Ohio Estate and Special Needs Planning

February is "Responsible Pet Owners" Month

February has been designated Responsible Pet Owners month.  Responsibility for your pet extends to planning for its care if you are no longer able to.  According to the Humane Society of the United States, about 500,000 pets are euthanized in shelters each year because their owner died and left no instructions or provisions regarding their pet's care.

The best method to protect your pet's future care and well-being if you die is to create a pet trust.  Leaving provisions for a pet's care solely in a will is not recommended because a will contest could leave the care of the pet in limbo.  With a trust, you specifiy who will care for your pet, how your pet will be cared for, and how your pet's needs will be funded.

AlerStallings works with pet owners to prepare legally enforceable plans for the future care of pets.  Contact us to learn more about how to protect your pet from an uncertain future.

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Clarifying Donor Intent

Leona Helmsley left money in her trust for the care of her dog.  She apparently also wanted her trust to provide for the welfare of dogs.  If, in her will and, or, trust, she did not leave money to a specific dog welfare charity, then a court could determine her intent based on many factors including her own words and past actions.

Three animal welfare organizations are suing Mrs. Helmsley’s trustees and the state's attorney general for their failure to abide by her wishes (Wills, Trusts & Estates Prof Blog, Animal Welfare Organizations File Suit Over Helmsley Estate Administration, August 12, 2009).  She would likely be upset knowing that her trustees provided such a small sum of money to dog welfare charities if reports are true that her trust was also intended to provide help to dog welfare organizations. 

One way Mrs. Helmsley could have avoided this result was to have left specific sums of money or assets to specific charities.  Instead of stating her wish to benefit dog welfare organizations, she should have chosen one or more such organizations (here, the HSUS, the ASPCA, and Maddie's Fund would be obvious contenders) and listed them clearly, including the specific amount or percentage amount she wanted each organization to receive.  Her trustees would have to honor her wishes, and if clearly stated, could not argue that her intent is ambiguous. 

Clarity and specificity in your will and trust will make it easier to have your intent fulfilled and greatly reduce future conflict. 

Ohio's New Pet Trust Statute

[Welcome to my blog, Ohio Estate and Special Needs Planning.  The inaugural post is about Ohio's new pet trust statute.  I love animals, and belong to the ranks of pet owners who consider their pets as members of the family.  I originally wrote this post for Laurie Kadair Redman, author of the blog Louisiana Pet Lawyer (Louisiana Pet Lawyer).]

Pet owners in Ohio can now arrange for the care of their pets after the owners are gone, thanks to a new law enacted in Ohio.  On January 1, 2007, Ohio became the 35^th state to enact a pet trust statute (HB 416; Ohio Revised Code Section 5804.08). Trusts for the care of pets under this statute are now more enforceable.

Ohio, in Revised Code section 5804.08, has adopted the provisions of the Uniform Trust Code section 408, “Trust for the Care of an Animal.” While preparing a trust for the care of a pet has always been possible, such trusts were discretionary and, in the opinion of many, served as mere power of appointments with little means of enforcement. Since there were no beneficiaries in a pet trust, there was no one with standing to enforce the trustee’s obligations.

Now, Ohio pet owners can be assured that if they set up a pet trust properly, there will be persons with standing to enforce the trustee’s obligations. This person could be someone named in the trust or designated by the court. The person appointed by the court will first have to show an interest in the pet’s welfare.

A statutory trust for the care of a pet will care for one designated pet or several pets. If the settlor, or person who creates the trust, has a statutory trust prepared to care for all animals in the settlor’s care at the settlor’s death, the trust will care for any animals in gestation as well.

A trust for the care of a pet must be funded with an amount considered reasonable in light of what amount is needed to care for the animal or animals. Such an amount should be calculated by the settlor using factors such as estimated veterinary bills, food expenses, recreation costs (toys, dog parks, etc.), occasional boarding costs (plan financially for one or two weeks a year), life span (a dog’s general life expectancy is 15 years, while a parrot’s can be 80 years), and burial or cremation expenses (burying or cremating a cat is much different financially—and logistically—than burying or cremating a horse).

If a court determines that a trust’s funds are excessive and unreasonable, the court will distribute the excess to the settlor or settlor’s beneficiaries or heirs. This might create a conflict between beneficiaries or heirs, and the welfare of the pet. To avoid this result, do not grossly overfund the trust to lessen the chances of a beneficiary or heir challenging the trust. Another option would be to designate any excess funds to a charity. A good rule of thumb is to calculate the amount that would be required to board your pet for the remainder of its life and use that amount to fund the trust.

Now, in Ohio as in 34 other states, pet owners can create a trust to provide care for their pets after the pet’s owners are gone. The new statutory trust is more enforceable and protected by statute. This peace of mind is invaluable and immeasurable for pet owners who consider their pets to be members of the family.