Kansas and Missouri Estate Planning

Can I Provide for My Pet in My Estate Plan?

Pets become a part of the family.

Pets are an important part of many families.

They share in our successes and failures.

They are there in the good times and the bad times.

They bring joy, laughter, and entertainment.

According to a recent Forbes article titled “3 Financial Planning Tips For Pets Owners,” you should consider your pets in your estate planning.

What do you need to include?

First, you should decide who will care for your pet when you are no longer around to love them.

Talk with these individuals to make sure they are a good fit for loving your furry friend and are willing to take on the responsibility.

Next, you should consider how to financially support your pet.

Caring for a pet in not cheap.

It will require food, grooming, veterinarian bills, medications, and sometimes kenneling.

Providing the family with funds for the care of the pet will help ensure your pet receives care equal to what you provide.

This can be done through naming the caregiver as the beneficiary to a life insurance policy or annuity.

You could also create a "pet trust" with specific guidelines for the use of the funds.

If you have more money than would be necessary to care for your pet, you can consider giving to a charitable cause (such as a local human society or shelter).

If you do not yet have a pet, please consider the costs of care.

Be sure you can support a pet before you welcome one home, whether it has fins, feather, or fur.

Purchasing insurance for veterinary visits can be beneficial in helping mitigate the costs of visits and treatments.

Love your animal well by taking the time to plan for its care and comfort.

Reference: Forbes (January 27, 2019) “3 Financial Planning Tips For Pets Owners”

What are Some Practical Pet Trust Pointers?

Including your pets in your estate plan will require action on your part.

Do you have pets?

Are they your fur babies?

Perhaps they are fine feathered friends.

No matter the type, pets can be like family whether they have feathers, fins, or fur.

Although you may not want to think about it, what will happen to Fluffy when you die?

According to a recent article in The Milwaukee Community Journal titled “What Happens to Your Pet When You Die–How to Plan for Them Now,” your Fluffy may be left with no provision if you do not specifically include her in your estate planning.

How do you provide for Fluffy?

Write a will.

Did you know, in the eyes of the law, Fluffy is considered your property, just like your sofa.

This means you can pass Fluffy to a loved one in your will.

What if you do not have a will?

Yikes!

Fluffy could be passed to a beneficiary chosen by state law or a much worse fate.

Leave money for the care of the pet.

Do you trust the caregiver designated in your will to use the funds provided to care for Fluffy?

If yes, then you can simply leave money to the caregiver in your will.

Set up a pet trust.

Do you want to have greater control and provide more direction regarding the care of Fluffy?

Did you know you can create a pet trust anywhere in the United States to provide financially for Fluffy?

You can provide legally documented instructions, name an individual to manage the funds, and even another individual to care for Fluffy.

This provides more oversight and accountability than merely leaving money to a friend.

Donate money to a pet rescue charity.

Want to provide for Fluffy and other orphaned pets? Consider leaving Fluffy in the care of a no-kill sanctuary, while also providing financial resources for other animals by your charitable contribution.

You cannot afford to leave any loved one out of your estate planning—including your Fluffy.

Work with an experienced estate planning attorney to create a plan to fit your unique situation.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Milwaukee Community Journal (June 5, 2018) “What Happens to Your Pet When You Die–How to Plan for Them Now”

How do I Care for My Pets When I am Gone?

Your pets will not care for themselves without you around.

You have pets.

They are like family.

They have been with you through the good and the bad.

When you die, they will miss you.

But their lives will go on.

How can you make sure they live comfortably to the end of their days without you?

According to a recent NJ.com article titled “Can you leave an estate to a pet?”, your pets cannot legally inherit assets from you.

Then how do you provide for them?

You can use a pet trust.

By leaving money in a trust and establishing the use of the assets for the care of your pet, you can provide for their needs and leave instructions.

You also need to be sure to leave instructions regarding who should care for these family members with feathers, fins or fur.

Although you could simply leave money to the person caring for your pet, a trust gives you more control.

The trust should also designate where the money goes after your pet passes.

A trust is not your only option.

There are also charities that care for pets after their owners die.

You can give money to the organization and leave your pet to them.

Do your research before you make your decision.

Your pet will thank you.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: NJ.com (July 12, 2017) “Can you leave an estate to a pet?”

Are Pet Trusts Important for My Animals?

If you love your pets, chances are you want them to be cared for after you are gone.

Whether they have feathers, fins or fur, your pets are important to you.

You do your best to take care of them and their needs.

You feed them.

You give them love.

But what will happen when you are not in the picture?

Will they be okay?

Will they be able to have the same standard of living you provided?

It depends.

According to a recent Trust Advisor article titled “Britney Spears Pet Fetish Feeds New Estate Planning Craze,” a pet trust is necessary to ensure your pet receives the same standard of care you provide.

You could simply bequeath your pet to a love one in your will.

But this may not be sufficient.

A great example is Britney Spears who spends about $30,000 a year on her dogs.

Yikes!

Not a lot of people could afford to provide the same lifestyle.

