When hotel owner Leona Helmsley left her dog Trouble $12 million in 2007 — leaving nothing for her two grandchildren — the newly wealthy Maltese Terrier became the subject of international headlines and some outrage.
Trouble received an estimated 30 death and kidnapping threats, while a judge eventually reduced the dog's inheritance to $2 million. But nearly two decades later, it appears Helmsley is ahead of the curve when it comes to pet inheritances.
“The legal system is only recently grasping the fact that animals have legitimate interests,” said Christopher Berry, executive attorney for the Animal Legal Defense Fund. Washington Post“But to take advantage of this development, people need to plan ahead to provide care for their pets.”
While animals can’t legally inherit money, it’s becoming increasingly common for individuals to make provisions for furry (or furry or scaly) family members in their wills. Some people, like Helmsley, choose to leave money to pet trusts that provide for the animal’s care after its owner dies. The idea may seem odd at first, but some experts say it’s no different than any other type of money left in a trust.
“All 50 states recognize some form of pet foundations. That’s possible, in part, because of the Uniform Foundation Act, which includes a provision that recognizes and enforces pet foundations,” Berry told the Washington Post.
Just as with humans, when the beneficiary of a trust (furry) dies, it is up to the trustee to oversee the next steps, which could be to terminate the trust or follow instructions on where the funds are to be distributed.
It is also becoming increasingly common for people to state clearly where they want their pets to live; this is done to avoid family disputes and prevent animals from ending up in shelters.
Experts recommend making clear provisions in a will when planning an estate to ensure the animal doesn't languish for months or even years while people sort out property disputes.
“Most people think that their family members will do the right thing and care for these animals, but our experience has shown that that's not true,” said Eldad Hagar, co-founder of the Los Angeles pet rescue foundation Hope for Paws. Wall Street Journal“Too often they end up at the shelter for euthanasia.”
Read on to learn more about animals that inherit from their owners.