Section 9: Pet Planning
For many, pets are cherished family members, and ensuring their care if something happens to you is an important part of estate planning. Unlike planning for children, you cannot name guardians for pets, but you can create legal arrangements to ensure they are cared for.
Pet Trusts
Pet trusts can be drafted within a revocable living trust, or as its own trust document. Plan to set aside funds for your pet's care and name a trustee to manage those funds and a caretaker to provide day-to-day care. Pet trusts are recognized in most states and provide the most comprehensive protection for your pets.
In your pet trust, you name a caretaker who will take physical custody of your pets and provide daily care. Choose someone who loves animals, has experience with your type of pet, has adequate space and resources to care for your pets, and is willing to commit to your pet's care for the rest of the pet's life. Be sure to name at least one alternate caretaker in case your first choice cannot serve. You also name a trustee to manage the trust funds and make distributions for your pet's care. The trustee can be the same person as the caretaker or a different person who will provide oversight and ensure funds are used appropriately.
Fund your pet trust with an appropriate amount based on your pet's expected lifespan, the costs of food, grooming, and routine care, expected veterinary costs including potential emergency care, pet insurance if appropriate, and possibly pet boarding if the caretaker travels. While there is no perfect formula, factor in the pet’s expected life span and any other specialized care. If it’s over $40,000, accounting requirements apply.
When leaving behind instructions for the caretaker, think of when you go out of town and leave your pet with a pet sitter and the instructions you leave behind for their care.
Alternative to Pet Trusts
You can leave your pets to a specific person with a cash gift in your estate plan intended for the pet's care, though this is less protective as there may be no oversight in how the person uses the funds.