I often refer to estate planning as the process of taking care of yourself now and in future, and taking care of those close to you – now, in future and when you are no longer around. For the most part, the “those” are human beings, however that is not always the case.
Many people have very strong affection for their pets, and will wish them to be well cared for after one’s death. For single or widowed seniors in particular, the implications of an owner’s death could be significant for the pet, perhaps even fatal. Indeed, the pet may have to be ‘put to sleep’ if no family member or close friend is able and willing to step forward, and on fairly short notice. (See sidebar Love you to death)
On the other hand, consider the fortunes of Trouble, the Maltese lapdog to whom New York City landlord and real estate maven Leona Helmsley bequeathed the lion’s share of her estate on her death in 2007. While Ms. Helmsley’s human descendants managed to have the value of the dog’s inheritance reduced, Trouble lived in the lap of luxury for years before heading to the great kennel in the sky. (See sidebar No Trouble)
Apart from any legal issues, there are some practical concerns that a pet owner should carefully consider in choosing an appropriate successor owner/caregiver:
- Does the person have the disposition and lifestyle to be a pet owner? Does the person’s daily routine and work schedule allow for adequate care? How do travel and vacations factor in?
- Is the person physically up to the task? Are there any safety issues (to pet or people), particularly where there are young children in the home? Are there allergy issues?
- Is there space to care for the pet? Do condominium or housing rules allow pets? What are the municipal bylaws in the case of exotic pets? (See sidebars Lions… and Lizards…)
And then there is the matter of money. As any pet owner can attest, there is the cost of food, accessories, heath checkups, emergency medical care, and possibly boarding when the owner is traveling. Multiply this by the pet’s remaining life expectancy and that can be a stiff financial burden to place on an individual or family. On top of that, there can be a significant time commitment that in fairness should be compensated.
In Canada, a pet cannot be named as a beneficiary in a person’s Will or under a life insurance policy, so you can’t give the money to the pet directly. Rather, pets are considered property, and could be given away during one’s life or be the subject of a gift to the intended caregiver in the owner’s Will. This could be accompanied by a monetary gift to the caregiver with the understanding that it is to compensate for the pet’s future maintenance.
If the pet owner is concerned that the caregiver may fail to fully carry out the wishes, it certainly is possible to establish a trust to provide for the cost of the pet’s upkeep. The compensation to the caregiver would then be based on continuing to provide the appropriate care. Of course this brings into question whether the right person has been selected, not to mention the complication and cost of drafting the trust and providing for its proper administration.
Above all, keep in mind how beneficiaries and family will respond, as a Will challenge can be costly, time-consuming and acrimonious even if legally unsuccessful. As with many estate planning issues, open communication of the pet owner’s wishes is key. It can uncover obstacles and options, and put the owner’s mind to rest that the pet’s creature comforts will be best served.
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SIDEBAR – Some notable animal successions
Love you to death – An Illinois woman left a $1.3 million estate to some animal charities, but directed that her own cat be euthanized, for fear it would end up in an abusive home. The executor applied to court, and instead the cat was placed in a home with a reputation for caring for cats.
No Trouble – Leona Helmsley’s dog Trouble inherited $2 million. It cost over $150,000 annually to maintain her in the lap of luxury to which she had become accustomed, including a personal body guard. On Trouble’s death 3 years later, the remaining funds went to charity.
Lions & tigers & … lizards, oh my – An Ontario Serpentarium owner died unexpectedly of a stroke at age 52. With no Will, a dispute arose over his 200+ exotic animals, requiring a six-week trial before his brother was awarded ownership. The animals were donated to two zoos.