Purpose: This legislation modifies the Internal Revenue Code to treat charitable remainder pet trusts in a manner similar to charitable remainder annuity trusts. Companion cats, dogs, rabbits, guinea pigs, hamsters, gerbils, ferrets, mice, rats, birds, fish, reptiles, and horses will benefit from this legislation.
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Status: Assigned to House Committee on Ways and Means.
Action: SUPPORT. Please contact your U.S. Representative and urge him or her to support H.R. 2491. In many U.S. households, companion animals are thought of and treated as members of the family. These animals should be considered in estate planning, and H.R. 2491 creates a new section of the tax code to allow for this. The law does not allow individuals to leave money or property directly to a companion animal. Nonetheless, devoted companion animal caregivers have often tried to set up a trust for the care of an animal after their death. Traditionally such “honorary trusts” were not legally binding and depended completely upon the honesty and good will of the trustee, but a number of states have passed laws making them legally enforceable. This legislation would bolster those existing state laws.
Talking Points for your letter:
- Many Americans consider their companion animals to be members of the family and wish to ensure that their companions are included in estate planning.
- Although some states have passed laws providing for enforcement of trusts that provide for companion animals, federal law lacks such measures.
- In 39 states caregivers can establish trusts as part of their estate planning to ensure the care of their companion animals. These individuals can assign a permanent guardian to their animals and make provisions for veterinary care, food, water, and companionship.
- H.R. 2491 would allow the creation of charitable trusts for companion animals under the federal tax code. The legislation ensures that individuals may provide ongoing care for their pets and still shelter a portion of their estate for charity.
- In a nation that euthanizes at least 3 million dogs and cats each year for lack of homes, these trusts are an essential safety net.