Providing for pets after we are gone.

[Julie, Izzie & Max]

This may be a morbid discussion.  But my husband and I have been in the process of updating our will in the last few weeks and after I saw the discussion Jane started earlier about having a place set up for her doodles in the event she is unable to care for them.

We are trying to put our preferences in our will as to where our pets go.  Our first choice would be for our pets to go to live with our son who our pets love and would be comfortable with if something should happen to both my husband and me.  But at the present time, he lives in a very small one bedroom apartment in Chicago and would not be able to take our five pets (3dogs & 2 cats).

We are looking into a back-up plan and are considering have a trust fund set up from our estate  to provide for our pets for the remainder of their life.  Has anyone does this?  We are asking select family members who love animals and also a local no-kill shelter (we know the lady who runs it) who could place them in a home hopefully together or the cats together and the dogs together.  We are very confused in how to best provide for them if this event should occur.  We do hope to remain alive and well for the rest of their lives.

We are struggling with how to set this up.  We know that we cannot control what happens after we are gone but would like to do our best to make sure they are well cared if we are unable.

Did anyone make plans for their pets in their will? 

[F, Calla & Luca]

Excellent point.

[Pat and Traveler]

This is a worry for me too.  My daughters are both willing to take Trav, but their living quarters and situations are subject to change without notice.  Even if you have a preference and money set aside in a will, it can take months for a will be make its way through probate, and what happens to your dog in the interim?  This is similar to the nursing home scenario.  I usually live alone, and made arrangements with one daughter to talk to her every couple of days, just in case something happened to me.  I didn't want Trav 'home alone' with a body or just home alone for some extended period of time.   

[Karen, Jasper and Jackdoodle]

If you set up a trust, you avoid probate completely. A will is not enough, you need to have a trust. Any assets in a trust pass directly to the beneficiaries. Ditto for any assets in an IRA.

If you trust the person you are naming to care for your pets, you can also set up a joint account for them with that person's name on it (along with yours) right now, and then that account is theirs alone when you're gone.

[Pat and Traveler]

Thanks, Karen!  I need to update my will and will set up a trust too.  I do have an IRA and will set up a joint account ASAP.  Now, gotta figure out if one daughter would be offended if I name the other on an account, or should I name both...

[Karen, Jasper and Jackdoodle]

A couple of important points that are often overlooked, to great trouble.

1. Make sure that the beneficiary on your IRA is updated. The beneficiary on an IRA is the person(s) who will get the money, even if your will says otherwise. Example: Bob has an IRA with his wife Mary named as the beneficiary. Ten years later, they divorce, and Bob marries Sue. Bob's new will says that everything he has goes to his widow Sue when he dies. But he forgets to update the beneficiary on his IRA account. Guess who gets the IRA money when he dies? If you said Mary, you're right, even though the will says Sue gets everything. And if Mary happens to die before Bob, Bob's IRA account will go to Mary's heirs, which might even include her new husband. Surely not what Bob had in mind.

2. After you set up a trust, you must fund the trust. This means that all of your assets have to be in the name of the trust. Your home, your bank accounts, everything except the IRA. This can be a real pain in your butt, but it must be done. In other words, your bank accounts and investment accounts must be in the name of The Pat Whatever Trust, and not  just "Pat Whatever". Your title to your house and car, everything. I know of someone who paid an attorney to set up a trust, but then never put the assets into the name of the trust, and her entire estate ended up having to go through probate anyway. A good estate planning attorney will help you with this, but it's important to know.

[Lisa, Daisy & Dexter]

Karen - I am scared, very scared - gonna find us a Good Estate Planning Attorney now and make sure we do it correctly.

THANKS

[Pat and Traveler]

Whoa!  I didn't know any of this!  I had already selected an attorney to update my will, but now see I probably need an estate planning attorney.  I'm far from rich, but do have a house, car, some funds, etc.  Also need to check with my IRA about beneficiary.  I'll print this info, and better get this stuff done before alzheimer's kicks in...lol 

[Nancy, Ned, Clancy, and Charlie]

Whoa.... my mom has a trust and the only asset left in it is her house, but it the house is in her name.  So we need to change it to the trust owning the house?

[Karen, Jasper and Jackdoodle]

I'd double check with an expert in estate law, but I believe that's correct, the trust has to own the house for it to pass to the heirs without going through probate.

[Nancy, Ned, Clancy, and Charlie]

I will call my mom's lawyer tomorrow and make an appt.

[F, Calla & Luca]

Food for thought Karen.

[Pat and Traveler]

Can you have just a trust, or do you need both a will and a trust?