Dogs rule. Cats…Fish? Gerbils? Birds….Statistics show that young and old continue to invest heavily in pets. We appreciate their loyalty, and welcome the joy they add to our days. But when we choose to bring a furry, scaly or feathery friend into our lives, the right thing to do is look out for their futures. Read on for estate planning considerations for pets.
Love and Care Always: Estate Planning For Pets
Pet ownership has been steadily increasing: in 2024, it’s estimated that about 86.9 million homes in the U.S. had at least one pet, and, the popularity breakdown is:
- Dogs (65.1 million households)
- Cats (46.5 million households)
- Freshwater fish (11.1 million households)
- Small animals such as hamsters, gerbils, rabbits, guinea pigs, chinchillas, mice and ferrets (6.7 million households)
- Birds (6.1 million households)
Millennials make up the largest share of pet owners right now (33%), but Gen Z (25%) and Baby Boomers (24%) are not far behind in their zest for sharing daily life with beloved pets. Indeed, though the responsibilities of pet ownership can become more challenging as we age, the American Humane Society points out that pets “can provide important forms of social and emotional support for older adults, and “can reduce distress, loneliness and improve overall quality of life.” Responsible pet owners of every age know that caring for pets requires an investment of time and money. Veterinary services, pet sitters and food have to be factored into the budget. Making plans for who will care for our beloved animals should something happen to us is wise too. Sometimes these arrangements are informal: like making sure a reliable friend, neighbor or relative is prepared to step up if a life emergency catches us by surprise.
Though informal arrangements for pets can come in handy, it’s increasingly common to make more formal arrangements for pets using estate planning techniques. Having a carefully thought out strategy for both the financial and physical well being of pets ensures that money is available for their needs, and designated people are ready and willing to take over when needed. Specifically, setting up a pet trust can be a great way to set up ongoing care for pets, as attorney Davis Schilken explains:
A pet trust provides peace of mind that your beloved companion will be well cared for, no matter what the future holds….A pet trust is a legally binding arrangement that designates funds and instructions for the care of your pet after you pass away or become incapacitated. Unlike informal promises to a friend or family member, a pet trust ensures your wishes are followed and provides financial resources to cover your pet’s needs.. Many pet owners assume that leaving instructions in a will is enough, but a pet trust offers several advantages:
✔ Immediate Care – A will goes through probate, which can take time, while a trust ensures care begins right away.
✔ Legal Oversight – A trustee manages the funds and ensures they are used for your pet’s benefit.
✔ Customized Instructions – You can specify dietary needs, medical care, daily routines, and even the person who will care for your pet.
When a trust is established, a written agreement, known as the trust agreement, details the purpose of the trust, and provides specific information from the settlor (person establishing the trust) about how the funds are to be utilized, and who is to be involved. Experts at Davis Schilken advise these five steps for setting up a pet trust:
- Choose a Caregiver – Select a reliable and willing person to take custody of your pet.
- Appoint a Trustee – This person manages the funds and ensures they are used appropriately.
- Outline Care Instructions – Detail feeding, vet visits, exercise routines, and any special needs.
- Fund the Trust – Determine the amount needed to cover your pet’s lifetime expenses.
- Plan for Surplus Funds – Specify where remaining funds should go once the pet passes away.
Good To Know: Trustee and Trustee Bond?
Among the important decisions to be made when working with a lawyer on a pet trust, or any type of trust, is the designation of the trustee who will administer it.Typically, a relative or friend is chosen, but it is also possible to appoint a professional trustee. Ultimately, whether a friend, relation or professional is selected, the trustee has fiduciary obligations, and must always exercise reasonable care and skill in managing the assets of the trust. Accordingly, the trust agreement may require a trustee bond, which is a specific type of fiduciary bond that protects the interests of the trust in accordance with the law. As a leading national provider of many types of fiduciary bonds, Colonial Surety makes it easy and efficient to obtain a trustee bond. Just get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere.
Trust and Estate Law Practice?
Speed things up whenever and wherever a bond is needed. With a few clicks on The Partnership Account® for Attorneys, you’ll arm your clients with exactly the bond needed.
Just select a fiduciary or court bond from the online portfolio, send it to your client for payment, then download, e-file or print the bond. Specific obligee requirements?
Trust us: Colonial’s a direct bond writer, so our experts are here to ensure obligee requirements across the country are properly met.
Our fiduciary bond portfolio includes: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. See for yourself, right here.
Court bonds are right here too, including: appeal, supersedeas, injunction, replevin, receiver and more.
Speedy, easy bonds court and fiduciary bonds, right here:
The Partnership Account® for Attorneys.
Colonial Surety is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA. Our customers have awarded us a 4.8 Trustpilot score. Whenever and wherever you need a bond, trust Colonial: www.colonialsurety.com