When Queen Elizabeth II died on September 8, she left behind a veritable fortune. Of all her treasures, she valued nothing more than her beloved corgis and horses. The Queen’s will explicitly named who took possession of her beloved pets, but that will has been sealed. Undoubtedly, ERII cared for her animals’ welfare.
Wills and trusts have distinct functions in estate planning, regardless of whether you’re a royal or a commoner. This is especially so when it comes to the disposition of a pet. Depending on where you live, legal boundaries can get sticky in such matters.
While no one in their right mind would equate an animal companion with a toaster or tea set, pets are legally considered property in the U.S. As such, you can will your pet to the person of your choice. Whether or not your pet will be adequately cared for and loved is a completely different matter. Wills transfer “ownership,” but they can’t enforce responsible care or due affection; one can’t will the beneficiary of their pet to treat their newly-acquired “property” like family.
Moreover, pets’ status as property precludes them from inheriting money. However much she wants to, aunt Minnie can’t will her chihuahua, Pork Chop, 60K to keep her in kibble and rhinestone collars for life. A pet trust, on the other hand, legally binds a designated trustee to manage estate funds specifically for Pork Chop’s care and nurture. A special provision can designate a separate investment trustee charged with growing funds in the trust to ensure ongoing care.
Trusts allow the current pet parent to make provisions for their pet’s care in the event they are temporarily or permanently disabled. These provisions can be revised or revoked at any time while he/she/they are still alive.
In short, wills bequeath one’s pet(s) to the person/people of their choice; trusts are the framework within which their pet’s care is financed for life.
Can the beneficiary and trustee be the same person? Ideally, but not necessarily. The person best suited to tend to a pet’s daily needs may not have the best head for money and vice versa. Ultimately, the beneficiary and/or trustee:
Should be someone the benefactor knows and trusts well, loves animals and for whom the pet has an affinity
Can reliably check up on/maintain the animal’s welfare, regardless of their own life circumstance (i.e. relocation, marriage/family, job change/loss, acquiring another pet, etc.)
Professional services for creating pet trusts currently range from $500 to $1,500, depending on the complexity of the document. A DIY option specific to each U.S. state is available online through Rocket Lawyer. Go to their home page and type Pet Trust in the search bar. In 2016, Minnesota joined the 49 other U.S. states allowing for pet trusts.
Both wills and trusts each have their rightful place in conscious and compassionate estate planning. Without a specific plan in place, our loving, living property may be subject to our state’s intestacy laws. This typically means that a probate court will appoint an executor who’ll decide the fate of our pet. Too frequently, pets wind up in shelters rather than with family or friends. An estimated half million pets are euthanized each year because provisions weren’t made for their care.
A harrowing thought for the ones who loved us until our last breath.