[PART 5. 
TRUSTS FOR ANIMALS]



 



[§560:7-501]  Trusts for domestic or pet
animals.  (a)  A trust for the care of one or more designated domestic or
pet animals shall be valid.  The trust terminates when no living animal is
covered by the trust.  A governing instrument shall be liberally construed to
bring the transfer within this section, to presume against the precatory or
honorary nature of its disposition, and to carry out the general intent of the
transferor.  Extrinsic evidence shall be admissible in determining the
transferor's intent.



(b)  A trust for the care of one or more
designated domestic or pet animals shall be subject to the following
provisions:



(1)  Except as expressly provided otherwise in the
instrument creating the trust, and notwithstanding section 554A-3, no portion
of the principal or income of the trust may be converted to the use of the
trustee or to a use contrary to the trust's purposes or for the benefit of a
covered animal;



(2)  Upon termination, the trustee shall transfer the
unexpended trust property in the following order:



(A)  As directed in the trust instrument;



(B)  If there is no such direction in the trust
instrument and if the trust was created in a non-residuary clause in the
transferor's will, then under the residuary clause in the transferor's will;
and



(C)  If no taker is produced by the application
of subparagraph (A) or (B), then to the transferor's heirs, determined
according to section 560:2-711;



(3)  The intended use of the principal or income may
be enforced by an individual designated for that purpose in the trust
instrument or, if none, by an individual appointed by a court having
jurisdiction over the matter and parties, upon petition by an individual;



(4)  Except as ordered by the court or required by the
trust instrument, no filing, report, registration, periodic accounting,
separate maintenance of funds, appointment, or fee shall be required by reason
of the existence of the fiduciary relationship of the trustee;



(5)  The court may reduce the amount of the property
transferred if it determines that the amount substantially exceeds the amount
required for the intended use and the court finds that there will be no
substantial adverse impact in the care, maintenance, health, or appearance of
the designated domestic or pet animal.  The amount of the reduction, if any,
shall pass as unexpended trust property under paragraph (2);



(6)  If a trustee is not designated or no designated
trustee is willing and able to serve, the court shall name a trustee.  The
court may order the transfer of the property to another trustee if the transfer
is necessary to ensure that the intended use is carried out and if a successor
is not designated in the trust instrument or if no designated successor trustee
agrees to serve and is able to serve.  The court may also make other orders and
determinations as are advisable to carry out the intent of the transferor and
the purpose of this section; and



(7)  The trust is exempt from the operation of chapter
525, the Uniform Statutory Rule Against Perpetuities Act. [L 2005, c 160, §1]