Financial planning for pets
Pet Trusts & Wills
Why It’s Important to Provide for Your Pet
Lynn C. Allison
When my Mollie passed, I was surprised at how many rescue groups did not accept my application for a dog because of my age. I was horrified, insulted, and couldn’t believe that people could be turned away because of their senior status.
Now I know why. After working with Chesed recently I’ve seen too many dogs being surrendered because their mom or dad had to move to a nursing or hospice facility that does not accept pets. In two cases that I am aware of, the children of these older pet owners could not or did not want to take care of their pets. So it is vital to make provisions for your pets no matter what your age, but especially if you are older.
“You can’t ever assume that someone will take responsibility if there is no prearrangement,” warns Elise Gross, a local attorney who specializes in Wills and trusts. “Also, older animals are a bigger responsibility and have extra costs for their care. If your family doesn’t live locally, asking them to take your pet if you die or become sick might be difficult because of transportation and costs.”
From what I personally have witnessed, even family members who are local may not be able to care for your pet so the time to make arrangements, even if you are not a senior, is now. You never know what tomorrow may bring, so being prepared gives you and your pet peace of mind.
“It’s important to make a plan,” says Gross. “Historically I see the most need with people who are single or have no children. People who have tortoises who live a long time should also make provisions for their pet.”
There are several ways to do this. You can establish a pet trust and make arrangements with a local shelter or a friend to care for your pet. Gross has had several clients who have made arrangements with pet sanctuaries in other parts of the country and provided funds in their estate to pay for the transport and give a donation as well.
“This is more common when people have multiple pets and want to keep them together,” she says.
To properly prepare for your pets, you must name a person you trust as a custodian or trustee under a pet trust and leave sufficient funds to fund that trust, says Gross.
“Be very specific as to what is allowed to be paid from the funds,” she says. “The rule for pet trusts, also known as honorary trusts, is that it must be for a living pet. It can’t be for the offspring of the existing pet unless the offspring is alive when the owner dies.”
It’s also important to designate what should be done with any leftover monies once the initial pet dies to avoid any confrontation with a disgruntled family member. One famous example of this is when billionaire Leona Helmsley left $12 million to care for her Maltese, Trouble, after she passed, and the courts stepped in and reduced the amount she allocated to care for her dog.
“Since animals are not human, they cannot own property of any kind,” Gross concludes. “Since they are property, the have to be dealt with as part of a Will or trust.” She adds that it is also a good idea to keep medical and vaccination records in a place where they can be easily found, so that whoever takes the pet or pets has the information.
Contact:
Elise Gross, Esq.
Law Office of Elise Gross, P.A.
7000 W. Palmetto Park Rd.
Suite 210
Boca Raton, Fl. 33433
(561) 367-7772
Why do I need pet insurance or a wellness plan?
Lynn C. Allison
There is no question that while owning a pet is a delightful pleasure and privilege, it’s also a huge responsibility. And very often, it is an expensive proposition. That’s why all pet owners should consider getting health insurance or wellness packages—or both--to ensure that they make budgeting for pet care more manageable and predictable.
Dr. Andrew Turkell, partner and medical director of Calusa Veterinary Care in Boca Raton, Florida says that the price of pet surgeries, emergency treatments, and treatments for illness can be extremely costly, sometimes reaching thousands of dollars. Pet insurance helps prepare and manage these unexpected costs, ensuring your pet can receive the best care without causing a financial burden.
In my own experience, Mollie’s surgery for bladder cancer cost over $10,000, and chemotherapy for Bunny had a similar price tag. That’s a lot of money and for so many pet owners, the burden of guilt in not being able to provide proper care of their pet is devastating.
“Pet insurance can give pet owners peace of mind, knowing that financial constraints won’t stand in the way of medical treatments,” Turkell says. He reminds us that even healthy pets can encounter accidents or sudden illnesses. Having pet insurance protects against these unforeseen circumstances.
So, what about wellness plans? These generally cover routine and preventative care, such as vaccinations and annual check-ups, dental care and flea and parasite treatments.
“They can help with ongoing care and keeping your pet healthy,” notes the expert. Pet insurance, on the other hand, covers the emergencies, accidents, surgeries and more significant illnesses and health events that crop up.
Having both a wellness plan along with pet insurance offers the most comprehensive protection for your pet and your pocketbook by providing for day-to-day health maintenance as well as provisions for unexpected emergencies and medical scenarios.
Here are some points to look for when selecting a plan for your pet:
•Ease of payment. When choosing the right plan for you, investigate flexible payment options. Ask if the insurance plan allows direct payments to veterinarians or if you need to pay upfront and seek reimbursement.
•Deductibles. Ask if the insurance plan has a per-incident deductible or an annual one. Lower deductibles often lead to higher premiums but can reduce the out-of-pocket costs when an incident occurs.
•Caps on payouts. Many pet insurance policies have caps or limits on the total amount they will pay out annually, or per condition, or even over the lifetime of the pet. Ensure the limits are high enough to cover potential emergencies.
•Reimbursement rates. Some insurance policies reimburse a percentage of total vet bill. Understand the percentage they cover, as well as the process and speed of reimbursement.
•Exclusions and waiting periods. Make sure you understand if the insurance policy excludes pre-existing conditions, hereditary issues, or other medical concerns. Additionally, note any waiting periods before actual coverage begins.and safe facilities.
Contact:
Dr. Andrew Turkell
Calusa Veterinary Center
6900 Congress Ave.
Boca Raton, Fl. 33487
(561) 999-3000