Estate Planning and Your Pets

Which estate planning document is best to provide for my pet?

There are different estate planning documents that can be used to protect your pet’s future. Most of the documents, however, can only be enacted upon your death and do not guarantee that your pet will be cared for. There are no provisions for following up once the money has been awarded. The exception is the Inter-Vivos Stand-Alone Revocable Trust. It can be enacted while you are alive and/or after your death and can be enforced by the legal system. Review the advantages and disadvantages of estate planning for your pets.

LAST WILL AND TESTAMENT

ADVANTAGES

• Names your assets and who you would like to be the beneficiary of each asset
• Assets governed by a Will will go directly into Probate
• Revocable- can be changed at any time up until your death

 DISADVANTAGES

• Can only be enacted upon the pet owner’s death
• If you are sick or disabled there is no legal document in place to guarantee the care of your pet.
  • Your pet can end up in a shelter
  • Your pet can be euthanized.
• Goes through probate which is time-consuming. Who has care, custody, & control of the pet during the wait?
• Pet cannot be named as beneficiary because under the law a pet is considered “property.”
• A person you believe will care for your pet is the named beneficiary, but there is no guarantee they will fulfill their obligations.
  • Presumed caretaker can take the money but not care for the pet
  • Presumed caretaker can take the pet but not use the money for the care of the pet
  • Your pet can wind up in a shelter
  • Your pet can be euthanized
  • Your pet is cared for in any way they see fit
• After the money is awarded there is no follow-up by the courts
• Contents of your Will are public record which means anyone can see your assets
  • Leads to litigation to contest money left for your pet’s care
• Is not subject to legal enforcement after assets are dispersed

ESTATE TESTAMENTARY

ADVANTAGES

• Names a beneficiary to either receive the money, usually with stipulations (such as pet care) OR
• Can be used to care for a Pet and is referred to in a Will
• Irrevocable- Can not be changed at any time

DISADVANTAGES

• Can only be enacted upon your death
• If you are sick or disabled, you have no legal document in place to guarantee the care of your pet
  • Your pet can wind up in a shelter
  • Your pet can be euthanized
• A Testamentary Trust goes through Probate which takes a long time. The Testamentary Trust doesn’t become funded and established right away, leaving a range of choices and decisions that need to be made before anything legally has to happen. Who has care, custody, & control of your pet during the wait? Who is paying the expenses?
  • Your pet can be brought to a shelter
  • Your pet can be euthanized
• Details of the Trust, since it is part of the Will are made public so anyone can see your assets and who is going to receive them
  • Leads to litigation to contest money left for your pet’s care
  • Courts have been known to decrease the assets of the trust when involved in litigation to make it “fairer”
• A person, not your pet, is named beneficiary with the promise of being a Caretaker.
  • No guarantee your pet will be cared for the way you intended
  • Your pet can wind up in a shelter
  • Your pet can be euthanized
• Is not subject to legal enforcement after assets are dispersed

INTER-VIVOS STAND-ALONE REVOCABLE TRUST

ADVANTAGES

• Money is left in an account specifically for the care of your Pets
• Contains contingency plans
• Can be enacted at any time after it is written and properly funded
• Can be utilized multiple times (while alive and at death)
• Contains explicit directions for your pet’s care and expenditures
• Is subject to legal enforcement
• Contents of Trust are private, not available for public disclosure
• Funding can be done in parts, including at the death of the trustmaker- can be funded by life insurance, money left in the Will with the Trust as beneficiary, Sale of Property, Jewelry, Stock and Securities, Cashing in of Bonds or Certificates of Deposit, etc
• Less likely that the beneficiaries have “standing” to take action against the Trust
• Is the strongest of the documents to withstand litigation due to the time and effort needed to create the document. The age of the document can also be important in potential litigation.

DISADVANTAGES

• Can be costly to set up*
• The window to contest is longer than probate (in most states where the trust is domiciled) but the pet is being taken care of during this time.
• Advantages of a stand-alone revocable trust outweigh the disadvantages when used for a Pet Trust

*Costs vary due to attorney fees and the number of pets