What Happens to Your Pet if Something Happens to You?

The happiness of a great majority of American homes is increased by the presence of animals. No less than 70% of households in the United States have at least one pet. That translates to over 90 million pets.

Why do so many Americans have pets? Many people ask, “Who rescued whom?” What they’re really saying is, the owners may get more benefit from their pet than their pet gets from them.

Looking at the many benefits of pet ownership may convince you that this maxim is true.

Here’s a list of the benefits pet owners reap:

• Pets reduce stress. Interacting with pets has been demonstrated to decrease cortisol, the stress hormone, which in turn eases stress and anxiety.
• Pets reduce loneliness and depression. Pets provide unconditional love and partnership. Providing a home, food, recreation, and love to a pet reduces loneliness and gives the owner a sense of purpose.
• Pets increase positive mood. Playing with a pet, grooming a pet, and snuggling with a pet increases hormones like oxytocin, serotonin, and dopamine.
• Pets increase physical activity. Owning a pet encourages physical exercise, which leads to better physical fitness.
• Pets improve cardiovascular health. Playing with and exercising your pet can lead to better blood pressure and cholesterol and triglyceride levels.
• Pets can break social barriers. Owning a pet can open social doors and start conversations. This leads to meeting more people and developing more community connections.
• Service animals provide support. There are over half a million service animals in the United States that provide assistance for people with physical and mental ailments.
• Children with ASD benefit. More than 80% of children with autism spectrum disorder prefer playing with animals to playing with toys.
• Hospice support. Sixty percent of hospice providers in the United States use pet therapy animals.

Given the enrichment pets offer to human lives, many people want to make sure their pets are taken care of in the event of their death or incapacity. But what’s the best way to do that?

1. Plan Ahead. Avoid the type of mistakes made by Leona Helmsley, a real estate mogul, who died in 2007, leaving her dog, Trouble. Ms. Helmsley left Trouble $12 million and instructions that he be interred in the family mausoleum. Ms. Helmsley’s grandchildren challenged her decisions in court. As a result, Trouble’s portion was reduced to $2 million and he was cremated and buried in a separate plot.
2. Avoid abandonment and euthanasia. Courts all over the United States continue to recognize pets as property. Therefore, pet estate planning is a necessary step to safeguard your pets’ safety and well-being.
3. Trusts vs Wills. Leaving money to a pet in a pet provision in a will is viewed as a gift. Such a bequest leaves room for the designated caregiver to take the money then fail to care for the animal. Conversely, money left in a pet trust with a named guardian is a specific and enforceable mechanism to ensure ongoing care for your pet. A further benefit of a pet trust is that it goes into effect immediately.
4. Organize living arrangements with potential caretakers. Find and secure subsequent caretakers for your pet in advance. Some people mistakenly expect family members to automatically assume care of their surviving pets.
5. Funding sources. A pet trust can be funded with:
   1. Cash
   2. Investment assets
   3. Retirement benefits
   4. Life insurance proceeds
6. Advance directives. A testator can use a Power of Attorney to arrange for immediate care of your pet upon your demise. If you already have a pet provision in your will, ask your attorney to draft a POA that allows a temporary guardian to step in immediately to access the funds required to maintain your pet’s health, safety, and lifestyle.
7. Proper drafting. When creating a pet provision, consider the following:
   • Proper identification of the pet.
   • Disposition of excess funds.
   • Compensation of trustee/caretaker.
   • Reimbursement for out-of-pocket expenses incurred by the trustee/caretaker.
   • Specific direction regarding the trustee/caretaker’s authority to invest trust funds.
   • Whether the amount of funds warrant naming an institution rather than an individual as the trustee/caretaker.
   • Include criteria for removal of the trustee/caretaker if necessary.
   • Designate a subsequent and alternate trustee/caretaker.
   • Inclusion of specific care details (i.e., special food, veterinarian)
   • Rule Against Perpetuities. While it is against public policy to create a trust that continues indefinitely, your attorney can craft a trust that:
     • Lasts for the life of your pet;
     • Can add an animal as a beneficiary at a later date that is prior to your demise;
     • Can include an animal in gestation; and
     • Terminates upon the death of the last animal in the trust.

Need Help? Have Questions or Concerns? Contact an SGW Estates and Trust Attorney today at 609-409-3500. To learn more about setting up a trust for you pet, read our blog here.