This is where a pet trust comes in.

What should a good pet trust do?

It should set aside money specifically for the care of the pets.

It should also provide instructions as well as designate caretakers and successor trustees.

Not all pets have long lifespans, but some do.

For these especially, a pet trust could be useful.

Will pet trusts continue indefinitely?

No.

Most continue for the life of the animal; however, in some states–New Jersey, Alaska and Montana—pet trusts terminate after 21 years.

Chances are you do not spend as much on your animals as Britney Spears, but your pets are a part of your family.

If you are concerned about what will happen should you become incapacitated or when you die, then a pet trust may be a good option for you.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Trust Advisor (May 1, 2017) “Britney Spears Pet Fetish Feeds New Estate Planning Craze”

How Many States Allow "Pet Trusts" as Part of an Estate Plan?

If you answered "all but one," then you are our grand prize winner.

However, that may not be the case for long.

Why?

A legislator in the lone holdout state, Minnesota, has submitted a bill to bring the Gopher State into the fold (or litter, or flock, or herd, or gaggle, or clutch ....).

Sidebar: Wisconsin, a neighboring state, has authorized residents to leave money in trusts for their pets since 1969.

This furry factoid and others were reported in a recent WDAY.com article titled "Who will care for your pet when your die? Trust bill proposed."

It seems that Rep. Dennis Smith, most likely along with his dog Reagan, planned to make the case to Smith's colleagues that it was time for Minnesota to end this unique designation.

Smith is an animal lover with no fewer than two photos of his golden retriever mixed-breed pup in his legislative office. He also has Reagan, along with his wife and children, on his campaign website.

As an attorney, Smith notes that his clients make gifts to their pets in their estate planning about one-third of the time.

Under current state law in Minnesota, residents may designate money in their wills for their pets, but there is no legal requirement that the cash be spent on the pets.

This is not the same as in other states that currently allow pet trusts by statute.

What is the distinction?

In a pet trust, any cash left for the care of a pet must be spent on the pet as a matter of law. When the pet dies, then any money remaining in the trust could pass to other heirs or be distributed as instructed in the trust or as determined by the probate court.

In addition, under the terms of a pet trust could be used to care for a pet when its owner is still alive but is no longer able to care for the pet.

According to Smith, a pet trust would not allow the trustmaker to avoid debts or taxes out of his or her estate.

Consequently, permitting pet trusts would be tax neutral when it comes to Gopher State coffers.

This is important, since Minnesota has its own estate tax independent of the federal estate tax.

If you are in one of the states already permitting pet trusts (i.e., every state but Minnesota), then contact an experienced estate planning attorney to help you create a pet trust. That way you can always provide for your special friend whether he or she has feathers, fins or fur.

So, how do you find an "experienced" estate planning attorney?

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").

Third, either way, verify. Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.

How?

There are two helpful resources just a mouse click away to assist with your due diligence:  Avvo.com and Lawyers.com.

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: WDAY.com (April 7, 2016) "Who will care for your pet when your die? Trust bill proposed"

How do I Provide for My Pets if I Die First?

Have you noticed more articles appearing about providing for pets in your estate plan?

It has been some time since Leona Helmsley died in 2007 and famously left $12 million in a trust to provide for "Trouble," her dog.

To my recollection that is still one of the most famous instances of a pet trust.

So, again, why the plethora of articles about pet trusts of late?

If you are asking me (actually, I am asking me), then I would say it is based on demographics.

With 10,000 baby boomers turning age 65 every single day, that means they may be thinking more about their mortality.

I have noticed that many of these retirees have acquired pets now that their children are busy with children of their own. 

I do think I am onto something.

Accordingly, here is another recent article on pet trusts to share.

This one comes to us from The (Raleigh, NC) News Observer and is titled “Providing for your pets after you’re gone.”

The article emphasizes that pet owners need to do their own due diligence to make sure new homes are arranged to care for their pets.

In addition, they need to make sure their is a written legal plan and funding to make sure all goes according to Hoyle.

Otherwise, after the pet owner's death, in the midst of grief and estate administration it is easy for pets to become an after thought at best and forgotten at worst.

Communication is key.

For example, the article recommends creating a wallet card detailing detailing how many pets you have and their location.

Better yet, this card also should contain contact information for your veterinarian, pet-sitter, and at least one trusted friend who is willing to care for your pets if something happens to you.

Did you know that legally pets are considered tangible personal property like your sofa?

No, really.

Consequently, pets cannot inherit from you.

That is why you need a pet trust to hold funds for the care of your pet.

Then, after the pet dies, any remaining trust funds can be designated for a nonprofit. 

Here are some practical pointers for setting up a pet trust:

• Consult with an estate planning attorney with experience in pet trusts, and make sure they are allowed in your state. Both Kansas and Missouri have Uniform Trust Codes authorizing pet trusts.

• Make sure your pet trust covers all pets together, instead of separate trusts for each pet.

• Provide detailed instructions regarding the type of care you want for your pet, such as requiring that the new caregiver provide regular veterinary care.

