For millions of Americans, a pet isn’t simply an animal. It’s a member of the family. But many may overlook planning for what happens to that family member if you die or can no longer provide care.
Becca Craig, a wealth adviser at Focus Partners Wealth and the owner of two rescue cats, Godric and Calliope, says pet owners can take several steps to make their wishes known. Those can range from identifying and talking with a future caregiver to creating a pet directive or establishing a legally binding pet trust to help pay for the animal’s care.
The goal is straightforward: Don’t assume someone else will step in. Decide who should care for your pet, talk with that person, and document what you want to happen.
Below is a transcript of the interview with Craig, edited for brevity and clarity.
Why should pets be part of estate planning?
Bob Powell: You have two cats, Godric and Calliope. So let’s start with the basic premise. Your pet is part of your family, and you need an estate plan for your family. Where should pet owners begin?
Becca Craig: As a pet guardian, owner or parent, however you describe yourself, there’s an endless supply of joy, love, and unconditional support that our animals provide for us.
The question is: What can we do as pet guardians to make sure that no matter what happens to us, our animals continue to be cared for?
There are legal protections and other arrangements that can be put in place relatively simply. As with any successful estate plan, we don’t want to leave things to chance.
Who should care for your pet?
Powell: Before we even get to the documents, don’t you first need to identify someone who is willing to care for your pet after you’re gone?
Craig: Preferably. Don’t leave it to a Hallmark movie ending.
These aren’t always easy conversations to have, but it’s important to think about them ahead of time. You can have a conversation with a family member, friend, or another person you trust to take care of your pets after you no longer can.
It’s similar to having a conversation about guardianship for a minor, although perhaps it’s a shorter conversation.
I would not recommend assuming that family members will take care of your animals. Have that conversation well in advance.
What should a pet directive include?
Powell: In the article you wrote for finStream, you mentioned two planning tools: a pet directive and a pet trust. What’s a pet directive?
Craig: A pet directive, while not legally binding, is a way for an individual or family to provide instructions for how they would like an animal to be cared for.
Think of it as an instruction manual.
It can include your preferred pet guardian, the animal’s health history, medical conditions and treatments, food, favorite treats, temperament and other information someone would need to properly care for the animal.
While you can’t technically make a will for a pet, you can include instructions as an addendum or appendix to your own estate plan as you have these conversations with a trusted estate-planning attorney or professional.
Depending on the laws in your state, there may also be ways to provide money for your pet’s care. That’s something to discuss with a legal professional.
When should you consider a pet trust?
Powell: Once someone has agreed to take responsibility for your pet, you might also need to provide money for the animal’s care. Is that where a pet trust comes in?
Craig: Yes. We’ve probably all seen headlines about someone leaving a multimillion-dollar estate to a cat. It’s a great headline, but you can’t outright leave money to your pet.
A pet trust provides another route that can accomplish similar intentions.
A trust is a legally binding entity that can hold property, money, and other assets. There are various ways of funding it and coordinating it with the rest of your estate plan.
Typically, you direct the trust to use certain funds to provide for the care and nurturing of your pet. Someone else cares for the animal, and the trust can reimburse that person for care and supplies.
Similar to a pet directive, a pet trust can also provide instructions for caring for your pet and carrying out your wishes. The important distinction is that the trust is legally binding and should be coordinated with a legal professional.
Becca Craig
Can owners provide medical instructions?
Powell: You also mentioned advance directives and do-not-resuscitate instructions. In some ways, those sound similar to documents humans use.
Craig: They are similar. I’ve been seeing more veterinary practices offer them or have the conversation beforehand, especially if a pet is undergoing a surgical procedure.
If something happens, the veterinarian and medical professionals then have instructions about the owner’s wishes.
Advance directives, including a do-not-resuscitate order, can provide guidance during the seconds and minutes when a veterinary professional might have to make a decision.
There are templates available online, and veterinary practices may also provide them, particularly when an animal is undergoing a procedure requiring general anesthesia.
Should animal charities be part of your legacy?
Bob Powell: What about leaving money to an animal charity? That’s not necessarily about providing for your own pet, but it may be part of someone’s legacy.
Craig: Exactly. As people look for ways to ensure their legacy lives on or to benefit a greater good, they can consider leaving a bequest to an organization they care about.
There are charitable-planning strategies that can benefit organizations during someone’s lifetime as well.
If you’re an animal lover, pet rescues, animal rescues, and similar causes are another way your estate or charitable giving can support something important to you.
What should pet owners do now?
Powell: We’ve covered a lot of ground. Is there anything we missed or anything that bears reemphasizing?
Craig: We love our animals. They’re family members.
In the same way that we encourage clients to take proactive steps with risk management and estate planning, pet owners should work with trusted professionals to guide this conversation.
Ask your financial adviser or estate-planning attorney whether there are strategies you should consider, including a pet directive, pet trust, or other documents that can be incorporated into your planning.
Taking those steps now can help make sure your animals are cared for later.
