We've all heard the old story about a wealthy elderly person who decides to leave their fortune to their pet rather than to their children, which always leads to the biggest twist in a terrible movie or TV show.
If you've seen that, you might have thought to yourself, "Does Fido get to become the richest pooch on the block?" if those pets could have actually inherited the money left to them by the will? Unfortunately for him, the answer is no; his eccentric owner never intended for him to inherit any money. Having said that, there are things that a person can do to ensure that their beloved pet is cared for after they pass away, and the options listed below will help.
Is it possible to name a pet as your beneficiary?
The law sees things differently, despite the fact that pets are very important members of the family and are treated similarly to people. The law considers pets of any kind to be personal property of the person who owns them, just as it does in a dissolution proceeding (covered in a previous Banks & Brower blog post). Because the law says that one piece of property can't own another piece of property, your dog can't inherit your nice baseball card collection or stock portfolio when you die.
Maybe you're thinking, "OK. To circumvent these limitations, I will simply designate my pet as the beneficiary. You would be mistaken if you did that, as your animal cannot be a beneficiary in a trust, will, or other testamentary instrument, just as they cannot own property.
If you named your pet as the beneficiary, the property would most likely go to the successor or other beneficiary, if any are listed, rather than your pet. The property will be distributed through the "intestate succession" scheme, which is the statutory setup that distributes property in the event that someone dies without a will or trust. If you do not have a successor or alternate beneficiary, then it will go to the residuary beneficiary, who will receive everything that is not specifically left to any other beneficiaries listed in the will or trust. If there is no residuary beneficiary, then the property will be distributed through the "intestate succession" scheme.
Preparing for Your Pet's Care Now that we have presented a gloomy enough picture of your pets and your property, there are things you can do to ensure their well-being in the event of their premature death. Treating your pet as property and leaving it to a specific person or entity in your will or trust is the first option available to you.
To ensure that your furry family member is well cared for, you will need to find someone you can trust, but if you do, this is always a great option. This is usually the best choice because it lets the court exactly follow your wishes and lets you know who will take care of your pet if you're not there. If you choose to go ahead with this option and leave your pet to a person or organization, a helpful tip is to also leave that person or organization some financial support in your will so that they can help cover the costs of caring for your pet, especially if your death is unexpected and the animal is somewhat "threshold" on them.
As previously stated, the laws do not allow you to specifically leave anything to your pets, but they do allow you to arrange for their care, which is how this second option comes into play. A "pet trust," which is not always a separate trust but typically a component of a larger trust document, is the second option being discussed. The trustee, who is appointed by the settlor or the court, is able to enforce this trust and ensure that the settlor's wishes are carried out.
In Indiana, Pet Trusts are VALID for the care of one or more animals that were alive during the trust settlor's lifetime. You can name your brother or sister as the trustee and your friend as the animal's caretaker—the trustee does not have to be the person named responsible for the animal. You will, in effect, leave the animal to a guardian and provide that guardian with funds for the animal's care; consequently, you will still (sort of) leave the money to your pet. If you want to provide for any type of offspring or ensure that someone receives your dog's pups, choose the Will option described earlier in this post. The only drawback of this option is that you must leave funds for the pet's care and that it expires upon the death of the pet or pets.
If you believe that your pet may outlive you or if you feel the need to plan (IT IS ALWAYS GREAT TO BE PREPARED), you should, basically, treat them as property and make plans accordingly. Anyway you need to continue, be guaranteed that there are ways of ensuring that your home mirrors your desires in accordance with your creatures/pets and that you can make arrangements to really focus on your reliable buddies post mortem.
