Trusts for Pets

Establishing a pet trust as part of your estate plan will ensure that your companion animal is well cared for if you become unable to look after them because of death or disability. These types of trusts are explicitly allowed under Michigan law (MCL 700.7408). Enacted in February 2024, this statute establishes that a trust can be created specifically for the care of designated pets. While the key considerations for a pet trust are similar to other trusts for human beneficiaries, it’s essential to understand what the requirements are — and how this instrument can help you achieve your objectives.

Creating a Pet Trust

A pet trust is a legal arrangement that allows you to provide for your pets after you pass away, or in the event you become incapacitated. One can be set up for nearly any type of animal — including dogs, cats, birds, rabbits, horses, and other domestic or companion animals. You can also provide for a group of pets. Unlike a last will and testament, a pet trust does not need to go through the formal probate process. This can allow you to ensure your pet is cared for in the way you wish immediately.

As with other types of trusts, there are several requirements that must be met in order for the trust to be valid. The key components of a pet trust include the following:

• Identification of your pets — You must identify your pet by name, description, age and any microchip information in the trust.
• Naming a trustee — Choose a primary trustee who is honest and able to handle the administrative requirements of the trust, including accounting for the income and expenses of the trust. It is a good idea to also choose a successor trustee in the event that the primary trustee becomes unable to serve as trustee. Make sure they understand and agree to the responsibilities.
• Designating a caregiver — Choose a primary caregiver who is willing and able to take care of your pet. Make sure they understand and agree to the responsibilities. You should also include a backup caregiver who will take over in the event the primary caregiver is unable to fulfill their duties.
• Providing detailed care instructions — A pet trust should include detailed instructions for your pet’s care. Specify your pet's daily care needs, including food preferences, medical care, grooming, and exercise routines. This helps to ensure your pet's lifestyle remains consistent.
• Naming a remainder beneficiary — Decide what happens to any remaining funds in the trust after your pet passes away. These funds could go to a charity or another beneficiary of your choice.
• Regular inspections — You may want to include a provision for regular check-ins by the trustee or someone else to ensure your pet is being well cared for by the caregivers.

In order for the trust to be valid, it must be funded. Determine the amount of money needed to cover your pet's expenses for their lifetime. This includes food, medical care, and any other special needs. Consider the pet's life expectancy and any potential emergencies that could arise. It’s also important to take into consideration that aging pets will require more veterinary care.

Benefits of a Pet Trust

A pet trust has numerous benefits. Significantly, you know best what type of food and toys your pet enjoys and how often they need to go to the groomer. With a pet trust, you will be able to ensure that they will receive the same care you provided to them. In addition, since you can instruct the trustee to conduct regular check-ins, you can hold the caregiver accountable for the care they are giving to your pet.

A pet trust is also flexible. For example, you can disperse the funds in installments, rather than leave one lump sum in a will for the caregiver to use. This ensures that the funds will be used for your pet’s care for the entire duration of their life. Importantly, the funds in a pet trust can only be used to take care of your pet.

Contact an Experienced Michigan Estate Planning Attorney

If you’re considering creating a pet trust, it’s crucial to work with an experienced estate planning attorney who can ensure your wishes are satisfied and the trust complies with state law. With office locations in East Lansing, Mt. Pleasant, Grand Rapids, and Detroit, The Gallagher Law Firm offers a wide range of estate planning services to individuals and their families. To learn more about how we can assist you, contact us online, call (517) 853-1515 or email bpg@thegallagherlawfirm.com.