• Estimate how much money you need to set aside for the care of your pets, to include funds to administer the pet trust itself. You will want to "round up" when estimating to account for unexpected expenses.

• Select a beneficiary for any funds not used by the pet trust, like a pet charity.

If you want to do this and leave a trust for your pets, then I cannot emphasize too much the need to speak with an estate planning attorney experienced in establishing pet trusts. 

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference:  The (Raleigh, NC) News Observer (October 12, 2015) “Providing for your pets after you’re gone”

How do I Provide for My "Furry" Family Members?

Do any of your family members have feathers, fins or fur???

If yes, what arrangements have you made to take care of them should something happen to you?

You had not thought about that, had you?

Take comfort.

You likely are not alone.

Some two-thirds of Americans have pets.

Most of these pet owners have a dog (70%), followed by a cat (50%), fish (11%), and birds (8%). Finally, still others have horses, rodents or reptiles (7% for this grouping).

Personally, I am partial to guinea pigs.

Our household was especially fond of a "gip" (i.e., "pig" spelled in reverse) who went by the terrifying nom de guerre "Spike" (see photo) and inhabited a special place in our home and hearts for a time.

Spike was not fond of bathing in the sink.

I digress.

Historically, estate plans could not be made to take care of your pets upon your passing.

Why?

Because pets were regarded as "property" and how could you leave "property" (your estate assets) as an inheritance for "property" (your pets)?

All of this began to change in 1990 with the amendment of the Uniform Probate Code to recognize "Pet Trusts" as a legal vehicle to provide for pets upon the incapacity or death of pet owners. 

A recent article in The Naples Daily News, titled “Pet Trusts Gaining Popularity,” tells the tale of how the state of Florida enacted laws authorizing the establishment of pet trusts back in 2003 - and how Florida allows folks to provide for the lifetime care and maintenance of their pets. 

Today, nearly every state permits such trusts with some variation.

Here are the basics:

Commonly, a named trustee is tasked with responsibility for the investment, management and distribution of the trust assets.

At the same time, another individual is appointed under the trust to avoid conflicts of interest as the pet’s caregiver.

In addition, the trust language itself provides details for caregivers, medical needs, and the even final arrangements upon the pet’s death.

From a tax perspective, if the trust is validly established under state law, then the assets passing to a pet trust are included in the decedent’s gross taxable estate.

However, no part of the assets qualify for a charitable deduction—even if the remainder beneficiary after the passing of the pet is a qualifying charity. 

Planning for your pets can be an important part of your estate planning process.

If you are considering a Pet Trust as part of your estate plan, contact an experienced estate planning attorney.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

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

Have You Made Estate Planning Arrangements for the Care of Your Pet?

Pets are important companions for many Americans, especially seniors. Whether your special companion has feathers, fins or fur, have you made arrangements for its care in a world without you? Who would give your special friend a good home or find a good home for them? 

Just as important, how will you leave financial support for your pet or pets ... and ensure that the funds are used accordingly?

Most people who leave an inheritance for the care of their pets leave just enough for basic care and support. 

Rose Ann Bolasny, however, is not most people. Have you heard about this woman from Queens?

Rose plans to leave her dog, Bella Mia, a trust fund worth six figures and a house in Florida worth a million dollars.

To read the full story, check out a recent article in the New York Post titled "Pampered pooch to inherit 6-figure trust fund, $1M house." 

Obviously, this is taking things to the extreme. Or is it?

After all, it is her money. 

On the other hand, regardless whether you want to leave your pets wealthier than most humans, 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 an amount and in a manner allowed by the laws of your state. [Think "pet trust".]

Of course, since most pets have much shorter life spans than humans, you also might need to change your plans should something happen to your pet before you can make appropriate changes. 

Flexibility is essential when it comes to estate planning, especially when it comes to anticipating (and successfully navigating) the law of unintended consequences.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.

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

The Power Of Pet Trusts / Overland Park, KS

According to the numbers, more and more people are taking in a pet. In fact, from 2010 to 2012, the number of pet-owning households increased from 62% to 68%.

Interestingly, more and more people are taking their pets into consideration when it comes to their estate planning. Not surprisingly, 46 states now have laws on the books allowing pet trusts.

This includes Kansas and Missouri.

Are you familiar with “pet trusts.” Even if you are, The Wall Street Journal has provided the latest information on planning for your pet and some noteworthy statistics in a recent article titled “More Americans Are Writing Their Pets Into Their Wills.”

You see, with human family members, you can take care of them by giving them an inheritance. On the other hand, you cannot give property to your pet because your pet is itself property. Nevertheless, you can provide financially for your pet with a pet trust, whether in Overland Park or elsewhere.

After all, the needs of a pet can be simple, but someone needs to care for them. A pet trust is a legal vehicle that can be designed to be there for your pet when you are not, providing a caretaker and financial resources according to your instructions.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.

Reference: The Wall Street Journal (January 12, 2014) “More Americans Are Writing Their Pets Into Their Wills”