Home   • Welcome   • Latest News   Regional Info   • News   • Regional   Director's Corner   • Legislative   • Treasurer   Show Info   • Show Calendar   • Region 2 Clubs   • HHP Scoring   • Show Photos   • Vendors   Top Cats   • Kittens   • Championship   • Premiership   • HHPs   • DMs   • Veterans   • Agility   • Breed Winners   • Previous Winners   Contacts   • Officers &   Committees   Links   • Links		PET TRUSTS NOW VALID IN OREGON by Eden Rose Brown, J.D. Attorney at Law Law Office of Eden Rose Brown 310 Pioneer Trust Building Salem, Oregon In a landmark move for pet owners, the Oregon legislature recently enacted S.B. 166, making it legal in Oregon to leave a formal trust for a pet. The law allows anyone to establish a pet trust in their will or living trust for the express care of designated domestic companion animals. The trust may provide for the care of individually named animals or for a class of animals, so long as the animal is living at the time of the owner's death. The trust may be drafted so that upon termination of the pet trust, (usually at the animal's death) the trustee transfers the remaining principal to the beneficiaries named in the trust instrument. This allows a pet owner to leave funds and instructions for the care of their pet, and at the pet's death, to provide any remaining balance to contingent beneficiaries such as children, charities or other individuals. The Oregon pet trust is a much-needed addition to the estate-planning toolbox. In years past, people wishing to provide funds to care for their pets could only leave money to individuals, with specific instructions to provide for the care and maintenance of the beloved pet. Administration, however, was based on the honor system, and the pet owner could only hope that their designated caregiver would use the money for the benefit of the pet, rather than spending it elsewhere. Federal Law Still Pending While Oregon was passing their new pet trust law, Rep. Earl Blumenauer, D-OR, introduced a bill in Congress that would create a powerful federal estate planning tool for pet owners. The proposed law would permit the creation of a trust designed to care for the pet upon the owner's death and allow income, gift and estate tax deductions. Specifically, the bill seeks to amend the tax code to permit the creation of "Charitable Remainder Pet Trusts." Under current law, a Charitable Remainder Trust is not a proper vehicle to provide for the maintenance of a pet after the owner has died because the pet is not a "person" for tax law purposes. The proposed law (H.R. 1796), also known as "The Morgan Bill" (named after the drafting attorney's pet collie) would resolve this issue. A Charitable Remainder Pet Trust would allow a steady stream of income for the care of a pet upon the owner's death. When the trust terminates (typically when the pet dies), the remainder of the trust assets would go to charity (eg, the SPCA, The Humane Society of the Willamette Valley, etc.). The eventual gift to charity would be deductible for income, gift and estate tax purposes. The bill is currently before the Ways and Means Committee. If you would like to read the full text of the bill, go to http://thomas.loc.gov and type in HR 1796 in the box on the top left where it asks for the bill number. If you have pets and wish to provide for them after your death, you can now consider placing assets in an Oregon pet trust. You will wish to appoint a Trustee, and an alternate Trustee, to manage and administer the trust. Also be sure to name contingent beneficiaries for the trust assets after the pet dies. Provide the Trustee with clear, comprehensive guidelines and instructions, including where your pet's health records are located, what type of care you wish to provide, limits, restrictions, your pet's likes and dislikes, personality, habits and routines. If done properly, the new Oregon pet trust will allow pet owners to safely provide for their beloved companions long after the owners are gone. With Oregon in the lead, Congress is surely bound to follow. Copyright©2002 Eden Rose Brown, J.D. Reprinted by permission. Attorney Eden Rose Brown is dedicated to providing comprehensive, highly personalized estate planning counsel to couples, families, individuals and businesses. She holds the highest standard of scholarship, client service and lawyer accessibility. The Law Office of Eden Rose Brown is located downtown in the Pioneer Trust Building, 117 Commercial St. NE, Salem, OR 97301. 503-581-1800. Eden@brownlaw.net. A past Board member of the Humane Society of the Willamette Valley, her family includes six-year-old Natalie, Jazzy, Molly and two dozen tropical fish.