Estate Planning For Your Pet?

Estate Planning For Your Pet?

Most of the articles we write are about protecting one's family, loved ones and children. However, there is the issue of what happens when our pets outlive us. For many, their pets are part of their families. Some pets, like parrots and horses, have long life-spans.

Last year, I wrote an article entitled: "Frequently Asked Questions About Including Provisions For Pets In Trusts." This article (which I am reposting for the convenience of our readers) addresses the statutory framework for pet trusts in California.

In July 2008, California's permissive pet trust statute was amended with a more modern statute with enforceable provisions. See California Probate Code Section 15212. As pet owners, we can certainly relate to some of our clients' wishes to plan for the future care of their pets.

California Probate Code Section 15212

Here is a summary of this relatively new statute:

■ A trust for the care of an animal is deemed to be for a "lawful noncharitable purpose."

■ "Animal" is broadly defined to include pets of any type as well as domestic animals.

■ The trust terminates when the last animal dies that was alive when the settlor died (unless the settlor provided otherwise in the trust instrument).

■ The court must liberally construe the trust. Extrinsic evidence is admissible to ascertain the settlor's intent.

■ Trust funds may be used only for the benefit of the animal unless the trust instrument provides otherwise.

■ When the trust ends, the balance of the trust property passes (1) according to the terms of the trust (i.e., to the remainder beneficiaries), (2) if none and the settlor created the trust in a non-residuary will clause, under the residuary clause, or (3) in other cases, to the settlor's heirs.

■ The settlor may name a trust enforcer in the trust. The court may appoint a trust enforcer.

■ Anyone interested in the welfare of the animal and any nonprofit charitable organization that has as its principal activity the care of animals may petition the court to enforce the trust.

■ If the settlor did not name a trust or if the named trust is unable or unwilling to serve, the court must appoint a trustee.

■ Accountings must be given to the remainder beneficiaries (or those who would take upon the death of the animal) as well as to any nonprofit charitable corporation that has as its principal activity the care of animals and has made a written request for accountings.

■ Trusts with property valued at $40,000 or less are exempt from accountings, filings, reportings, and other requirements which normally apply to trusts under California law.

■ Upon a reasonable request, the animal and the trust records may be inspected by any beneficiary, the trust enforcer, or a nonprofit charitable corporation that has as its principal activity the care of animals.

How An Estate Planning Attorney Can Help You

As noted above, the laws of the state of California allow for trusts for the care of pets or domestic animals for the life of the animal. We will work with you to design the legal documents to take advantage of these laws for your pet’s protection. Proper planning can provide for the care of your pets not only in the event of death, but also for incapacity or temporary emergencies. Planning can lead to peace of mind, so you can rest assured that your pets will be cared for in the way that you desire.

You can provide directions regarding your pet’s medical conditions, health care, exercise needs, dietary needs, preferred veterinarian, and burial. Provisions for immediate access to your home for caregivers can be made. You can also appoint a different person to oversee the ongoing care of your pets to ensure that the caregiver is treating your pet in the manner that you set out in the trust.

Posted by Henry (Hank) J. Morevec III. With respect to estate planning and pets, Hank Moravec has over 20 years' experience as an estate and trust attorneys and can tailor trusts to suit your particular situation.   He is also a devoted pet owner and understands the needs of his clients to take care of their pets in their estate planning.

For a free 30 minute consultation, you can e-mail Hank Moravec at hm@moravecslaw.com or call him at (626) 793-3210 to request a consultation. The firm website is http://www.moravecslaw.com/. The firm is located at 2233 Huntington Drive, Suite 17, San Marino, California 91108. There is ample free parking adjacent to the firm's office.

The office is located in San Marino, California, a suburb of Los Angeles in the San Gabriel area located 20 minutes from downtown Los Angeles. The firm represents clients throughout California and its attorneys engage in sophisticated estate planning for clients throughout Southern California.

Florida Heiress Leaves Bulk Of Estate To Caretakers And Dogs & Leaves Son A Fraction. Result? Probate Litigation & Undue Influence Allegations.

