Take Care of Your Furry Friend with a Pet Trust
Although providing for animals in estate planning wasn’t traditionally common, this practice has evolved significantly. Pet trusts and similar arrangements are now widely accessible for pet owners who want to ensure their beloved companions receive proper care in their absence—and these aren’t exclusively for wealthy individuals.
Assessing Your Pet’s Needs
Begin by calculating the level of care and annual expenses your pet requires. These costs fluctuate based on factors such as pet type, breed, health, and diet. If you have multiple animals, identify which is most likely to outlive you. Account for expenses including food, pet insurance, veterinary care, medications, supplements, and any specialized needs your pet may develop with age.
Create a comprehensive document listing preferred veterinarians, groomers, daycare facilities, pet walkers, preferred food, sleeping arrangements, treats, toys, and other essential care information.
Choosing Your Trustee and Caregiver
Select a trustee and caregiver willing to assume these responsibilities. Since pets are legally classified as property and cannot hold assets directly, you cannot name them as beneficiaries. Instead, designate a caregiver to provide a loving home and a trustee to manage finances and ensure funds support proper pet care. Compensation for these roles is standard practice and should factor into your financial planning.
Formalizing Your Pet’s Care Plan
While including pet care requests in a will is possible, this approach lacks legal enforceability. Informal agreements are even less reliable. To guarantee your pet receives optimal care, work with your estate planning attorney to establish a formal pet trust.
Review your pet trust documents regularly to ensure they remain current, particularly if you relocate or if caregivers pass away.
Funding and Managing the Trust
Transfer assets into the pet trust to enable the trustee to distribute them to your pet’s caregiver. Your estate planning attorney can explore options for funding the trust upon your death if preferred.
Finally, specify what happens to any remaining funds after your pet’s death by naming specific beneficiaries—individuals, groups, or organizations. Avoid designating the caregiver or trustee as beneficiaries of remaining funds to prevent potential conflicts of interest regarding your pet’s care.
Planning for your pet’s future represents an often-overlooked aspect of responsible estate preparation, providing assurance that your animal companion will enjoy a secure life even in your absence.
If you or a loved one needs assistance with establishing a pet trust or other estate planning matters, do not hesitate to contact The Stegall Law Firm. We are here to help.
