How do you plan for pets in an estate plan?

Pets are part of your family, and you want to be sure they’re cared for when you die. There are a few things to consider: 1. who is taking care of the pet on a day to day basis? 2. is there any money to be allocated for the pet’s care?

On the first point, many times people assume that someone will want to care for their pet. And sometimes that’s true and sometimes it is not. If you have a particular wish, let it be known in your trust. Gift that pet to someone who you want to care for it! But also consider giving the trustee discretion to give the pet to someone who wants to take it and is able to take care of it.

In gifting money for the care of the pet (food, medical, etc.), you can gift a certain dollar amount or a percentage of your net assets up to a certain dollar amount (e.g. 10% up to $50,000). You can gift that to the person to takes the pet (whether you name them or not).

You can also create a “pet trust.” A pet trust is essentially a planning tool that sets aside money in a separate trust for the care of the pet for the lifetime of the pet. There are different reporting/accounting requirements for a pet trust than a human trust. If the trust is still funded at the time the pet dies, you can decide who gets the balance of that trust. (It’s also possible the money in the trust runs out before the pet dies!)

As with all types of estate planning, it’s important to talk to an attorney about YOUR circumstances and your goals for your pet. Contact me for a complimentary consultation.