OkcPets Magazine September 2023

September / October 2023 • OKC Pets 25 For the Future of Furry Friends Include Pet Trusts in Estate Planning by Taylor Kincanon, Evans & Davis, PLLC P ets, whether they are be- loved companions or essen- tial service animals, provide unconditional love, support, and purpose to 86.9 million homes in America, according to the American Pet Products Association. That number has in- creased after the pandemic that the country and the world has faced, with more than 23 million American households adopting a new pet during the pandemic, according to the American Soci- ety for the Prevention of Cruelty to Animals (ASPCA). Pets provide a sense of pur- pose and companionship, and studies have shown that they contribute to a reduced sense of loneliness, lower stress, and comfort in our daily routine. Further, Americans spent $136.8 billion on our pets in 2022. Our pets have an integral role in our lives, but what happens to them when we are no longer here to care for them? Proper estate planning and the use of pet trusts allow us to ensure that our pets will continue to be cared for and will receive the support they deserve even after we are no longer able to provide it ourselves. What Is a Pet Trust? In estate planning generally, a revocable trust is a legal vehicle created by an indi- vidual or by married persons that is then funded with assets during our lifetime and provides benefits such as protections during disability, probate avoidance, the controlled and private distribution of our assets, and even the ability to provide for our pets in addition to our selected beneficiaries. Assets in the trust include items such as bank ac- counts, investment accounts, real property, minerals, and personal property, among others. A third party, the successor trustee, carries out our wishes in managing and distributing those assets at our disability or death according to the terms written in the trust. Such wishes can and should include directions and resources for how to care for the pets that we might leave behind. A pet trust, whether created through a revocable trust at our passing, set up during our lifetime and funded as a separate trust specifically intended for the care of our pets, or created through a last will and testament as a testamentary trust, ensures that pets will receive the care and attention they are accustomed to after their owner is no longer able to provide it. By establishing a pet trust, pet owners can provide financial support for their animal’s veterinary bills, daily care, food, toys, grooming, and other expenses and necessities. Pet trusts can designate individuals or an entity as the caretaker of the pets. The trust can provide the resources needed to ensure that pets receive the care they are accustomed to, and it can eliminate any financial burden on the new caretaker. Key Considerations for Pet Trusts Oklahoma has enacted law that allows for the creation of pet trusts to provide for the care and maintenance of pets after an owner has died or become incapacitated. Oklaho- ma Statutes Title 60, Section 199 provides that trusts for the care of domestic pets or animals are valid, and unless the trust pro- vides for earlier termination, the trust ter- minates when no pets covered by the trust are still living. At the point of termination, a pet trust should specify what happens to the assets remaining in the trust. Common remainder beneficiaries include individuals or a charitable bene- ficiary, such as an animal rescue or other not-for-profit entities, focused on the care and support of pets. When considering a pet trust, one of the most important de- cisions is who will care for your pets in the manner prescribed in the pet trust. This can either be the successor trustee of your trust or the individual appoint- ed to manage the assets for the benefit and supervision of the pet beneficiary. The trustee can hire or employ caretakers for the pet if necessary or the pet trust might appoint one individual to be respon- sible for the assets of the trust and another individual to serve as the primary caretaker of the pet. If no trustee or caretaker is listed or if the selected trustee cannot serve in that role, Oklahoma courts can appoint a trustee to ensure that your pet receives proper care and oversight. As a pet owner, you can provide specific care instructions to your successor trustee or the pet’s caretaker. Care instructions often include information about the pet’s daily routine, dietary restrictions, medical care, and any other specific needs or preferences. A properly drafted estate plan is imper- ative to ensure that your wishes for your assets are carried out and the individuals that you will leave behind are cared for and protected, and your pet should not be overlooked in the planning. Pets are often overlooked during an already emotional time for the family and friends who have just lost a loved one. Pet trusts are an in- valuable tool for providing the support and care our pets deserve and the peace of mind that our trusted companions will be well cared for even after we cannot care for them ourselves.