The new law requires the named trustee to create an account and use the funds throughout the animal's lifetime.
The new law allows the owner to create a trust for the pet's benefit which can specify who will care for the pet in the event of the owner's death or incapacity and how any funds set aside for the pet's care and maintenance will be managed. Unlike prior trust law which did not impose any legal obligation on the estate to honor trust provisions relating to pets, the new law requires the named trustee to create an account and use the funds throughout the animal's lifetime. The law also specifically states that unless otherwise provided in the trust document, the trustee may not use any of the trust principal or income for his or her personal benefit. Of course, the grantor may provide for reasonable fees to be paid to the trustee for management of the trust. The law goes on to say that if a trustee is not identified in the trust or declines the position the court will appoint a trustee to serve in that role.
Both man and his best friend can rest easy that these important trust provisions will be enforced.
Not only does the new law provide animal lovers with peace of mind about fluffy's care are they are gone, proponents of the law hope that it will relieve some of the burden left to towns and shelters to provide for homeless pets.
All too often, once loved and well cared for pets are surrendered to local shelters after an owner dies for lack of funds or a willing custodian. With the enactment of An Act Relative to Trusts for the Care of Animals, both man and his best friend can rest easy that these important trust provisions will be enforced.
If you would like to update your estate plan to include a trust for your pet's benefit, please contact one of the attorneys at Cohen & Oalican, LLP.
