Pets are an important part of our lives. They are our loyal companions and confidants, and are always there to give us love when we need it the most. Over 65% of American households own at least one pet and are an important part of the family. If our pets are so important to us, why are we failing them in the estate planning department? If this thought propels you to action, here are the top 4 Must-Do’s to protect your pets’ future.
Many people love their pets just like loving a human child. They are our babies…. fur babies. When you take the relationship with your pet into consideration, it makes sense to include them in your estate plan. By including them in your estate plan, you can be assured that they will have a secure future when you are no longer able to provide that for them.
Finding a Caregiver
A caregiver is the first item of business to consider when planning for your pet’s future. Have some conversations with your family and friends to determine who would be best-suited to take care of Fido. In those conversations, be clear about your expectations and the needs for your pet. Once the right person has been identified, make sure that you have received their consent to name them as a caregiver. This is also an opportunity to declare specific wishes in the days following the owner’s death or incapacitation. Death is often unexpected. During such a difficult time, there should be no worry about who is taking care of your beloved pet.
Detailed instructions for your pet’s care are the second must-do. If Fido is taking a daily medication inside a piece of cheese, the future caregiver needs this information. As mentioned before, by fully outlining the details to care for your pet can be especially helpful in a time of transition.
Covering the Cost
Along with designating a caregiver, you can also establish a trust for your pet. This is the third must-do. This should be a formalized agreement outlining the terms of care for the remainder of the pet’s life. A pet trust is much more secure plan for the pet, as the caregiver can immediately assume responsibility. The trust can also issue regular care payments to the caregiver to cover expenses related to the pet’s care. You never want your pet to be anyone’s burden, so creating a trust is a courtesy to the future caregiver. A pet protection agreement can also be used. However, a trust will keep the pet financially secure.
Lastly, you want to determine a remainder beneficiary. Most pets have a shorter lifespan when considering care plans. There is a strong likelihood that your designated caregiver will outlive your pet. Therefore, you need to determine what happens with the remainder of the pet’s estate after they have passed. You may choose to have the remainder go to the caregiver as an in-kind gift, or you may choose to designate your favorite charity. You have options, but they will only be effective if you choose to create an estate plan for your pet.
Pet trust and caregiving laws vary from state to state. It is always in your best interest to work with an estate planning professional who can assist you in creating the best care plan for your beloved pet.
