I ran across an article that cited statistics from the most recent U.S. Census regarding pets that I found interesting and, frankly, surprising. The stand-out statistic was that more families in the U.S. now have pets in their homes than children. Researchers assume there are two reasons for this. One because birthrates have fallen and the other being that the baby boomers’ children have grown up and moved out. By the numbers, 70% of households in the U.S. have at least one pet, while only 40% have one or more children.
This tells me that while most articles about wills and trusts focus on how best to leave your hard-earned assets to your children, we need to make sure we consider your “four-legged” kids too. Let’s talk about estate planning for pets in Cincinnati.
What would happen to your furry (feathered or scaled) best friend if you die tomorrow? What will happen to your pet if you don’t have someone in your home now, like a spouse or significant other, to continue the care? Have you made detailed arrangements for Puff or Fido (or your pet lizard, cockatoo, or horse?) to be cared for long term? At least weekly, there is a sad post on social media about a pet being surrendered to a rescue or even euthanized when its owner died, and no one stepped up to take care of the animal. I’m sure that is NOT what you would want to happen to your beloved pet. Estate planning for pets in Cincinnati isn’t difficult. The following are some basics about including your pet in your estate plan. Remember, while they may be your “kids,” you can’t treat them as such legally. Read on for details.
First, consider what kind of pet it is; clearly, caring for a feline is very different from caring for a horse. Who do you know who would be willing to take on the level of responsibility each requires?
Obviously, you want to ask a potential caregiver for your beloved pet if they would be willing and able to take them on. Talk about it from all angles; are they allergic? Are there space considerations? Are they physically up to the task? Do they like the pet in question? And don’t forget to consider the pet’s age, anticipated lifespan, and the potential caregiver’s age. For example, as much as your 90-year-old aunt might love your cat, who is only two years old, is it wise to ask her to take over the cat’s care if you die? Cats can live for 20 years or more.
In the eyes of the law, pets cannot inherit like people. But this is easily handled. You set up special funds or trusts for their care. By the way, you might want to be broad in how you do this if some of your pets predecease you or you adopt new ones down the road, so best not to name each one.
You can designate funds for their care to cover food, vet care, grooming, stabling, etc. Best to try to forecast based on the anticipated lifespan. You probably can’t expect a friend or relative to take on the pet AND all associated costs unless you have discussed this in advance and they are ok with that. As pets age, their medical care can be expensive.
There are two basic ways to set up funds for a pet’s care; as a lump-sum gift to the caregiver or a simple trust. They both work.
However, the first might not be the best idea as there isn’t any control or monitoring of the funds. For example, there is nothing to keep the individual from spending the money on themselves.
On the other hand, a simple trust can be set up and monitored to ensure any withdrawals are legitimate for the pet’s care. If the pet dies and there are remaining funds, you can designate to whom those excess funds should go.
With more of us living with pets than children in our homes now, including those pets in our estate plans is a kind and loving act. They give us unconditional love; we need to make sure they are well cared for if we die before they do. I’d be honored to help you set up your estate plans with everything you need to protect all your loved ones. Call me to schedule a consultation at 513-399-7526 or visit my website www.davidlefton.com