed. That’s the message from U.S. News & World Report in the article “How to Build an Estate Plan for Your Pets.”

How much time and money you devote to your pet’s care after you are no longer able to care for them, varies widely from state to state and depends on what you consider a comfortable lifestyle for your furry pals. You might include your pet in your estate in some states, or you may do better with a pet trust.

Include your pet in your will. One option is to use your will to leave your pet and some money to a trusted caretaker. This is kind of like leaving a collectable car to someone, as opposed to asking someone to be a guardian for your minor children. You are transferring the pet as an asset and making a bequest of a certain amount of money for their care. However, remember that the funds are being transferred with the hope and trust that the person will use them as you intend. The use of the money is not legally binding.

Have a pet trust created. This is admittedly a more expensive way to go but it gives you more control over the care of your pet. It allows you to set up a plan that mirrors how you’d create a plan for guardianship, rather than a piece of property. Your estate planning attorney will know what your state allows for pets.

The key part of a pet trust is the designation of a primary caretaker or physical custodian who will be responsible for caring for your pet on a daily basis. The second is a trustee, who will be sure that funds allocated to the pet trust are managed, invested and paid out as needed.

Get buy-in from the trustee and the caretaker. This is not something you want to spring on someone after you’re gone. Make sure the people you have in mind understand what you want them to do and what their responsibilities will be. You also want a back-up plan. Some shelters, especially no-kill shelters, have plans for taking in pets for the rest of their lives, although they do request a donation be made. Visit the facility and make sure you understand how their program works, before naming them as a back-up on your pet care plan.

Know how much this will cost. Caring for a quarter horse will have a completely different cost than caring for a 70-pound golden retriever. If you can, track the cost of care, including food, toys, vet visits, groomers, etc., over the course of a year. Talk with your vet about expected medical costs for the future, especially if your pet is very young. Plan out your budget carefully, so the caretaker will have enough money, then leave a little extra for unforeseen circumstances.

Keep your pet care plan up to date. Just as your estate planning documents need to be kept up to date, so do those for your pets. If you add another furry member to the family, or if one dies, make sure that your estate plan reflects these changes.

Resource: U.S. News & World Report (Sep. 20, 2018) “How to Build an Estate Plan for Your Pets”

Suggested Key Terms: Estate Plan, Pets, Trusts, Veterinarian, Animal Care, Caretaker, Trustee

 

Your Pet's Belongings

People are planning more for their pet's care after the owner passes away today. They are also planning more for the personal items they have purchased for their pets.

In the last few years, stories about wealthy people who have left large sums of money in their estate plans for the care of their pets have gone from rare curiosities to commonplace. Providing money for a pet's care in an estate plan is not just for the wealthy anymore.

Planning for pets has become an important part of many estate plans. What is still somewhat rare, however, is making special provisions in an estate plan for personal property for pets. That could also be changing, as Bravo discusses in "The Most Bizarre Pet Items Included in Estate Planning (A Dog’s Fur Coat Collection?!)"

People are starting to make sure their pets have continued access to things, such as a specially designed gym set for a cat and a diamond encrusted feeding bowl for a dog. Nevertheless, it is unlikely that this trend will filter down to the non-wealthy. Most people cannot afford to provide their pets with such expensive items and a special provision in an estate plan is not needed for an ordinary plastic feeding bowl.

What this does show is how much people care about their pets and how much they want to provide for them. If this desire applies to you, visit an estate planning attorney to learn about what you can do for your pet, even if you cannot afford a cat gym set.

Reference: Bravo (April 11, 2018) "The Most Bizarre Pet Items Included in Estate Planning (A Dog’s Fur Coat Collection?!)"

What Will Happen to Your Pet?

It is important to make plans for what will happen to your pets after you pass away.

For many Americans pets are an essential and important part of their lives and families. Some pets today are treated as well as if not better than the humans in the family.

People will go to great lengths to make sure their pets have the best food and health care. There are  even day spas for pets in many places.

However, as much as people care for their pets during their lives, most fail to think about and plan for what will happen to those very same pets after the owners pass away.

That lack of planning may mean that the pets are taken to a shelter after their owners' deaths.

This is the subject of the Wills, Trusts & Estates Prof Blog titled "Message from Pasadena Humane Society: Don't Omit Pet from Estate Planning."

Planning for what will happen to your pet does not have to be difficult.

You can get started by thinking about the person you would like to take care of the pet and asking that person whether they are willing to do so.