When Gail Posner of Miami, a daughter of the corporate takeover businessman Victor Posner, died in March 2010 at age 67 from cancer, a cute Chihuahua named Conchita and two other dogs inherited the right to live in her Miami Beach mansion and have a $3 million trust fund. Ms. Posner's caretakers and staff (7 bodyguards, housekeepers and other personal aides) were left a total of $26 million under her will, and some also were allowed to live, rent-free, in the mansion to care for the dogs.

Ms. Posner's only surviving adult son Brent Carr was left $1 million. He filed a lawsuit in probate court last week in Miami-Dade County seeking damages and a petition to revoke probate of will. A copy of the lawsuit has been posted by the Wall Street Journal.

The lawsuit names the trustee Mellon Private Trust and the caretakers and staff as defendants. Mr. Carr alleges among other things that there was undue influence by her caretakers. It makes for a sad story of what can happen after someone passes away. The Wall Street Journal's article on this lawsuit points out that Mr. Carr had his share of problems in the past.

For those that are interested in what a trust document looks like for a large estate, the Wall Street Journal also posted online a copy of Gail Posner's Revocable Trust. This trust was from 2008 almost two years before she died. The son's lawsuit contends that the changes to a trust from 1965 were the result of undue influence.

In order to prove undue influence, a person must show that there is a vulnerability to undue influence, the opportunity to influence, and the likelihood of the influencer to commit the act. Ms. Posner was only 67 and died of cancer. There are allegations of mental illness and prescription drug abuse in the son's lawsuit. The cost of defending this lawsuit could certainly cost the estate more than the $1 million left to Mr. Carr and obtaining a settlement when everyone knows the cost of litigation may be the goal of Mr. Carr and his attorneys.

It will be up to the courts to decide if Gail Posner knew what she was doing when she signed that will and no one who stood to gain from the will exerted "undue influence" on her. This will be a factual determination and good estate planning can help avoid subsequent charges of undue influence. Large and small estates alike need to be aware of this possibility and do their best to minimize probate litigation.

In a prior post, I wrote an article about six methods to reduce estate and probate litigation. For example, it would not be surprising if the attorneys had a video made of Gail Posner signing the new will or independent third-party witnesses on the issue of why the son was left $1 million and Ms. Posner's intent in amending her trust and will.

It will probably take a year or more for this case to be resolved. Further, since 98 percent of probate litigation cases settle, I would predict an out-of-court settlement in this matter unless Mr. Carr is deemed to be unreasonable or his settlement demands are considered to be much greater than his ability to recover at trial.

Posted by Henry (Hank) J. Morevec III. With respect to probate, Hank Moravec has over 20 years' experience as one of the best Los Angeles probate attorneys and Los Angeles probate litigation attorneys and is available should you need legal advice regarding your own or a family member's situation. For a consultation, You can e-mail Hank Moravec at hm@moravecslaw.com or call him at (626) 793-3210 to request a consultation.

The firm website is http://www.moravecslaw.com/. The firm is located at 2233 Huntington Drive, Suite 17, San Marino, California 91108. There is ample free parking adjacent to the firm's office.

The office is located in San Marino, California, a suburb of Los Angeles in the San Gabriel area located 20 minutes from downtown Los Angeles. The firm represents clients throughout California and its attorneys appears in probate court throughout Southern California (Pasadena probate attorney, Los Angeles probate attorney, Santa Monica probate attorney, Pomona probate attorney, Torrance probate attorney, Long Beach probate attorney, Van Nuys probate attorney, Santa Barbara probate attorney, Orange County probate attorney, Riverside probate attorney, San Bernardino probate attorney).

Frequently Asked Questions About Including Provisions For Pets In Trusts

Over two-thirds of pet owners treat pets as members of their families while 12% to 27% of pet owners include their pets in their wills and/or trusts. Many pet owners want to make sure that even if they can't take care of their pets due to death or disability, those animals will be provided for and well cared looked after.

