It is becoming increasingly common for pet owners to make provision for the well being of their pets upon their death or disability.  Some pet owners simply make a gift of their pet in their Will or Trust while other pet owners set up a trust to provide for their pet’s needs after their death.

Michigan law specifically permits a pet owner to set up a trust to care
for their pet(s).  See MCL 700.2722.  Michigan law provides that a pet trust ends upon the death of the last pet covered by the trust. 

Pet trusts can be included in one’s own Revocable Trust Agreement or it could be a separate trust document.  The pet owner (“grantor”) would designate the person or institution that would serve as trustee in the trust document.  The trustee would manage and invest the funds that would provide for the pet’s care. In the trust, the grantor can either designate a specific guardian of the pet or permit the trustee to make that determination.

Basic pet trust provisions include that pets be provided with food, shelter, maintenance, health care, education, licensing, and that the pets will be mercifully terminated in the event of a terminal illness.  In addition, the grantor could indicate that a pet should be provided with companionship and adequate exercise, be kept comfortable and as free of pain as possible, and how the pet will be disposed of upon death. 

Upon the death of the last pet covered by the trust, the trustee is directed to distribute the remaining unexpended income and principal to those person(s) designated by the grantor.  Typically, the recipient of the remaining funds would be a charity or the grantor’s heirs.