So, what are your thoughts on including your pet in your last will and testament? While many of us probably won’t become recipients of a large fortune thanks to a meaty inheritance, it may be food for thought to consider including your cat (or other pets!) in your last wishes so they have money upon which to rely when you die.
According to statistics from the Humane Society, 100,00-500,000 pets are sent to shelters each year because their owners have passed away. Sadly, 31% of shelter dogs are euthanized and 41% of shelter cats will not find another home and are put down by the shelter. If you want to avoid such a sad ending for your pet, there are ways to incorporate your pet into your overall estate plan. A pet trust is a great way to leave money to your cat or dog.
What is a trust? A trust, by definition, allows for the creation of specific rules for how a certain amount of money should be spent after you pass away. Flexible products, trusts can be set up to do almost anything. A pet trust is no exception and is legal in all 50 states and the District of Columbia.
When setting up such a trust, you need to designate a trustee, and that is someone who controls the money. You also need to designate a caregiver, that being the person who will actually take care of your pet after you die. This allows for a certain system of checks and balances. If the caregiver fails to deliver the care you requested for the pet, the trustee can withhold funds.
You can establish a trust through a lawyer or simply go online to sites such as LegalZoom. Expect to spend up to $1500.00 to set up a pet trust when collaborating with an attorney. Of course, this depends on the attorney and where you live.
Wills are another avenue through which to leave money for your pet. These are not as iron-clad as a trust, however. The language in a will might stipulate giving the cat to Cousin Tom upon your passing, but how can you ensure the proper care of your cat after you die? Plus, wills have to pass through probate, which can take up to a year to complete. And even if you have set aside a certain amount of money to take care of your pet via your will, if your estate owes any taxes or has any debts, that money could go to pay those off first.
Another option is to set up your life insurance policy to pay out to your pet as a beneficiary. Most life insurance policies allow for multiple beneficiaries, specifying how much money you want to go to each. Many term life insurance agents are known experts in estate planning and they may be able to assist you in determining which strategy to use. Seek counsel from those who have experience in this arena and then move forward with the best plan for your pet! Then, you can have peace of mind. While no one expects to die prematurely, when it does happen, it’s good to know you have taken your pet into consideration.
Source: policygenuis.com
Written by Ann Butenas
An internationally-recognized author and writer, Ann began her professional writing career at age 12 and began speaking while in college. She has been published thousands of times over the past three decades in all media forms, was former editor and publisher of KC Metro Woman magazine, and has also hosted three talk radio shows in the Kansas City area.