You should decide whether the person caring for your pet will need money to care for your pet in the same way that you would do so.

You can also hire an estate planning attorney to help you create the proper legal documentation to make sure that your wishes will be carried out.

Your pet does not have to end up in a shelter after you pass away. You just need to do a few simple things to make sure it does not happen.

Reference: Wills, Trusts & Estates Prof Blog (Jan. 3, 2018) "Message from Pasadena Humane Society: Don't Omit Pet from Estate Planning."

Belgrade's Hidden Pet Cemeteries

Lacking an official place to bury their beloved pets, the citizens of Belgrade, Serbia have turned to clandestine methods. They have created hidden pet cemeteries in the city's parks.

It used to be that cities did not worry too much about what to do with residents' deceased pets. Most people were content to dispose of the remains through cremation or to allow the local authorities to dispose of the remains however they wanted.

Many people today treat their pets like they were members of their families. They often leave their pets inheritances and, in some cases, create elaborate trusts for the care of their pets.

Many people also want to bury their pets more formally in a traditional burial site.

Not all cities around the world have places to bury pets. That can cause problems.

As Fox News reports, this is the case in Belgrade, Serbia. The article is titled "Improvised pet graveyards hidden in Belgrade parks."

Belgrade has promised its citizens a pet cemetery for a decade, yet the project to actually build one is still in the planning phase.

Not wanting to wait for the city to create a place for their pets, many residents have taken to burying their pets in the city's parks in hidden graveyards.

The city does offer other ways to dispose of animal remains through official channels.  However, that is not good enough for people who want a place they can go to visit their beloved former pets.

What does this show? The pet human bond is stronger than ever.

If you feel strongly about what happens to your pets after you pass away, then visit an estate planning attorney to see what can be done to make sure that your pet is taken care of.

Reference: Fox News (Oct. 26, 2017) "Improvised pet graveyards hidden in Belgrade parks."

Getting Buried With Your Pet

Many people view their pets as members of their families, with just as much importance as their human family members. More and more of them, are even wanting to be buried with their beloved pets.

For a long time, perhaps forever, humans have often desired to be buried with their loved ones. There might not seem objectively to be a good reason for this to some people, but it has always given them the comfort to know that they will rest beside their loved ones for eternity.

In the past, these loved ones usually included spouses or children who passed away at a young age. Wealthy people might have been buried with more extended family members in family mausoleums.

It would have been extremely unusual for someone to be buried with a pet. However, today many people think of pets differently.

Pets are now viewed by many as having equal importance as human loved ones. That has led to an  increase the desire to be buried with those pets, as Legacy.com discusses in "Can You Bury Your Pet With You After You Die?"

A couple of states now allow people and their pets to be buried in the same cemetery with some conditions. A few other states are considering legislation that would also allow it.

This is not just a U.S. phenomenon,  since a few foreign countries now also allow the practice.

If you love your pet that much, you should also know there are other legal things you can do to show that love.

An estate planning attorney can help to make sure that if anything happens to you before your beloved pet passes away, you can provide legal means to have your pet taken care of appropriately, such as with a pet trust.

Reference: Legacy.com (Feb. 16, 2017) "Can You Bury Your Pet With You After You Die?"

Getting Buried With Your Pet

Many people view their pets as members of their families, with just as much importance as their human family members. More and more of them, are even wanting to be buried with their beloved pets.

For a long time, perhaps forever, humans have often desired to be buried with their loved ones. There might not seem objectively to be a good reason for this to some people, but it has always given them the comfort to know that they will rest beside their loved ones for eternity.

In the past, these loved ones usually included spouses or children who passed away at a young age. Wealthy people might have been buried with more extended family members in family mausoleums.

It would have been extremely unusual for someone to be buried with a pet. However, today many people think of pets differently.

Pets are now viewed by many as having equal importance as human loved ones. That has led to an  increase the desire to be buried with those pets, as Legacy.com discusses in "Can You Bury Your Pet With You After You Die?"

A couple of states now allow people and their pets to be buried in the same cemetery with some conditions. A few other states are considering legislation that would also allow it.

This is not just a U.S. phenomenon,  since a few foreign countries now also allow the practice.

If you love your pet that much, you should also know there are other legal things you can do to show that love.

An estate planning attorney can help to make sure that if anything happens to you before your beloved pet passes away, you can provide legal means to have your pet taken care of appropriately, such as with a pet trust.

Reference: Legacy.com (Feb. 16, 2017) "Can You Bury Your Pet With You After You Die?"