New Laws for Animal Trusts

Effective October 1, animal owners can create legally enforceable trusts to ensure the continued care of their dogs, cats, horses or other animals they own. Such trusts were being created even before the Maryland legislature acted in its most recent session; however, those were honorary only. The new statute provides for enforceability.

Under the statute, a trust may be created to provide for the care only of animals that are alive during the lifetime of the maker, or “settlor”, of such a trust. The settlor can set up the trust during the settlor’s life or through a will that makes the trust effective upon the settlor’s death. Either way, the trust should appoint a trustee, who holds the trust assets for the benefit of the animal, and a caregiver, who continues the care of the animal. The trust would terminate upon the death of the animal, or the death of the last surviving animal if more than one animal is a beneficiary. Upon termination, any trust assets remaining would be distributed to human successor beneficiaries as directed under terms of the trust.

The new statute also provides for courts to determine if any animal trust is funded beyond what is required for the animal’s care as envisioned in the trust. This means human beneficiaries of a settlor’s will, disappointed by the diversion of part of their inheritance to the care of the animal, may challenge the funding of the trust as excessive. For that reason, the trust should be drafted to state a detailed array of care for which trust funds may be expended. For example, a trust may authorize paying for maintenance of the fences of the pasture where a horse beneficiary romps, medical insurance, or continuation of any training or racing regimen to which the horse may be accustomed. The trust may provide further that its assets may be applied to the defense of any such legal claims. By making clear the scope of care intended, the settlor reduces the opportunity for challenges to trust expenditures.

Any concerned about ensuring continue care of a beloved animal should consider an animal trust. For more information on this topic, please contact Jay Merwin at merwin@bowie-jensen.com.