Overland Park Attorney

ESTATE PLANNING / PET TRUSTS

In the rush to button down an estate plan, people often spend most of their time focusing on the big questions and overlook small—but increasingly crucial—details.

According to an article in the Wall Street Journal, there are approximately 400,000 pets each year looking for new homes because their owners die. Pets are part of the family so it only makes sense to provide for them when planning your estate. That may mean simply entrusting their care to another family member or establishing a formal Pet Trust, authorized in 46 states and the District of Columbia.

A Pet Trust may be created under a Last Will and Testament or a Revocable Living Trust. Either way, there generally are four parties to any Pet Trust: the trustee, the caretaker, the pet (one or more) and the remainder beneficiary. In addition, a Pet Trust should have property contributed to it to adequately fund the lifelong care of your pet.

The trustee may be an individual, a corporate fiduciary, or both. As with most choices, there are advantages to each approach. The same is true with the caretaker. However, it may be prudent to ensure that the trustee and the caretaker are not one in the same.

While a trusted friend or family member likely knows your pet better than any outsider, whenever money is involved… there also lurks the temptation for mischief. For example, there have been reported instances where pets have died, only to be replaced by look-alikes so the trustees/caretakers continued to receive compensation for their services.   Also, remember to appoint successors in case a primary trustee or caretaker is unwilling or unable to serve.

The remainder beneficiary is the party designated to inherit any remaining trust property upon the death of the last surviving pet beneficiary. Typically, the remainder beneficiary is a family member, friend or charity.

So, just how much of a nest egg do you need to set aside to fund the future care of your pet? The amount depends on two variables – the life expectancy of your pet and the projected cost of care. Your veterinarian is an excellent resource when estimating the life expectancy of your pet, just as your check register is an excellent resource to calculate the actual cost of annual care. Once you know the likely remaining life expectancy of your pet and the historical cost of care, simple multiplication is all that is needed to determine the amount of trust property required to provide the appropriate nest egg. You may want to err on the conservative side, too, since inflation will affect the future cost of care for your pet.

If you want to learn more about Estate Planing in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

Reference: The Wall Street Journal (July 23, 2011) “When Estate Plans Fail”

 

 

Giving a Home to Stray Cats

People frequently use their estate plans as a way of continuing to support things they love after they pass away. One woman in Italy recently did so by bequeathing her home to stray cats.

The late Fiorella Scannabissi of Bologna, Italy loved cats. During her lifetime she took in many of the city's strays.

As The Local reports in "Bologna's Cats Inherit Plush Apartment," she loved the stray cats of the city so much that she left her top-floor, seven-room apartment to them. No, this is not a case where the neighbors might consider going to court to stop a messy situation.

The cats will not be living in the home.

Instead, Scannabissi left instructions for her home to be sold by the local council. The proceeds from the sale will be donated to the city's cattery, which takes care of the local strays.

What this illustrates is the flexibility of estate plans.

This is just one example of what can be done in an estate plan to make sure that what you support in life continues to receive support after you pass away. For Scannabissi it just happened to be stray cats.

If you love something else, you can use your estate plan to continue support it. Doing so often is not very complicated, especially if you have the advice and creativity of an experienced estate planning attorney who can structure your estate plan to further your goals.

If you want to learn more about Estate Planing in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

Reference: The Local (Dec. 3, 2015) "Bologna's Cats Inherit Plush Apartment"

 

Estate Planning Options for Your Pets

Increasingly people are making provisions in their estate plans for their pets. If you would like to do the same, then you have a few options for how to do it.

In the past people gave little thought to what might happen to their pets after they passed away. It certainly was not common to provide ways for pets to continue receiving care in estate plans.

Today, however, pets are increasingly being viewed as important family members that need to be provided for in estate plans along with human relatives.

Time recently published an article on this phenomenon entitled "How to Make Sure Your Pet Is Cared for When You Die."

