Many people overlook the importance of including their furry companions in their estate planning. Without proper arrangements, pets could end up in unsuitable homes or shelters.
In this article, we discuss why it’s crucial to plan for your pet’s future and the process of including them in your will. We spoke with Aislinn Volker at Malherbe Rigg & Ranwell to get legal expert insight.
Why is it important to make provision for your pets in your will?
It is a surefire way to ensure their wellbeing after you pass away. This involves choosing a caretaker, managing finances and safeguarding your pet’s interests. Fortunately, in South Africa, freedom of testation allows you to make provisions for your pets in your will, as long as these are not impossible, illegal or against public policy.
Should you name a guardian who can look after your pet in your will?
It’s advisable to appoint a guardian for your pet in your will, although it’s not mandatory. The appointed guardian will take care of your pet if you pass away or become incapacitated. When choosing a guardian, consider someone who is reliable, responsible and genuinely loves animals. It’s also important to have a conversation with the potential guardian to ensure that they are willing and able to take on the responsibility.
Is it necessary to provide the caregiver with funds for the pet’s care?
Since pets are classified as property, they cannot receive direct benefits. Thus, any money or property left to a pet must be managed by a person on their behalf. Deciding whether or not to provide funds for your pet’s caregiver is discretionary and depends on their financial situation and your pet’s needs. It’s advisable to provide funds, if possible, to ensure that the pet’s needs are met, and the caregiver is fairly compensated for their services.
Is it a good idea to create a trust for the pet?
Creating a trust is a great way to provide for your pet after you pass away, and it allows you to specify the care instructions and resources for your pet. However, there are administrative fees, tax implications and preparation fees for financial statements associated with creating and administering a trust. The appointed trustee is also entitled to reasonable remuneration.
What are the differences between a will and a trust?
A will requires an executor to distribute assets to beneficiaries, while a trust requires a trustee to manage assets and distribute them to beneficiaries. A will is a public document, while a trust is private, providing greater privacy and flexibility.
In summary, a will and a trust are both estate planning tools, but they serve different purposes. A will is primarily focused on distributing assets after death, while a trust is focused on managing assets and property during one’s life.
Are there different types of trusts to choose from?
The two main types of trusts in South Africa are inter vivos trusts, which are created during one’s life, and testamentary trusts, which are created through a provision in a person’s will. An inter vivos pet trust can be created while the owner is still alive, while a testamentary trust is only created after the person’s death.
How does a trust for a pet work?
A trust for a pet is created through a trust deed or will, appointing trustees who will administer the trust assets in accordance with the directions provided. Money and property intended to benefit the pet will be bequeathed to the trust and form part of the trust assets. The trustee is responsible for administering the trust assets for the benefit of the pet, in accordance with the trust provisions. The creator of the trust can include provisions for the care of the pet and provision for a beneficiary if the pet dies prior to the administration of the trust assets.
Are there any tax considerations in a trust or will?
Both a trust and a will can have tax implications that apply to the administration of a person’s estate. This includes any provision made for pets in a will as well as in a pet trust.
What could happen to the pets when the owners don’t have a trust or will in place?
If a person does not have a trust or will in place to provide for their pets after they die, the pets will be considered property and will be disposed of as assets in the ordinary course of estate administration. If the person has a will, the pet may be bequeathed to the residuary beneficiary. If there is no will, the Law of Intestate Succession will apply, and the pet will be bequeathed to an eligible intestate heir.
In conclusion, creating a trust or will is a responsible way to ensure the ongoing care of pets after the owner’s death. By making provisions for pets in an estate plan, owners can have peace of mind knowing that their beloved animals will be taken care of according to their wishes.
