ESTATE PLANNING UPDATE WINTER 2022/2023 – GET YOUR DUCK IN A ROW… PLANNING WITH PET TRUSTS
Although once a tool for wealthy and arguably eccentric clients, the widespread use of pet trusts reflects the integral role of pets in modern families and the increased legal legitimacy of planning for their future care. Generally, a trust may be established for pets living at the time of the trust's creation with an amount of assets reasonable for the care of the pet for the rest of its life.
A pet can be created as a stand-alone trust to which assets can be transferred during an owner's life, or it can be incorporated into a will or revocable trust to be funded upon the owner's death.
The funds within a pet trust are fully taxable for estate and inheritance tax purposes. This is true even if the trust's remainder beneficiaries are charitable organizations.
This document is designed for general information only. The information presented on this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
💻 https://www.kmckernanlaw.com
📞 718-317-5007
