Funding Your Pet Trust

To determine how much money to put into (“fund”) your pet trust, consider the following:

• life expectancy of your pet
• cost of current or future medical treatment
• trustee fees
• whether or not to compensate the caregiver
• cost of basic care items such as food, medication, and grooming

NOT TOO LITTLE, NOT TOO MUCH
You will want to set aside enough so that the trust does not run out of funds during your pet’s lifetime, but not so much to cause your heirs to contest your trust. If you put too much property in the trust, a judge may determine that the value of the trust property exceeds the amount necessary to care for your pet and order that the excess property be given back to the person who created the trust or to others named in the trust, or according to your estate plan.

NOW OR LATER
You can fund your pet trust during your lifetime or after your death. Your pet trust needs assets in it to pay for the care of your pet. If you fund your trust during your lifetime there will be assets immediately available to care for your pet if you become disabled or die. If you do not fund the trust during your lifetime and you become disabled, there would be no funds in the trust to care for your pet. If you died before funding the trust, assets may first have to pass through probate causing a delay before your trust receives funds to care for your pet.