February, 2007 ABA ELDER LAW COMMITTEE Newsletter General Practice, Solo and Small Firm Division
Chairs - Kenneth Vercammen, Edison, NJ and Jay Foonberg, Beverly Hills, CA
In this issue:
1. HOW A PET TRUST ENSURES THE CONTINUAL CARE OF YOUR LIFELONG COMPANION
2 Reminder- Elder Law Committee meeting Saturday February 10, 2007
3 Elder Law Committee – Mid Year Report
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1. HOW A PET TRUST ENSURES THE CONTINUAL CARE OF YOUR LIFELONG COMPANION
By Neil A. Derman, Esquire
According to the latest statistics from the American Pet Products Manufacturers Association (APPMA), released in their 2005-2006 National Pet Owners Survey (NPOS), pet ownership in the United States is currently at its highest level, with 63 percent of all U.S. households owning a pet. This equates to more than 69 million households in the United States that own a pet. Americans own approximately 73 million dogs, 90 million cats, 139 million freshwater fish, 9 million saltwater fish, 16 million birds, 18 million small animals and 11 million reptiles.
With so many families in the United States owning a pet, the question arises, what will happen to these animals if something happens to their owners? It is important to ensure that when you plan your estate, that you address the care of your animals as well as your heirs.
Why a Pet Trust?
The federal tax code does not provide for any assistance with pet owners and the continual care of their animals once they pass away or if they become incapacitated. The Federal Tax code narrows its definition of a beneficiary, to a human being, a trust, a partnership, associate, company or corporation. However, many states have adopted statutes allowing the Federal definition of beneficiary to be expanded to non human animals. Both New Jersey and Pennsylvania have adopted such statutes.
When a pet owner passes away, they often assume that the surviving heirs will be willing to take over the care of that animal, or that the state laws will assist in determining the care of the animal. But pet laws and pet owners do not take into account one key fact of modern life: Surviving adult children may be reluctant to carry out a parent's final wishes.
The cost of caring for a pet may be overwhelming when you put the numbers on paper. The average pet owner spends $400 per month over the lifetime of a pet. This calculates out to a total cost of $48,000 over the life of the animal. Costs incurred include grooming, food, medication, veterinary expenses, boarding, equipment and many others. Depending on the age and health of the animal this could become a very large burden on your heirs.
How Does a Pet Trust Function?
Just like any other trust, a pet trust is established to provide for the continual care of the animal during periods of the owners incapacity or death. The trust can be funded during your lifetime or upon death by including it in your will. The funds will be used to cover the economic burdens of the animal such as those mentioned above. A Trustee is named to take care of these funds and ensure that they are appropriately used for the continual care of your pet. These funds can be invested in a plan to ensure that the money can continue to grow and be available during the lifetime of the animal.
The second fiduciary appointed in a pet trust is a caretaker. The caretaker is an individual who will be responsible for the care of the animal during times of incapacity or once the owner has passed. Their responsibility is to look after the animal as the owner did for the animal's health, shelter, and care. Therefore you should consider only a trustworthy adult who is familiar with your animal and how you care for the pet, as well as someone who has experience in caring for pets. Although many of the caretaker's responsibility will be spelled out in the terms of the trust, it is best to discuss with the caregiver what your wishes are for the pet, as you would do with a designated Power of Attorney.
An Alternate Caregiver should be named in case something happens to your designated Caregiver. Your executor can also be provided with the power to designate a Caregiver if an opening arises. New Jersey statute provides that if no trustee is designated, or is willing or able to serve the court shall appoint a trustee in order to carry out the intent of the creator of the trust.
What if I Over-fund the Pet Trust?
The terms of the trust will dictate where the money goes upon the passing of the last pet named in the trust. Although in some states courts have overturned a pet trust because it was over funded, the terms of the trust will likely control what happens to any excess funds. In New Jersey, the statutes allow the court to reduce the amount of the property transferred if it determines that the amount substantially exceeds the amount required for the intended use. The amount of any reduction shall be transferred as directed in the trust instrument or, if no such directions are contained in the trust instrument, to the estate of the creator of the trust.
Why is estate planning for pets necessary? Year after year, countless pets are left to a fate that their deceased or incapacitated owners would have never imagined, much less desired. Families with pets should get assistance from legal professionals when making formal arrangements. An attorney can assess your estate and help establish a plan which will ensure that your pet will be provided for during periods of incapacity or at death. Seek an estate planning professional who takes this issue seriously, and recognizes that the care of your pet is as important a part of your estate plan as any other issue they may consider necessary.
