Estate Planning for Pets and Domestic Animals

In 2005 I worked with the Hawaii State Legislature to pass H.B. 1453, a bill validating trusts for domestic and pet animals. The bill provides Hawaii's citizens with a voluntary, legally enforceable means of providing for the care, support and medical needs of one or more of their pets and domestic animals after the owner's death. Prior to the passage of this bill there was no legally enforceable means for animal owners to provide for their animals after an owner's death.

There are many good, caring, intelligent people in Hawaii who want to be able to provide for their pets through the creation of a legally enforceable trust. Under this new law people can designate a trustee to manage a fund for the care, support and medical needs of their pet(s). They can name the trustee or another caretaker to have physical custody of their pet. They can also name a third party to oversee the administration of the fund and look out for the interests of the pet.

At the death of the pet(s), the new law provides for the disposition of the remaining property in the pet trust in one of three ways: 1) the remainder can go to a person or charitable organization designated in the trust instrument; 2) if there is no such person or organization designated, the remainder can go to the general "residuary" beneficiary of the trust; or, 3) if there is no other beneficiary, the remainder will go to the heirs of the person who established the trust according to Hawaii law.

The law also contains a provision which would allow a court to reduce a bequest deemed in excess of the reasonable needs of the pet-beneficiary, thereby providing a mechanism to prevent excesses which might bring the law into criticism. Extrinsic evidence is admissible to show the costs of caring for your pet(s). In addition, H.B. 1453 contains a provision exempting the trust from the common law against perpetuities, which although rare, would also allow for the provision of care for long-lived pets such as birds and reptiles.

This law will help to ensure that the reasonable wishes of a testator regarding their pets and domestic animals are followed. It will help to avoid situations where greedy or uncaring relatives or friends take the money set aside for pet care and put the pet(s) in a shelter, when this would have been the last thing the testator would have wanted. More than 18 states have similar legislation allowing for enforceable pet trusts.

The law is designed so the pet trust can be incorporated into your overall general revocable living trust, or can be established as an independent, freestanding document, if your estate plan has already been created. Call my office today for help in establishing a trust for your pets and/or domestic animals.