Many pet owners worry about what will happen to their pets should the owner become unable to care for them or pass away. As a result, some people choose to include their animals in their estate plans by forming a pet trust. But what does a pet trust do, and can you create one in Texas?
Understanding Pet Trusts
A pet trust is a type of trust in which a pet owner – called a grantor – places assets in a trust managed by a trustee for the benefit of the grantor’s pet(s). A pet trust can provide money to fund a pet’s care and maintenance. With a pet trust, a grantor puts funds in the trust for a trustee to manage. The grantor also designates a caregiver responsible for receiving funds from the trust for the grantor’s pet’s care and maintenance, including food, shelter, grooming, and physical or medical care.
Are Pet Trusts Legal in Texas?
Texas law expressly permits people to set up pet trusts. Under Texas Property Code §112:037, a pet owner may create a trust to provide for the care of an animal alive during the grantor’s life. In Texas, a pet trust terminates upon the animal’s death, or if a pet trust covers two or more animals alive during the grantor’s life, upon the death of the last surviving animal. The trust may only distribute funds for the animal’s care and maintenance, unless a court determines that the value of the trust’s property exceeds the amount necessary for the animal’s care.
Why Consider a Pet Trust?
Pet owners may consider incorporating a pet trust into their estate plan for several reasons, including:
- Peace of mind: A pet trust ensures that your pet will not end up sent to a shelter, given away to a stranger, or abandoned after your incapacity or death.
- Enforceability: A trustee must use the trust’s assets to care for your pet; conversely, leaving instructions in a will does not bind the executor or beneficiaries of your estate to care for your pet(s).
- Avoiding disputes: Pet trusts provide clear instructions to your loved ones regarding your intentions for the continued care of a pet.
How to Set Up a Pet Trust in Texas
Setting a pet trust in Texas involves several steps:
- First, you must choose a trustee to manage the funds you place in the trust and a caregiver responsible for arranging your pet’s care.
- Next, you must draft a trust document that provides specific instructions about the care you wish for your pet to have, including dietary choices, veterinary care, and end-of-life decisions (i.e., when to discontinue veterinary care in favor of euthanasia).
- You must decide how much money to put into the trust, keeping in mind that excessively funding the trust may allow a court to give the trustee authority to use some of the trust’s assets for purposes other than to care for your pet(s).
- Finally, you must sign the trust document and provide copies to the trustee and caregiver. The trustee can then open a bank account to hold the trust’s money.
Alternatives to Pet Trusts
Other options you might consider to ensure continued care for your pet(s) after your incapacity or death include:
- Providing money to a trusted individual (which may raise issues of enforceability in the absence of a contract)
- Including instructions in your will, which executors/administrators or beneficiaries might not honor
- Pet protection agreements
- Enrolling your pet(s) in nonprofit pet stewardship programs
Contact an Estate PlanWhat Is a Pet Trust and Is It Legal in Texas?ning Attorney Today
A pet trust can ensure that your dog, cat, or other domestic animal will receive continued care should you become disabled or pass away. Contact Carroll Law Group, PLLC today for an initial consultation with a trusts attorney to learn more about pet trusts and how they can help you provide for your beloved animals should you become unable to care for them due to incapacity or death.