A woman is suing the IRS for the right to claim her dog as a dependent, according to VICE. Regardless of your thoughts on the merit of this case, one point is beyond dispute – our pets really do depend on us. You may not be able to claim them on your taxes, but you can include them in your estate plan. One way to do this is to create a trust for your pet.
Pets Are Part of the Family
Most Americans own pets, and most pet owners consider their pets to be part of the family. That’s the takeaway of a poll from Pew Research Center, which found that 62% of Americans have a pet, and 97% says their pets are part of the family, with 51% saying that their pets are as much as part of the family as a human member.
Parents with young or disabled children who depend on them frequently use estate planning to ensure that their loved ones continue to receive care once they’re gone. Since most pet owners view their pets as part of the family, it follows that many pet owners will want to include provisions for their pets as part of their estate plan.
Estate Planning Considerations for Pets
Many pets end up in animal shelters after the death of their owners. Most owners would not have wanted this for them. With careful estate planning, you may be able to ensure that your pets continue to receive the care they are used to, even if you pass away or become incapacitated.
A trust is one way to do this.
A trust is a legal arrangement that allows you to allocate funds for a specific purpose and include instructions on how those funds may be used. The trustee manages the funds in accordance with the rules of trust. People use trusts for a variety of purposes, such as providing funds for a minor child or making sure that a beneficiary does not squander their inheritance. A trust can also be used to provide care for a pet.
According to the ASPCA, all 50 states allow for pet trusts as of 2016.
The Pros and Cons of Creating a Trust for Your Pet
A pet trust is attractive for a lot of reasons.
- A pet trust is a legal way to include your pet in your estate plan. Some people may be tempted to simply include their pet in their will, but because pets are typically considered property under the law, this does not guarantee that your pet will receive the funds you intended for it. A trust is a legal strategy that can accomplish your goal.
- A pet trust can receive life insurance benefits. You can’t name your pet as the beneficiary of your life insurance policy, but you can name your trust as the beneficiary.
- A pet trust allows you to provide instructions for care. A trust is more than a way to allocate funds. It’s also a way to provide specific instructions regarding things like food, grooming, and vet care.
- A pet trust is a practical way to fund your pet’s care. Caring for a pet can be expensive. Capital One Shopping says pet owners spent an average of $2,026 on their pets in 2024. As your pet ages and requires expensive veterinary care, the costs can be much higher.
The main downside is that setting up a trust will require time and money on your part. You’ll need to decide who should serve as the trustee in charge of managing the funds, and whether this will be the same person who provides care for your pet, and you’ll need to fund the trust. A lawyer can help you set up the trust correctly.
Alternatives to a Pet Trust
If you want to make arrangements for your pets but you don’t want to go so far as to create a trust, there are alternatives. You can talk to your friends and family about whether they could take in your pets – this is also important if you’re setting up a trust and expect them to provide care. You can also participate in a program like the Oregon Humane Society’s Friends Forever Program, which provides care for pets in exchange for a planned gift.
Is your estate plan missing something? There’s a lot to include in an estate plan, and pets are just one of the many things that people often overlook. An estate planning attorney can help you craft an estate plan that addresses all of your needs. Contact Skinner Law to set up an appointment.