Setting up a Trust for your Horse(s)

None of us gets out of here alive. 
And when we are no longer here, we have no say. Even a will can be ignored and dismissed in some cases. People don't like to think of such things, but I would rather plan and know that I've done all I can to have my animals taken care of once I'm gone. 

So how best to set a safe life plan in place for my horses? My husband is not a horse person and would have no desire to keep three horses and do all the work and care that comes with them even though he loves them. And so, my research began in earnest.

Estate planning is more than writing documents and sets up, in advance, who will pay for their boarding, grooming, and any other expense that comes along with owning or caring for a horse. Who will train, ride, care for, and in what manner is as important as being certain the animals are fed and watered. Establishing what we want is best done legally and having people named as guardians written down and notarized. But where to start?

I learned that basically, we have two choices; writing a will or leaving a trust. 

Appointed trustees carry out trusts. The trustee is given access to funds and is given guidelines as to how you want them to use the money. The trustee is someone you choose based on your faith in their carrying out your wishes and their knowledge to care, feed, and train your horse.

Here are two options for setting up your preferences for your horse(s): wills and trusts.

1) Name your horse(s) in your will:
A will is a legal document that allows you to leave property to whomever you choose. Horses are property, and you may designate either individuals or organizations as the benefactor, but remember that some organizations will be unable to take the horse except selling him. In this case, you will not be able to choose the buyer or your horse's future.
Some owners will take the most straightforward option and state in their will that the horse is given to a person they trust to care for him and may leave a specific amount of cash or even property to help cover the costs that will always be a part of caring for horses. 

The downside of stating a caretaker in your will is that even though you write a will laying out your wishes, it does not automatically mean anything will happen the day you die. If your family members don't want to oblige, or if the will hasn't been through probate—this can take a year or more—your well-intentioned instructions could be tied up and ignored for many months or even years. If you owe money to anyone, this can also prohibit your wishes from being met.

You must make provisions for the probate period, even though the person left as executor is legally bound to care for all the estate assets. If you haven't, and if your family doesn't understand how to care for your horse, or if your assets are not available to pay for the horse's needs (veterinary, board, feed, training, and farrier care, for example), your beneficiary will be left with all the expenses. Therefore, you should choose someone financially able to withstand these unexpected expenses or set up a trust for your horse(s). Remember that even the most well-trained horse will lose value if not kept in a program that keeps him fit and kept up in regards to his training.

2.) Set up a Trust:
A trust is a written statement saying that you leave your estate to specific persons or organizations. The most significant advantage of a trust is that the funds needed to care for your horse are available immediately since trusts do not go through the probate period. Setting up a trust in the U.S. today is around $1500.
There are two types of trusts used most often for horses—testamentary and inter vivos. Make sure copies that have been notarized are given to the person or people you are leaving as the trustee or beneficiary. Consult a legal professional to make sure it's done right. 

Testamentary Trust:  This is a trust document created when the horse owner dies, as specified in their Last Will and Testament. 
There are typically four parties involved in a testamentary trust:

• The grantor—this is you and is set up during your lifetime. 
• The trustee carries out the terms of the will. They may be named in the will or appointed by the probate court that handles the will. 
• The beneficiary, who will receive the benefits—usually funds or property as designated in the trust.
• The probate court oversees the trustee's handling of the trust.

Inter vivos trust: (AKA living trust) is a trust document set up by the owner of the horse before they die. 

The owner names a trustee who will follow your directions in either kind of trust. It is advisable to name a backup person as secondary trustee if needed. Within a trust written information and instructions regarding caring for the horse in all aspects and how funds are to used for the horse and where any other assets would go in the event of the horse dying.—at which time the trust ends. 

Since this article is so long already, and since creating a will is something you'll do with an attorney, I made up a 
FREE CHECK LIST FOR SETTING UP A LIVING TRUST here: https://lp.constantcontactpages.com/su/NVwj70Q/ChecklistHorseTrust
***This article is not written to offer any legal or professional advice and should not be construed as legal, financial, advisory recommendation to you or anyone else. Please obtain professional instruction from a qualified person in regards to your own objectives and needs.
Setting a plan into place will help you enjoy your horses and your life worry-free, Happily Ever After!

~Tanya Buck
TanyaBuck.com 
#HorsesHappilyEverAfter

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