by William Miller, Attorney at Law
When I speak with clients about their estate plans, the question, “What happens to my pets when I die?” often arises. In many cases, a child or loved one is more than willing to take the pet(s) in the untimely event of your death, and other beneficiaries or heirs of your estate are happy to let them do so. If there is disagreement among family members, no family, or if no one steps up and commits to caring for the animal(s), then it gets a little harder.
No one wants to think about their beloved Fluffy or Fido ending up in a shelter because none of the relatives are able (or willing) to care for the pet. If the client has a hamster with an average life span of 18-36 months, it is unlikely the hamster will outlive the individual. The average life span of a dog is 10-13 years and a cat 13-17 years. Other animals, however, have much longer life expectancies, with some larger parrots living 20-80 years, horses 25-30 years, and mules 35-40 years. This is where a pet trust can come in handy.
A pet trust? Really?
Yes! Under North Carolina law, pets are treated as personal property, just like a vehicle, household furnishings or jewelry. Many wills dispose of personal property in bulk to a particular beneficiary or beneficiaries, such as “to my spouse” or “to my children.” That beneficiary would likely have the right to legal custody of the animal, even if the owner had other plans for the animal that were not documented.
North Carolina General Statutes, Chapter 36C, Article 4, § 36C‑4‑408, Trust for care of an animal, you may structure a trust to benefit your pet(s) after your death. Pet trusts work similarly to regular trusts, with a pet guardian being selected, a trustee named (usually the pet guardian), and funds being set aside to care for the pet(s) during its remaining life.
The trust terminates on the death of the final animal named within. Any remaining funds are distributed by the trustee based on the instructions in the trust or the original will. Should no additional instructions have been included, the remaining funds will be distributed based on state law.
If you are concerned about what will happen to your pets after your death, make sure you bring up the issue when you speak to your estate planning attorney. If you need to develop an estate plan or update your plans, contact us today to schedule an appointment.