How to Include Your Pet in Your Estate Plan
Meet Finn and Fezco, the inspiration for this blog post. Finn is a 4-year-old blue and gray chihuahua, and Fezco is a 2-year-old golden retriever. In honor of my sweet dogs, let’s talk about putting pets into your estate plan.
Pets are an important part of any owner's household, and because of that, what happens to your pet after your death is a legitimate concern regardless of age. Fortunately, you can include your pet in your estate plan through your will or through a pet trust.
Including Your Pets in Your Will
Under North Carolina law, pets are considered personal property. This classification means that your pet is an asset, not a person. Because your pet is considered an asset, you can include your pet in your will with specific wishes about how you would like your pet to be taken care of after your passing. Depending on your pet's life span, you may need to update your will as your pet’s condition changes, if they pass before you, or if you welcome a new pet into your life. Your will can include a general statement, such as “any dog I own at my death…” or a provision that relates to a specific pet, such as “my dog, Kobe…” Both of these statements can be used to properly and officially communicate your wishes for the best care for your pet after your passing.
NOTE: Because your pet is considered personal property, do not leave any assets to your pet!
Including Your Pets in Your Trust
North Carolina laws allow for the creation of pet trusts. A pet trust allows you to appoint someone to care for your pet once you pass and sets aside funds to cover costs and care. Since pets cannot own property, a trust allows you to appoint someone to oversee and manage the money in the trust to ensure that the money is being used for the pet. The caregiver of the pet does not need to be the same person who is managing the funds. To put it more simply, a pet trust ensures that your pet will be cared for as you desire when you pass.
NOTE: When appointing a beneficiary of the pet trust, as a plan B–appoint a substitute beneficiary (successor) and ensure that you do not keep the beneficiaries a secret. Doing this ensures that the involved individuals know what their responsibilities are when you pass.
What is Best for You and Your Pets?
The difference between putting your pet in your will and creating a pet trust is that a pet trust provides extra protection and flexibility for you. While you may leave a monetary gift to your pet caretaker, this does not ensure that the monetary gift will be used for your pet or that this person will actually take your pet because there is no assurance. Generally, a pet trust is the safest option to ensure that your specifications are met and your pet is properly cared for.
There are several reasons to consider creating a pet trust:
If your pet has a long life expectancy you should consider a pet trust.
If you have a larger animal with expensive upkeep you should consider a pet trust.
If your pet requires special care (such as specific food and dietary restrictions), vet care, or regular grooming you should consider a pet trust.
If you have multiple pets and do not want them to be separated you should consider a pet trust.
If you want to specify someone outside of your family to care for your pet you should consider a pet trust.
If your family member wants to care for your pet but cannot financially support the pet you should consider a pet trust.
If you have special wishes regarding your pet's final disposition, whether burial or cremation you should consider a pet trust.
If you are on the fence about whether a pet trust is appropriate for you, schedule a consultation with an attorney at Betham Law, PLLC and we will guide you through the process. For legal advice relating to any of your estate planning matters or revisiting your will, please contact Betham Law, PLLC to schedule a consultation today.
