For many people, pets are like family; some of us even refer to ourselves as “pet parents.” Since estate planning is intended to help care for your family after you are gone, is there a way to include your pets in your estate planning?
As it turns out, there is. It’s called a “pet trust.” And just like planning for your human family gives you peace of mind for their future, creating a pet trust can help you feel secure about what will happen to your furry loved ones if you can no longer take care of them.
Pet Trusts: a History
Legally speaking, pets are considered property, like clothing or furniture. Before the Michigan Legislature enacted a law about providing for pets through a pet trust, there was really no legal way to plan for them. The best you could do would be to speak to a friend or family member and ask them to make sure your pet would be taken care of if anything happened to you. You might even provide them with funds or leave them something in your will to help lighten the burden of your pet’s eventual care.
The problem with that system is that a promise to care for a pet isn’t legally binding, and any money you left for that purpose could be used for anything by the recipient. And because pets themselves cannot legally inherit, trying to leave money to a pet in a will wouldn’t work.
But as the societal attitude about pets shifted from viewing them as property to viewing them as companions and family members, the law shifted as well. In 2000, Michigan enacted a statute, MCL 700.2722 introducing the concept of honorary trusts, including pet trusts. The trust could last for the life of the animal or 21 years, whichever was shorter, and allowed the court to appoint someone to enforce the terms of the trust if necessary.
In February 2024, the Michigan Legislature repealed MCL 700.2722—but it’s not bad news for pets! The change was part of sweeping amendments to the Estates and Protected Individuals Code (EPIC), to bring the law into better alignment with the Uniform Trust Code. The new statute referring to pet trusts is MCL 700.7408, titled “Trusts for Pets.”
What’s New in Michigan Pet Trust Law?
The updated Michigan pet trust law specifically provides that a trust may be created to provide for the care of a designated pet or animal alive during the settlor’s lifetime.” The 21 year limitation on the trust was removed by the updated law. That is relevant because some domestic animals, like horses, or reptilian pets, like tortoises, might live longer than that. If there are multiple pets provided for in a trust, MCL 700.7408(1) provides that the trust continues until the death of the last surviving animal.
MCL 700.7408(2) allows the trust to be enforced by a person appointed in the trust’s terms. If there is no such person, the court can appoint one. The section also states that a person who has an interest in the welfare of an animal for which the trust was created may ask the court to appoint someone to enforce the trust, or remove a person who was appointed in the terms of the trust.
MCL 700.7408(3) specifies that property in the trust must be used as intended, except to the extent that the value of that property is more than required for the trust’s intended use. Property that the court deems not necessary to provide for the pet’s needs must be returned to the settlor (creator) of the trust if they are still alive. If the settlor is no longer alive, the property goes to their successors in interest. This provision is similar to that in the prior law, and is intended to prevent over-funding the trust.
While the new statute is similar in many ways to the old one, the net effect of the law is to make pet trusts more flexible and practical.
Should I Have a Pet Trust?
If you are concerned that you may become unable to care for a beloved pet at some point, either due to death or incapacity, a pet trust could be a good option for you. Your trust should provide for a trustee to administer funds in the trust, and a caretaker to actually keep and care for the pet. Most of the time, the trustee and caretaker are the same person for practical reasons, but you can choose different people for each of those roles if you wish.
A pet trust is a relatively simple and inexpensive addition to your overall estate plan. If it gives you the peace of mind that your family—human and otherwise—is well cared for, a pet trust is well worth the investment.
Get Help With Your Estate Plan
The knowledgeable estate planning attorneys at Barron, Rosenberg, Mayoras & Mayoras work with clients who need to make or update an estate plan, including creating trusts for the care of pets. Schedule a consultation today by calling (248) 213-9514 in Michigan or (941) 222-2199 in Florida to learn how we can assist you. You can also use our simple online contact form.