"Is Your Estate In Order? What About the Horses?"

Disclaimer - This article is intended as general discussion and information on the topic covered, and is not to be construed as rendering legal advice. If legal advice is needed, you should contact an attorney. This article may not be reprinted or reproduced in any manner without prior written permission of the author.

“Order is light, peace, inner freedom, self-determination: IT IS POWER” - Henri Frederic Amiel

You are about to meet with your lawyer and have him prepare an estate plan to orderly dispose of your assets when you leave this earth. Generally, such a meeting is, at least initially, about as much fun as going to the dentist. (Nothing personal to all you tooth docs out there.) After all, who wants to talk about death and what happens afterwards? However, the more you think about it, the more important it becomes. If you make no provisions for the orderly transfer of your estate, you may be leaving someone (typically your spouse or your children) with a big problem!

The best way to dispose of your property is by a carefully planned Will. A Will is a legal document which directs the Executor (the person in charge of your estate) to dispose of your assets to beneficiaries named in the Will. The Will must be kept in a secure place after drawn, either a bank safe deposit box or fireproof box, and we normally advise that the Executor be informed of the location of the Will.

It is a common misnomer that Wills are filed “in the Courthouse” when made. A Will cannot be filed without a death certificate. Thus, the Will is not filed with the Register of Wills until after death. A Will is not final until you die. Obviously, that means you can change it at any time and that is why a place for safe keeping during your lifetime is important.

Good estate planning typically disposes of the real estate that you own, the motor vehicles, bank accounts, investments and any other personal property. Horses are personal property and are part of the assets of your estate. What distinguishes horses, or any livestock, from other personal property, is that they need continuing care; stabling, feed, water, vet care–just plain “looking after.” That is why the Will of a horse owner must address this issue and not leave it unresolved for another day. A horse owner must select someone in the Will, usually the personal representative or executor, to care for the horses. Obviously, the individual selected must be someone who is knowledgeable about the horses and can continue to care for them after the owner’s death and until their disposition.

It is important to direct the Executor not only in regard to the care of your horses but their disposition and sale as well. Are they to be given away to friends, charities, etc.–which is a simple matter, or are they to be fit and sold, either privately or at auction? What about all the tack and horse equipment? Usually, estates are closed within nine to twelve months after date of death, barring any unforeseen problems. The horse sale and equipment related sale become items not to be left on the back burner. Not only must the Executor deal with the care of the horses, but the Executor must also deal with the equipment, advertising and selection of an auctioneer if a public sale is chosen. These are all additional reasons why the person chosen as Executor becomes important and should have a good understanding and knowledge of your horses and the horse world.

What happens if you do not have a Will? If you die without a Will, you are considered “intestate.” That means the State law of your domicile, at the time of your death, will control the disposition of your Estate. You also do not have an Executor, so someone has to be appointed by the Court as “Administrator.” The Administrator is the person in charge of an Estate where there is no Will. Remember, where there is a Will the person in charge is an Executor and where there is no will the person in charge is an Administrator, their functions are the same, only the title is different.

Where there is no Will, the first problem arises if there are numerous people who want to be the Administrator or if no one wants to be the Administrator. This is a major problem I have witnessed in numerous estates, especially where there are a number of children who cannot agree on how to dispose of the assets.

The second problem is no direction is given for the immediate care of the horses. Again, there could be competing individuals or no one willing to care for the horses. This is an issue which cannot afford to take days or even weeks to negotiate and resolve. Your horses need attention and care immediately.

The third problem is the law defines your heirs if you have no Will. This process is known as “intestate succession.” Your heirs are determined by degree of consanguinity or blood line. Your spouse is first, if she or he survives you, if not, then come your children, your parents, siblings, grandparents, uncles and aunts, their children and grandchildren. This succession of heirs has led to the legal concept of the “laughing heir.” This heir is laughing, or crying as the case may be, because he or she inherited from someone they didn’t know they were related to! None of these people could be in a position to inherit a horse, let alone a herd of horses.

Another big misnomer is the State will get my property if I don’t have a Will. That is simply not so–as long as you have some not too distant relatives out there the State will not get your property. Only if no relatives can be found will the State get your property. This process is called “escheating to the State.”

The importance of a written Will is obvious when one considers all the problems, which could be created without one. In fact, I advise horse owners to place a written letter in the Will for use by the Executor identifying the vet and any other important information about the animals such as special needs or characteristics which would help the caretaker in his duties.

There are many problem areas for horse owners who fail to properly plan for the care and disposition of their animals at the time of death. It is important to have a detailed Will, which appoints a well-qualified Executor to carry out its provisions. Give your attorney as much detail as possible and remember to provide for your horses in your Will.

Enough legal talk–it’s time to hitch horses!

Ken is a practicing attorney in Myerstown, Pennsylvania, where a good bit of his practice involves negligence cases. Ken and his wife, Karen, own Sunny Hill Farm Belgians, and they have been exhibiting their six horse hitch for the past few years at most major shows in the east.