Sometimes people make informal arrangements with a relative or friend to care for their pets. Sometimes this can work out but things can go wrong. What if the new owner doesn't have the money to provide care for your pet? What if a there's a dispute as to who should get the pet? What if something happens to the new owner? What if the new owner's pet and your pet don't get along?

If you don't have a will or trust, your pet will go to your next of kin as determined by state law. Many pets end up in shelters if the next of kin is unable or unwilling to care for the pet.

To avoid problems and be assured that your pet will be cared for after you die or are disabled, consider making more formal provisions for your pet's care. Remember: you can't leave money in your will to your pet. The law treats pets as property and you can't leave property to other property (your pet).

However, one thing you can do to make sure your pet will always be well provided for is to make your decision legally binding by including it in your revocable living trust and pourover will. The laws of the state of California allow for trusts for the care of pets or domestic animals for the life of the animal. In California, this is governed by California Probate Code Section 15212.

For those who reside outside California, a summary of pet trusts state by state is on the Humane Society website at: http://www.americanhumane.org/assets/docs/protecting-animals/PA-laws-pet-trusts.pdf

In a prior posting, I discussed the amendment in July 2008 of California's permissive pet trust statute to make it a more modern statute with enforceable provisions in post entitled "Protecting Your Pets in California":
http://losangelesestateprobatelawyer.blogspot.com/2009/03/pets-estate-planning-for-protecting.html

Making provision for your pets in your will and trust is becoming more common. Some people have bought "pet trusts" online while neglecting to take care of their own estate planning. In estate planning for our clients, it is relatively simple to make a provision for your pets. Here are some frequently asked questions and things to think about when you want to make a provision for your pet in your trust and pourover will:

1. Do you to want to be sure your pet receives proper care after you die or in the event of your disability?

If so, as part of your trust you will want to give enough money or other property to a trusted person or bank (the “trustee”) who is under a duty to make arrangements for the proper care of your pet according to your instructions. The trustee will deliver the pet to your designated caregiver (the “beneficiary”) and then use the property you transferred to the trust to pay for your pet’s expenses.

2. How do I decide on the individual to name as the beneficiary (my pet’s caregiver)?

Selecting the caregiver is obviously important. You should name at least one, preferably two or three, alternate caregivers in case your first choice is unable or unwilling to serve as your pet’s caregiver. In addition, to avoid having your pet end up without a home, consider naming a sanctuary or no-kill shelter as your last choice. Here are some things to consider in making the decision on who to name as caregivers:

· Is he or she willing to assume the responsibilities associated with caring for your pet?

· Is he or she able to provide a stable home for your pet?

· How will his or her family members (including pets) get along with your pet?

3. What type of instructions can you leave in the trust provisions relating to your pet?

You can have significant control over your pet’s care after you pass or are disabled. For example, you can specify who manages the property (the trustee), the pet’s caregiver (the beneficiary), what type of expenses relating to the pet the trustee will pay, the type of care the animal will receive, what happens if the beneficiary can no longer care for the animal, and the disposition of the pet after the pet dies.

Before you create the provision for your pet, think about specific instructions you may want to specify for the pet's caregiver (beneficiary):

· What are the pet's food and diet; daily routines; grooming; toys; exercise and socialization needs?

· What are the pet's medical needs? Who is the preferred veterinarian and boarding place?

· What amount of compensation, if any, do you want to pay the caregiver? Will the caregiver agree to care for your pet without compensation?

· How do you want the caregiver to document pet expenditures for reimbursement?

· Do you want the trust to pay for liability insurance in case the animal bites or otherwise injures someone?

· How do you want the trustee to monitor caregiver’s services?

· How can the trustee identify the animal (I have seen one case where a replacement animal was obtained so the caregiver/beneficiary continued to receive compensation from the trust)

· How do you want the disposition of your pet’s remains, such as burial, cremation, memorial, and so on, to be handled?

4. What is the advantage of an inter vivos or living trust in terms of taking care of my pet?

An inter vivos trust takes effect immediately and thus will be functioning when you die or become disabled. This avoids delay between your death and the property being available for the pet’s care. An inter vivos trust, however, has start-up costs and administration fees.

