Planning for Pets: How Leveraging Pet Trusts Can Protect Four-Legged Loved Ones and Create a Lasting Legacy

According to the 2023-2024 National Pet Owners Survey by the American Pet Products Association (APPA), approximately 86.9 million American households—representing 66% of all households—own a pet. Among older adults, pet ownership is also prevalent; a 2018 University of Michigan poll revealed that 55% of adults aged 50–80 reported having a pet. These numbers likely underestimate the true scope of pet ownership. Estate planning involves more than preparing for clients’ financial future – it can also encompass planning for their pets; without a clear plan in place, pets can face uncertain futures. For many of your clients, planning for their pets’ care after their passing is likely a priority, and by addressing this concern proactively, you can help your clients ensure that their beloved companions continue to receive the care they need.

Does a Pet Trust Make Sense?

Under U.S. law, pets cannot directly inherit money because they are legally considered property in all states. Fortunately, there are ways to plan ahead for your clients’ pets. Pet owners (Settlors) generally face two main options:

1. Informal Arrangements: Leave their pet to a trusted family member or friend with the understanding that they will provide care. However, informal agreements do not guarantee the pet’s well-being, as circumstances may arise that force the caretaker to rehome the pet.


2. Pet Trusts: Establish a legally enforceable Pet Trust to ensure pets are cared for both physically and financially.

A Pet Trust offers a structured, enforceable solution for ensuring pets are cared for according to an owner’s wishes. While providing greater control, this option introduces added complexity and potential costs, including considerations related to the availability of trusted caretakers, care requirements, expenses, and court oversight.

A Pet Trust can be part of a living trust or a standalone document. It specifies that, upon the Settlor’s incapacity or passing, a designated Caretaker will assume responsibility for the pet’s care. The trust allocates funds for this purpose, with a Trustee overseeing the funds and reimbursing the Caretaker as long as the pet is well cared for. Trusts also allow for the designation of alternate Caretakers, providing added assurance that the pet will be cared for even if the original choice becomes unavailable.

The Role of Charitable Giving in Pet Trusts

Incorporating charitable giving into a Pet Trust not only ensures the pet’s ongoing care but also provides an opportunity for your clients to fulfill their philanthropic goals. Here are some ways this can be achieved:

1. Charitable Organizations as Contingent Caregivers

If no individual caretaker is available, a Pet Trust can designate an animal shelter, rescue organization, or pet retirement home as a secondary or primary caregiver. Many organizations specialize in providing lifelong care for pets whose owners have passed away, typically in exchange for a financial donation to fund the pet’s ongoing care.

2. Remainder Beneficiaries

Any remaining funds in a Pet Trust after the pet’s passing can be directed to a charitable organization of your client’s choosing. This ensures unused resources contribute to meaningful causes.

3. Direct Charitable Contributions

Pet Trusts can allocate a portion of their assets directly to charitable organizations, either as one-time gifts or periodic donations during the pet’s lifetime. This approach supports your client’s philanthropic efforts while also ensuring the pet’s care.

4. Charitable Gift Annuities or Bequests

In addition to the trust, pet owners may establish charitable gift annuities or include charitable bequests in their wills. These funds can reflect the owner’s commitment to the cause.

5. Tax Considerations

Incorporating charitable giving into a Pet Trust may offer tax advantages, such as reducing estate taxes through donations to qualified 501(c)(3) organizations. This strategy can preserve more of the estate for other beneficiaries while supporting meaningful initiatives.

Conclusion

A Pet Trust offers peace of mind to pet owners, ensuring that their beloved companions receive care even in their absence. By integrating charitable giving into the trust, clients can enhance their legacy, supporting both their pet’s well-being and broader philanthropic goals. With careful planning, a Pet Trust can provide a lasting impact that reflects the owner’s values and dedication to their furry, feathered, or scaled family members.

About the Author

Danielle K. Wakefield, Esq.
Wakefield Law Firm

Danielle Wakefield has been a practicing attorney for 23 years and is located in beautiful San Diego County, California. She is vegan and became an ordained Animal Chaplain in 2023 because of her love of all animals. What her boutique firm provides is personalized attention and a heart- and soul-centered approach to her clients’ needs. Her knowledge of the law, impeccable attention to detail, and honesty combined with her naturally disarming personality will put you at ease.

Danielle Wakefield, I am a licensed attorney, I am not your attorney. The opinions expressed herein are my own, and are not intended to provide legal advice or create an attorney-client relationship.