Believe it or not, under the law, you can leave your inheritance to your pet turkey.

Yes, I am assuming people love Turkeys that much and not just to invite them to Thanksgiving dinner. And they believe that this is a good idea.

It is called a Pet Trust.

Your spouse, whether being a pet or Turkey or both, doesn’t count.  That is easy, just make a will or put it all in a Trust for them.  More interesting talking about pets today.

People actually do this, and for good reason, a dog or cat sometimes is that special someone that stays loyal through it all and to the end.  When a person leaves this earth, it is a great feeling knowing that Fluffy or Kitty is going to be well cared for.

People spend a ton of money doing this, $50,000 or $100,000 buys a lot of dog food.  The average being $25,000 as state in this excellent article in the USA Today: http://usatoday30.usatoday.com/news/nation/2002-08-15-pettrust_x.htm. The Uniform Probate Code was recently been amended in 1993 – it’s real people!

Quoting again from the article, “The idea (of a trust fund for a pet) has gone from something that seems laughable to something that’s very mainstream, almost overnight,” Gerry Beyer, an estate law professor at St. Mary’s University in San Antonio says.

A will written by actress Betty White is reported to leave all of her $5 million estate to her pets.

However, be realistic, before you eat Thanksgiving dinner, your pet Turkey is not a good candidate for such an idea.  And that is my official legal opinion on the matter. Be nice, give the dog a bite of dinner and a Trust fund.  Who else in the family wags his tail at you?

Maria Shriver knows the devastation of Alzheimer’s disease firsthand.  Her beloved father Sargent Shriver, founder of the Peace Corps and one-time candidate for Vice President of the United States, died of the disease in 2011 after being diagnosed in 2003.

Often called “the long goodbye,” Alzheimer’s disease affects more than five million Americans and its prevalence will continue to grow with the aging population.  Shriver recently reported for NBC.com on the five things Alzheimer’s or dementia victims should do once a diagnosis has been confirmed:

1.  Execute powers of attorney and advance medical directives.  These allow for the designation of a trusted person or persons to make financial and medical decisions before cognitive impairments worsen.
2.  Create a will.  If you do not have a will that designates how your assets will be distributed upon your death, you need to create one.  If one exists, check it over for any necessary updates to beneficiaries or the addition of any assets acquired after the original will was made.
3.  Create an estate plan.  Asset preservation is usually critical for those diagnosed with Alzheimer’s or other forms of dementia.  An estate planning attorney can help preserve assets for future long-term care.
4.  Communicate.  Once diagnosed, you should have a conversation with your family about your decisions for your care.  Let them know where important documents are stored.  As part of your legacy planning, we can help you capture and pass on your own story and wishes for your loved ones through a special recording we provide for each of our clients.
5.  Do it sooner rather than later.  Alzheimer’s and other dementia diseases are progressive illnesses, so prompt action is necessary to put these protections in place for you and your loved ones.
More information and inspiration on dealing with Alzheimer’s and other dementia diseases can be found at MariaShriver.com.

And no one seemed to notice!

Let me explain . . .

When you die, someone has to deal with your “stuff.”   That usually means someone hires a lawyer and goes down to the courthouse to open a Probate to get authority to sell the stuff leftover such as a house, car, etc.

A lot of people have a house, car, maybe some bank accounts or investment accounts, insurance policy.

Insurance – easy! Just put down someone as a beneficiary and they get it.  No courthouse trip needed here.

Bank accounts – no need to probate if you name a “payable on death” person.  Someone who gets the account when you croak.

Investment accounts – for those stocks perhaps – like insurance you can simply designate a beneficiary.  No problem.

Car – this can be easy sometimes thanks to dmv.org, just do the affidavit and your good. Maybe.

WAIT!

What about the HOUSE?   Yep, you get to hire a lawyer.  At least, you used to need a lawyer. Before 9-1-2015.

Wonder why everything has a beneficiary designation except real estate?  So did the State of Texas!  On September 1^st, they passed a law allowing a beneficiary designation on your house.

Very cool!   It’s called a Transfer on Death Deed.  You file a deed which designates a person to own the home when you die.  (Need a lawyer here, but a heck of a lot cheaper than probate)

Wait, BS, what’s the catch?

Ok, here’s the scoop:

• It’s New. That’s maybe not good. Not beaten up by experience, lawyers, trial and error, etc. Scary? Hmmm. You decide.
• Creditors can come get it! If you owe a lot of money to creditors, those creditors would normally go to probate, but since no probate, they have the right to go after the house even though it transferred to a new person (for 2 years) Might be tough getting title insurance for the new owner. Oops. New person gets the house and the burdens on the house like this. Don’t forget the mortgage too.
• Dead person got the house! If the lucky person who was supposed to get the house dies before you do, well, that’s a problem potentially.

So who is it good for?

• Someone without any significant debts such as credit cards, or at least leaves enough cash to pay off those creditors so they don’t go after the house.
• Someone who will take the house happily and not want to sell it for a couple of years. Like your spouse perhaps.
• Someone who really doesn’t need a probate otherwise.

But!  Whatever you do, have a will.  Whether you use a Transfer on Death Deed as part of the plan, a will is a badly needed document to save your heirs a lot of hassle.  Especially if the Transfer on Death Deed causes problems.