Estate planning for pets involves creating a trust, naming a trustee, and naming a designated guardian. A pet owner can designate a guardian without creating a trust. However, the pet owner can assist the guardian by providing funds to support the pet in the event that the original owner dies or is incapacitated.
How Much Money Should I Set Aside in My Pet Fund?
The amount of money is generally up to the owner. However, funds can be a fixed percentage of any type of asset including:
- An insurance policy
- Bank account
What Factors Should I Consider When Deciding How Much to Put into My Pet’s Fund?
A lot of factors go into deciding how much money to put in a pet fund. A pet owner should consider:
- Pet’s expenses increased with age
- Number of pets covered in the pet fund
- The type of pets funded
- How long the pet is expected to live
Whether the owner will compensate the pet guardian for caring for the pet or pets is up to the owner.
Should My Pet Fund Include a Separate Emergency Fund?
Yes. An emergency fund is usually a joint bank account with the name of the pet owner and pet guardian. An emergency fund is used for any sudden issues not covered in the money used to care for the pet. This includes any emergency medical treatment. The pet guardian can access the money immediately.
Is The Pet Fund Considered Pet Insurance?
No. Pet insurance is medical coverage for a pet. The coverage can be purchased via a company or veterinarian. Typically, the insurance only covers accident-related injuries, but can cover illness care and accidents.
Do I Need to Talk to an Attorney about Pet Funding?
Yes. Talk to an estate attorney regarding funding for your pet in case you can no longer care for them or you die. An attorney near you will explain how to proceed with creating a fund and/ or trust for your pet.