July 23, 2007

What will happen to your pet after you are gone? A pet trust can give you peace of mind and ensure your pet receives lifelong care.

In 39 states and the District of Columbia, pet owners can establish trusts to ensure the lifelong care of their companion animals. As part of their estate planning, in these jurisdictions individuals can assign their pets a permanent guardian and make provisions for veterinary care, food, water, and companionship. Pet trusts create peace of mind for pet owners and—in a nation that still euthanizes 3-4 million dogs and cats each year for lack of homes—a vital safety net for their pets.

Although some states have passed laws providing for enforcement of pet trusts, federal law lacks such measures. The Charitable Remainder Pet Trust Act (H.R. 2491), sponsored by Reps. Earl Blumenauer (D-OR) and Jim Ramstad (R-MN), would change this by allowing the creation of charitable pet trusts under the federal tax code. Individuals may provide ongoing care for their pets and still shelter a portion of their estate for charity. Any remainder of the trust after the pet's death may also be designated for a nonprofit charity, such as an animal shelter.

The bill specifically recognizes valid pet trusts under existing state laws as potential charitable remainder annuity trusts (CRATs); provides a tax incentive for people to provide long-term care of their pets; parallels the initial CRAT legislation that encouraged the distribution to charity; gives charities an incentive to inform people of the availability of pet CRATs and pet trusts; and will result in a reduction of society's burden in caring for "unwanted" dogs and cats after the guardian dies.

An estimated 63 percent of American households have pets and as many as 25 percent have included pets in their wills. Passage of the Charitable Remainder Pet Trust Act will help millions of responsible animal guardians to secure the well being of their pets in the event of unforeseen circumstances.

Paid for by Humane Society Legislative Fund and not authorized by any candidate or candidate’s committee. HSLF, 519 C Street, NE, Washington, DC 20002.