There are many and varied beneficiaries named in Wills from family, to friends and charities. But what about pets? Many people see their fur babies as an integral part of the family and wish to ensure that they are well looked after into the future.
The late Diane Keaton, for example, reportedly left $5million in a trust for her beloved dog Reggie. In 1992 a German shepherd called Gunther III was left $65 million when his owner died, which those entrusted with his care turned into over $375 million with wise investments.
In Australia, pets cannot actually receive funds directly as a beneficiary and pets are considered to be property under Australian law. However, there are ways that people can make provision for their four-legged friends in their Will.
Sometimes people leave their pets to a friend or family member in their Will and this can come with a sum of money to compensate the new owner. There is the risk that the friend or family member declines the gift and so it is very important that you ask the person if they are willing to take over the care of your much loved pets before you include this in your Will.
Another option is to leave a gift of money to an animal shelter or a similar charity with a direction that they re-home your pets to an appropriate new owner. For example, the RSPCA has a Home Ever After Program that allows you to put a plan in place with the RSPCA for the future care of your pets.
You can establish a pet trust in your Will that requires your Executor to find a good home for your pets and for the Executor to personally monitor the wellbeing of the animals. Funds are set aside from your Estate so that your Executor has the financial ability to ensure that your pets are properly looked after. A pet trust should specify what happens to any leftover money held in the trust when your pets die. There are also some special rules that apply to these trusts, including that they cannot last longer than 80 years after your death. While that is more than enough time for the common types of pets, there are some birds and reptiles that can live for more than 100 years!
Finally, as sad as it is, some people include direction in their Will for their pets to be euthanased on their death as they are worried that the pets might not be able to be re-homed or may suffer grief due to the separation. This type of direction has been held to be invalid in some parts of the USA due to the laws against cruelty to animals but these types of clauses have not yet been tested in the Courts in NSW.
It is really important to have conversations with your family and friends about your wishes in relation to your pets so that, firstly, there is someone who can immediately look after your pets when you pass away and, secondly, there is someone who has agreed to take over their longer term care.
Our Estate Planning lawyers are experts and will help you document your wishes clearly in your Will.
