An estimated 90 million American families own pets, but most families do not have a plan in place for their pets in the event they become unable to care for their pets or pass away. When preparing for death and disability, it is important to have an estate plan that includes all of your family members.
Prior to having an estate plan for your pets, you will need to decide who you want to care for your pets, what care requirements your pet needs, and what financial resources will be needed to properly care for your pets. Once these key factors are decided, your estate planning attorney can help draft a Will plan or a Trust plan to ensure your pets are taken care of.
When deciding who will take care of your pets, like minor children, you must first feel comfortable with the selection of your pet's caregiver. Most people consider family or friends, but you should never assume they will be willing to provide lifetime care for your pets. We advise our clients to speak to their prospective caregiver and ensure that their chosen caregiver is willing to take on the responsibility of caring for their pets. If you are not able to find a suitable caregiver, you can always consider a pet sanctuary or a perpetual care organization.
While picking a suitable caregiver is very important, it is also important that a care plan is left to the caregiver that includes any specific health directions, diet choices or restrictions, and any other directives you think are necessary so that your pet receives the best care possible. These directions can be spelled out in a Last Will and Testament or a Trust document, depending on your chosen estate plan.
The last step is determining what financial resources you want to leave for the lifetime care of your pets. In addition to standard costs like food and medical care, you should consider compensation for your pet's caretaker. Some clients choose to leave a fixed sum of money and their pet to a trusted caregiver, and some choose to create a pet trust for the lifetime care of their pets and select a Trustee to oversee the funds.
By establishing a pet trust, which can be a standalone trust or a continuation from a current trust, you can leave directions as to the care of your pets, choose who you want to oversee the funding and care of the pets, and most of all, you will avoid a probate proceeding for your chosen caregiver. While funding and directions can be made in a last will and testament, a last will and testament must be filed with the court, and if your caregiver needs to receive funds from your estate for the care of your pets, they will need to go through probate court.
Under a pet trust, a trustee is appointed to manage the funds and care for your pet. Under Arkansas law, a pet trust terminates upon the death of the pet, or if for multiple pets, it terminates on the death of the last surviving pet. Once the surviving pet passes away, any remaining funds in the pet trust will be distributed to your chosen beneficiaries under the trust document.
In summary, planning for your pets is an important part of your comprehensive estate plan. An estate plan that includes care plans and funding for your pets will ensure that your pets are cared for in the event of your own death or disability.
Wesley Harris is an associate attorney at Farrar & Williams, PLLC and can be contacted at 501-525-4401 or by email at [email protected]. Wesley can answer any questions you have about this subject.