Dog Heir? Here's Why You Can't Leave Money To Your Pets

Hint: It's not because of their spending habits...

Part one of a two-part series

Are pets people, too?

A court ruling in Oregon got a lot of attention recently when statements circulated such as this one suggesting that the court had declared that pets were people. Every dog might have its day, but for any canine hoping to claim rights as an heir to its owner's estate... this wasn't exactly it.

What the court actually said is that while pets are still considered legal property, they are also living, "sentient beings" — decidedly more than just inanimate property (like a vase or a car) — and humans have "affirmative obligations" to ensure the pet's welfare. To be clear, nowhere did the court say that pets are people. But no matter what anybody says, our pets are still our furry family members. And like our human family members, we want to know that they'll be taken care of if we're gone.

Protecting your pet's future

Unlike people, pets can't inherit money or belongings, so providing for your pet through a will does not guarantee that your cat or dog will be cared for in your absence. Even though the law does not allow pets to inherit by will, they CAN be beneficiaries of a trust.

What's the difference? A will is a document that simply determines who gets what, including objects, money, real property, and yes — pets. Instructions about how the property must be treated by the new property owner are not enforceable.

Pet trusts, however, are designed to ensure that instructions concerning the beneficiary (in this case, your pet) are carried out by a designated caregiver, and that enough funds are available for the caregiver to do so. A trustee distributes funds and ensures that the caregiver follows the pet owner's instructions, which can be as specific as what veterinarian the pet will see, what kind of food the pet will eat, or how often the pet should be walked.

Unlike a will, a pet trust is valid during the pet owner's lifetime and after death. A pet trust is effective immediately and does not require anything to be filed with the courts. Even if you become disabled or incapacitated—even temporarily—a properly designed pet trust can provide the necessary care and funding for your pet while you recover. A will is only valid after death and is not effective until the probate process is complete.

Finally, wills do not allow for disbursements of money over a pet's lifetime. A well-designed pet trust will provide funds for the duration of the lifetime(s) of all pets covered by the trust, and is valid until the last living pet dies.

To be continued in Part 2

Next, we will talk about how to get your pet's trust started.