Pets and Your Estate Plan

While many people consider their pets to be an important part of their family, seldom are pets taken into consideration when it comes to estate planning.

Can your pet be a beneficiary under your Will?

We’ve all probably heard stories of wealthy people choosing to disinherit their families and instead leaving their entire fortune to their pets - in Australia this is not an option. Pets do not have the same legal status as a person and are unable to inherit anything (whether that be money or other assets).  Notwithstanding the fact that a pet cannot inherit under a Will, pet owners can still make arrangements in their Will to ensure that their pets will be cared for.

Gifting your pet to a beneficiary

Under Australian succession law, pets are treated as property. This means that you can specify in your Will who will inherit your pet on your passing. If no specific directions are made in your Will regarding the
care of your pet/s, your pet/s will form part of the residue of your estate and ownership of your pet/s will pass to your residuary beneficiary or beneficiaries. In circumstances where the residuary beneficiaries
are unable or do not wish to care for your pet/s, they may choose to give away your pet (whether that be to another person or to a shelter). There is also a risk that your residuary beneficiaries may choose to
euthanize your pet/s if alternate care arrangements cannot be made for these pet/s.

To avoid uncertainty regarding the future care of your pet/s, it is recommended that you consider including instructions in your Will specifying who is to care for your pet/s on your passing.  Often when gifting a pet to a trusted friend or family member, a testator may choose to provide a monetary gift in favour of the beneficiary to help cover the reasonable care and maintenance costs associated with the pet/s. A monetary gift of this nature may be given in one of the following ways:

• A trust for the maintenance of the pet/s;
• An outright gift in favour of the beneficiary chosen to care for the pet/s; or
• As a conditional gift, given on the basis that the beneficiary must accept and care for the pet/s.

With a trust, funds may be held for the benefit of the named pet (to cover the reasonable costs of its care and maintenance, such as food, vet bills, pet insurance costs etc.). The trust provisions may also
specify that the trust is to be wound up on the pet’s passing, with the remaining funds to be distributed in accordance with further instructions in the Will.

We strongly recommend that you discuss your intentions regarding the care of your pet/s with the relevant beneficiary before your Will is drafted. We also recommend that you consider naming a ‘back up’ person to care for your pet/s in the event that the first named person is unable or unwilling to care for your pet/s.

Pet legacy program

In circumstances where you do not have an appropriate person that you wish to leave your pet in the care of on your passing, another option to consider is researching what pet legacy programs are available in your local area. Charites such as the RSPCA will, in exchange for a donation provided for in your Will, take care of your pet/s until they are able to find them a new home.

Should you wish to include provisions for the care of your pets in your estate plan or have any questions in this regard, please do not hesitate to contact one of our estate planning solicitors.