As a trusts and probate lawyer and a cat owner, I was delighted when a brief combining both interests landed on my desk; meet Whiskers* a fluffy Persian cat who has just become the sole beneficiary of a six-figure trust fund following the death of his owner.**
But what exactly are the legalities of leaving an inheritance for your faithful friend?
The Legal Framework of Pet Trusts
A trust must either have charitable intent or have valid beneficiaries (Bowman v Secular Society Limited [1917] AC 406 at 441).
A pet trust would not be considered a legal charitable trust. Further, animals are treated as property under English law and therefore do not have legal standing in order to be considered beneficiaries of a trust.
On first blush, it would appear that without human beneficiaries, a trust created for pet maintenance is legally questionable.
However, the Courts have in fact recognised certain exceptions known as ‘trusts of imperfect obligation’. In Re Dean (1889) 41 Ch D, the Court held that allocated funds for the care of the testator’s horses and dogs for 50 years was legally valid, although it was not to a charity and its execution could not be enforced by any one.
In his judgment, North J drew comparisons to provisions made for erecting monuments which were often upheld despite lacking a clear beneficiary. North J noted however that “the testator must be careful to limit the time for which it is to last, because, as it is not a charitable trust, unless it is to come to an end within the limits fixed by the rule against perpetuities, it would be illegal…”.
As such, it is generally the position that as long as a trust for an animal’s care is for a limited time, the trust will be valid.
As to what period of time will be acceptable to not offend the rules against perpetuities, it seems that common sense should be applied. In Re Haines, Johnson v Haines (1952) Times, 7 November, the Court took judicial notice that the life expectancy of a cat is less than 21 years. In general therefore, provided that a trust does not extend beyond an animal’s natural lifetime, the trust is likely to be valid.
Risks and Considerations for Trustees
As a trustee of a pet trust, the trustees are still obliged to properly manage trust assets and follow the terms of the trust.
Although a pet is unable to enforce the terms of the trust or bring proceedings where there is a breach, trustees should be aware that in some cases, it may be that residuary beneficiaries could argue that the trust has failed. Such a scenario arose in the case of Pettingall v Pettingall (1842) 11 LJ Ch 176 where a sum of £50 per year was left for the upkeep and maintenance of the testator’s horse. The Court decided that the trustee was entitled to keep any of the £50 not required for the horse, but required the residuary beneficiaries to be informed such that they could apply to the court if necessary.
So, whilst most of us might not have the $1.5 million it was reported that Chanel’s former Creative Director, Karl Lagerfeld left his cat, the next time you come to draft a Will, don’t forget to include provision for the wellbeing of any pets.
Nina Roberts, Barrister at 1EC Barristers – https://1ec.co.uk/barrister/nina-roberts/
*name changed to protect Whiskers’ identity
**some facts have been changed for dramatic purposes
If you found this article interesting or useful, please consider donating to Cats Protection – https://www.cats.org.uk/donate.
The information in this article is not intended to be professional legal advice but if you would like legal advice on trust matters relating to domestic pets, please contact my clerks on 0207 936 3030.