The article mentions three ways to provide for a pet in your estate plan:

• Will Beneficiary – In your will you can name someone to inherit your pet and leave them money to care for the animal. This can be a little problematic as there is no way to guarantee that the person will use the funds to care for your pet, so only do this if you are certain the person will love your pet as much as you do.
• Will Trust – You can create a trust in your will and leave funds for the trust to care for your pet. In every state except Minnesota this will create a trust. A probate court will designate a trustee and caretaker for your pet to see that your pet is cared for.
• Traditional Trust – You can create a trust and fund it with the assets necessary for your pet's care. It is common to appoint as trustee the person who will also be the pet's caregiver, but it is not necessary.

If you would like more information about providing for your pet after you pass away, speak with an estate planning attorney about the above options.

If you want to learn more about Estate Planing in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

Reference: Time (Nov. 18, 2015) "How to Make Sure Your Pet Is Cared for When You Die."

 

How to Care for Your Pet … After You Pass Away

We love our pets. Nearly two-thirds of all Americans have a pet, and among those who do, nearly 70% have a dog; 50% have a cat; 11% have fish; 8% have birds; and 7% have horses, rodents or reptiles. Nearly 90% of all pet owners consider their pets to be part of their family, and in some cases, their pets are their only family. Many pet owners, however, are unaware or uninformed as to what might happen to their pets should they die or become incapacitated. Traditionally, a legal obstacle to leaving money to care for pets, both during life and after death, was common law. Pets had been treated historically as personal property and therefore could not own property in their name – nor could they be beneficiaries of a trust. That began to change in 1990 when the Uniform Probate Code was amended to recognize the creation of Pet Trusts, and states began to enact pet trust laws that govern in the event of an owner’s death or disability.

The Naples Daily News recently published an article, “Pet Trusts Gaining Popularity.” The article describes how the state of Florida enacted laws that authorized the establishment of pet trusts in 2003. These rules allow for people to provide for the care and maintenance for the lifetime of their pets.

Now almost every state recognizes these trusts (which vary in each state). A named trustee will typically be responsible for the investment, management and distribution of the trust assets. Another individual is named to avoid conflict of interest as the pet’s caregiver. The trust will include details for caregivers, medical needs, and the final arrangements for the pet’s death.

However, Internal Revenue Code typically doesn’t recognize pet trusts, as an animal isn’t a “person” by definition. The trust wouldn’t work because it doesn’t have a legal "beneficiary.” Nonetheless, the IRS does recognize pet trusts for tax purposes.

If the trust is validly established under state law, the assets passed to a pet trust are included in the decedent’s gross taxable estate. But no part of the assets qualifies for a charitable deduction—even if the remainder beneficiary after the passing of the pet is a qualifying charity.

You should speak with a qualified estate planning attorney because estate taxes and other expenses attributable to the trust will need to be considered when drafting a pet trust. Planning for your pets can be an important part of your estate planning process. Make sure that all members of your family—including your pets—are cared for in your estate plan.

If you want to learn more about Estate Planing in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

 Reference: Naples Daily News (August 17, 2015) “Pet Trusts Gaining Popularity”

 

 

Dog to Receive Fortune

Many people wish to leave things behind for their pets to make sure that they are taken care of after the owners pass away. However, one woman in Queens is taking that to the extreme.

 

It is often a good idea to leave an inheritance for your favored pets. It is a way to make sure the pets will be taken care of adequately after you pass away. Most people who wish to bequeath an inheritance to their pets leave just enough for the animals' basic care and support.

Rose Ann Bolasny, however, is not most people.

The Queens woman plans to leave her dog, Bella Mia, a trust fund worth six figures and a house in Florida worth a million dollars. The New York Post has the full story in an article titled "Pampered pooch to inherit 6-figure trust fund, $1M house."

 Obviously, this is taking things to the extreme.

 If you want to leave something for the future care of your pet after your passing, then you do not need to leave the pet wealthier than most humans. However, you do need to plan ahead with an experienced estate planning attorney. He or she can make sure you have left an inheritance for your pet in a manner allowed by the laws of your state.

 Of course, as pets have much shorter life spans than humans, you might also need to change your plans if something should happen to your pet.

 information about Estate Planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

 Reference: New York Post (January 16, 2015) "Pampered pooch to inherit 6-figure trust fund, $1M house"

 

 

Taking Your Dog with You

For many people, dogs are more than just best friends. They are a valued member of the family. However, pets, unlike other family members, are legally property. This raises the question whether you can direct that your pets be put to sleep after you pass away.

