When we think of estate planning, our minds often gravitate towards how we can best provide for our human loved ones after we’re gone. However, in recognition of National Pet Day on Friday, April 11th, it is time to give our furry friends a seat at (under) the dinner table and address what happens to them after we can no longer care for them.
For years, eccentric celebrities have set aside millions of dollars to care for their pets. Some of these furry friends are worth millions, including “Trouble.” Trouble was a Maltese who became the center of a long legal battle because of improper estate planning. Though she was originally left $12 million by her owner, Leona Helmsley, the court reduced her inheritance to $2 million. Although most people won’t leave that much to their pets, providing for your pet after you have passed away isn’t just a thoughtful gesture; it’s a responsibility that acknowledges the invaluable role they play in our lives.
According to the American Pet Products Association in 2024, “63% of small animal owners have or plan to make provisions in their wills” for their beloved companions. This is where pet trusts come into play, providing a well-structured method to ensure the ongoing care and welfare of your furry friends.
Why Plan for Your Pets?
Unlike human beings, pets cannot directly inherit property or manage their own care. If an owner dies or becomes incapacitated, pets can be left in precarious situations. Many of these beloved pets end up in shelters or on the street but it doesn’t have to be this way. To mitigate such risks, estate planning with an emphasis on pets becomes crucial.
What Is a Pet Trust?
A pet trust is a legally binding part of your estate plan that provides specific instructions, a responsible caregiver, and (potentially) financial resources to care for your pet after your death or incapacitation. Unlike a simple provision in a will, a pet trust can provide ongoing, reliable care due to its structured nature.
Here are some benefits of a pet trust and how it operates:
1. Structure and Specificity.
A pet trust allows the owner to specify how their pets should be cared for. This includes details like the type of food they should eat, medical care needs, exercise routines, grooming schedules, and other lifestyle preferences. The trust names a trustee, who will manage the funds, and a caretaker, who will directly care for the pets.
2. Financial Support.
By funding the trust, you can set aside a sum of money specifically for the care of your pets. This amount can cover veterinary costs, food, grooming, and other necessities. You can also provide stipends for the caretaker as compensation for their responsibilities.
3. Compliance and Oversight.
Trusts are legally binding, meaning the terms you set will be enforced by law. This ensures continued compliance and oversight, offering peace of mind that your pets will be looked after according to your wishes.
4. Flexibility.
A pet trust can be tailored to match your specific circumstances and preferences. Whether you have one pet or many, the trust can encompass multiple animals and detailed care instructions for each.
Setting Up a Pet Trust
1. Choose a Trustee and Caregiver.
The trustee will manage the funds while the caregiver will handle the day-to-day care of your pets. The trustee and caregiver can be the same person. It’s crucial to choose individuals or organizations you trust and who are willing to undertake these roles.
2. Detailed Care Instructions.
Include comprehensive instructions for the care and well-being of your pets. Consider consulting with your veterinarian to ensure all health needs are addressed.
3. Determine Funding.
Consider the age and needs of your pets when deciding how much money to allocate to the trust. This ensures that there will be sufficient funds to cover all costs.
4. Legal Formalities.
Work with an experienced attorney to draft your pet trust. Pet trusts are a surprisingly complex document and the laws around them are still changing. Working with an experienced attorney can provide peace of mind that your documents are crafted correctly.
Estate planning for our pets isn’t just a thoughtful gesture; it’s a responsibility that acknowledges the invaluable role they play in our lives. By establishing a pet trust, pet owners can ensure their pets’ future well-being in a structured and legally enforceable manner. Given the immense emotional and practical value pets add to our lives, providing for their future care offers both peace of mind and a continuation of the loving relationship that enriches both human and animal lives.
They’re Counting On You.
Make sure your pets are cared for in the event of sudden incapacity. Contact us today to discuss your Pet Trust!
