Estate Planning for Your Pet(s)!

Transcript

Hey everyone. Welcome to Pink Mike Legal Confessions. Today we are covering one of my favorite topics today, something that's near and dear to my heart. Personally, we're covering estate planning for your pets. Yes. Pets are our family members, whether you wanna admit it or not. I know many, many people who treat their pets as if they were their kids. Me included. So we're gonna be covering this topic because who doesn't love pets? I mean, Pets bring so much joy and companionship to our lives, and it's only natural to wanna plan for them in the event something happens. And so, I always say we're thinking ahead all the time. So if we think about taking care of our pets in the event something happens to us, we can hear, help you with that. And sometimes simple provisions can be added to your estate plan ahead of time to make sure that those needs are accounted for. Especially in the event that you are, you were to be deceased or you pass away or you become incapacitated and you can't make your own decisions. That is where your fur babies should be protected. I don't wanna just say fur babies because there's plenty of animals and pets that don't have fur. So I don't wanna discriminate, but I'm just saying estate plans in general can allow families to protect their pets. And in the event of an emergency or even after someone the primary owner, Passes away. So that is what we're covering today. And to all our viewers, I'm Stephanie Garces Donat, as always, thank you so much for joining us on Pink Mic Legal Confessions and we are covering today how to basically protect your pets. And we usually help couples and families secure their legacy and make sure that their assets and their financial futures are okay. But I wanna talk today about estate planning when it comes to clients and their pets. And actually, I've even had pets show up at some of our appointments, so I guess to an extent, don't tell my landlord, but we are pet friendly. It's a little known fact that simple provisions in an estate plan can actually really enrich your estate plan, especially when it comes to creating what's called a pet trust. I was just talking to a client this morning and I told them, Hey, you should watch my Facebook live today. We're gonna be covering pets and pet trusts. And they said to me, I never knew that could be implemented. So I'm like, Yeah, for your fur babies and for animals who bring joy to your life. So I'm super excited about this topic, so we're gonna dive in right away. Just so you know, when we think about estate planning, pets in Illinois are considered property, so we could certainly put stipulations and terms and provisions in your estate plan to say who gets your pet if something happens to you. Who would actually care for your pet if something happens to you or if you can't make your own decisions? And so as more people wait to have children, estate planning and prenuptial planning has become super popular. And I should preface this by saying there are even ways to plan post marriage for some of this stuff. Yep. You heard it. You don't have to have it before you get married, so that's a conversation for another day. But in case you're wondering, there's plenty of people that do postnuptial, which is after marriage, to kind of stipulate to some of these things. So they are very popular and I like to just say that because family law attorneys are doing now pupnups yeah, you heard it. Pup nups. I mean, to me that is like the cutest name ever. But there is a prenuptial agreement that determines who would get the animals or animal in the event that you were to divorce and who gets custody in the future event of a divorce. And you're probably thinking, Wow, that is interesting, but also ridiculous. And to be honest, I think that a lot of people underestimate the power of preparing these things. I don't want to name anybody, but I'm sure that as you're watching here, you could probably think of one person that has already had this issue with a spouse or an ex, right? You buy a dog or you buy a pet together, and then something happens. Well, you can prepare. So similar to those areas, estate planning also allows you to have peace of mind for this scenario. Keep in mind too, having a plan for your pet really is just one thing off your list. And a lot of people don't have you know, a lot that they care about but their pets. So more reason to protect it. By the way, when we think about estate planning for pets, it's not just, you know, the verbiage of okay provisions that say what happens if you die. We can also create a trust that basically puts funds into an account to prepare for long term planning for pets, long term care of your pet. Especially if you are in a situation where you've become incapacitated and maybe you haven't you're not well, I should say, and your pet needs to be taken care of. There is a way to create a legal trust to make sure that the money and the funds are available. So I always think it's interesting because I feel like there's so much that you can do, and keep in mind, certain animals don't just include pets. For those of you watching, I know some of you have birds, which I heard birds live up to 60 years sometimes, depending on what kind of bird you have. Horses. If you watch my Facebook Live with a good friend of mine that was recently on, there are horses that live up to 30 