Estate planning isn't just about distributing assets to loved ones—it’s also an important step to ensure the well-being of your pets after you have passed. Many folks—myself included—consider pets to be part of the family, yet they are often overlooked when putting in place (or updating) an estate plan. This is a missed opportunity to specify who you wish to take in your pets and to provide directions and/or funds for their care.
Including pets in your estate plan helps ensure that upon your passing your pets are cared for in a way that reflects your wishes and their needs. An estate plan can also address (1) whether pets should be rehomed together; (2) your pet’s special needs/quirks; and (3) your overall wishes for their general well-being. Planning ahead - often via the following three options - can help provide peace of mind that your furry (or feathered, or scaly) companions will continue to live happy, healthy lives no matter what the future holds.
Will or Revocable Trust
You may specify to whom your pets should pass upon your death (a “caretaker”), as well as back-up caretakers, in a will or revocable trust. You may also gift funds to the caretaker to assist in caring for your pet, though the caretaker will likely have ultimate discretion over use of these funds. Additionally, if using a revocable trust rather than a will, your estate may be able to avoid the probate process, which can streamline the transition of petcare.
Personal Property Memorandum
If you want the option to revisit over time your selection of a caretaker, you can instead specify the caretaker via a separate document (called a “personal property memorandum”) which accompanies your will or revocable trust.
Pet Trust
Colorado law allows for the creation of a “pet trust,” which is an irrevocable trust that names the caregiver(s) and holds funds for your pet’s care. A pet trust is overseen by a trustee, who ensures the funds are used in accordance with the trust’s terms. Though this option adds complexity and cost to an estate plan, it can be a great option for those wanting greater peace of mind that their pets are properly looked after.
Don’t overlook your pets in estate planning
Pets deserve careful consideration in estate planning so that they are not left in uncertain circumstances should something happen to you. Whether addressed in a will, revocable trust, or memorandum, or the creation of a pet trust, integrating your pets into your estate plan is a great way to show your ongoing love and commitment to them.
