Accounting for pets in estate planning

Accounting for pets in estate planning

Estate planning is an important step to ensure that your family is provided for when you are no longer around. For many, pets play an essential role in their lives, oftentimes treated like family members. Many wills include dogs, cats, and other animals, with family members requiring care and financial support.

Various scenarios

Whether they are deemed “four-legged loved ones” or “fur babies,” challenges for family bipeds are similar to beloved quadrupeds. Language in wills will state requirements that a qualified caregiver will move into the home to care for the animals. Requests also encompass multiple pets staying together before moving to a senior animal sanctuary.

Those unfamiliar with how to plan for pets have concerns similar to minor children that include:

• Where the pets will reside
• Money set aside to ensure pets are provided for in the future
• The individual selected to provide daily care
• The individual tasked with asset oversight and administration
• Unique care requirements that include health-related matters and specific behaviors and quirks

Lacking a specific plan for pets could lead to additional tragedies. Estimates exist that reveal nearly half a million pets euthanized after their owners died or became disabled.

Pet planning offers multiple choices. Some “parents” leave a fixed amount of money to the caregiver, a risky proposition considering that the lump sum may not be used for that specific purpose. More certainty comes from a Pet Trust or part of a Revocable Living Trust.

While non-pet lovers may scoff at the notion, estate planning for beloved animals can become a significant part of a comprehensive estate plan. While pets are incredibly self-reliant, they still need someone to rely on throughout the rest of their lives.