Planning For Your Pets

When you think of “estate planning” most people think of planning for their spouses, children, and grandchildren. Did you consider your furry friends and critters that give you so much love and attention every day? If you are a pet owner, it is important that you include your pets in your estate plan to ensure that someone will care for them.

While you may consider your pets to be a member of your family, the law views pets as personal property that are included in your estate along with your other assets. If you don’t name a caregiver for your critters, who will take care of them? If you don’t have an estate plan at all who will feed, water, and exercise your pets while a pet custodian is being located? Once someone is located, can that person afford to care for the animal? Does that person really like animals?

Fortunately, Colorado allows for the appointment of a pet custodian, and has also enacted a statute allowing for Pet Trusts. While a Pet Trust might not be necessary for all pets, there are instances where it is a very important tool, especially if you have larger, more expensive pets. A Pet Trust can be created as either a revocable trust (created during your life) or a testamentary trust (created upon your death). This trust names a caregiver for your pets and holds assets that are to be used for the care of your pet. In your trust agreement, you can direct your trustee (the person managing the trust) to make distributions to the caregiver for your pet’s expenses, such as food, grooming, and veterinary appointments. Then, if there are any funds remaining in the trust once your pets have passed away, you can name beneficiaries to receive those remaining trust assets.