While you can’t directly leave assets in your estate plan to your pets, you should consider their future care and wellbeing should they outlive you. You may have a verbal agreement with a family member or friend who loves your pet, but there are other considerations, such as the cost of veterinary care, food, grooming, etc. that should be provided for in your estate plan.
Without a legal plan in place, you have no guarantees about what will happen to your beloved pet, even with those verbal agreements. Let’s take a look at the options.
Option 1: Naming your pet as an asset in your will
Stipulating in your will who your pet will live with and how that pet will be cared for is a basic level of protection. Pets are considered property by the law, so you can designate who inherits your pet just like any other item you own. You can also direct that a specific sum of money go to the same beneficiary to supplement the pet’s care.
However, your beneficiary is not legally bound to use the money to cover your pet’s expenses–they can use it for anything. Depending on the type of pet and its age, this may not be a major concern to you or your beneficiary. Older dogs and cats will demand less than longer-lived exotic pets, like Macaws or tortoises, which can live 30, 50, or even 100 years.
It’s also a good idea to specify backup beneficiaries for your pets, in case your primary beneficiary is no longer able to take on the responsibility when the time comes.
Option 2: Creating a pet trust
Just like other trusts, a pet trust is a legally-enforceable document that lays out specific details about the care and ownership of your pet(s) if you become disabled or pass away. They can be extremely detailed, down to the type of food provided and the number of vet check-ups you want your pet to have each year. The new pet owner can be sued if your pet is not properly taken care of or if the funds are not being used appropriately.
The downside of a pet trust is that they can be expensive and require more planning than just naming a beneficiary in a will. Additionally, depending on how they’re written, trusts may not be flexible enough to adapt to changing circumstances beyond your or your named caretaker’s control.
Pet trusts are extremely beneficial for longer-lived birds, tortoises, some lizards and fish, which will need very specific long-term provisions.
Pet trusts should at a minimum include the following:
- Names, breeds, types of pets.
- Named caretaker, and alternates.
- Specified amount of money to be strictly used for the care and maintenance of the pet(s).
- Any specific care instructions, food, activities, health care plans, etc.
- A named trustee who can oversee the funds are being used properly and can enforce the trust in court if necessary.
- Directives for any money leftover after the pet passes away.
Option 3: Sanctuaries and rescue programs
If finding a willing and capable caretaker for your pet is too challenging, or you have an exotic animal that can be hard to place in a domestic environment, you may consider making arrangements with a rescue organization, zoo, or even a veterinary program who will take your pet into their care. Sanctuaries and rescue organizations exist throughout the country, so don’t limit your search to just your home state.
Just as with an individual, you will need to include the organization in your will or trust.
What happens if you don’t include your pet in your estate planning?
Without a plan in place, it will be up to the personal representative (or executor) of your will or the trustee of your trust to find a willing caretaker for your pet, even if it’s a temporary situation while the estate goes through probate. Of course, the large risk is that your pet will not go to someone you approve of, and at the worst case, could be surrendered to a shelter.
Don’t go it alone – seek professional guidance and know your pet is covered
Wills & Wellness Estate Planning takes a holistic approach to estate planning, so you can feel confident that your loved ones, including your pets, will be taken care of after your death. We can help you devise a plan that fits your life and the needs of your beneficiaries, and ensure that plan continues to evolve with you. Contact us today for a free consultation.