• 08
  • August
    2011

As we discussed in a previous post, Leona Helmsley left $12 million to her famous pet, Trouble. Unfortunately, Leona Helmsley's wishes with respect to her beloved pet were not carried out in the manner that she had planned.

Several legal issues arose in probate court that diminished the pet's inheritance, some of which may have been addressed beforehand with proper estate planning. First, the original bequest of $12 million was reduced to $2 million by the probate court judge. Now that Trouble has recently passed on as well, the remainder of the pet's inheritance was to pass to a charitable trust for animal welfare.

Normally, when the beneficiary of an estate passes gifts to a charitable trust, a tax deduction is available. However, the tax deduction is not available for pet trusts. As a result, the remainder of the pet's inheritance is unfortunately diminished by the amount of taxes that will be required because the deceased beneficiary was a pet.

In addition, the probate court judge allowed the trustees to donate the remainder to any non-animal charity of their own choosing, and not according to the decedent's wishes.

And the final insult to Trouble and to Leona Helmsley's wishes, is that Leona's prized pet will not be able to be buried in her mausoleum because pets cannot be buried alongside humans. This certainly should have been investigated beforehand.

As a result of all of these setbacks, Leona Helmsley's wishes were not carried out as she had hoped for her pet. This is an example of how estate planning for pet inheritances remains unstable.

Like Leona Helmsley, many Florida pet owners believe that their pets are the most deserving beneficiaries of their estates. In order for Florida residents to ensure that their wishes will be carried out with respect to their pets, it is important that their trusts are properly drafted. In addition, naming trustees who will comply with trust terms is essential for the proper carrying out of your wishes.

Source: Washington University in St. Louis, "Pet inheritance: The trouble with Trouble's money," 4 Aug 2011