Pet Trusts in Nevada
What is a Pet Trust?
Simply put a pet trust is a way of assuring that you have taken care of the “other” loved ones in your family. Hopefully, you have thought about establishing your own estate plan. You have decided who is going to manage your affairs, you have determined how your assets will be distributed and you have made arrangements for children or others who will need special consideration in the event of your death or disability. But, have you made arrangements for Bowser, Fluffy, Moby, Dobbin and Jack Sparrow? You may have a vague idea about who would likely take care of them, but will that person be pleased to add another mouth to feed, care for and clean up after?
How Does a Pet Trust Work?
A pet trust does not have to be complicated. In fact, for most people, it becomes part of their own living trust or their last will and testament. It is usually conceived by asking yourself some basic questions:
- Is there someone who has shown an interest or who has volunteered to care for Fluffy in the past, or a family member who would be willing to provide a loving environment for her?
- What do you spend on Bowser’s food, medications, and other incidentals on an annual basis?
- Are there conditions for this type of animal and/or this breed that commonly arise as they age such as intestinal, muscular or skeletal problems that should be taken into account as you try to estimate the amount to provide for veterinarian care?
As the Trustor (often called the settlor) of your pet’s trust, you will need to choose someone to act as the Trustee. The Trustee manages the assets and may or may not be the caretaker of the animals. Your trust will also need to specify who will be the beneficiary. Won’t your parrot, Jack Sparrow, be the beneficiary? Well, yes and no.
The Legal Stuff Made Easy
In Nevada we now have a statute that allows for you to leave your goldfish, Moby, an inheritance. By doing so, you have set up a pet trust. Of course, you have always been able to set up a pet trust in Nevada, so what is the value of this relatively new law? The answer is in the details.
The Traditional Pet Trust: the typical pet trust is usually a provision in your will or trust that holds a certain amount of money from the estate in trust for the benefit of the pets. It may establish a caretaker or authorize the trustee/personal representative to find a caretaker. The trust will provide funding for the trustee to purchase needed veterinarian care, food, medical supplies and the like. The trust will also provide for where the remaining money will be distributed if there are still funds in the trust at the death of the pet.
The Statutory Pet Trust: the trust allowed by state law can be as detailed as the traditional pet trust we have discussed above, or it can simply say, “I leave $10,000 for my dog, Bowser.” The statute then takes over. It assumes that the money will be held in a trust with your trustee or personal representative to act as trustee and that the funds will be used for the reasonable expenses Bowser’s care may require. Further, the amount you leave may be reduced by a court if the remainder beneficiaries bring a lawsuit. The court will require that a “reasonable amount” be left in the pet trust and the remainder will go to the remainder beneficiaries before the death of the pet. That provision will apply to all pet trusts, whether you intend for the statute to apply, or not.
Which is better? Obviously, the more detail you put into the trust, the better. The greater the detail, the less risk that there will be questions as to your intent after your death.
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