Pets are an important part of many families, but the law doesn’t always accord people and animals the same rights. If you live in Texas or Arkansas, for instance, you have a fundamental right to make decisions about how your estate and personal assets should be redistributed upon your death. You can write a will to nominate an executor, name heirs, and direct inheritances, but you can’t always put money aside for the continued well-being of a treasured pet.
You don’t have to take chances with any member of your family. Read more to learn how to use your estate plan to protect your pet, or contact Ross & Shoalmire today to speak to an Estate Planning Lawyer and schedule your initial consultation as soon as possible.
Pets and Estate Planning: Why a Will isn’t Always Enough
Every state has its own rules for probate, succession, and inheritance.
In Texas and Arkansas, most adults have a legal right to make decisions about their estate. This could include, but is not limited to, the following:
- Creating a last will and testament
- Naming a guardian for your minor children
- Executing an advance care directive or making a living will
- Choosing between a traditional IRA and a Roth IRA
- Establishing a trust
Most estate plans are relatively simple and don’t consist of much more than a last will and testament. Even by itself, your will can do a lot: it keeps your estate out of probate, and it can help guarantee that the people you love receive the inheritances you would’ve wanted them to have.
Nevertheless, wills have significant limitations and dangerous blind spots, especially when it comes to pets.
In Texas, for instance, you can name your child, a distant relative, or a stranger as an heir to your estate plan. You can even leave inheritances to charitable trusts and limited liability companies. But you can’t name your pet as an heir, even if you only plan to set aside a small amount of money for your pet’s maintenance and continued well-being.
The same rule holds true in Arkansas, too. This is because the law draws a sharp distinction between people and animals. Although domestic animals have certain legal rights—they can’t, among other things, be abused or abandoned—they’re still considered your personal property.
And personal property, unlike individual people, cannot inherit assets—at least, not directly.
The Risks of Leaving Your Pet Exposed to Probate
You can’t use your last will and testament to leave money for a pet, but you can include provisions in your will to ensure that the fluffiest and furriest members of your family receive preferential treatment during probate.
You could, for instance, take steps like:
- Nominating a trusted estate executor
- Requesting that a specified amount of money be set aside for your pet’s maintenance
- Writing a letter of instruction, which can be used to clarify your wishes and expectations
- Designating a fellow pet-parent, or another trusted loved one, as the heir for your dog or cat
Unfortunately, asking your executor to care for a pet isn’t a long-lasting solution.
Your estate executor has a fiduciary duty to your estate and its beneficiaries and, from a legal perspective, must treat your pet as an estate asset. If your executor has no legal background or experience navigating the probate system, they could easily become overwhelmed by paperwork. Even if they genuinely want to honor your letter of instruction by paying extra care and attention to your pet, they simply may not have the time to do so.
Furthermore, even if you set aside a certain amount of money for your pet’s maintenance, there’s no real guarantee that it will ever be used for that purpose. In fact, if you’re planning to make a big investment in your pet’s well-being, your estate could be challenged by heirs and creditors who believe that the terms of your will shouldn’t be enforced as written.
Even in a best-case scenario, fighting a bad-faith lawsuit still requires money—money that’s taken from your estate and comes out of your heirs’ inheritances.
How an Estate Plan Could Help Keep Every Member of Your Family Happy
You can your will to protect your pet from certain probate-related risks, including that of intestacy. However, if you want true peace of mind, you may need to explore other options for long-term animal care. For many pet-parents, this means establishing a pet trust.
The Components of a Pet Trust
A pet trust is a distinct type of trust.
In simple terms, a trust is a legal arrangement between several different parties. The person who establishes a trust is called the “grantor.” The grantor typically funds the trust with assets and provides instructions on how these assets should be used and disbursed.
Every trust needs at least one “beneficiary.” Your beneficiary receives distributions from your trust. Since trusts are not subject to the same rules as probate, you can name a pet or animal as a trust beneficiary.
Once you pass away, a designated trustee or “successor trustee” will begin the process of estate administration. Everything that the successor trustee does must be in the best interest of the estate and its beneficiaries. Your other beneficiaries, if any, will typically have limited standing to challenge the terms of your trust.
Structuring Your Pet Trust
Establishing a pet trust typically takes more time than writing a will, but it also provides much greater protection. In your pet trust document, you can:
- Name one or more pets as beneficiaries
- Designate a caretaker
- Make arrangements for a backup caretaker
- Leave an amount of money to be used exclusively for your pet’s benefit
- Describe how your pet should be cared for after your death
Your trust can also include mechanisms for ensuring liability. If your trust hires or authorizes a caretaker, the caretaker may be liable for any failure to follow your specific instructions.
However, while pet trusts are afforded many strong legal protections, they work best when you get to work early. Since the terms of your trust cannot be changed after you die, you’ll need to create a plan that not only reflects your aspirations but anticipates the possibility of unexpected challenges, too.
Setting Up a Pet Trust
Trusts are a time-tested way to protect people, pets, and assets, but they could cause unexpected complications if they aren’t written in accordance with your state’s unique laws. Any mistaken or omission—even if it’s minor—could have serious repercussions for your estate, potentially depriving your pet of its right to live out its remaining days in the peace and comfort it deserves.
You don’t have to take chances with any of your family members. Ross & Shoalmire, Elder Law Attorneys PLLC, has spent years helping pet parents and growing families throughout Texas and Arkansas protect their peace of mind.
Our experienced team of Estate Planning lawyers could help you:
- Determine if a will or trust is better for your pet
- Ensure that you leave enough money to care for your pet, even if it lives much longer than expected
- Establish and fund a trust, whether for the benefit of your pet or your entire family
- Discuss your best options for keeping your assets safe from legal challenges and predatory creditor claims