 

An Indiana woman named Connie Ley passed away in November. In her will, she made provisions for her pet German shepherd. The first provision was fairly standard. Ley directed that one of her friends should look after the dog. However, Ley also went on to direct that the dog should be put to sleep, cremated and that its ashes should be buried with Ley.

 The Washington Posthas the full story in an article titled "Indiana woman wants to be laid to rest with her German shepherd. One problem: The dog is still alive."

 

In this particular case, the dog is currently in a shelter waiting for a court to determine whether Ley's wishes will be followed.

 This is not the first time that the issue has come up. In some other cases courts have decided to put pets down as directed in the wills of the owners. The reason for this is that as much as we often think of our pets as part of the family, the law treats them as personal property.

 Animal cruelty laws aside, we are free to do with our pets as we please, including directing what should happen to them after we pass away.

 The lesson here? If you want to determine what will happen to your pets after you pass away, then you should make that a part of your will. If you do not, then a court will decide what happens.

 Consult an experienced estate planning attorney who can explain your range of options.

 For more information about Estate Planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

 Reference: Washington Post (December 17, 2014) "Indiana woman wants to be laid to rest with her German shepherd. One problem: The dog is still alive"

 

Planning for Your Pets

Today, many people view their pets as part of their families. They love their pets almost as much as they love the human members of the family, if not the same or even more. One such person was Joan Rivers who made provisions for her pets in her estate plan.

The Joan Rivers estate is estimated to be worth approximately $150 million. The public does not know for certain how much the estate is worth as Rivers used a trust which keeps the details of her estate plan private. It is known that most of the estate will go to her daughter, Melissa Rivers, and her grandson, Cooper. In fact, Joan Rivers said this would be the case while she was still alive.

In an article titled "What Joan Rivers Just Taught Pet Lovers About Estate Planning," Daily Finance reveals an aspect of the Rivers estate that is less well known. Joan Rivers had four dogs she loved and regarded as part of her family. She made provisions in her estate plan for the care of her dogs even though their owner has passed away.

You do not have to be rich or famous to provide for your pets after you pass away. Pet trusts are a relatively simple way of setting aside money for your pets and for providing a suitable care taker for them. They do not require massive wealth to set up and are valid in every state. If you want to make certain your pets will be okay after you pass away, then seek the counsel of an experienced estate planning attorney to learn more.

For more information about Estate Planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

Reference: Daily Finance (September 11, 2014) "What Joan Rivers Just Taught Pet Lovers About Estate Planning"

 

 

Do Not Make These Common Estate Planning Mistakes

People make all kinds of different estate planning mistakes. Some types of mistakes are fairly rare, but there are many mistakes that people commonly make when estate planning.

Someone made a common estate planning mistake that could have been avoided. This mistake, in turn, is the reason an estate administration becomes difficult and expensive. Unfortunately, probate attorneys continue to see the same mistakes causing estate administration problems over and over again.

Recently Forbespublished a list of some of these mistakes in an article titled "7 Common Estate-Planning Blunders Not To Make."

Their list includes:

• Assuming only the wealthy need estate plans - Even if you do not think you have enough assets for an estate plan, do not assume someone else will think it is enough to fight over after you pass away.
• Assuming your finances are too simple - No matter how straight forward your accounts seem to be, your estate can still benefit from proper planning.
• Waiting too long to plan - You never know when something might happen. You cannot plan your estate after a tragic event. It needs to be done before.
• Forgetting digital assets - An estate plan should include information about your digital accounts and property.
• What ifs? - Estate plans should cover contingencies such as divorce, new children and death. Many people do not plan for what will happen when circumstances change.
• Pets - If you have pets, you need to plan for what will happen to them after you pass away.
• Naming a trustee - Most people name a trustee without putting enough thought into the matter. This can lead to making bad choices.

This list compiled by Forbes is not all-inclusive, but it is a good start. You will never live long enough to make all of the mistakes in life, but you can learn from these common estate planning mistakes made by others. An experienced estate planning attorney can help you avoid these mistakes as well as others.

