Dog adoptions and purchases have increased dramatically during the coronavirus pandemic. Many have sought companionship by adding a dog to their family. The surge in demand for dogs has left many private breeders, pet stores, and nonprofit rescues unable to satisfy the current demand. Whether you are a new dog owner who has recently adopted a puppy or you are a longtime pet owner, it is wise to think about what will happen to your pet after you are no longer here. Sadly, many pets from senior owners or owners who die unexpectedly end up in animal shelters. Thinking about providing for your pet through your estate plan is an essential aspect of pet ownership.
Creating a Will is Not Enough to Protect Your PetPeople assume that they can just leave their pet money or give their friend money to spend on the care of their pet. There are a few problems with this strategy, however. Under North Carolina law, a pet owner cannot give an animal money or leave money for their pet in their will as they can with a human being. Under our legal system, a pet is considered personal property, not a person with legal rights. There is an alternative way to protect your pets after you pass away, which involves creating a pet trust.
Creating a Pet Trust in North CarolinaIn North Carolina law, pet owners can create an animal care trust, also called a pet trust. These types of trusts have a unique section in the North Carolina Trust Code, which states how people must create and administer trusts in North Carolina. A pet trust is a legally enforceable trust that allows someone to leave assets or money to one or more of their named pets. The pets must be alive at the time the owner creates the trust.
The grantor, or person who creates the trust, can choose a trustee who will care for the pets after the owner passes away. The trustee has a right to use funds the grantor transferred into the pet trust to care for the trust. The trustee will have access to the funds in the trust to pay for housing costs, food costs, and veterinarian bills on behalf of the pet or pets. As the grantor, you have significant control over the requirements you place on the trustee. In the trust agreement, you can write instructions for your pet’s care. These instructions are legally enforceable. If your trustee does not abide by the requirements you outlined in the trust agreement, someone can petition the court to replace the trustee for failure to fulfill his or her fiduciary duties.
How to Set Up a Pet Trust in North CarolinaThere are several different ways you can establish a pet trust in North Carolina. The most important thing you can do is speak to an experienced pet trust lawyer. Your lawyer will be able to analyze your financial situation and help you create a plan that will ensure your pet is taken care of after you are gone. Your first option is to add language to your will to create a trust after you passed away. The trust will not come into existence until your death.
Another option is to add a pet rest into a trust you have already created, such as a revocable living trust. For clients who have already established a trust, this is an easy way to provide for their pets. Finally, you can create a new trust that exclusively ensures your pets will receive the care they need. The safest option is to create a new trust or incorporate a pet trust within a living revocable trust.
Can You Modify a Pet Trust?Whether the owner creates a separate trust or creates a testamentary trust with language in his or her last will and testament, the owner can amend the trust if needed. The owner can add a trust amendment or codicil to account for any pets that have passed away or who have been added to the pet owner’s household.
Contact a North Carolina Pet Trust LawyerIf you are wondering what will happen to your beloved pet after you pass away, the law firm of Arnold & Smith, PLLC, is here to help. We offer potential clients a free initial consultation so they can learn more about creating a pet trust and ask us questions. Contact us today to schedule your initial consultation.