In a modern world where cats enjoy their own bedrooms and rabbits indulge in more spa treatments than their owners, and dogs have their own bustling social lives at daycare, pets have undoubtedly ascended to a position of paramount importance in many households. This transformation in the dynamics of family life has given rise to a corresponding evolution in the realm of estate planning.
Dylan Ng, a senior Group Financial Services Director at Infinity Financial Advisory, remarked, “Many of our own financial consultants are pet lovers.” He shared an anecdote about the director, who dutifully sends his black Shiba Inu to doggy school every Monday to socialize and mingle with other canine companions. Infinity Financial Advisory recently initiated their “Paws & Provisions” campaign, aimed at raising awareness about the intricacies of estate planning for pets. What exactly does this involve? Ng offered insights to CNA Lifestyle.
Similar to ensuring the well-being of a vulnerable beneficiary, such as a child with special needs, estate planning for pets ensures that our animal companions receive the care and attention we intend for them, should we depart from this world before they do.
However, a unique challenge arises when it comes to pets – they are legally classified as property, precluding them from being directly named as beneficiaries or inheritors of our assets. Ng elaborated, stating, “For instance, I cannot bequeath a lump sum to my dog, Sugar, in her name. Nonetheless, I can designate a caregiver as a beneficiary in my will, provided they agree to assume responsibility for her, effectively rendering Sugar a ‘beneficiary’ in an indirect manner.”
Furthermore, Ng emphasized that depending solely on your closest relatives without also entrusting them with financial resources might not be the most prudent approach. By alleviating the financial burden through structured estate planning, the chosen caregiver is more likely to accept the responsibility. In this regard, a well-structured will can ensure that your selected caregiver gains access to the allocated funds only upon accepting the role.
While you might have full confidence in your family or closest friend to care for your pet, it’s prudent to consider contingencies. Ng suggests including provisions for a backup caregiver or alternative arrangements in case Plan A encounters unforeseen obstacles. This way, your pet’s future remains secure regardless of any unexpected developments.
Nevertheless, a will may not always provide a foolproof solution. While it is a legally binding document that facilitates the distribution of your estate after your passing and allows you to designate a caregiver and allocate specific funds, its legal obligations typically conclude once the assets are distributed. This is where a pet trust can play a pivotal role in ensuring your pet’s continued well-being in line with your wishes.
