February 2010 Archives

February 16, 2010

Estate Planning for Pets

A recent article in the Wallstreet Journal Blog Section covered the possibilities to plan for the future of a pet that outlives its owner (see here).

If you'd like to ensure that your pet receives the proper care after you die you should follow these important steps:


  • Appoint a "Pet Guardian" and leave instructions for the caregiver (This is simply a non-enforceable nomination of a trusted person, that you believe will take loving care of your pet). You can use your will or any other document for this.

  • Make sure the financial needs of your pets a covered. A already existing living trust may be used for that purpose but need to be adjusted to set aside the necessary funds for your pet. In average a dog costs $1,400 pa and a cat $1,000 pa. Depending on the age of your pet, the trust might require funding for up to 20 years pet care. You should also implement a clause into your trust that governs the use of the pet funds for the case that not all funded money is used. Such a clause should name an alternative beneficiary.

  • Make sure that the appropriate legal instruments are also implemented for the case that you become incapacitated. You should draft your durable power of attorney in a way that enables your agent to financially cover the needs of your pet. The agent does not necessarily have to be the nominated caregiver.

If you'd like to learn more about living trusts, which can be used to cover the financial needs of your pet, you will find further information on Rinne Legal's website (see here).

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February 5, 2010

Communication With Coma-Patients - Are Living Wills Now Dispensable?

New research shows that communication with patients who have fallen into 'vegetative state' has become possible. Researchers have used brain scans on patients with devastating brain damage to watch the reactions of the brain when they were asked questions. The scientists were able to distinguish a 'yes' from a 'no' on the picture of an MRI-machine. Those are the basics. If you are interested in the details, I recommend this article in the British Telegraph.

But does this medical breakthrough make living wills (aka advance health care directives) and durable powers of attorneys dispensable? The answer is clear-cut. The new science cannot substitute these very basic elements of estate planning. Both, living will (see here for further information) and durable power of attorney (see here for further information) are legal instruments that are set up for the sad moment a person becomes mentally incapacitated. It allows an agent to act on behalf of the principal or make medical decisions for him because he is no longer able to act or express himself. Despite the breakthrough, it is not clear yet, whether a person in vegetative state can make sound decisions. Furthermore the new technology doesn't enable the patient to look after his financial duties. Therefore the new technology does not substitute the aforementioned legal instruments.

It is thus still highly recommendable to have a durable power of attorney and a living will for the event that you become suddenly and unexpectedly incapacitated. If your estate plan contains the required documents, there is no need to worry, but if not it is time prepare the necessary documents. If you don' t like doing this yourself, ask your local estate planning attorney.

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