Many of us have pets and we treat them as part of the family. As some of you might know, I have 2 rabbits and I treat them like my children. I care about my rabbits so much so that I keep a blog for them. So when you did your estate plan (assuming you did one and if not, what are you waiting for?) and you thought about things to give to your spouse, kids, grandkids, etc., did you think about your pets? Probably not. In fact, most people do not.
We’ve heard about Pet Trusts in other states and in the news (Leona Helmsley) and you might think that that’s a good idea for your pets. Unfortunately here in Massachusetts, a Pet Trust is not an option because there is no statutory authority to create one.
A pet trust traditionally is when a sum of money is left to a pet. The beneficiary of the trust is the pet and there is a caretaker/trustee that manges the trust and takes care of the pet. Massachusetts defines pets as personal property and therefore, you can’t leave money to your pet, just as you can’t leave money to your toaster. Someone should tell our legislature that our pets are not simply property – they’re our loving companions and best friends. When was the last time you snuggled with your microwave?
So what can we do here in Massachusetts instead?
We can still create something that we call a “pet trust” but it won’t be a pet trust in the traditional sense. In the Massachusetts version, instead of designating the pet as the beneficiary, you would name the caretaker/trustee as the beneficiary of the trust with a duty to own and take care of the pet.
What’s the difference you ask?
In the traditional pet trust, the caretaker has an obligation to take care of the pet because the pet is the beneficiary of the money in the trust. In the Massachusetts ad hoc version of the pet trust, the caretaker is the beneficiary so they really can do whatever they wish with that money – including not taking care of your pets.
Until the legislature statutorily authorizes the creation of pet trusts here in Massachusetts, we will all have to suffer the uncertainty that comes with setting up the ad hoc version of the pet trust. It’s still better than nothing.
[...] in MA? Is that why a pet trust bill was created? I see that 42 states have legalized pet trusts. http://boston-estate-planning.com/es…ng/pet-trusts/ [...]
[...] In the past, if someone who lived in Massachusetts wanted to leave money for a pet in case they were to pass away, the only way they could do it was by leaving the money outright to someone and hope that that person will take care of the pet. That person was not obligated in anyway to spend the money on the pet and no one could hold them accountable. [...]