Pet Trusts

"Planning for the future" is a useful undertaking at any age. Personal and financial planning are important endeavors in creating financial security and clear legacies.

With regard to financial planning to ensure a monetary legacy, most people are familiar with the use of traditional Trusts. For example, the Trust sets up a "designated savings account" directed to a specific person or beneficiary. The Trust can be managed by a third party and/or have "strings" attached that determine the conditions and terms under which the specified person can access the money. Often the beneficiary of traditional Trusts is a spouse, child or a grandchild.

That said, times are changing. In 2006, Texas laws changed authorizing is the creation of trusts for a different type of beneficiary - those with four legs or wings. When the trust is set up for a pet, it is referred to as a Pet Trust. Tex. Prop. Code § 112.037 enables pet owners to create a trust that will ensure the on-going care of their pet upon the owner's death or disability. A Pet Trust is similar to a traditional trust in that the trust maker can designate an amount to be set aside for the pet and even attach "strings" for the person taking care of the pet. The Pet Trust can designate a guardian to care for the pet. In short, a Pet Trust allows a person upon death or incapacity to control the quality of care for their pet and the pet's disposition upon its death.

Until recently, there really has not been a formal procedure for providing care for a pet in the event that their owner could no longer take care of them. In the past, people have depended on their families to take Fluffy or Fido, or relied on verbal agreements with friends. Unfortunately, since such informal agreements are not binding, some pets have ended up in animal shelters or worse. In other cases, pets can be taken care of in extravagant ways and create a public sensation. The concept of a Pet Trust recently gained national attention when Leona Helmsley died and left her dog, Trouble, $12 million in a trust fund. In the trust, Ms. Helmsley specified a person to take care of Trouble and the disposition of Trouble's remains when she dies.

Planning for the future is an important endeavor, and the experienced staff at McCulloch & Associates know how to address many of the important legal and financial issues. By establishing documents that protect assets and clarify arrangements, one gains enormous peace of mind and satisfaction. And creating a Pet Trust for a four-legged or winged companion is a smart, creative arrangement.