ESTATE PLANNING FOR PETS
Neal A. Deutsch, CFP®
Published in Rivertown Journal, May 2008
When we do estate planning for our clients in our office, we will always talk
about the pets of the household, and what will happen to them in the unlikely
event of a premature death of the pet owner. Pets are people, too - if you
think about how you treat your loving friend, and how you talk to and treat
them. Of course, they're not, but approximately 71.1 million households — 63%
of the total — in the United States have pets, according to an American
Pet Products Manufacturers Association, Inc. survey, and most are regarded
as members of the family.
In the course of natural and untimely events, it is not unusual for pets to
be left behind as their owners pass from the scene for various reasons. So
the question often arises about what should be done to ensure the care and
feeding of the pet during the rest of its natural life. Dog and cat life
expectancy is generally in the 10- to 18-year range, but more exotic pets
can live longer. An African grey parrot can live to 60; someone's pet tarantula
might make it to 30. It is estimated that two to four million pets are euthanized
every year because they were left homeless when their owner died. The luckier
ones are still enjoying life because the owner established who would care
for Fido in his golden years.
A Smooth Transition
If you die or become incapacitated, what will happen to that special "member
of the family?" Legally, a pet is your tangible personal property. It would
pass to your heirs or the beneficiaries of your estate unless you have a will
or trust stipulating otherwise. When you drafted your will, did you address who
is actually the best person to care for your pet, or address the immediate problem
of care, which pets will need at once? They can't wait until after the will is
through probate. By stipulating who and where your pet will be transitioned to,
you will provide for continued care for you loving companion. While the decision
may sound easy, certain details must be taken into account before putting you
wishes in writing.
Selecting a Caretaker
Perhaps the most difficult step is finding the most suitable caretaker — someone
not only able, but also willing to take on the care of your pet. Relatives and
friends may enjoy visiting with your pet, but that doesn't necessarily translate
into a willingness to provide for its daily care. Choose as carefully as you
would designate the executor of your estate.
Let that person pet-sit for several days. Discuss what financial provisions
should be made to reimburse the caretaker for actual expenses for food, toys,
walking, veterinary care and any special needs. When deciding whether additional
compensation is called for, experts in this field suggest bearing in mind
that being compensated may foster a sense of responsibility, but too much
compensation could have unintended consequences. There have been incidents
of pet caretakers mercilessly prolonging the life of a suffering pet in order
to keep the compensation rolling in.
If you have no relatives or friends willing to accept possible pet-care responsibilities,
you could investigate the fairly large number of non-profit organizations willing
to do it.
Pet Information
Whether a person or an organization, your pet's designated caretaker will need
comprehensive information — both short-term (suppose you are hospitalized
for a limited time) and long-term. This could include registration papers, if
they exist and descriptions that amount to reliable ways of identifying your
pet. Markings are obvious identification points, but beyond that, you might
consider DNA identification or micro-chipping.
Other essential information includes a veterinary history, details of any
medical conditions, dietary requirements, sleeping and exercise habits, even
social preferences — especially
any negative reactions your pet has to certain types of persons, foods or environmental
surroundings.
For many, taking care of pets left behind is a particularly sensitive subject.
Review your estate documents to see if you have indeed taken steps necessary
to take care of your buddy- if not, consider adding information necessary for
future care. After all, ain’t love grand?
Neal A. Deutsch is a Certified Financial Planner™, Registered
Securities Principal and President of Chestnut Investment Group in Suffern,
NY, helping people with financial planning since 1984. Please feel free to
call Neal at 845.369.0016 or email him with your questions at neald@chestnutinvestment.com
Feel free to visit his website at www.chestnutinvestment.com
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