Love your pet to death? Why and how to create a pet trust

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Estate planning for everyone you love.

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In his will, designer Karl Lagerfeld stipulated that a portion of his $300 million fortune go to his beloved cat, Choupette. But when the fashion icon died in 2019, there were questions about how to pass that money on. Lagerfeld and Choupette lived in Paris, and in France—as in the United States—you can’t bequeath assets directly to an animal.

Choupette was ultimately (well) cared for, and although you might not have Lagerfeld’s millions, you too can ensure your pet thrives after you die by creating a trust. A pet trust allows you to stipulate how your pet (or pets) will be provided for when you die or if you should become disabled, and can be part of your estate planning.

Pet trusts are legal arrangements that spell out how to care for your pets if you become disabled or die before your animals. Pet trusts are legal in all 50 U.S. states, although each has its own rules governing how they operate.

When establishing a pet trust, you can designate funds to house and care for your pet. You can also appoint a willing individual to care for your pets. It’s even possible to stipulate specific brands of pet food, how often to visit the veterinarian, and what toys and accessories your pet should be given as part of their ongoing care.

In addition to creating a trust, you can include your pet in your will. But deciding how best to provide for your dog, cat, or other animal in your estate planning requires some considerations:

If you want to ensure your pet is provided for in a certain way, establishing a pet trust is the closest you’ll come to guaranteeing your wishes are met.

Although a pet trust can be a smart way to provide for your pet, it’s also important to understand your state laws and prepare for possible lawsuits in case your family objects to how much you’re leaving your pet.

For example, consider the case of Leona Helmsley and her dog Trouble. Helmsley, known widely as the “Queen of Mean,” left nothing for two of her grandchildren, but designated a $12 million trust fund for Trouble. After reviewing the case, a judge changed the benefit to $2 million and awarded money to the scorned grandchildren and to charity. So don’t assume you can leave millions to your pets without the action being challenged in court.

Rather than assuming that you can just leave a house or some other assets to your pet, consider how much it would cost to care for your pet for the remainder of its life. Set up a pet trust based on that amount, and create terms that spell out the animal’s care.

Once that’s determined, think about where you want the rest of your money to go. In some cases, it might make sense to designate a charity to receive your remaining assets, if you have no human beneficiaries.

Part of effective estate planning as a pet owner is determining who is best suited to care for your pet after you die or if you become incapacitated and can no longer manage your pet’s care. Ask friends and family, and be explicit about how the caretaker should proceed under the rules of the pet trust you establish.

In addition to choosing a primary caretaker, identify two or three backups in case your initial choice should fall through.

There are numerous online resources that can help you create a pet trust, but an attorney specializing in estate planning can be useful if you need more guidance. Look for a professional in your state who understands the laws and can help you establish a trust that spells out everything your pet needs.

Cost is a factor. Lawyers charge about $500 to $1,500 to set up a pet trust. Your overall cost depends on the level of detail involved and the time spent creating the trust. Some online sources provide free templates that include a list of things to consider before meeting with an estate planning attorney. Being prepared can help reduce the time you spend with an attorney, helping to lower your costs.

Providing for your pet after you die or become disabled was once viewed as eccentric or even odd, but today, putting your pet in your will and establishing a trust to ensure its care is commonplace and reasonable. Laws governing pet trusts exist in all 50 states, and numerous resources exist online that can help you create a trust or simply help you start thinking about how you’d like your pet to be cared for.

Establishing a trust for your pet typically involves time and money, especially if an attorney is involved. But—as with many aspects of estate planning—the trade-off is peace of mind, knowing your beloved pet will receive the care it needs.