In Good Hands (Link)

July 08, 2002 Written by: Tracy Vogel, Staff Writer

If Irene Wright were to die, her 10 cats and four dogs would still live out their lives comfortably in her home.

"This is their home, and I want them to be able to stay here if something happens to me," said Ms. Wright, a central Florida resident. "It gives me great peace of mind."

They certainly won’t suffer for lack of planning. Ms. Wright visited an attorney and set up a trust fund that would provide for the animals and allow a pet caretaker to live in her home rent- and utility-free.

Then she appointed a board of friends, relatives, and a veterinarian to choose that caretaker and periodically check up on that person. A different board will dissolve the fund and sell the property when the pets die or the situation becomes economically unfeasible.

"I figured a team would be better in making the decision than one person," she said of her unique approach. "You don’t have the sole responsibility on one individual."

Providing for a pet upon your death can be trickier than providing for a relative. You can’t just turn your savings over to your iguana and let it make its own way in the world. Your animal will need a guardian.

"Far too often, we just assume family or friends will take care of our pets, but that’s not always the case," said Peggy Hoyt, estate planning attorney and author of All My Children Wear Fur Coats: How to Leave a Legacy for Your Pet.

"We need to think about who we trust, and name not only that person, but an alternate."

Don’t let your estate go to the dogs

Pet inheritances work two ways. A few states—Washington, Arizona, Colorado, Montana, Tennessee, Missouri, and New Mexico—legally allow trusts to be created with the pet as beneficiary. A human being is named as trustee, and the money belongs to the animal, not its guardian. In other states, people must assign the trust to the guardian of the pet, and hope he or she uses the money as it’s intended. "Courts have always regarded pets as property, and they find it odd to say, ‘I’m going to leave money to take care of an inanimate object,’ " said Adam Karp, a Seattle, Wash., attorney specializing in animal law.

Recent history is rife with abuses of trusts intended for pets. Some are tragic: In New York in 1932, heirs killed a man’s cats, which he’d provided for in his will, in order to get to the money, then won a court challenge by the executor of the estate, who argued that they had thwarted the man’s will. The courts reluctantly agreed with the heirs that the pets’ inheritance was not defendable under current law.

Others are comical. In Arizona, a lawyer left as the trustee for a dog bought a sports car, then argued that the dog had the right to and could obviously afford to ride in a luxury automobile. Another man, entrusted with a 9-year-old black Labrador, Clancy, in return for a free place to live and a monthly salary, saw the dog live to an amazing age of 21 years. That’s when the bank, which had a high rate of staff turnover, finally looked into the situation closely and discovered that the man was on his third Clancy. Whenever the dog died, he would quietly replace it with another black Lab.

David Congalton and Charlotte Alexander use those two stories as examples of how things can go wrong in their recent book, When Your Pet Outlives You: Protecting Animal Companions After You Die.

"You’ve really got to find people who share your passion for animals," Mr. Congalton said. "For me, the measuring stick is going to be, ‘Who shares your passion?’ "

Choose wisely

While that may be the measuring stick, it’s not the entirety of what needs to be taken into account. Ms. Alexander boils it down to three key points: compatibility, capability, and compassion.

The person you assign to take care of your pets has to be able to do so. Don’t will your Great Danes to a person who lives in a tiny apartment. "If you have a 70-pound dog, you might not want to place it with an elderly person," Ms. Hoyt said.

You probably don’t want to leave your pet with an elderly person in any case—one major factor in choosing a pet guardian is choosing someone who’s likely to outlive you and your pet, attorneys said. And to be on the safe side, you should have more than one pet guardian—an alternate—in case something happens to take your first choice out of the picture.

Ms. Hoyt owns horses. She’s created a trust for a pet caregiver, who has to be willing to care for horses, and deal with all the work that involves—grooming, hoof care, exercise, medical attention.

"It’s a huge commitment of time, energy, love, and financial resources," Ms. Hoyt said. "I know the commitment it takes, and you want to make sure the person you choose has that same commitment."

