I recently became a father for the second time, to a mischievous pair of Labradoodle puppies who enjoy chewing, playing, and cuddling (but not necessarily in that order!).

Any pet owner will tell you that a small bundle of fur or feathers quickly becomes a member of the family. (In our case, about 1 minute 30 seconds.) Even though we know it’s a short-term relationship, we take care of their needs, from food to toys, beds to training.

As members of our family, we must also consider what will happen to them if we pass away. As a nation of pet lovers, 44% of those who own a pet intend to leave money in their wills to ensure that their pets are cared for for the rest of their lives.

Pets As Personal Chattels

In the United Kingdom, all pets are considered “personal chattels,” which means they are possessions. As a possession, your pet cannot open a bank account, so you cannot leave money to your pet directly!

Instead, you can entrust the care of your pet(s) to someone you know and trust, known as a pet guardian or pet caregiver. However, before naming someone in your will, you should get their permission.

You may also want to have a back-up guardian too, as the Co-op suggests:

“You can designate a substitute beneficiary in case your first choice is unable or unwilling to act when the time comes.” For example, the person you chose to care for your pet may have died already, or may be unable to handle the responsibility due to illness or a change in circumstances.”

Taking care of your pet’s needs

If you leave a pet to someone in your will, you can also leave the same person a cash gift to cover the costs of future pet care. Your will should specify that the gift should only be given if the person you appoint takes on the responsibility of caring for your pet.

To make your pet’s provision legally binding, you must establish a pet Trust. This ensures that funds “ring-fenced” in the Trust are only used to care for the pet. You will need to appoint a Trustee for your Trust, who may or may not be the person who is the pet guardian. The funds in the Trust should cover all of your pet’s ongoing needs, including vet bills and insurance. Keep in mind that pet care costs may rise as your pet ages or requires surgery.

Setting up a Trust should be done with the assistance of an estate planning professional, such as ourselves.

Caring for your pets when you’re no longer able to do so

You may also need to make provisions in the Trust for your pets if you become unable to care for them in the future. It’s especially concerning for terminally ill or elderly pet owners, whose declining health means they may be unable to care for their pets or take them into care with them.

Is it enough or too much?

It can be difficult to determine how much to put in a pet trust. The average amount in the UK is slightly more than £3,600, but those over the age of 65 are more generous, with 13% leaving more than £20,000. That may seem excessive for a single older dog or cat, but it may be necessary for a larger pet, such as a horse, or an exotic pet with special needs.

What makes headlines are the large sums left by US celebrities for the care of their pets. Chat show on television Oprah Winfrey is said to have established a $30 million trust for her five dogs. Leona Helmsley, a real estate millionaire, bequeathed $12 million to her Maltese dog Trouble in her will.

Ms Helmsley, on the other hand, purposefully left her two grandchildren out of the will. The will was challenged, and the case went to court, with the dog receiving $2 million, the grandchildren receiving $6 million, and the remainder going to charity.

The moral of the story may be to ensure that what you leave to ensure the care of your pet/s is proportionate and realistic, and will not elicit a response that will cause your will to be challenged.

Charity care for your pets

You can also specify in your will that your pet be cared for by a specific animal charity. You should notify the charity in advance, as they may have a scheme in place to assist you. For example, the Blue Cross offers a “Pet Peace of Mind” service, which allows you to:

Should the worst happen, we’ll do everything we can to find them a loving, happy new home … we consider all applications for dogs, cats, horses, rabbits, chinchillas, degus, guinea pigs, hamsters, mice and rats.”

You can register up to four pets with the Blue Cross, and while the service is free, bequests and gifts in will are welcome to help fund the charity’s work.

If you’d like to discuss any aspect of your estate planning, including Trusts, call us for a consultation. Or check our Trusts page for more details.