Attorneys see more clients including provisions for pets in their wills
John F. Waldron
From the November 17, 2000 print edition © 2000 American City Business Journals Inc
William and Charlotte Croutharmel's cat, Lucky, is truly a fortunate feline. Rescued by the retired couple after an accident in 1994, the cat's blessings continued a year later when a veterinarian asked about care for the pet in the event that he should outlive his owners.
"We ended up finding out about the Stevenson Companion Animal Life-Care Center at Texas A&M University," says William Croutharmel. "In exchange for a $25,000 payment, they agreed to provide for Lucky's day-to-day needs and medical care for the rest of his life. Now it is in our will that personnel from the center will come and pick up Lucky when we pass on and take him to College Station where he will live at the center."
Area estate planning attorneys say the decision by the Croutharmels to incorporate Lucky into their will is no longer considered an extravagant gesture reserved for the rich and famous. Faced with options for their animals like euthanasia, attorneys say a number of their clients are making provisions for pet care as part of their final wishes.
Planning for your pets
"Although the number of our clients that make provisions for their pets remains small, it is definitely an issue that some clients are concerned about," says Allan Paterson, a partner with Cox & Smith Inc.
Paterson says arrangements for the care of a close pet are usually made by elderly couples or individuals who do not have a relative or friend willing or able to care for the animal.
"Typically, they set aside a sum of money and name a specific individual or group to care for the pet," he comments. "In the end they simply want assurance that their companion is going to receive the same care they were able to give them when they were alive."
He says the options being explored by pet owners varies from case to case.
"In some instances it might be as simple as leaving the pet to a close friend while others might donate the pet to an organization that takes animals into nursing homes," Paterson says.
Patricia Ann Bath, a partner with Soules & Wallace, says she has seen a recent increase in the number of her clients who want arrangements for their pets included in their estate plans.
She says provisions for the pet care range from the simple to the complex.
"I have seen clients set aside their whole estate for the care of their pet," she explains. "On the other hand, clients have set aside a small sum of money for their care and listed a trusted friend or roommate as their care provider."
Although it sounds simple, Bath says individuals wishing to make arrangements for their pets need to understand the process before they rush into anything.
"Typically, the individual names a primary care-giver of the pet and a fund of between $10,000 and $25,000 is established to provide for the animal's care and medical needs," she explains. "In addition, a third party has to be named to receive any money that is left over after the pet dies. Problems usually arise when the individual wants to give the money to the care-giver, which is very difficult since it creates a serious conflict of interest."
Gerry Beyer, a professor of law at St. Mary's University, says between 12 percent and 27 percent of pet owners include provisions for their pets in their wills.
The popular media frequently reports cases which involve pet owners who have a strong desire to care for their beloved companions," Beyer says.
"Singer Dusty Springfield, for example, made provisions in her will that the bed of her cat, Nicholas, be lined with Dusty's nightgown and that the cat be fed imported baby food."
Beyer, who published a study on the subject while he was a visiting professor at Santa Clara University in Santa Clara, Calif., says the incorporation of plans for pet care into wills varies from state to state.
"Some states have passed laws that strictly govern the care of animals following the death of their owners," Beyer explains. "Others, including Texas, use traditional estate planning methods to craft provisions for the care of a pet."
Beyer says one of the most reliable methods people can use to provide for their pet is to create a trust that benefits a caregiver. A trustee would then be required to make distributions to the caregiver to cover the pet's expenses provided the beneficiary is taking proper care of the pet.
Owners wishing to plan for the care of their pet should evaluate their needs before establishing a fund to care for the animal.
"Typically, $10,000 is usually enough to provide for a pet's needs, but they need to examine their pet's typical expenses and make sure any amount of money set aside will cover future medical expenses the care-giver might incur as the pet grows older."
The need for assurance
Organizations specializing in the care of pets from individual estates say pet owners need an assurance that their animal's care is not going to diminish after they die.
Henry Presnal, director of the Stevenson Companion Animal Life-Care Center, says pet owners like the Croutharmels come to the center looking for a means of insuring their pet's quality of life.
"The center opened in 1993 and currently we care for 23 pets in a 5,000-square-foot facility," he explains. "The facility is designed as a residential setting. Pets live in an open environment and are free to roam in much the same way they would in a normal home. In addition, the center is staffed by two veterinary students who live on the premises."
Presnal says pet owners typically pay for their pet's care with an endowment of between $50,000 and $100,000 or a one time payment that matures during the lifetime of the pet owner. Participants in the program must pay an additional $1,000 enrollment fee to hold their place at the center.
He says the center, which also cares for other pets including horses, ponies and even a llama, has seen an increase in demand in recent years.
"Currently, we have 85 owners from across the country enrolled in our program who have 238 pets currently waiting to be cared for by the center," Presnal says. "In addition, we have plans to expand our current facility by 3,500 square feet and add an additional two students to our staff."
The Stevenson Center at Texas A&M has inspired the creation of similar programs at Oklahoma State University and at the SPCA of Texas in Dallas.
Although no local program currently exists to provide care for this level of care animals who outlive their owners, local organizations say they are considering developing a similar program in San Antonio.
James Bias, executive director of the Bexar County Humane Society, says he has been approached by supporters of the society about starting a program similar to the one at Texas A&M.
"In order to start such a program we would need a supporter to donate a property that could be converted into a residential care center," Bias says.
Bias says the Humane Society now cares for pets willed to their organization by placing them in a home.
"After placing the animal in a home, we check in on the pet and assist the caretaker by providing for maintenance and upkeep," he explains.
John F. Waldron is a San Antonio-based free-lance writer.