The person you choose has to be open to the idea—so don’t just leave your animal to someone. Talk to him or her about it first. Propose it, and make sure the person agrees.

"It’s their willingness to love a strange pet—one they didn’t raise from a baby," Ms. Hoyt said. "Sometimes it’s harder for folks to assume responsibility for an adult animal."

Make sure the person knows the animal. Introduce them. Arrange visits. Watch to see how well they get along.

Be willing to update your plans. Marguerite Howard, newsletter editor for the New York City animal organization Bide-A-Wee, has a daughter who owned two cats when she was married. Her husband preferred dogs, so they got two of those. Unfortunately, the cats and dogs didn’t get along.

Earlier in her life, the daughter had asked Ms. Howard if she would take in the cats someday if necessary. Ms. Howard had agreed then, but over the years, also obtained several cats herself. If she were to take in her daughter’s cats, she would have owned a total of eight—far too many.

"This happens a lot," she said. "Circumstances change, and you can’t do it."

The fine print

No matter who you choose as your pet’s guardian, do your research and get everything in writing. Run it by your attorney. Make sure your attorney is sympathetic to your needs.

Ms. Hoyt is directing 100 percent of her estate toward caring for her horses, cats, and dog, then to selected family members. But she has faith in her family, which has a history of animal care—her father was once president and chief executive officer of the Humane Society of the United States.

Other people may have a more difficult time. Mr. Congalton and Ms. Alexander recommend against putting too much money toward your pets, noting that the more money you bequeath, the more likely your trust is to meet with a challenge. The trick is to provide an adequate amount for the pet and guardian without providing too much. Courts have proven willing to slash the amount of a pet trust fund considered excessive.

You can try to shield the money designated for your pet from unscrupulous guardians. One bank recently had a cat tattooed to ensure identification—tattooing or microchipping can keep your animal from simply being replaced by a look-alike when it dies.

Don’t leave the leftover money in the trust fund to the pet’s guardian, Ms. Hoyt advised. It presents a temptation to get rid of the animal. And put your wishes about the standard of your animal’s care in writing to give the guardian—and the court—clear ideas about your intentions for the funds.

Another option

If you can’t find a person to whom you can entrust your animals, private organizations exist to provide a paid home for such pets. Humane agencies are sometimes willing to guarantee a placement in an appropriate home in return for a donation. Veterinary schools occasionally offer to take in companion animals for a hefty sum. Again, make sure that for any agency or organization, you have the commitment in writing.

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"I guess it’s like a lot of things in life," Ms. Alexander said. "You plan as much as you can, but eventually you have to put your trust in someone or something."

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Bide-A-Wee has a home that can hold 50 dogs and 50 cats. For a $10,000 fee, the cat or dog will live out its life at the Golden Years Retirement Home, which offers indoor play rooms and outdoor exercise areas for dogs, in addition to its kennels.

If you leave your pet to a private agency, be sure you know what will happen to the animals if the organization goes under. Find out how stable they are, and whether they have a back-up plan, attorneys said. If the home goes out of business, where will your animal end up?

Be sure to visit the place and see where your pet will be housed, Ms. Howard said. Check for a board of directors—a group of people who will watch the situation and prevent such problems as overcrowding.

But the best situation is generally one that involves a trusted family member or friend. Think about your pet guardian the way you would think about assigning a guardian to your children, Ms. Alexander said.

It’s never an easy thing to contemplate or discuss, but at least when your guardian is selected, you’ll know that despite a degree of unavoidable uncertainty, you’ve done your best.

"I guess it’s like a lot of things in life," Ms. Alexander said. "You plan as much as you can, but eventually you have to put your trust in someone or something."

For more information (hotlinks at site):

Purchase Peggy Hoyt’s book at Legacy for Your Pet

Purchase David Congalton and Charlotte Alexander’s book

Humane Society of the United States: Providing for Your Pet’s Future without You

Oregon Congressman Introduces Charitable Pet Trust Legislation

Owners Encouraged to Remember Pets in Wills

-- Anonymous, September 10, 2002