5 wealth and estate planning lessons from Grumpy Cat
Protect your pet-owning client's earnings from creditors by establishing a trust for him and future generations, suggests Andrew M. Katzenstein, partner in the personal planning department at Proskauer Rose. The trust can also take ownership of a licensing company, which will oversee the movie and endorsement deals involving the client's moneymaking pet. Licensing fees are collected by the licensing company and owner, and profits flow back to the trust.
It's not all that different from owning the Batmobile and renting it out for use in movies, Mr. Katzenstein said. “In the eyes of the law, [Grumpy Cat] is treated as chattel, so it falls within the normal estate planning lines, and you'd do the same sort of planning for the cat as you would the car,” he said.
An asset protection trust and proper titling of the assets are a necessary step in protecting clients, said John Voltaggio, managing director and senior wealth advisor at Northern Trust.