Pet trusts are created for the continued maintenance of animals after a person’s passing. These trusts are typically funded by property or money, and they have a trustee as an administrator. In the past, laws have been reluctant to permit people to bequeath assets to pets. Today, many jurisdictions recognize the pet trust as a way for pets to receive proper care after an owner passes away.
Problems With Pet Trusts
When drafting a trust’s terms, clients of Wills And Estates Lawyers in Gilbert AZ may encounter obstacles in their path toward those terms’ fulfillment. Problems may include:
•Differing rules on pet trusts. The jurisdiction where the trust will be administered may be different than the one in which it was created, and it may not recognize the pet trust.
•Rules against perpetuities. Because of these rules, some jurisdictions may only enforce pet trusts for a set duration, which can be insufficient for longer-lived animals.
•Questions of the drafter’re mental capacity. Some pet owners’ choices may seem eccentric to others, raising doubts as to their mental state.
Pet Trusts and Taxes
In pet trust cases, the IRS cannot tax the trustee or the pet. However, the Internal Revenue Service stipulates that in areas recognizing pet trusts, the trust itself can be taxed at a lower rate than other trust types.
Pet Trust Alternatives
If a pet owner lives in a jurisdiction that does not recognize pet trusts, they can make a conditional gift to another person with the requirement that the money be used for an animal’s care. However, conditional gifts are disallowed in some areas. There are less formal methods of creating a pet trust; the drafter can give the animal to someone, along with money for its care. These gifts may be taxable in some circumstances; get more information from The law firm of Janet R. Feeley L.L.C. Visit the website.
Consult a Lawyer for Advice
The pet trust is a relatively new concept, and they can be confusing when jurisdictional conflicts arise. Wills And Estates Lawyers in Gilbert AZ can help a client ensure the validity and enforceability of a pet trust, and they can also assist in its creation. Visit the website for more information.
