What would be the fate of your pets in the event of your absence?

A vast majority of us hold our animals in high regard, treating them like family. According to the Pew Research Center, 97 percent of pet owners express this sentiment, with 51 percent considering their pets "as much a part of their family as a human member."

Despite this deep bond, it's likely that many pet owners haven't made a plan for their pets in the event they can no longer care for them. Dianne McGill, president of the advocacy organization Pet Peace of Mind, notes that while parents with children often make formal care and placement arrangements, many pet owners haven't considered this aspect.

It's understandable to avoid such discussions. The thought of one's own mortality is unpleasant, and when combined with financial considerations, it becomes even more challenging. However, having these difficult conversations now can bring peace of mind and potentially spare your four-legged companions from unnecessary challenges.

William Rideg, an estate lawyer in Montana and owner of three rescue malamutes, emphasizes the importance of addressing pets' needs through estate documents. Failure to do so may result in pets being subject to the decisions of someone appointed by the court, potentially leading to surrendering them to a shelter.

For those ready to create a plan, here's a starting point.

Identify the Individuals Who Could Provide Care for Your Pets

The initial consideration is determining who you would want to take care of your pets if you were no longer able to do so. Kelly M. Michael, an estate-planning lawyer in New York, emphasizes the importance of contemplating, "If something were to happen to you tomorrow, who would take your dog?" Furthermore, this question should be reassessed periodically. As Michael points out, "People in their 40s might say their parents will take their pet, but 10 years later, that might not be realistic."

Once you've identified a potential caregiver, it's crucial to have a detailed discussion about your expectations. Dianne McGill's organization has developed a form called the My Pet Placement Plan, designed to facilitate this conversation. This form prompts you to provide information about your pet, including their health history, daily routines, and preferences, helping to ensure a comprehensive plan for your pet's well-being.

Evaluate the Expenses Associated with Your Pet's Care

Bob Lester, president of the North American Veterinary Community and chief medical officer of WellHaven Pet Health, reflects on the changing role of pets, noting, "When I was a kid, pets were in the barnyard." As a self-described boomer, he observes the shift where pets are now found under covers and in more places like restaurants, hotels, and airports than ever before.

This transformation is reflected in our increasing expenditure to ensure our pets lead happy, healthy, and comfortable lives. The American Pet Products Association (APPA) projects that the grand total for pet-related spending this year will reach $143.6 billion.

To create a realistic annual budget for your pet's lifestyle, start by tallying up basic monthly expenses such as food, treats, flea and tick prevention, and dog-walking. Then, factor in non-monthly costs like vet checkups, shots, licensing fees, and boarding. It's essential to anticipate that veterinary expenses may rise as your pet ages. Additionally, be prepared for overall costs to increase; the APPA reports a significant 11 percent rise in pet spending between 2021 and 2022, largely attributed to inflation.

Create a Trust to Safeguard the Welfare of Your Animals

Despite their cherished status in our lives, pets are legally considered property, underscoring the importance of creating an official, legal arrangement for them in case of your demise. Establishing a pet trust is typically the recommended method for this purpose.

Christopher Berry, managing attorney for the Animal Legal Defense Fund, notes that the legal system is gradually acknowledging the legal interests of animals. To leverage this development, he suggests that individuals engage in planning to ensure care for their companion animals.

A pet trust, usually a stand-alone document, is advised to be included as a clause in your last will and testament. This ensures that relevant representatives are aware of it and that your estate adequately funds it.

One significant reason a trust is preferred over simply leaving your pet to someone in your will is the probate process. A will can take years to navigate through probate court, leaving your pet in limbo. In contrast, "trusts are effective as soon as a death certificate is ready, usually a week or two," says Michael Ettinger, an elder law attorney in New York.

Setting up a pet trust involves defining two key roles: a trustee who manages the funds for your animal and a custodian who receives the funds from the trustee and utilizes them for housing and caring for your pet. You have the flexibility to designate different individuals for each role or choose the same person for both responsibilities.

Pet trusts are commonly inter vivos trusts, also known as revocable or living trusts. Besides coming into play after death, this type of trust is activated if you become seriously ill or injured. Pet trusts are structured like any other bank account, specifically designated for the well-being of your animals.

Christopher Berry emphasizes that all 50 states recognize some form of a pet trust, thanks in part to the Uniform Trust Code, which has provisions acknowledging and enforcing pet trusts. To learn more about the specifics in your area, the ASPCA provides details on state laws.

If establishing a trust is not possible, document your preferences in writing for your pets' care

Even without a trust, there are steps you can take to safeguard your pets. The crucial step is to document your wishes in writing, a task you can accomplish without a lawyer. Pet Peace of Mind offers a downloadable document for free, allowing you to outline your pets' daily routines and health history. You can designate a pet-care guardian in the document and then have it notarized for authentication.

Recognizing that your pets' needs will change, and the designated guardian may undergo life changes, Dianne McGill suggests revisiting the document annually to ensure its relevance. William Rideg also recommends explicitly addressing the Pet Placement Plan in your will.

Conclusion

It is essential for pet owners to proactively plan for the well-being of their animals in the event they can no longer care for them. By identifying potential caregivers, evaluating associated expenses, and establishing a pet trust, owners can ensure their pets are provided for and spared from unnecessary challenges.

Documenting preferences in writing, even without a trust, is a crucial step towards safeguarding the future of beloved pets. Taking these steps not only brings peace of mind to pet owners but also helps prevent legal and financial uncertainties that may impact the welfare of their four-legged companions.