What is going to happen to your cat (or cats!) when you die? This isn’t the most enjoyable thing to think about, but it is important to have a plan. Be it tomorrow or 30 years from now, your pets will need money to support their needs and a person to provide care once you are no longer here to provide for their care.
We strongly recommend consulting with your attorney or an estate-planning specialist when determining how your cats will be provided for after your death. Ideally, choose a professional with experience in including pet caretakers in wills or making pet trusts.
Cats Are Property
Most states consider cats to be property. This means that you can’t leave money directly to your cat in your will. Instead, you need to leave money to a person who is then charged with using that money to care for your cat. You can do this with:
- A Letter of Final Wishes as an addendum to your will
- A will
- A pet trust
Wills are legally binding, but only to a point. The money that you designate for your cat’s caretaker will go to that person, but there is no guarantee that that person will use the money as intended. Choose a caretaker carefully!
Wills also go through probate before being executed. This means that there will be a gap between when you die and when the will is executed and money is distributed. This is where a Letter of Final Wishes can be beneficial. These letters are not legally binding, but do enable your family to know where you want your pets to go upon your passing.
Pet Trusts
Pet trusts are a little more robust. If you make a trust for your cat, you can designate one or more trustees who manage the funds and make sure that the caretaker is adhering to your wishes. The trustee distributes money from the trust fund as needed to pay your cat’s bills.
Pet trusts are more involved than leaving money to a feline caretaker in your will, and there will probably be some fees to establish one.
A pet trust can be set up in one of several ways. One option is to list the trust as the beneficiary of your life-insurance policy. Another option is to set aside money specifically for the trust.
Speak with your financial and estate planning professionals to figure out which option best fits your wishes and your cat’s needs. Also, be sure that the trust will go into effect immediately upon your death, so you know your cat is taken care of immediately.
All states have pet-trust statutes. Most pet trusts end when the covered pet passes away, but some may have specific time limits. You can designate where any leftover money goes, be it to the caretaker, a family member, friend, or a nonprofit of your choice.
Making a Budget
Be realistic about how much money you spend on your cat each year, and what he might need as he ages. Things to include in your budget for a will or trust are:
- Food
- Toys
- Grooming
- Preventive medications
- Routine veterinary care
- Current medications
- Potential medical care needs in the future, including extra money for veterinary emergencies
- Pet insurance premiums
- Boarding or house sitter costs
Reevaluate your cat’s needs on a regular basis so that you are sure that your will or trust is accurate. As your cat ages, she may require additional care to keep her happy and healthy, and this should be accounted for. Be sure you go back over this with your attorney annually, just as you would your will for your human survivors.
