Estate planning is a way for people to leave legacies when they die. It is also a way for them to take care of their dependents. Many estate plans prioritize human family members, such as minor children or loved ones with special needs.
Other people may need to have plans in place to protect the furry, feathered or scaly members of their families. People with companion animals ranging from parrots and horses to cats and dogs may need to address those animals in their estate plans. The longer the animal may live and the more resources the owner wants to allocate for their care, the more important a proper estate plan becomes.
Pets can’t own property
The simplest solution when trying to provide financial support for specific people posthumously is to include those people as beneficiaries in a will. However, directly inheriting property isn’t always the best option for people. It may not even be legally possible for a pet.
Property allocated to a pet in a will is likely to pass into the control of whoever takes care of that pet. They might squander resources intended to pay for veterinary care on themselves or take possession of the home where the pet lives, only to then euthanize the animal.
The best way to prevent that tragic scenario from occurring is to establish a thorough estate plan that includes a pet trust. A pet trust names a trustworthy person to serve as trustee. That individual can distribute funds from the trust to the person who assumes responsibility for the pet. Distributions may only persist for as long as pet survives. The new caregiver therefore has an incentive to take good care of the animal and keep it healthy for as long as possible.
Pet trusts can also name successor beneficiaries to inherit what remains in the trust when the pet eventually dies of natural causes. Particularly in scenarios involving pets that have high support needs or that are likely to survive for decades, creating a trust is one way to protect their well-being long after their current owner passes or becomes incapable of providing for them.
Drafting and funding a pet trust can give those who love animals peace of mind. Including pets in an estate plan can help to facilitate a long and healthy life for those animals if testators take the right approach to the process.