Michigan Estate Planning Blog

The Power Of Pet Trusts Saginaw, Michigan

According to the numbers, more and more people are taking in a pet. In fact, from 2010 to 2012, the number of pet-owning households increased from 62% to 68%. Interestingly, more and more people are taking their pets into consideration when it comes to their estate planning. Maybe you have heard the term “pet trust” before. Even if you have, The Wall Street Journal has provided the latest information on planning for your pet and some noteworthy statistics in a recent article titled “More Americans Are Writing Their Pets Into Their Wills.” You see, with human family members, you can take care of them by giving them an inheritance. On the other hand, you cannot give property to your pet because your pet is property. Nevertheless, you can provide financially for your pet with a pet trust. After all, the needs of a pet can be simple, but someone needs to care for them. A pet trust is a legal vehicle that can be designed to be there for your pet when you are not, providing a caretaker and financial resources according to your instructions

Reference: The Wall Street Journal (January 12, 2014) “More Americans Are Writing Their Pets Into Their Wills”

For more information, see www.jerryreiflawyer.com

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The Power Of Pet Trusts Mid-Michigan

According to the numbers, more and more people are taking in a pet. In fact, from 2010 to 2012, the number of pet-owning households increased from 62% to 68%. Interestingly, more and more people are taking their pets into consideration when it comes to their estate planning. Maybe you have heard the term “pet trust” before. Even if you have, The Wall Street Journal has provided the latest information on planning for your pet and some noteworthy statistics in a recent article titled “More Americans Are Writing Their Pets Into Their Wills.” You see, with human family members, you can take care of them by giving them an inheritance. On the other hand, you cannot give property to your pet because your pet is property. Nevertheless, you can provide financially for your pet with a pet trust. After all, the needs of a pet can be simple, but someone needs to care for them. A pet trust is a legal vehicle that can be designed to be there for your pet when you are not, providing a caretaker and financial resources according to your instructions

Reference: The Wall Street Journal (January 12, 2014) “More Americans Are Writing Their Pets Into Their Wills”

For more information, see www.jerryreiflawyer.com

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Don’t Forget Your Pet! Saginaw, MI

Estate planning is about planning for your loved ones. From your spouse to the kids, to the grandkids, sometimes your siblings, and maybe even the kids yet to be born and whom you may never meet, there are a lot of people to consider when making these all important plans. While you are at it, do not forget to make plans for any family members who have feathers, fins or fur. Don’t forget the family pet (or pets). A recent article in Kiplinger was a bit more blunt: “Put a Plan in Place to Ensure [for your] Pets' Care.” It is easy to forget about planning for your pet or to simply assume someone will step in and care for them. Unlike family heirlooms or bank accounts, other family members may not step up to care for your pets. Even if they would like to, it may not work for them financially, logistically, allergenically, or otherwise. Unfortunately, things do not always fall into place so easily when pets are at stake. In the end, providing for your special friends is your last responsibility for them.

Reference: Kiplinger (June 2013) “Put a Plan in Place to Ensure Pets' Care”

For more information, see www.jerryreiflawyer.com

 

Don’t Forget Your Pet! Saginaw, MI

Estate planning is about planning for your loved ones. From your spouse to the kids, to the grandkids, sometimes your siblings, and maybe even the kids yet to be born and whom you may never meet, there are a lot of people to consider when making these all important plans. While you are at it, do not forget to make plans for any family members who have feathers, fins or fur. Don’t forget the family pet (or pets). A recent article in Kiplinger was a bit more blunt: “Put a Plan in Place to Ensure [for your] Pets' Care.” It is easy to forget about planning for your pet or to simply assume someone will step in and care for them. Unlike family heirlooms or bank accounts, other family members may not step up to care for your pets. Even if they would like to, it may not work for them financially, logistically, allergenically, or otherwise. Unfortunately, things do not always fall into place so easily when pets are at stake. In the end, providing for your special friends is your last responsibility for them.

Reference: Kiplinger (June 2013) “Put a Plan in Place to Ensure Pets' Care”

For more information, see www.jerryreiflawyer.com

 

Don’t Forget Your Pet! Saginaw, MI

Estate planning is about planning for your loved ones. From your spouse to the kids, to the grandkids, sometimes your siblings, and maybe even the kids yet to be born and whom you may never meet, there are a lot of people to consider when making these all important plans. While you are at it, do not forget to make plans for any family members who have feathers, fins or fur. Don’t forget the family pet (or pets). A recent article in Kiplinger was a bit more blunt: “Put a Plan in Place to Ensure [for your] Pets' Care.” It is easy to forget about planning for your pet or to simply assume someone will step in and care for them. Unlike family heirlooms or bank accounts, other family members may not step up to care for your pets. Even if they would like to, it may not work for them financially, logistically, allergenically, or otherwise. Unfortunately, things do not always fall into place so easily when pets are at stake. In the end, providing for your special friends is your last responsibility for them.

