In Animals We Trust

By Kimberly Jones
Intern, Press, Potter & Dozier, LLC

The recent broadcast of the Westminster Dog Show calls to mind my own lovable canine companion, Lady. She is a miniature dachshund that is spoiled rotten by everyone that meets her; she just has that effect.

Without a doubt, Lady is family. She has a special diet, enjoys shopping for toys, loves to socialize; goes to the doctor; has her teeth cleaned regularly; goes to the salon and spa for beauty maintenance; has graduated from school; and has birth records as well as other documentation. Caring for Lady is like caring for a toddler that never grows up; she has all of the personality, but little ability to care of herself. Plus, her care is expensive.

Lady is not the only pampered pet in the country. According to the American Pet Products Association, which regularly tracks trends in American pet ownership, pet owners across the country annually spend billions of dollars on the care of their beloved animal friends. See the statistics here, http://www.americanpetproducts.org/press_industrytrends.asp.

Given that many make such financial commitments to our non-human companions, many wish to also provide for their care after they have passed away. Many feel that it is prudent to know that their Lady will be cared for. But, how will a caretaker be able to afford Lady’s needs? How much money will Lady need to live the rest of her life in the manner to which she is accustomed?

Maryland law for estates and trusts does not permit animals, i.e. property, to inherit money or assets. Therefore, prior to 2009 the only way to provide for your beloved animal after death was to bequest him or her to a (human) beneficiary in a will. The problem with this is that if the beneficiary does not have the means to care for your animal, then you may be imposing an expensive burden on your beneficiary.

In 2009, Maryland enacted § 14-112 of the Maryland Estates & Trusts Code to allow for the financial care of animals through a trust. As in a trust for a person, a trustee can be designated to manage the finances and care of an animal.

Section 14-112 does not limit the use of such a trust to “pets”; “animals” in general may also be covered. Animal lovers may leave money in trust to any animal that may be cared for financially by any person or organization; such as a zoo animals, or wildlife sanctuary.  As long as the animal was alive during your lifetime and is identifiable for the purposes of providing care to the correct animal, then Maryland Estates and Trusts § 14-112 permits the creation of an animal welfare trust

For many, a trust to provide for the cost of caring for our pets and animal friends after we are gone is comforting. Section 14-112 of the Maryland Estates & Trusts Code provides a means to do so.

Why Do I Need A Will?

A will is an important legal document which every person needs to have. Without one, there’s no guaranty that, upon your death, your money will go to the people you want, or that your children will be cared for by a guardian of your choosing.

Leave Your Money To The People You Want

If you die without a will, you are deemed to have died “intestate,” and state laws require that your money be divided by a set formula and be left to certain people and organizations. Maryland’s intestate laws, for example, require that if you die and leave behind a spouse and minor children, your spouse will receive one-half of your probate assets, and your minor children will receive the other one-half. If all of your surviving children are over the age of 18, then your spouse is entitled to the first $15,000 of your estate plus half of the remainder. Your adult children receive the other half of the remainder in equal shares.

If you’re married without children, then your spouse receives your estate unless your parents are still alive. If either of your parents is alive, then your spouse receives the first $15,000 of the estate plus one-half of the remainder. Your parents receive the other half of the estate.

If you’re not married but have surviving children, then your estate is divided equally between your children. If you have no children, then your estate passes to your parents if they’re still alive at the time of your death; if not, then the estate is divided equally between your siblings. If you have no siblings, then your estate is divided among your surviving relatives, like aunts and uncles.

If no surviving relatives can be found, and you had received long-term care benefits from the Maryland Medical Assistance Program, then your estate is left to the Department of Health and Mental Hygiene. If you had not received any such benefits, then your estate passes to the Board of Education.

Most people have specific ideas about who they wish to leave with their worldly possessions. If you want to leave your estate to a particular person, you’ll need a will. Otherwise, your estate will pass under the rules identified above. A will also can appoint the person who will oversee the administration of your estate and its distribution.

Got Kids?

For parents with minor children, a will is the best way to make sure that your children are cared for by the person of your choice. In your will, you can also name a person who can manage your assets for your children until they reach an appropriate age. If you (and your partner or spouse) die without a will, the state will appoint someone to raise your children. Make sure you have a will, so that your affairs will be handled the way you want in the event of your death.