“Parents with children at home often make formal care and placement arrangements if the need arises,” says Dianne McGill, president of the advocacy organization. Peace of mind for pets“but many pet owners haven’t thought about it.”
Avoiding the topic is understandable. Contemplating your own death is unpleasant. Contemplate death And money is even worse. But having difficult conversations now can help put you at ease and potentially save your furry friends a lot of conflict.
“If (owners) have not addressed the needs of their animals through estate documents, they could end up at the whim of a court-appointed person and could be placed in the care of a shelter,” says William Rideg, Montana probate attorney and owner of three rescue malamutes.
If you’re ready to make a plan, here’s where to start.
Determine who could care for your pets
The first question to consider is WHO you would want to take care of your pets if you were no longer here. “If something happened to you tomorrow, who would take your dog?” asks Kelly M. Michael, an estate planning attorney in New York. And this question will need to be revisited over time. “People in their 40s might say their parents will take their pet, but 10 years later that might not be realistic.”
It is important to discuss your expectations in detail with the person of your choice. The McGill organization has created a form called My pet placement plan this can help guide the conversation. It prompts you to answer questions about your pet, such as their health history, daily routines, likes and dislikes.
Calculate the cost of your pet’s needs
“When I was a kid, pets were in the barnyard,” says Bob Lester, a self-described baby boomer and president of the North American veterinary community and chief physician of WellHaven Animal Health. “Now pets are under the covers and in more restaurants, hotels and airports than ever.”
Given this development, it’s no wonder we’re spending more money than ever to provide happy, healthy and comfortable lives for our pets – the total this year, according to a projection from American Pet Products Association (APPA)will amount to $143.6 billion.
To create a realistic annual budget for your pet’s lifestyle, add up your pet’s basic monthly costs, such as food, treats, flea and tick prevention, and dog walking. Then calculate non-monthly expenses, such as veterinary exams and injections, licensing fees and boarding. You should anticipate that veterinary costs will increase as your pet ages. Other expenses will likely increase as well; APPA reports that spending on pets increased 11 percent between 2021 and 2022, largely due to inflation.
The total amount you get will be key to calculating how much to set aside for your pet’s care.
Build Trust for Your Pets
As beloved as they are, pets are generally considered property under the law, making it all the more important to create a formal legal arrangement for them in the event of your death. Establishing a pet trust is usually the best way to go.
“The legal system has only recently become aware that animals have legal interests,” says Christopher Berry, the firm’s general counsel. Animal Legal Defense Fund. “But to take advantage of this development, people should engage in some planning to care for their pets.”
A pet trust is a stand-alone document, but lawyers suggest including a clause about it in your last will and testament to ensure that the relevant representatives are aware of it and that your estate will adequately fund it.
One of the main reasons a trust is necessary — as opposed to just leaving your pet to someone in your will — is that a will can take years to reach probate court. In the meantime, your pet will be left in the dark. On the other hand, “trusts go into effect as soon as a death certificate is ready, usually within a week or two,” says Michael Ettinger, an elderly New York attorney.
To create a pet trust, you will need to fulfill two different roles: Your trustee will manage the funds you leave for your pet and distribute them as needed. The person you designate as custodian will receive these funds from the trustee and use them to house and care for your pet. It’s up to you whether you appoint someone different for each role or use the same person to handle both tasks.
Pet trusts are typically living trusts, also known as revocable trusts or living trusts. In addition to acting after death, this type of trust comes into play if you become seriously ill or injured. Pet trusts are generally set up like any other bank account; they are just specifically for your pets.
“All 50 states recognize some form of pet trust, thanks in part to the Uniform Trust Code, which contains a provision recognizing and enforcing pet trusts,” says Berry. For more information on the specificities of your region, the ASPCA breaks down laws by state.
How Much Does It Cost to Create a Pet Trust?
Establishing a trust can be expensive because it involves hiring a lawyer to create it, as well as an annual trust fee – the amount you pay to the person who manages the trust. These fees vary by state, but are generally between 1 and 1.5 percent of the trust’s assets.
If you can’t establish a trust, at least get your wishes in writing
Even without a trust, you can still take steps to protect your pets.
The most important thing you can do is put your wishes in writing, which you can do for free, without a lawyer, using Pet Peace of Mind’s. downloadable document to map your pets’ daily routines and health history. You can designate a pet guardian on the document and then have it notarized to authenticate it.
Because your pets’ needs will evolve and your designated guardian may experience changes in their life, McGill suggests reviewing the document annually to ensure the information remains current. Rideg also advises addressing the pet investment plan directly in your will.
Jaime Stathis is a writer living in New York’s Hudson Valley..
