You may remember we covered the difference between a pet trust and a pet will and why it is crucial to understand what makes them different. While we hope we've answered that for you, we realize you may still have a lingering question about pet trusts: How do you start to set one up? What's the first thing to do?
Our setting up a Pet Trust 101 article below should help you begin the process to ensure your beloved pet or pets will be cared for and well-loved after you pass or if you cannot do so yourself.
What Is a Pet Trust?
Many pet owners consider their animal companions to be part of their family. Like family, they want to ensure they are cared for should something unexpected happen to them during their pet's life. Some pets, such as turtles, parrots, and horses, can live surprisingly long lives, and pet owners may naturally worry about what will happen to them when they cannot be there for their animals.
We naturally think that including a pet in our will and leaving money for their care should they pass the solution. Unfortunately, in most cases, a will is not in the best interests of your beloved companion (or companions.) Instead, what you want is called a pet trust.
A pet trust is a specific trust that provides money and care for your pets and animal companions and is a legal entity. Like any trust, you can fund it by contributing assets during your lifetime and leaving the accumulated assets to the trust within your will. Your pet in a pet trust becomes the beneficiary of this trust. Once the pet trust is activated, the trustee you name to care for your pets can use the funds to pay for food, housing, and other care.
Why A Pet Trust Is Better Than a Pet Will
For a more detailed explanation of why a pet trust is superior to a pet will, please read our article: Why a Pet Trust is Better than a Pet Will in Estate Planning.
In short, you can appoint a trustee to take care of your pet in your will, but because a pet is considered part of your property or an asset, there is no guarantee that the person you appoint to take care of your pets will look after them. A trust, however, can be legally enforced, ensuring their trustee will follow the careful directions for their animal companion(s).
A pet trust also allows pet owners to be as particular or detailed as needed about the care of their animals. For example, if your cat has kidney issues or IBD (irritable bowel syndrome), most often, they will need to be fed with a particular type of cat food—it may even be a prescription. In a pet trust, you can instruct a trustee to feed your cat the specific kind of food they need—as well as leave them instructions such as guaranteeing they are taken to the vet several times a year and that they are up to date with vaccines and more.
Setting Up A Pet Trust 101
To set up a pet trust, you will require a professionally made trust document, much like you would seek one for human beneficiaries. The only difference between a pet and a non-pet trust will be the legal language within the document and the outline you detail for the trustee's duty to the pet or pets in question.
What should you do, and what information will you need for a legal document for a pet trust?
- Identify and choose the right trustee (caretaker for your pets)
- Provide the trustee's full name and address
- Choose and identify a successor trustee (this is in case your original trustee changes their mind, refuses, or, in the worst-case scenario, has something happen to them, rendering them unable to care for your pets)
- Provide identification for your pet: photographs, DNA samples, Vet records, and microchips
- Determine how much is needed financially to care for your pets, including food, veterinary care, housing, or lodging
- Additional or thorough information for your pet's continued care. Consider detailing what food to feed them, feeding times, vet visits a year, vaccines, enrichment and play, toys, and general well-being.
- How you will be funding the trust once established. (the act of transferring assets into the trust's name)
- Providing funerary instructions for your pet, such as burial or cremation
- Any other details you wish to add or more if needed
Pet trusts are a superior choice for peace of mind when caring for our animal companions if we can no longer do so. The best-laid plans can often go awry, and if you are unsure of a loved one's commitment to—or ability to care for a pet—such as larger pets like horses that require a lot of time, money, and love and care—then a pet trust will give you the assurance you need should the unthinkable happen.