years. Just a fun fact. So there's a lot of animals, actually longevity in their lives that you can prepare for just like your kids. So I'd just love to put that out there so that you understand kind of how we're thinking about this when it comes to estate planning. So the three areas that we're gonna discuss today are reasons to plan for pet care. Those include number one, unexpected illness, emergencies if you have a medical emergency, if you have death happen to your family and or even conditions. Sometimes people have conditions that they have to live with that basically they get diagnosed overnight. And it kind of is a life altering thing. And so those are things that you can always prepare for. Planning for the maintenance of your pets. For example, who will outlive the owner ahead of time and who is someone that you want to raise your pet? This is so important to me specifically, and also hopefully to you because if you think about it, you have control over certain things, and this is one of 'em who would raise your pet. Now we all know that we have family members, right? That love pets. And maybe people that just don't like them. So you would wanna make sure that if we put this together in your estate plan, you can actually stipulate and have provisions that really give a good guidance and suggestion as to who's gonna raise your pet. So, there are always unique care requirements too that might come up in your scenario where perhaps you're not able to take care of your pet for a certain amount of time and you would want someone to kind of oversee your pet. I know this happens a lot in our communities where somebody gets sick and they continue going back to the hospital. Maybe they're in long-term care facilities. Someone needs to take care of Fido or take care of your horse or your pet, or your, Hey, I think fish count too. You know, whatever you want. Now you're probably laughing because you're thinking, Why would I put in a estate plan together for a fish? Okay, well, people have pets and they treat them as their own. So depending on who you are, we can service everybody when it comes to pets. But I always like to say estate planning provisions are very, very important because when it comes to a pet, you can almost always designate an heir, or perhaps you can even call it a beneficiary. Now, this is the person that would actually take over the care for the pet who would finish raising your pet, taking care of him or her if something were to happen to you. And so, some of those provisions that we put in there really stipulate and give direction by naming one person that you would want. You couldn't even have a backup. Sometimes people will say, Okay, I would want this person, but if this person won't do it, then I want this other person. And so you can also put that in your estate plan. You can also put this in your will. I know this is kind of, we've talking about pet trust today, but if you're a person that has a will and you haven't updated that will since you got your pet, you might wanna do that because you can also add it in there if something were to happen. So just something to keep in mind. We can also do quick provision updates for you at a minimal cost. So just something to keep in mind for those of you that are thinking, Well, I don't need a pet trust. I have will. Okay, well, Did you name them since you got them? I know a lot of people have created their wills and estate plan a long time ago, so make sure you guys are updating those. Otherwise it doesn't count. Okay? So make sure you have everything up to date. When we think about pet trust, though, as a general matter, it's an administration of assets allocated to fund or support for care of pets. So these costs that come with pets, we all know what they're like, right? It's not cheap to own a pet. So there's veterinary care. That's really important. Obviously that is something that a trust can be helpful for so that you can make sure funds are available to make sure that your pet gets the proper vet care to make sure that's all taken care of. Pet insurance is really popular, so you can also pay any pet insurance that you have out of that. Out of that trust or any account that you put aside for that. There's also the basic needs for pet, right? Food, shelter, basic necessities, standard of living. And I've gotta be honest, I've seen some of the local places around here that have the hotels for the dogs and they have the cat sanctuary and all these other things. There's a lot out there. So to say that, You know, this is not necessary, I would beg to differ. There's obviously a market for this because there's a lot of people doing this. So those are things to think about. Another thing in the estate planning provisions that we include are for caregivers. So for example, a professional perhaps or a guardian that would be able to provide care for your pet on site. In the event that that's needed. So some people are, you know, having to stay at home. Maybe they're having medical issues where they can't actually administer food and water and basic necessities to your pet, but maybe you need some help. That also is a way to have a pet trust help you. So that we can actually put in there who would be able to take over your affairs when it comes to your pet in the event that your health declines, you're not able to make your decisions or perhaps you've passed away. So those are just