Do You Have A Pet Trust In Your Estate Plan?
Pet trusts are legal arrangements designed to ensure the care of pets after their owners pass away. Though once seen as extravagant or unnecessary, they have become a common part of estate planning across the United States. By 2016, all 50 states had recognized the legality of pet trusts, reflecting their growing relevance among pet owners who view their animals as family.
Creating a pet trust involves several key decisions. First, you must determine how much money to set aside for your pet’s care. This amount should cover the pet’s expected lifetime needs, including food, veterinary care, grooming, and general upkeep. You’ll also need to name a trustee, someone responsible for managing the funds, and a caretaker, who will take over daily responsibilities for the animal. These two roles can be filled by the same person or by different individuals, depending on your preference.
Any funds remaining after the pet’s death can be allocated to a person, charity, or cause of your choice. This makes pet trusts a flexible tool, able to support both pets and philanthropic goals.
Famous examples highlight both the benefits and potential pitfalls of pet trusts. Leona Helmsley left $12 million to her dog Trouble, but a court later reduced the amount, redistributing some funds to disinherited heirs and charities. Michael Jackson reportedly left money for his chimpanzee Bubbles, who now lives in a sanctuary. German countess Karla Liebenstein supposedly left millions to her dog, Gunther, though some speculate this story was fabricated. These cases underscore the importance of realistic planning, especially when large sums or disinherited family members are involved.
A well-prepared pet trust also identifies what happens if the initial caretaker or trustee can’t serve. It allows you to designate backup individuals and determine where any remaining money should go after your pet passes. Additionally, you can include specific instructions regarding your pet’s routine, diet, medical care, and even burial or cremation preferences.
Though many people expect to outlive their pets, life is unpredictable. Including your animals in your estate plan ensures they will be cared for, regardless of the circumstances. By doing so, you protect not only your human family but also the loyal companions who bring comfort and love every day.
If you have a furry loved one and you have questions about a pet trust or other estate planning tools, give us a call at 605-275-5665.
Read more: Estate Planning for Pets? 3 Famous Pet Inheritance Stories