Reference: Kiplinger (June 2013) “Put a Plan in Place to Ensure Pets' Care”

For more information, see www.jerryreiflawyer.com

 

 

Is Your Estate Pet-Friendly? Great Lakes Bay Region, MI

When it comes to planning for the well-being of your family, do not forget to plan for every member, furry and four-legged or otherwise. If something were to happen to you, then the future of your pets may be left to chance. Consequently, your special friends have only you to plan for their future without you. This subject was considered by The Humane Society in a recent article titled simply “Backup Plan.” What does a backup plan for your pet look like? Well, the answer is pet-specific. Assuming you are not in the lion-taming business, then there are any number of simple things you can do. Beyond that, however, the key is to follow through and actually complete the necessary legal planning. Good intentions will do little for your pet, large or small. The basic question is where will your pets go if you are gone? Perhaps you have a large number of family members or friends who are pet lovers. If yes, then you must narrow down the field of suitable candidates to appoint just the right person who can and will care for your pet. This can be tricky if you actually are a lion tamer, or even the owner of horses or exotic pets. Something further to consider, especially in those outlier cases, is the expense of owning the pet. Will there be enough money to provide for the ongoing expenses of caring for your pet? Many pet owners are including “pet trusts” as part of their estate plans to provide for these ongoing expenses and to even compensate those who care for your pet. If your pet or pets are an important part of your life, then take time to make proper arrangements for them as part of your estate plan.

Reference: The Humane Society (June 20, 2013) “Backup Plan”

For more information, see www.jerryreiflawyer.com

 

Consider a Pet Trust

Planning for your estate or “things”– check. Planning for your loved ones or “persons”– check. But wait, what about your pet? A pet is neither quite a person, nor is a pet quite a thing. Don’t fret! There are options to protect your beloved pet’s future. Trusts are fairly powerful legal devices, amendable to many situations, and when they primarily benefit a friend with feathers, fins or fur, then they are appropriately termed “pet-trusts.” This special form of trust was the recent topic of an article in The Wall Street Journal titled “Pondering a Trust for Your Pet.” The American Society for the Prevention of Cruelty to Animals (ASPCA) is taking unprecedented steps to address the practical and legal considerations of ownerless but bequeathed pets. If you are an animal-lover planning your estate, then this ought to be an interesting development. When considering if a “pet trust” is the right option for your animal friend, assess your pet’s needs and your family’s ability to fulfill those needs. This type of planning is another way to have peace of mind knowing that your pet will be cared for in the future.

Reference: The Wall Street
Journal (September 7, 2012) “Pondering a Trust for Your Pet”

For more information, see www.jerryreiflawyer.com

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Consider a Pet Trust

Planning for your estate or “things”– check. Planning for your loved ones or “persons”– check. But wait, what about your pet? A pet is neither quite a person, nor is a pet quite a thing. Don’t fret! There are options to protect your beloved pet’s future. Trusts are fairly powerful legal devices, amendable to many situations, and when they primarily benefit a friend with feathers, fins or fur, then they are appropriately termed “pet-trusts.” This special form of trust was the recent topic of an article in The Wall Street Journal titled “Pondering a Trust for Your Pet.” The American Society for the Prevention of Cruelty to Animals (ASPCA) is taking unprecedented steps to address the practical and legal considerations of ownerless but bequeathed pets. If you are an animal-lover planning your estate, then this ought to be an interesting development. When considering if a “pet trust” is the right option for your animal friend, assess your pet’s needs and your family’s ability to fulfill those needs. This type of planning is another way to have peace of mind knowing that your pet will be cared for in the future.