things to think about. And one of the things that I wanna mention, this is very state specific by the way, is there is such a thing as prearranged pet sanctuaries. So, these exist, actually prevalently in other states but it's just something that I know sometimes that pet trust can certainly help with if that's applicable in your state. So just something to keep in mind. There's a lot of stuff about that that you could read on the internet, but I don't think everyone knows about that. So if you're curious go ahead and ask Google if you're interested in what that is. Another thing that you can add to your estate plan specifically for a pet trust is the cost of some of the additional things that you don't think about. For example, if there was a medical emergency that your pet has, you know, funds can come out of that. Also any sort of financial decisions that have to come from your pet really or having to deal with your pet and any any health issues they have is something you can also put in there. So usually simple revisions, whether it's your trust or your will, is really great because it assigns who's gonna care for your animal, right? The pet trust really is just a basic different entity, I should say, a different structure that basically provides for the oversee of assets and any financial allocations for animals. And the designated trustee, which is the person that is in charge of making those decisions. So, where do we fall in all this as attorneys? Well remember that as an attorney, our role is basically to make sure that you're covered in general. And I always like to remind my clients that we're here for them to help them with their families during, you know, someone being sick, you know, someone being healthy. Hopefully they're okay. Maybe they're just worried about it. Or people that have had this on their to-do list, you know, many of us procrastinate. You know, a lot of us can tell you what was on the Bachelor last night, but we can't tell you the last time we looked at our will. And so that has to change. And so that's kind of why I use this platform all the time to educate your viewers to make sure you're checking in with those things and basically leading by example, right? So that's just something to keep in mind. Now, keep in mind that preparing some of these documents are really just planning for unexpected scenarios. I always say they're peace of mind documents. These are not documents that we're using every single day, but it's peace of mind. And so ensuring that these documents are compliant with your local laws, state laws, and making sure that they're valid, that they're executed properly. Keep in mind too, when you have an estate plan and it's done properly, you can actually minimize the chances of a fight between the family who would take care of your pet, who is better suited than another to do that. It also allows for clarity because a lot of times if you don't have a living trust for your, or pet trust or a living trust or any sort of estate plan, you're really leaving it up to chance that someone. Take over your pet and care for them the way that you would want them be cared for. And keep in mind that this is not something that people think about often. So it's okay if you haven't thought about it. You're not a bad fur baby parent if you haven't. But I will say that some of us don't have somebody that would just take over or perhaps, you know, it would be too much of a burden for a family member to do this. So you'd rather have, you know, a non-related member of your family to. To take care of that. So those are kind of the things that guide you know, the process in the event something happens to you. So I like to make sure people know that because sometimes not everyone's scenario is the same. Now for those of you that are just joining, I always like to recap really quick. My name is attorney Stephanie Garces Donat. I own Garces Law in Palatine, Illinois, and we are covering how to help yourself and your family members create a pet trust or an estate plan that covers your pets in the event something happens to you or you become incapacitated so that your pets are taken care of and basically there's enough money available to be able to take care of your pet. Now, I hate to say it this way because it's really sad, but you don't want your pet to end up in a shelter or perhaps in a situation even worse than that, where there is no owner that could actually take care of them. So having a pet trust is a really, really good option to prevent that sort of thing. And I'm here to really just give you knowledge on this because it's a really, it's a really important topic, but also very popular these days I would say. So, estate planning for your pets. Pets are family members too, and we welcome always you to join us here at one o'clock on Tuesdays to go over some of these topics with us. But I wanted to kind of dive into some of the questions that I received about this topic over time. Specifically what happens to my pets if I die without a will? So usually this is a really good question because it covers really the what ifs and worst case scenarios. So, worst case scenario obviously could be that a family member maybe even friends aren't available or willing to take care of your pet. And you don't really have anyone that would do it. If you die without a will or an estate plan that stipulates to that or gives any instructions, and