Prior to meeting with an estate planning attorney, clients are usually requested to provide a comprehensive list of their family, assets, and end-of-life goals in an Estate Planning Questionnaire. Many times, clients forget to list their pets, or they often wonder what will happen to their beloved pets if they pass away or become incapacitated. Pet trusts under Colorado Revised Statutes § 15-11-901 offer a creative and tailored solution to this concern. A pet trust is a legal document that allows you to set aside assets/funds for the care of your pets after you pass away.
Let's explore why pet trusts are important and how they work in our state.
Why Pet Trusts Matter:
1. Continuity of Care: Pet trusts ensure your animal companions receive consistent care and maintain their quality of life after you're gone.
2. Financial Security: They provide dedicated funds for your pet's needs, including food, veterinary care, and other expenses.
3. Legal Protection: Unlike informal arrangements, pet trusts are legally binding, giving you peace of mind that your wishes will be carried out without the opportunity for drawn out legal battles.
4. Flexibility: Trusts can be tailored to your pet's specific needs, lifestyle, and even quirks.
5. Longevity: Some pets, like certain birds or tortoises, can outlive their owners by decades. A trust can provide for them throughout their entire lifespan.
6. Avoiding Shelter Systems: You may have adopted your pet from the shelter system. Pet trusts help prevent your animals from ending up back in shelters or being euthanized due to lack of care options.
Key Features of Pet Trusts in Colorado:
1. Covered Animals: Trusts can be created for domestic or pet animals and their offspring in gestation.
2. Duration: The trust continues until no living animal covered by the trust remains.
3. Use of Funds: Trust assets must be used for the care of the covered animals, not for the trustee's personal benefit (except for reasonable fees and expenses).
4. Enforcement: The trust can be enforced by:
o An individual designated in the trust instrument
o The person having custody of the animal
o A remainder beneficiary
o An individual appointed by the court
5. Trustee Appointment: If no trustee is designated or willing to serve, a court can appoint one.
6. Termination: Upon termination, remaining assets are distributed as directed in the trust, or through the residuary clause of a will, or to the transferor's heirs.
7. Registration: All pet trusts must be registered in Colorado, and trustees are subject to state laws.
Creating a Pet Trust:
1. Type of Trust: Determine whether the trust should be created while you’re alive (for incapacity planning), or solely on your death (end of life planning).
2. Specificity: Clearly identify the pets to be covered and provide detailed care instructions.
3. Funding: Ensure adequate funding of assets into the trust for the expected lifespan of your pets.
4. Trustee Selection: Choose a trustee who is willing and able to manage the trust and care for your pets.
5. Alternate Caregivers: Designate backup caregivers in case your first choice is unable to serve or possibly unwilling to serve.
6. Remainder Beneficiary: Specify where any remaining funds should go after your pets pass away.
Pet trusts offer peace of mind, ensuring your animal companions will be well cared for even when you can't be there. By taking advantage of Colorado's pet trust laws, you can provide long-term security for your furry, feathered, or scaly friends.
Remember, while this post provides an overview of a trust for your pet, pet trust creation involves complex legal considerations. Always consult with a qualified attorney to create a trust tailored to your specific situation and your pets' needs. The attorneys at Ross Law P.C. are ready to discuss how a pet trust can be included in your new or current estate plan.
The content on this website is general information provided as a public service by Ross Law. The information contained herein is for informational purposes only and does not provide legal advice for any specific situation. The use of this website, including contacting Ross Law P.C. through the website portals does not create nor suggest any attorney-client relationship between any read/user and Ross Law P.C.
Share On: