Pet Trusts Available in Indiana and Kentucky
Both Indiana and Kentucky have statutes which permit trusts to be created for the benefit of pets. The laws of both states require the pet(s) who is receiving the beneficial interest to be alive during the lifetime of the Settlor of the trust. The term of the trust can extend until the death of the animal(s) receiving the beneficial interest.
The Settlor may appoint a trustee to carry out the terms of the trust or, if the Settlor fails to do so, then the statute grants the court authority to appoint a trustee. The statute further provides that the assets of the trust must be used for the trust’s intended use unless the court determines the value of the assets are greater than the intended use. Trust assets determined to be in excess of the trust’s intended use must be distributed as provided by the trust’s terms, or to the settlor, if living, or to the settlor’s successors in interest if the settlor is no longer living.
Individuals interested in providing for the care of pets either during life or after death should keep these types of permitted trust arrangements in mind when designing estate plans.