there isn't anyone willing to take over your pet, then you're really leaving it up to chance. And so, many times there'll be, you know, dogs that end up at the shelter because their owner has passed away. Sometimes there's even non-for-profits or rescues that will take them in. But they end up without an owner and that's really sad and scares them and is probably not something you intended. So that's basically what ends up happening. If you don't have anything in place, especially even a family member that would be willing and able, keep in mind that not everyone has someone that's able to do that for them. Maybe you live outta state too, or your family lives outta state and you wouldn't have anyone local. That's another reason that you'd wanna put something together. So I usually say there's no instruction left and you're leaving it up to chance when you do this without a will. So you don't wanna die without one and not name your pet. Another question that I get is at what time do I find, excuse me, at what time do I have to fund my pet trust? So how much time I think is, is what the, the question is trying to get at. Typically, when you create your trust, the good thing is that it's valid upon you signing it or executing it. That means you can fund it right away. And the good thing about this is that the pet trust sometimes is something that you can essentially prepare for. You could certainly put money towards it right away because in the event that you become, you know, incapacitated and can make your own decisions, the money is already available. So you don't necessarily have to wait till you've passed away to sort of initiate the money going into it. There is creative ways to try to formulate a plan, so to speak, ahead of time. So that is something that I like to stipulate to because people think that if it's not done by a certain time, it's never gonna happen. But keep in mind, if you create the pet trust right away, then it's already established. And there's a lot of power to that because you're basically leaving like a plan as opposed to not leaving it or hoping someone else would create it for you. And it's not the same. So usually funding it is usually readily available as long as you've created your estate plan for your pet ight away. So don't wait to do that because I always say no one can create the trust the way you would. It's your peace of mind. So that's that. Another thing that I wanna mention is when it comes to proceeds of a sale of a home, people have asked can the proceeds of selling another property be used to pay for the care of my pet? And the answer is absolutely. You know, there is a lot of equity sometimes that people have at homes, or perhaps they don't necessarily wanna be taking care of that home anymore, or they just need to sell it. And the really great thing about this is that you can actually use these funds as you see fit. And obviously too, because assuming, in this question we're assuming that you're able to sell this, you know, right away you can use those funds and put it directly into the, into the trust, the pet trust. So it's kind of nice because you're actually preparing yourself for the unexpected event ahead of time. So I would say that is pretty a cautious thing to do, but it's definitely an option. So plenty of people do that. By the way, I have seen people use money not just to keep it in their savings account, but they put money towards their trust. Maybe they put money towards their investments or whatever they need to pay off, but there are many creative ways you can do this. The other question again is what happens if a person that's responsible for my animal gets sick? Can I list a backup? Yes, absolutely. You know, getting a backup is always a good idea and I'll tell you why. We never know, unfortunately, when someone is going to be passing away. You know, before or after us. We don't know if that person is gonna be unavailable. Perhaps they've, you know, left the country, you haven't heard from 'em in a while. So having a backup, they call it a contingent basically a contingent or successor trustee contingent upon the other person, no longer being around or unavailable. That is a great option because a lot of times when we do that, we're preparing for the unexpected. So if for some reason, it unexpectedly happens that the first person you've named becomes sick. Now the good thing is that having a backup allows that person to step into your shoes because the first person isn't able to act as a successor to your trust. So that's really powerful and it's super, super important to consider this as a general matter, not just for pet trust, just your living trust. Your wills, anything that you have, powers of attorney. Whenever we talk about estate planning, we always suggest a backup because we don't know if the first person we picked is going to be available or if they're in a position to even help. So it's just something to keep in mind. And yes, you can always do a backup. Highly recommended. The other thing that I get asked a lot about is, how is working with an attorney different than creating my will online? Well, I can certainly tell you that depending on who you work with and really when you think about online versus attorney, I repeat this over and over again, that it's not customized when you're working online. You might get a boiler plate type of template, but there's no