Leaving money in a will for a pet was once a practice mostly associated with the wealthy, but it is now becoming more common. As more people view their pets as family members, including them in estate plans has gained popularity.
Estate lawyers now routinely suggest a “pet directive” as part of a will. This allows pet owners to name a guardian for their animals and allocate funds for their care, ensuring that pets continue to receive the attention and resources they need after their owner’s passing.
Including pets in estate planning has become increasingly accessible, thanks to online estate-planning services like Trust & Will. These platforms make it easy for people to add provisions for their pets, regardless of the size of their estate. Some pet owners set aside substantial sums to ensure their animals’ well-being, reflecting the importance of their companionship.
Planning for pets in an estate is especially important given that pets are legally considered personal property, meaning they cannot directly inherit money. Instead, funds are allocated to the appointed caretaker. If no guardian is specified, pets may end up with whoever inherits the rest of the estate, which could lead to complications or even the possibility of the pets being abandoned or placed in shelters.
Without proper planning, pets can become the subject of disputes among heirs or may be surrendered to shelters. Pet rescue organizations, such as Hope for Paws, have had to intervene in cases where pets were left without a designated caretaker.
For pets with long lifespans, like parrots or turtles, long-term planning is particularly crucial. Some owners choose to arrange for their animals to be cared for by sanctuaries, such as the Stevenson Companion Animal Life-Care Center at Texas A&M University, which provides lifelong care for a variety of pets.
What is a Pet Trust?
A pet trust is a legal mechanism designed to ensure the care and well-being of your pets should you pass away or become incapacitated. It involves setting aside funds and naming a trustee who will manage these resources to benefit your pets. Unlike a will, which may simply mention your pet, a pet trust legally enforces the care instructions you provide, ensuring that your pets receive the attention and resources they need.
This trust can take effect immediately if you become incapacitated, providing continuity of care, and offers accountability for how the funds are used.
How Does a Pet Trust Work?
A pet trust involves three key roles:
- Grantor (You, the pet owner): The person who creates and funds the trust.
- Trustee: The individual responsible for managing the funds and ensuring they are used appropriately for your pet’s care.
- Caregiver: The person who will physically look after your pet according to the instructions you have laid out.
When establishing the trust, you allocate specific funds exclusively for your pet’s needs. You also appoint a trustee to oversee these resources, and in some cases, the trustee may be different from the caregiver. The trust document should provide detailed instructions on your pet’s routine, diet, medical care, and any other specific requirements. The trustee is legally bound to follow these directives and can be held accountable for any failure to do so.
It is also important to note that, unlike guardians for children, pet guardians are not typically under court supervision. This means there is no legal mechanism to ensure that a pet guardian follows the instructions left in the will. Estate lawyers advise careful selection of a trustworthy guardian to ensure that pets are well cared for after their owner’s death.
If you are interested in learning more about qualified organizations and how to include your pets, please reach out to one of the planners here at TWC.