WASHINGTON - Sixty-three percent of all U.S. households have pets, but here's a question that millions of pet owners may not have considered: What will happen to my animals when I die or if I become too incapacitated to care for them? The Humane Society of the United States (HSUS) has some answers for those who have thought about the issue but haven't yet planned their estates to set aside funds for their pets' care.
One option The HSUS suggests is to fund pet care using the proceeds from a life insurance policy. This can be an affordable way to pay for any pets who survive you, in addition to having the funds available for other traditional purposes, such as covering the costs of funeral expenses, caring for other loved ones and or/naming favorite charities as beneficiaries.
"The bond between individuals and their pet companions is another component in estate planning," says Frank Sena, a vice president of Mass Mutual Financial Group, which has been hosting planned-giving seminars for HSUS members nationwide. "Providing properly for pets in estate plans, including ensuring appropriate funds for a surviving pets' care, is something pet owners should discuss with their estate planning professionals, such as their attorneys, accountants and life insurance representatives."
"If people are thinking about the need for life insurance for family members or even if they don't have dependents," Sena adds, "they should also consider using some of the proceeds from a life insurance policy to fund a pet trust. Ensuring funds are available after a pet owner's death is just as necessary for pet care as providing regular veterinary treatment or sterilizing one's pet."
More than 30 states now allow pet owners to set up pet trusts. With an Enforceable Pet Trust, courts can monitor the trustees to make sure that pets receive the care deceased owners intend, and that all funds targeted for a pet's care are indeed used for that purpose. In other states, however, pet owners must leave funds to a designated person charged with administering care without court oversight; this is known as an Honorary Pet Trust. Whichever way you decide to structure your plan, using the proceeds from a life insurance policy is one way to fund it.
The HSUS offers this example: Elizabeth, age 50, wants to set up a trust to pay for the care of her two horses, three dogs and a cat when she dies. She purchases a permanent life insurance policy with a death benefit of $100,000. If she passes away before her pets and while the policy is in force, the death benefit can fund a pet trust that she has already established. This ensures that the trust receives funding for what may be several decades or more of pet care, and Elizabeth's family can still receive whatever is left of the death benefit after her pets pass on.
The HSUS stresses that the best place to start a conversation about this type of estate planning is with an accountant, attorney and life insurance representative. Keep in mind that Enforceable Pet Trusts are not available in every state, and because this is a relatively new option, some estate planners may not be familiar with it.
To aid in the discussion, The HSUS publishes a free kit for estate planning called "Providing for Your Pet's Future Without You," which features sample language that an attorney can use when writing a will. The HSUS also encourages every pet owner to have a Living Trust to make sure a pet is cared for in the event of an owner's severe disability -- a situation in which a will would not be valid.
For more information, or to order a free estate planning kit, please visit The HSUS website at www.hsus.org/petsinwills, email us at petsinwillsrp@hsus.org or call us at (202) 452-1100.
Life insurance policies also offer excellent ways to increase your charitable giving to the charities that mean the most to you. As a complement to your regular or annual gift, purchasing a life insurance policy and naming your charities as beneficiaries creates a legacy after you pass on. More information on ways to enhance giving with life insurance policies is available at www.hsus.org/insurance.
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The Humane Society of the United States is the nation's largest animal protection organization with 9.5 million members and constituents. The HSUS is a mainstream voice for animals, with active programs in companion animals, disaster preparedness and response, wildlife and habitat protection, animals in research, equine protection, and farm animal welfare. The HSUS protects all animals through education, investigation, litigation, legislation, advocacy and field work. The non-profit organization is based in Washington and has field representatives and offices across the country. On the web at www.hsus.org.