way to know if that actually addresses your concerns. If it actually encompasses some of the things that could happen, like in the events someone passes, or in the event the second person is available or the, or the first person isn't available. It also doesn't actually allow for much customization as a whole from what I've seen. And the worst part about the online forms is that you don't actually know if it's compliant with your particular law. Depending on the state that you live in, laws are constantly changing. I know that laws don't ever stay the same. That's why we are in the business of being lawyers. We honestly know the changes when they happen. What are things that you can do to prevent a new change in the law affecting you? So those are things that an online form may not be up to date with. There's no counseling. There's no personal interaction for someone to kind of get to know you and understand some of your goals. So that's the thing that is very different than working with an attorney than doing it online. How often should my will be updated is also another question that we get. I always say, every couple years you wanna take a look at this. If you've had any recent changes, whether you've had more kids or unfortunately someone has passed away that you have named in your trust or your estate plan. If you've had a home that you've bought or sold or if you're planning on buying more, if you've gotten divorced, if you're recently married, if you got more pets or have a new pet. If something has happened from the first time you made your estate plan to today, then that is a reason to take a look at it. We usually give a free consultation up front to anyone that's interested for us to see if we can assist you with updating your estate plan. So just, something to keep in mind. You definitely wanna try to update stuff every couple years, but I always say after a life event or some sort of change that would require that. What happens if someone dies without a will is always a common question, and usually depending on what you're worth in the state of Illinois. And when I say that, I just say it as a caveat because there is not a one size fits all to this answer. But typically, if you are worth over a certain amount, you may end up in probate because your assets need to be administered and they need to be overseen and supervised. So typically you could end up there. The other thing that could happen is that your family basically is kind of left scrambling to try to figure out who gets what. That increases the amount of fights they could have. Also, unintended consequences is the biggest thing. I always like to explain that what happens to someone is that they're no longer here, but the unintended consequences that could come about if you don't have an estate plan are endless. So that is typically what happens is someone that dies without a will. So everyone should have a will no matter how much you have or don't have, or if you're single, married, none of the above. I always say you just wanna make sure you have something in place, even if it's something basic is better than nothing. And where can you contact us in the event that you wanted to talk through some of this? How much do we charge for consultations? They are free. And usually you can contact us and do consultations by phone, by Google Meet or Zoom virtual. If you don't feel comfortable coming in, if you wanna be in your pajamas, that's cool. You can also come to our office in person. We do have masks available if that is something you want us to wear and it's appropriate, we can do that. But just so you know, you can always contact us by text or call and our address is below in the, in the subject line. So, I do always appreciate when you guys are watching this and taking note of some of the things that I mentioned. I do get a lot of feedback on these videos, so any feedback you have on what are some of the concerns you had? Maybe some things that you'd wanna address personally, or, you know somebody, feel free to share it. This is free information and again, always just using our platform so we can benefit each other and try to make sure that everyone is, is doing, doing what they're supposed to while they can, while they're living, right? So as always, I wanna thank you guys for watching our video today. Thank you for learning about pet trust and letting us talk about our pets openly, which I love pets so much. So I just thought this was really fun. I almost wish I had my pets in the background, but I wouldn't be able to do this if they were so, as daily life always gets hectic and it's so easy to put off these things, please, please always consider putting an estate plan together, reviewing the one you have, or even getting your parents on board. I know a lot of us that are watching, we're thinking, Yeah, us, us, us. But some of our parents, you know, if you're gonna be an heir soon, which almost all of us are, have them come in as well because parents are the first ones to say, Oh, I did that many years ago, or I haven't done that, it's been on my to-do list. So it's the most responsible action you can take, particularly for your family and your pets. So I invite you to join us here next week as always on Pink Mic Legal Confessions, and you can always share these recordings with your family. So thank you so much for your time and I will talk to you soon. Stay well everyone.