As any pet lover can tell you, this is a question fraught with emotion. Most pet owners probably assume that family or friends will take over the care of a pet after your death or disability, but this is not a given. In fact, many pets are abandoned after an owner’s death or disability.
Recognizing the need for a vehicle to ensure the post-mortem care and maintenance of pets, the New Jersey Legislature in 2000 enacted NJ Rev. Stat.§ 3B:11-38, which validates trust funds for pets and provides, in pertinent part:
- The trust shall terminate when no living animal is covered by the trust, or the end of 21 years, whichever occurs earlier.
- No portion of the trust’s principal or income may be converted to the use of the trustee or any other use other than for the benefit of the animal designated in the trust, except as otherwise expressly provided in the trust.
- Upon termination of the trust, the trustee shall transfer the unexpended trust property as directed in the trust instrument and, if no transfer direction exists, to the estate of the trust creator.
- A court may reduce the amount of property transferred if it determines that the amount substantially exceeds the amount required. In that case, the amount of any reduction shall be transferred as directed in the trust or to the trust creator’s estate if no directions are contained in the trust.
- If no trustee is designated or the designated trustee is unwilling or unable to serve, a court shall appoint a trustee.
Pet trusts may be created either by Will or by an agreement established during the pet owner’s lifetime.
Effective July 17, 2016, the legislature repealed this statute. A bill was subsequently introduced in the Assembly to reinstate it in amended form so as to eliminate the 21year restriction, among other things. As of this writing, the proposed replacement has not been enacted into law.