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What happens to your pets when you die? Estate planning considerations for your four-legged family members

Estate planning is the process of setting out advance instructions to prepare for your future incapacity or death. Every estate plan is unique because every individual’s family and circumstances are unique. Married couples often consider how to take care of the spouse that outlives them, parents of young children consider who to nominate as guardian for their little ones, and business owners consider how the business will transition leadership and continue to grow. Pet owners might additionally include provisions for any animal companions that outlive them. The two biggest questions to settle are who will care for your pets and what financial support might be necessary or desirable in order for you to facilitate your pets’ long-term wellbeing.

Choosing a Caregiver for Your Pets

The best person to receive and care for your pets will depend on several factors, such as the type and number of pets you own, whether you want the pets to stay together in one household, and the type of lifestyle and schedule to which your pets are accustomed. Most pet owners aim for consistency with the goal of transitioning the animal’s care to someone familiar to your pets who can offer them a similar life to the one they had with you. You will also want to consider the willingness and ability of the designated person to accept the responsibility of your pets. It is best to have an open and proactive conversation with the person you plan to name in advance of creating your estate planning documents.

Whoever you choose, your estate planning documents can specifically designate that person to receive your pets upon your death. Bear in mind that the person you name is not obligated to accept and may refuse your pets if circumstances have changed and they are not willing or able to care for your pets when the time comes. Therefore, it is often prudent to identify one or more back-up persons to accept your pets. As a last resort, if none of the named persons can take care of your pets, you can also direct that your Executor or Trustee locate a suitable home for your pets.

Providing Financial Support for Your Pets

Your estate planning documents can also include financial provision for the new owner of your pets. The level of financial provision and corresponding oversight should reflect the nature of your pets. For example, the cost to stable, feed, and care for a horse over its lifetime differs substantially from the cost of care for a traditional household pet. Take into account your pets’ anticipated lifespan, routine costs of care and maintenance, medical needs, and any adaptations that may be necessary to care for them in their new context (e.g. erecting a fence or engaging a dogwalker).

Because animals cannot own property, finances must be entrusted to a person who will hold and use the funds for your pets’ benefit. There are at least two general options available to provide financially for pets. First, you can give a specific amount of money to the person who accepts your pets, which would be distributed to them at the same time as the pets. An immediate distribution is simple but may not be right for every situation, because it provides no accountability for your pets’ care or how the finances are spent. A second option with more oversight is a pet trust, in which you choose a second person (called a “Trustee”) to manage the finances by making distributions to the new owner for legitimate pet-related expenses until the end of your pet’s life or until the funds are exhausted. A pet trust can offer both accountability and flexibility, and it can range in complexity. Simple trusts may give broad discretion for how money is spent and keep administrative requirements to a minimum while complex trusts may incorporate more detailed requirements or guidance for the new owner. Once you have an idea of your goals related to your pets’ ongoing care, be sure to include those in your broader estate planning discussion so that your attorney can help you choose the most suitable structure for your situation.

What Now?

If you review your current estate plan and find that your pets are not specifically addressed, what would happen to them at your death? They would be distributed in accordance with whatever provisions you have set out for your tangible personal property. If you have no estate plan at your death, all of your property (including your pets) would be distributed according to the default provisions of state law. In either case, no money would be provided for your pets’ care without specific directions in your estate plan.

The attorneys at Young Moore and Henderson can help you develop a comprehensive estate plan to fit your needs, including provisions to care for your pets – another problem solved.

This is a brief overview of considerations and options for pet owners in designing their estate plans. This information does not address all situations, and the information contained in this article should not be relied upon or taken as legal advice.