A testamentary trust, in contrast, is less expensive in some ways because the trust does not take effect until you die and your will is declared valid by a court (“probating the will”). However, there may not be funds available to care for the pet during the gap between when you die and your will is probated. In addition, a testamentary trust does not protect your pet if you become disabled and unable to care for your pet.

5. How do I "fund" my pet trust?

First, what is "funding"? Funding means to transfer money or other property into your trust for the care of your pet. Without funding, the trustee will not be able to provide your pet with care if you become disabled and after you die.

You need to consider a number of facts in deciding how much money or other property to transfer to your pet trust. These facts include:

· The type of animal and its life expectancy (especially important in case of long-living animals such as parrots);

· The standard of living you wish to provide for your pet including providing for care when the caregiver is out-of-town;

· Any medical conditions, payment for vet insurance, and your desire to provide for future medical treatment;

· Whether the trustee is to be paid for his or her services;

· Adequate funds should also be included to provide the animal with proper care, including boarding for times the caregiver is on vacation or unable personally to provide for the animal.

· Consider the size of your estate and how you can fund the care of your pet. If your estate is sufficiently large, you could transfer sufficient property so the trustee could make payments primarily from the income and use the principal only for emergencies.

On the other hand, if your estate is small, you may wish to transfer a lesser amount and anticipate that the trustee will supplement trust income with principal invasions as necessary. Or you may consider funding with life insurance or direct transfers of property (such pay on death accounts of annuities, bank accounts, and retirement plans). Be sure to consult with your estate planning attorney about the correct way of naming the trustee of your pet trust as recipient of these funds.

· Consider whether transferring a large amount of money or other property to your pet trust will encourage your heirs and beneficiaries to contest the trust.

· Consider funding with life insurance. This policy may be one you take out just to fund your pet trust or you may have a certain portion of an existing policy payable to the portion of the trust for your pet. This technique is particularly useful if you do not have or anticipate having sufficient property to transfer for your pet’s care. Life insurance “creates” property when you die which you may then use to fund your pet trust. Be sure to consult with your estate planning lawyer about the correct way of naming the trustee of your pet trust as a beneficiary.

· Consider making the caregiver or trustee different than the “remainder beneficiary” (the person or entity who will receive any remaining trust property after your pet dies). By not making the caregiver the remainder beneficiary, the caregiver has more of an an incentive to keep your pet alive.

· Consider what would happens if the trust runs out of property before your pet dies. If no property remains in the trust, the trustee will not be able to pay for your pet’s care. Perhaps the caregiver will agree to continue to care for your pet with his or her own funds. If the caregiver is unwilling or unable to do so, you should indicate in your pet trust the person or organization to whom you would like to donate your pet.

6. How do I provide for my pet in my estate plan?

Consult with an attorney who specializes in estate planning. If you want to ensure that your pets are properly cared for, you should address these issues sooner rather than later. It is common to put these type of projects off and we are skilled at helping our clients begin and go through the estate planning process including provisions for pets. By considering and answering the questions above, you will be well-prepared to work with an estate lawyer.

Posted by Henry (Hank) J. Moravec, III, a partner at Moravecs, A Professional Law Corporation. For a free 30 minute consultation (telephonic or in person), you can e-mail Hank Moravec at hm@moravecslaw.com or call him at (626) 793-3210.

Mr. Moravec is a very experienced Los Angeles estate planning attorney, Los Angeles trust attorney and Los Angeles probate attorney. He has more than 20 years' experience in estate planning and is extremely dedicated to his clients and helping them create a plan that is tailored to their wishes, finances, helps avoid probate and takes into account their families' unique situation.

The firm website is http://www.moravecslaw.com/. The firm is located at 2233 Huntington Drive #17, San Marino, CA 91108. There is ample free parking adjacent to the firm's office.
The firm is a boutique estates and trust law practice specializing only in Estate Planning, Probate, Trust Administration, Beneficiary and Trustee Representation, Tax Law, and Nonprofit Law.

