Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events
In today’s society, it’s becoming increasingly common for our pets to be treated as part of the family…but what happens to your pet or pets upon your death when you are no longer there to care for them? In the eyes of the law, animals are considered property…so you can’t leave money directly to your pet. On January 19, 2016, the legislature passed the New Jersey Uniform Trust Code (NJUTC), which became effective as of July 17, 2016. As part of the NJUTC revisions, modifications were made to the rules regarding the creation and use of “Pet Trusts.”
Under the new law:
a. A trust may be created to provide for the care of an animal alive during the settlor’s lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor’s lifetime, upon the death of the last surviving animal.
b. A trust authorized by this section may be enforced by the settlor or by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.
c. Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use shall be distributed to the settlor, if then living, otherwise to the settlor’s estate.
Pet owners should carefully consider how they intend to provide for the care and treatment of their pets following death. Failing to plan ahead and provide adequately could result in a pet ending up in an animal shelter… or worse.
When thinking about establishing a Pet Trust, important considerations include:
[1]. Naming the trustee of the trust;
[2]. Naming the caregiver for your pets;
[3]. Deciding how much money to set aside in the trust to provide your pets with proper care for the rest of their lives;
[4]. Designating the people (or better yet, the charitable organization) who will receive the balance of the trust fund upon the death of your pet or pets.
A Pet Trust can either be created and funded during your lifetime, or the terms of the trust can be included in your Will with the trust established and funded upon your death. It is very important to let family members as well as the caregiver and the trustee (the caregiver and trustee can be the same person) know your intentions in advance so that your pets are properly cared for in the confusion that often occurs immediately after the death of a pet owner. Confirm that your trustee and caregiver are willing to take on the responsibility. The caregiver (and perhaps an alternate caregiver) should know their role and responsibilities well in advance, so that they will be able to help provide for your pet or pets immediately following your incapacity or death.
Proper planning for the pet owner should include a careful discussion and adequate provisions for the care and maintenance of any pets. Where appropriate, the use of a properly drafted “Pet Trust” is a useful tool that can be employed to insure that pets are properly cared for following death or incapacity.