“Pandemic puppies”
With increased social isolation and more time spent at home in 2020, adopting a puppy quickly became the most desirable of lockdown goals. And rightfully so. Outside of the joy a snuggle with a dog can bring, owning one has been linked to reduced risk of heart attacks, lower blood pressure and increased well-being and resilience in the face of adversity — key during a pandemic. In a year that often felt uncertain, these “pandemic puppies” offered the unconditional love and support that many needed.
So how can we ensure our four-legged family members (old and new) are protected if something happens that leaves us unable to care for them? A comprehensive estate plan that includes arrangements for your furry friends is a great place to start.
Your pets are property
While you think of your pets as family, in the eyes of the law they’re property, subject to the same distribution as your other possessions should something happen to you. This means that if you haven’t made specific arrangements regarding the care of your pet they will be grouped in with the rest of your belongings, going to whomever is your beneficiary. This may not be what you had intended. In fact, you may have a completely different idea of who you’d like to take care of your pet, and formalizing these plans can ease the process for all involved.
How can you protect your pet?
The only way to ensure that your pet is given to someone who is both willing and able to care for them is to make provisions in your estate plan. Provisions can range from relaxed and informal to rigid and specific, and there are varying levels of risk depending on your approach.
Here are a few things to keep in mind when creating your plan:
1. Choose a caregiver (or caregivers)
Establishing people you can trust for both short-term emergency situations and as permanent caregivers is key to protecting your pet.
Assigning a temporary emergency caregiver is a great way to make sure that your pet won’t be lost in the shuffle should a situation arise. This selection should include the following basic precautions:
• Name a responsible person (or two) to take care of the immediate needs of your pet. Make sure they have access to your home, understand care and feeding instructions and are aware of the permanent plan for your pet.
• Advise friends and family that this person is the emergency pet contact. Some pet owners will opt to carry a wallet “alert card” that lists the names and numbers for emergency pet caregivers, ensuring that the right people will be notified if necessary.
Choosing a permanent caregiver for your pet is one of the most important decisions you’ll make for them. Keep in mind these considerations:
• The person you select will have full discretion over your pet’s care. Choose a stable home, someone you trust, and best-case scenario, someone who loves your pet. Consider how your pet will fit into their family or lifestyle. It’s important that everyone is happy with the arrangement.
• Make sure you have a conversation verifying their willingness to take your pet (or pets) and discuss any special care they may need so the caregiver understands the responsibility. If you have multiple pets you’d like to keep together, ensure that the caregiver understands this.
• Have a backup. A friend or family member may initially agree to the responsibility of caring for your pet, but situations like allergies, pet conflict, children, relocation or lack of finances can create unforeseen issues. For this reason, it can be helpful and reassuring to have multiple options.
• Make suitable financial arrangements to ensure that your pet has everything they need without adding any additional financial burden on the caregiver.
In instances where you aren’t able to assign a trusted caregiver, consider naming a sanctuary or rescue organization that specializes in the care of pets.
2. Put it down on paper
Once you’ve chosen a caregiver (or caregivers), document your wishes in your estate plan.
While some pet owners opt for an informal designation through the outright gifting of a pet to a caregiver, there’s a benefit to making it more official. Informal arrangements, including a gift of money to accompany the pet, mean trusting that the assigned party will remain healthy, capable and financially responsible enough to care for your pet.
A more formal option to explore is the designation of a pet trust under your estate plan. These trusts create additional protection, safeguards and oversight in the ongoing care of your pet.
3. Arrange funding
Taking on the responsibility of your pet is a kindness extended by someone who cares about you (and hopefully your pet). You can ensure this kindness isn’t a burden by making financial arrangements for the care of your pet. Costs can vary according to the type of pet, age, breed, as well as lifestyle and personal preference. Funding considerations to include when making financial provisions for your pet include:
• costs for transporting the pet to the caregiver;
• estimated annual care expenses (food, grooming, training, vet bills, medications, boarding costs, etc.);
• special health needs requiring expensive medical treatments; and
• compensation to be paid to the caregiver, if any.
Keep in mind that while some people have tried to leave unusually large sums of money for the benefit of their pets, this often ends up causing legal disputes, and ultimately a court may choose to reduce the amount to what it considers reasonable for the pet’s care. You can provide for your pet through thoughtful planning and fund allocation without resorting to over-the-top endowments.
Final thoughts
Pet considerations are an often overlooked part of estate planning. Making allowances for them in your estate plan provides peace of mind knowing that you’ve done all you can to protect your much-loved family members.
BMO Private Wealth provides this publication for informational purposes only and it is not and should not be construed as professional advice to any individual. The information contained in this publication is based on material believed to be reliable at the time of publication, but BMO Private Wealth cannot guarantee the information is accurate or complete. Individuals should contact their BMO financial professional for advice regarding their personal circumstances and/or financial position. The comments included in this publication are not intended to be a definitive analysis of tax applicability or trust and estates law. The comments are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.
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