The office is located in San Marino, California, a suburb of Los Angeles in the San Gabriel area located 20 minutes from downtown Los Angeles. The firm represents clients throughout California and its attorneys appears in probate court throughout Southern California.

Protecting Your Pets In California

Estate Planning For Your Pet?

Although Leona Helmsely giving her beloved Maltese named Trouble $12 million (while leaving her late son's children nothing) got national attention and practically became a national joke, there is the issue of what happens when our pets outlive us. For many, their pets are part of their families. Some pets, like parrots, have very long life-spans. Last year, in July 2008, California's permissive pet trust statute was amended with a more modern statute with enforceable provisions. See California Probate Code Section 15212. As pet owners, we can certainly relate to some of our clients' wishes to plan for the future care of their pets.

California Probate Code Section 15212

Here is a summary of this relatively new statute:

■ A trust for the care of an animal is deemed to be for a "lawful noncharitable purpose."

■ "Animal" is broadly defined to include pets of any type as well as domestic animals.

■ The trust terminates when the last animal dies that was alive when the settlor died (unless the settlor provided otherwise in the trust instrument).

■ The court must liberally construe the trust. Extrinsic evidence is admissible to ascertain the settlor's intent.

■ Trust funds may be used only for the benefit of the animal unless the trust instrument provides otherwise.

■ When the trust ends, the balance of the trust property passes (1) according to the terms of the trust (i.e., to the remainder beneficiaries), (2) if none and the settlor created the trust in a non-residuary will clause, under the residuary clause, or (3) in other cases, to the settlor's heirs.

■ The settlor may name a trust enforcer in the trust. The court may appoint a trust enforcer.

■ Anyone interested in the welfare of the animal and any nonprofit charitable organization that has as its principal activity the care of animals may petition the court to enforce the trust.

■ If the settlor did not name a trust or if the named trust is unable or unwilling to serve, the court must appoint a trustee.

■ Accountings must be given to the remainder beneficiaries (or those who would take upon the death of the animal) as well as to any nonprofit charitable corporation that has as its principal activity the care of animals and has made a written request for accountings.

■ Trusts with property valued at $40,000 or less are exempt from accountings, filings, reportings, and other requirements which normally apply to trusts under California law.

■ Upon a reasonable request, the animal and the trust records may be inspected by any beneficiary, the trust enforcer, or a nonprofit charitable corporation that has as its principal activity the care of animals.

How Your Estate Planning Attorney Can Help

As noted above, the laws of the state of California allow for trusts for the care of pets or domestic animals for the life of the animal. We will work with you to design the legal documents to take advantage of these laws for your pet’s protection. Proper planning can provide for the care of your pets not only in the event of death, but also for incapacity or temporary emergencies. Planning can lead to peace of mind, so you can rest assured that your pets will be cared for in the way that you desire.

You can provide directions regarding your pet’s medical conditions, health care, exercise needs, dietary needs, preferred veterinarian, and burial. Provisions for immediate access to your home for caregivers can be made. You can also appoint a different person to oversee the ongoing care of your pets to ensure that the caregiver is treating your pet in the manner that you set out in the trust.

Posted by Henry (Hank) J. Morevec III. With respect to estate planning and pets, Hank Moravec has over 20 years' experience as one of the best Los Angeles estate and trust attorneys and Los Angeles pet trust and is available should you need legal advice regarding your own or a family member's situation. He is also a devoted pet owner and understands the needs of his clients to take care of their pets in their estate planning.

For a consultation, You can e-mail Hank Moravec at hm@moravecslaw.com or call him at (626) 793-3210 to request a consultation. The firm website is http://www.moravecslaw.com/. The firm is located at 2233 Huntington Drive, Suite 17, San Marino, California 91108. There is ample free parking adjacent to the firm's office.

The office is located in San Marino, California, a suburb of Los Angeles in the San Gabriel area located 20 minutes from downtown Los Angeles. The firm represents clients throughout California and its attorneys engage in estate planning for clients throughout Southern California.