Pet trusts are created for the care of animals after an owner passes away. Trusts can be funded by property or money, and a trustee must be designated. In the past, lawmakers have been reluctant to allow people to include pets in a last will, but today, many states recognize these trusts as a way for owners to care for pets after death.
Pet Trusts: Common Issues
When creating a pet trust there may be obstacles when it is time to fulfill its terms, including:
* Differing state laws. The state of administration may not be the state in which the trust is drafted, and the state of administration may not recognize a pet trust as valid
* Perpetuity rule difficulties. With perpetuity rules in some states, pet trusts may only be valid for a limited time. This limit can be insufficient for animals with long lifespans.
* Issues when determining the mental capacity of the drafter. Others may regard the drafter’s decision as outlandish, and that person’s mental capacity can come into question.
Taxes and Pet Trusts
In cases involving pet trusts, the IRS can’t tax the trustee or the pet. However, the IRS requires that states recognizing pet trusts must tax them at a lower rate than that of conventional trusts.
Pet Trust Alternatives
When a pet trust is not desired, a person may give a conditional gift to another, stipulating that the gift amount be used for an animal’s maintenance. However, some states do not allow conditional gifts, and may negate them altogether. In some areas, pet trusts can informally be created by giving the animal to another person, along with a sum to be spent on the animal’s care. Not all states recognize this arrangement -; the recipient can be taxed for the animal’s value and on the money given for the animal’s care.
Creating a Pet Trust with the Help of an Estate Litigation Lawyers in Glen Burnie MD
Pet trusts are a relatively new idea for many states, and when state laws vary matters can get confusing. Estate Litigation Lawyers in Glen Burnie MD can help you plan for the time after your death, and he or she can ensure that your pet trust is enforceable and valid. You can visit website Domain or their Facebook page for more information.