By Jason Smolen
Legendary fashion designer Karl Lagerfeld’s beloved cat Choupette will reportedly inherit millions, leaving the cat to happily continue its luxurious lifestyle. While we all may not have a fortune to leave behind, Lagerfeld’s death shows it’s more than just fashionable to include your pet in your estate plans. Financial Advisor Magazine turns to Principal Jason Smolen on how to make sure your pet is cared for after you’re gone.
“It is definitely something a pet owner wants to think about and you want to ask your clients about it,” says Smolen. “It is more about passion than the economy: about how much a person cares about the pet, rather than the economic status of the person making the will.”
Smolen encourages you to know the right options for making sure your pet is cared for after your death.
What happens to your pet if there’s no estate planning?
Far too often, pet owners pass away without having left clear instructions to make sure the animal gets proper care. The result: A friend or family member suddenly inherits the pet — and the financial burden of caring for it. Without a proper plan, there could also be confusion on who is the heir. Worst case scenario, your pet ends up in an animal shelter to be euthanized or abandoned. “Not having a plan in place is not something a pet owner wants to overlook. If there are several pets, it might be too much responsibility to put on one person,” so plans and money should be set up ahead of time.
How can I protect my pet with a pet trust?
“A pet trust is like a savings account for your pet,” says Smolen. “With a pet trust, the owner can outline how they would like the pet taken care of, how often it should be groomed, how the pet trust money should be spent, and any other special needs the pet might have,” says Smolen. Pet owners should also meet with assigned caretakers and trustees to eliminate any confusion and ensure they are all aware and on-board with the plan. Pet owners should update their pet trust and will whenever they get new pets or say goodbye to old ones.
How much should I leave to my pet?
“The amount of money in your pet trust should be based on the cost of caring for the pet,” says Smolen. For example, taking care of a horse will require more money than a cat. If the pet dies before the owner, the trust balance is returned to the owner, although many people decide to donate their pet’s trust fund to ASPCA or another charity of their choice in memory of their pet.
Should I include my pet in a trust AND my will?
The law doesn’t take a warm-and-fuzzy view of pets, treating them simply as tangible personal property when their owner dies. That’s why pet owners should also include their pet in their will. The will should name a specific caretaker, and provide a detailed plan spelling out care instructions and financial arrangements, especially if there is no immediate family member to take care of the pet once its owner passes.
What are pet trust laws in the region?
The Virginia, Maryland and District of Columbia Animal Trust Laws allow a trust to be set up for the entire lifespan of an animal, whereas many states cap the trust at 21 years. This is beneficial if the trust is for an animal with a long lifespan, like a parrot.
Read the full Financial Advisor Magazine article here.
About the Author
Jason Smolen
Jason Smolen is a founding principal of SmolenPlevy. Smolen’s knowledge of complex estate and business issues has drawn the attention of ABC News, USA Today, E! Online, Realty Times and the Bank of America Small Business Online Community. Mr. Smolen is a graduate of the City College of the City University of New York and the George Mason University School of Law. Smolen also serves as a board member of a local citizens association and recently co-authored an article titled Why You Should Think About Spousal Limited Access Trusts (SLATS).
