STORY TOOLS

• E-mail story
• Comments
• iPod friendly
• Printer friendly

More Latest News

• Collier schools summer bus schedules announced
• Report: UCF players tell of intense workout, coach cursing before Plancher's death
• Traffic enforcement locations for Collier, Lee

Share and Enjoy [?]

My goal in life is to be as good of a person as my dog already thinks I am. — Author Unknown

Last weekend my husband and I had our motor home out and I thought about how we obtained our first RV. My husband wanted a boat or a motor home. The scales tipped in favor of the RV when he told me that our cocker spaniels, Murphy and Lucy could join us on weekend travels if we had a motor home. I was feeling guilty about leaving with friends.

Essentially, the RV is an oversized doghouse on wheels. It does serve a practical purpose though as a comfortable evacuation vehicle for hurricanes. Friends with pets and no other arrangements are invited to join us as we leave Marco for higher ground. The bottom line is that many of our decisions hinge on what is best for the dogs.

Setting up a trust account for your pet is not all that unusual. What is unusual is funding it with $12 million as Leona Helmsley did for her Maltese. I knew of a woman who established a trust fund for her dog. For years, expenses incurred by the dog’s appointed caregiver were paid from the trust. Eventually, a new trust officer was assigned and she arranged a visit to her clients. Expecting to see a mature 12-year-old Labrador retriever, the trust officer was amazed when greeted by a puppy. The “original” Fido had passed away. Not wanting his good fortune to end, Mr. Caretaker never spoke of Fido’s passing and continued to receive funds to maintain the lifestyle they’d grown accustomed to. This included provisions for Fido, salary, room and board for Mr. Caretaker.

The moral is that there’s never a guarantee that funds set aside will be used for the purpose intended. With a pet trust, you establish a legal contract requiring people to do certain things. If my husband and I were to be killed in a common accident our daughter’s would gladly take the dogs and we’ll leave funds earmarked for that purpose. Not everyone has such assurances and a trust may be in order.

Many of us pamper our pets. Consider the reality that a pet could outlive the assets set aside. For instance, Murphy and Lucy are quite fond of their premium food, dog ice cream treats and NASA quality mattresses. Will funds set aside last as long as they do?

Clients manage retirement assets with the objective of funds lasting for their lifetime. Need we now seek investment advice for our pets?

On a serious note, a woman went to the hospital for a simple procedure and left her cocker spaniel with her veterinarian for a few days. Sadly she never did come home. After three months and no luck finding a home for the dog, the vet faced a difficult decision. As known cocker spaniel lovers, word reached my husband and the next morning found the dog a home. Not everyone is Leona Helmsley and has $12 million to set aside, yet we do make plans to provide for those who depend upon us. This may include pets.

In 2000, Section 408 of the Uniform Trust Code was adopted allowing states to enact a statute allowing for pet trusts to be enforced by a designated person or for the courts to appoint one. Before these changes, naming a pet as a beneficiary was viewed as laughable, but has since gained widespread acceptance.

If one does have extra resources, Florida does allow pets as beneficiaries and enforcement of the trust is provided by someone acting on the pet’s behalf. To avoid legal pitfalls, establish a carefully drafted trust. The issue is transferring the pet and the funds into the trust as trust property, naming a caretaker for the pet as a beneficiary of the trust, and to designate the party who’ll watch the caretaker and the funds as the trustee of the trust. This type of “pet trust” affords flexibility and enforceability.

For a more detailed discussion of this issue, contact a legal professional and a financial advisor to assist you with the investment assets.

---

Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.