Wednesday, December 24, 2008

Estate Planning for Pets


It might sound crazy to some, but more and more people are including provisions for their pets in their estate plans. While it is certainly possible to make informal arrangements with a loved one to adopt your pets in the event of your demise, many are opting to formalize those arrangements in written legal documents. Pets play a very significant role in the lives of many individuals, so it only makes sense that they would want to be sure that their pets are properly cared for after their death. Being the owner of two dogs, two cats, two hamsters and a Russian tortoise (who will no doubt outlive not only me but my teenage daughter, its owner, as well), I certainly understand the importance of pets to a person and a family. So how do we ensure the proper care of your beloved animals after you are gone?

Legally, a pet is considered tangible personal property which will pass according to your Will. An important consideration is the selection and designation in your Will of an appropriate beneficiary/caretaker for your pet. It is also wise to name at least one alternate caretaker in the event that your first choice is unable to serve for the duration of the pet’s life.

You may also wish to provide a source of funds to the caretaker to cover the costs of your pet’s care. In estimating the correct amount, you should consider your own annual costs for food, veterinary care, grooming, supplies, boarding and the like, in relation to the pet’s probable life expectancy. You might choose to make a conditional or unconditional outright gift of that amount to your pet’s caretaker, or you might prefer to protect those funds by the establishment of a trust for that purpose. Leona Helmsley aside, while some states do permit the pet itself to be named as beneficiary of such a trust, in Massachusetts the beneficiary of such trust must be a human. The actual structure and terms of the trust, and the named trustee and beneficiary, would be determined based on a variety of factors to be considered as part of discussing your overall estate plan.

Short of your death, another concern is your pet’s fate if you become incapacitated. The inclusion of provisions for your pet’s care in a comprehensive Durable Power of Attorney would address that circumstance and ensure that your pet will be properly looked after if you are unable to care for your pet yourself.

If you are a pet owner and already have estate planning documents which do not address these issues, it may be time for an update. If you have not yet gotten around to putting your estate plan into place, the resolution to do so is a great way to begin the new year, whether or not you are a pet owner.

Wishing all a jolly Christmas/Hanukkah/Kwaanza/Festivus/General Relaxation Day!

1 comment:

kpikephoto said...

Awesome topic, Judy. Thanks for the great info!!