For more information about Estate Planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.

Reference: Forbes (September 15, 2014) "7 Common Estate-Planning Blunders Not To Make"

 

Retirees In Overland Park, KS: Make Sure You Understand All That Is Involved With A New Pet

Older adults today are spending considerably more on Fido and Fluffy than they did in 1990, according to a new report from the National Center for Policy Analysis, a nonprofit, nonpartisan public-policy research organization based in Dallas. In fact, for 65- to 74-year-olds, one of the five fastest-growing categories of spending is pets and hobbies, which has grown 5.2% a year on average since 1990, according to Pamela Villarreal, the author of the report. [This category includes expenses for pets and pet supplies, games, and playground equipment.] Nonetheless, if left unchecked, pet expenses could be a budget buster for some people in retirement.

According to a recent article in The Wall Street Journal, as with most budget items, keeping track of projected and actual expenses is important. The article, titled "How Retirees Get Bitten by Pet Costs," warns that those nearing retirement or already retired who are considering a pet should keep in mind that animals are a "long, long-term" commitment.

When creating a pet budget, factor in unexpected costs, too, the WSJ article explains. Pet health insurance can range from $10 to $40 a month in premiums, based on the type of coverage and the size, breed and age of your pet. That article cautions that you understand exactly what is and isn't covered by any policy.

The article suggest two options for retirees who decide against buying pets but who want their company: pet sitting/pet walking or volunteering at an animal shelter. So keep these things in mind when you consider taking on a pet.

For more information about Estate Planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website. 

Reference: The Wall Street Journal (March 30, 2014) "How Retirees Get Bitten by Pet Costs"

 

 

Don’t Forget The Pets In Overland Park, KS!

Not many of us could (or would) do what hotel magnate Leona Helmsley did for her Maltese pup Trouble: She left $12 million in trust so the little white dog would never want for anything. But even if you’re not a millionaire, you can make plans to ensure your pets are well taken care of after you’re gone.

A recent article inEveryday Health, titled “Pet Power of Attorney: Make Plans for Rover Before You’re Covered in Clover,” suggests that we all stop and take the time to organize important paperwork before a crisis occurs, including estate planning for pets. The original article reports that the Humane Society of the United States is recommending that pet owners pick two people who will serve as temporary pet caregivers in the event that an emergency arises. These two caregivers should have easy access to your home, written instructions on feeding and care, the contact information of your veterinarian, and knowledge of your permanent plan for the pets. Your neighbors, friends and relatives should also be made aware of the emergency caregivers.

There are formal options for individuals who want to ensure quality and continued care for their pets. Some people include such plans for their animals in their wills. However, these provisions take effect only when you die. It might take days or weeks for these plans to be carried out depending on when the will is read. A power of attorney, on the other hand, will authorize someone to conduct some or all of your affairs for you while you are incapacitated—including care for your pets.

Also, a pet trust is a legal document that designates a trustee who will hold funds “in trust” to pay the caregiver for all of the needs of your pet, and can provide for your pet anytime you are unable to do so. The ASPCA suggests setting up the trust with a lawyer who specializes in estate planning as various states have differing laws. Make directions in your pet trust very specific. Detail the exact brand of food your animal prefers (quantity and frequency of feeding), its daily activity habits, health issues and anything else you think will maintain consistency in its quality of life.

The article also has this advice:

• Keep tabs on designated pet caregivers in case they move or their situation changes and they are no longer able to commit to being your pet’s guardian;
• Choose at least one alternate caregiver;
• When creating a trust, you’ll have to identify the pet to prevent fraud. Have labeled photos and microchip your pets (it’s fast, painless, and easy!); and
• Designate a beneficiary to receive any remaining money not used by the pet trust.

Your pets are important to you, and you devote some portion of your day to keeping them healthy and content. Spend some time now to plan for when you are no longer able to care for them so your pets will always enjoy their lives and have quality care.

For more information about Estate Planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website. 

Reference:  Everyday Health (April 15, 2014) “Pet Power of Attorney: Make Plans for Rover Before You’re Covered in Clover”