When it comes to estate planning, it’s all about protecting what matters most to you. For many, this includes their beloved pets—their “furry children.” Just as you plan for your spouse, children, grandchildren, and charities, you should also consider the well-being of your pets if you’re no longer around to care for them.
That’s where a pet trust comes into play. This straightforward tool can be seamlessly incorporated into your estate plan, offering peace of mind for pet parents. Even if you anticipate outliving your pets, it’s always better to be safe than sorry.
What Is a Pet Trust, and How Does It Work?
A pet trust is a legal arrangement designed to provide for your pet’s care after your death. Most pet trusts are part of your primary estate plan, either within a will or a trust. Setting one up involves three main steps:
- Set Aside Funds: Decide how much money you want to allocate for your pet’s care. These funds will be managed by a trustee to ensure your pet’s needs are met.
- Name a Caretaker: Choose someone you trust to take custody of your pet and provide daily care.
- Choose a Remainder Beneficiary: Determine who will receive any remaining funds in the trust after your pet passes away. This could be a charity, a family member, or anyone else you choose.
Why Create a Pet Trust?
Without a plan in place, your pet’s future could be uncertain. Sadly, pets are sometimes overlooked, abandoned, or even euthanized after an owner’s death. A pet trust eliminates this risk by ensuring your furry friend is cared for according to your wishes. It’s especially critical if your family members are unable or unwilling to take on the responsibility of caring for your pet.
Four Key Decisions in Pet Trust Planning
Setting up a pet trust is a simple yet powerful way to protect your pet. Here’s what you’ll need to decide:
1. Who Gets the Remaining Funds
After your pet’s passing, any remaining money in the trust will go to your chosen beneficiaries. This could be a charity, like an animal shelter, or a loved one.
2. Who Will Care for Your Pet
The caretaker is the person who will provide hands-on care for your pet. Think of this role as similar to a guardian for children. You can include detailed instructions or leave general guidelines—it’s entirely up to you.
3. Who Will Manage the Money
The trustee oversees the funds in the trust, ensuring they’re used according to your instructions. This includes providing money to the caretaker for food, vet visits, toys, and anything else your pet needs.
4. How Much to Set Aside
Calculate how much money is needed to care for your pet over their expected lifespan. You can also allocate additional funds if you have charitable goals or want to ensure there’s a financial cushion.
Planning for the Unexpected
You may think, “I’ll outlive my pet—there’s no need to plan for this.” But what if you don’t? The beauty of estate planning is that it prepares for the unexpected. It ensures your family—including your four-legged loved ones—is protected no matter what.
Don’t leave your pet’s future to chance. Let’s work together to create a plan that ensures your furry family members are well cared for. Give us a call today, and let’s get started on protecting what’s important to you.
By taking proactive steps now, you’ll give yourself peace of mind—and your pet the lifelong care they deserve.
