Do you have a cat? A dog? Maybe one or more of each? You’re not alone. According to a recent survey conducted by the American Pet Products Association (APPA) 70% of U.S. households, or 90.5 million families, own at least one pet. This is up from 56% in 1988, the first time the survey was conducted, and up compared to the 2019 survey which found the number to be 67%.
You’re probably wondering why I’m talking about pets in this post? Because these days many families consider their pets as family members … certainly they hold a special place in our hearts. That said, increasingly we’re seeing individuals now including their pets in their estate plans; not as heirs of course since pets are still considered property and cannot inherit, but to plan for their ongoing care if the owner dies. It makes sense. Sadly we hear too often about an individual dying without having made plans for the pet they’ve left behind. Heirs, friends, often even neighbors are left with the heartbreaking decision to try to re-home the pet or have it put down. It is a “living burden” and one I wouldn’t wish on anyone. So when I ran across this article recently I knew this was one I needed to share with you. Read on for what the writer, Cynthia Griffin, writing for the News-Enterprise, Elizabethtown, KY, Feb 1, 2022, has to say on the topic.
For many people, sharing life with a pet is a joy. Both for those who are natural caregivers and for those who need the companionship of another living creature, pets can bring a sense of being needed. However, consideration of pets often is overlooked when preparing for incapacity and death.
When preparing a last will and testament or trust in Cincinnati, the types and needs of specific animals should be considered carefully. Passing the responsibility of small indoor house pets is vastly different from asking someone to take barnyard animals, such as “pet” horses or goats.
Think about potential future caregivers for your animals and be realistic about both their desire and their ability to take your pets. Does the person have a natural inclination toward animals? What about his or her spouse or other people living in their home? Does the individual have allergies that would pose a health risk or simply make him or her miserable?
Another major consideration is whether the potential caretaker already has animals. In one regard, passing pets to someone without other animals may be easier to acclimate to. However, that individual also may not realize the time and expense associated with pet care. Especially if the individual enjoys traveling, you should discuss whether the pets would travel with them or be boarded for long periods of time.
Finally, determine whether the individual has the space available to properly care for your animals. The proper place to include specific instructions for pets is within a last will and testament or a trust. Instead of naming specific pets, which may not outlive you, use broad language to include any pets you may have at the time of your death. You also may leave bequests by category of pets; for example, you may choose to give your house pets to one person, but horses to another.
Regardless of the type of animal, the cost of passing on pets should always be factored into the plan. Pets have regular expenses such as food, vet visits, grooming, and boarding. Even for pets that are healthy at the time of your death, as the pets age, their care likely will become costlier. While many people may be willing to take on the care of another person’s pet, they may not have the ability or desire to take on a significant cost. In order to ensure that your pet is well cared for, consider leaving money for the pet’s care in one of two ways. First, the easiest way is to leave an outright gift to the person who takes the pets. Keep in mind, however, that there are some potential problems with this method. The only requirement for the additional money is that the new owner takes the pets. After the new owner takes the pets (and the money), there is no guarantee that he or she will continue to care for your pet. Even those with the best of intentions could spend the money and later find that they cannot afford to continue caring for your pet.
The second option is to set up a simple pet trust within your will or trust, funded with enough money to care for your pets until the end of their lives. Money in the pet trust could be used to care only for the pets, and upon the last pet’s death, the trust would close and payout to whoever you choose. This trust likely would be a simple bank account.
Owning a pet is a joy, but certainly is accompanied by costs and responsibilities. Be intentional about planning for your pet’s future to ensure that the transition to a new caregiver will succeed.”
I hope this information has been useful to you. When clients talk about wills and estate planning they often think of real estate, investments, antiques, etc. but let’s not forget our four-footed friends (or two if your pet happens to be a long-living exotic bird!). I’d be happy to talk with you about your estate planning needs, including making arrangements for your bellowed pets. Please take a look at my services page https://davidlefton.com/services/ to learn more. Remember, as our lives become more complicated it is always best to engage an experienced estate planning attorney.
For more information about estate planning, probate, or trust administration in Cincinnati and throughout the rest of Southwest Ohio, and to review free resources regarding estate planning, probate, or trust administration, visit my website https://davidlefton.com/ If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526). David H. Lefton is an Estate Planning and Probate Attorney. He is a partner in the law firm of Barron, Peck, Bennie & Schlemmer.
Source: News-Enterprise, Elizabethtown, KY , Feb 1, 2022
Written by Cynthia Griffin