Begley & Bookbinder, P.C. is an Elder & Disability Law Firm with offices in Moorestown, Stone Harbor and Lawrenceville, New Jersey and can be contacted at 800-533-7227. The firm services southern and central New Jersey and eastern Pennsylvania. Reprinted with permission-Copyright © 2006 by Begley & Bookbinder, P.C., 509 South Lenola, Building 7, Moorestown, NJ 08057
2. Elder Law Committee meeting
Saturday February 10, 2007 11am-12pm
Hyatt Regency, Johnson I Room, 3rd level Miami, Florida
Program coordinators: Kenneth A. Vercammen, Esq. - co-author
"Nuts & Bolts of Elder Law", Edison, NJ
Parag Patel, Esq, Iselin, NJ Chair- Taxation Committee
American Bar Association General Practice Section
Contact American Bar Association's ITS at 800-421-0459 for free registration. If you are attending, email Kenneth Vercammen, Esq at Kenv@njlaws.com
Main Topic:
Elder Law Practice- Changes in the law and ideas to Improve Your Practice by Giving Clients What They Want and Need, plus Marketing and Expanding an Elder Law Practice
Elder Law may be the biggest practice area of your career. 50,000 baby boomers/ day turning 60 and soon to be on Medicaid and needing your help.
Other Topics:
New Medicaid Law 2006- Protect yourself from inaccurate advice and malpractice
Getting referrals from other professionals
The aftermath of the Terry Schiavo case.
Email newsletters
How to get more referrals and repeat business
How to manage telephone conversations with your clients
Marketing with written fee agreements
-Networking the Internet without backlash
-Ethics and marketing without violating the Rules of Professional Conduct
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3 Elder Law Committee – Mid Year Report AMERICAN BAR ASSOCIATION
GENERAL PRACTICE, SOLO AND SMALL FIRM DIVISION
COUNCIL AGENDA BOOK REPORT FORM
Division Name and Number: Practice Specialty Division 3
Division Director Name: Jennifer Rymell
Group Name: Family Law
Group Chair: : Richard DeMichelle
Completed By: Ken Vercammen- Co-Chair
1. Please list your entity's activities and programs since last report.
(I.e. conference calls, meetings, publications, use of list serves, etc.)
Sent 4 email newsletters, Scheduled Committee meeting at Miami Mid-Year for Saturday, February 10, Solicited, prepared and submitted articles for e-newsletter. Also, solicited articles for law trends. Correspondence between members and authors.
Previously- Held Seminar at Annual meeting in Hawaii
2. Please describe the substance of the activities set forth in number 1 above.
Set up a meeting at the Miami mid-year on elder planning. Correspondence and meeting via phone conference with meeting with Parag Patel, Chair of Taxation Committee and other GP leaders.
3. Please describe future activities.
See attached seminar at San Francisco annual. Meeting at Miami mid-year We will continue to solicit e-newsletter articles for future editions of the e-newsletter. Provide forms to members.
- Request for contribution of articles for publication in the Law Practice & Trends eNewsletter
4. Please state how your entity’s activities conform to the Goals of the Division’s Long Range Plan.
The e-newsletter provides timely and meaningful information to members relative to Elder Law
5. Are you submitting an action item to Council and if so, describe. No
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Send us your articles & ideas
To help your practice, we feature in this newsletter edition a few articles and tips on marketing and improving service to clients. But your Editor and chairs can't do it all. Please send articles, suggestions or ideas you wish to share with others.
General Practice, Solo and Small Firm Division:
Elder Law Committee and the ESTATE PLANNING, PROBATE & TRUST COMMITTEE
Who We Are
This committee focuses on improving estate planning skills, substantive law knowledge and office procedures for the attorney who practices estate planning, probate and trust law. This committee also serves as a network resource in educating attorneys regarding Elder Law situations.
To help your practice, we feature in this newsletter edition a few articles and tips on marketing and improving service to clients. But your Editor and chairs can't do it all. Please send articles, suggestions or ideas you wish to share with others.
Let us know if you are finding any useful information or anything you can share with the other members. You will receive written credit as the source and thus you can advise your clients and friends you were published in an ABA publication. We will try to meet you needs.
We also seek articles on Elder Law, Probate, Wills, Medicaid and Marketing. Please send your marketing ideas and articles to us. You can become a published ABA author.
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The Elder Law Committee of the ABA General Practice Division is directed towards general practitioners and more experienced elder law attorneys. The committee consistently sponsors programs at the Annual Meeting, the focus of which is shifting to advanced topics for the more experienced elder lawyer.
This committee also focuses on improving estate planning skills, substantive law knowledge and office procedures for the attorney who practices estate planning, probate and trust law. This committee also serves as a network resource in educating attorneys regarding Elder Law situations.
Kenneth Vercammen, Esq. co-Chair
We will also provide tips on how to promote your law office, your practice and Personal Marketing Skills in general. It does not deal with government funded "legal services" for indigent, welfare cases.
KENNETH VERCAMMEN & ASSOCIATES, PC
ATTORNEY AT LAW
2053 Woodbridge Ave.
Edison, NJ 08817
(Phone) 732-572-0500
(Fax) 732-572-0030
www.njlaws.com