Reference: The Wall Street
Journal (September 7, 2012) “Pondering a Trust for Your Pet”

Large Animal – Large “Pet Trust”

Trusts can be remarkably powerful tools to provide for all members of the family, especially the ones most in need of care. This includes four-legged family members that stand “16 hands tall” and are adept at dressage. Yes, trusts can be an essential part of your “horse care” plan, as recently highlighted in The Wall Street Journal article, Stable Value: Putting Your Horse In A Trust. Horses are not “pets” in the classical sense, as their needs are far greater than those of the family dog or cat. Not only does a horse enjoy a longer life-span, but horses require more wide open spaces, exercise, care, grooming and food. The upkeep on a horse can be rather expensive. Through a pet trust you can set aside sufficient funds to provide for your horse’s unique needs and ensure his care and safety should you predecease him. Even more significant, you can establish important safeguards to ensure proper deployment of those funds. Of course, one of the biggest challenges is selecting the proper caretaker of your horse. Would a trusted loved one be willing to serve? Do not assume that charities, shelters or “rescues” would step in to care for your horse. Recent financial difficulties affecting the broader economy have likewise strained the ability for charities and horse shelters to care for horses currently under their care. Unfortunately, pet trusts are not recognized in every state, but the problem still remains. If you are a horse owner, then your horse is an important member of your family and you must plan accordingly. To learn more about your state laws and the alternatives open to you (and your horse), be sure to seek competent counsel.

Reference: The Wall Street Journal (March 7, 2012) “Stable Value: Putting Your Horse in a Trust”

Pet Trusts Provide Peace of Mind

The four-legged members of a household (or two-legged, or conceivable even eight, as the case may be) are undoubtedly special members in any home. Accordingly, proper planning ought to address them as well. Whatever the size of your pet and whatever the size of your family, it’s simply not always enough to leave these matters for your heirs to figure out. After all, the well-being of your animal (i.e., your friend and companion) is at stake and so it’s worth considering legal devices to provide for them, such as a pet trust. In a way, the idea of a “pet trust” is a natural one and yet it’s also not always common. Deborah Jacobs recently tackled the subject over at Forbes and her article certainly is worth a look. In its basic formula, a pet trust is like any other trust in its formation, however, it is designed to take care of the member of the family that can’t take care of itself (nor speak to which home it will move to upon its owner’s passing). While that can be meaningful for many pet-owners, there also is reason for the elderly to pay special attention to the prospect, as another article over at the New Old Age Blog points out, here. For the elderly, especially, a pet can be an incredibly important family member and one for whom planning can be all the more important. Why? The pet may outlive its owner. In the end, a pet trust may afford important protection and care for the pet, as well as peace of mind to the owner.

Reference: Forbes (February 14, 2012) “If You Love Your Dog (Or Cat Or Gerbil), Read This” and The New York Times – The New Old Age Blog (February 3,2012) “The Pet Problem”

ESTATE PLANNING / PET TRUSTS

According to a recent article in the Wall Street Journal, there are approximately 400,000 pets each year looking for new homes because their owners die. Pets are part of the family so it only makes sense to provide for them when planning your estate. That may mean simply entrusting their care to another family member or establishing a formal Pet Trust, authorized in 46 states and the District of Columbia. A Pet Trust may be created under a Last Will and Testament or a Revocable Living Trust. Either way, there generally are four parties to any Pet Trust: the trustee, the caretaker, the pet (one or more) and the remainder beneficiary. In addition, a Pet Trust should have property contributed to it to adequately fund the lifelong care of your pet. The trustee may be an individual, a corporate fiduciary, or both. As with most choices, there are advantages to each approach. The same is true with the caretaker. However, it may be prudent to ensure that the trustee and the caretaker are not one in the same. While a trusted friend or family member likely knows your pet better than any outsider, whenever money is involved… there also lurks the temptation for mischief. For example, there have been reported instances where pets have died, only to be replaced by look-alikes so the trustees/caretakers continued to receive compensation for their services. Also, remember to appoint successors in case a primary trustee or caretaker is unwilling or unable to serve. The remainder beneficiary is the party designated to inherit any remaining trust property upon the death of the last surviving pet beneficiary. Typically, the remainder beneficiary is a family member, friend or charity. So, just how much of a nest egg do you need to set aside to fund the future care of your pet? The amount depends on two variables – the life expectancy of your pet and the projected cost of care. Your veterinarian is an excellent resource when estimating the life expectancy of your pet, just as your check register is an excellent resource to calculate the actual cost of annual care. Once you know the likely remaining life expectancy of your pet and the historical cost of care, simple multiplication is all that is needed to determine the amount of trust property required to provide the appropriate nest egg. You may want to err on the conservative side, too, since inflation will affect the future cost of care for your pet. Reference: The Wall Street Journal (July 23, 2011) “When Estate Plans Fail”