Spare a thought for your pets in your estate planning

I MIGHT not be royalty, but specifying in my will who should care for my beloved fur babies after my passing, just as Queen Elizabeth II did for her Corgis, is not as far-fetched as you think, and in many cases quite necessary.

Some pets are considered members of the family, but there are also support animals and domestic cats or dogs with a sole caregiver, and if their human companion unexpectedly passes on, remaining family or community members might be too distraught, distracted or detached to even notice a pet on the premises. And I don’t even want to imagine my two Pekingese being left destitute.

According to fiduciary experts, pets can be legally viewed as part of one’s assets or property in a deceased estate. So neglecting to provide for their future may place their wellbeing at risk. Moremadi Mabule, the head of wills and operations at Sanlam Trust, says that 70% of South Africa's working population do not have a will and those that do often don't include any mention of their pets. This means that pets are often left in the care of a caretaker or intestate heir who may elect to send them to a shelter or have them euthanised.

Mabule says, in some cases, pet owners leave all their assets to an organisation or person, who would then have to take over the responsibility of taking care of the animals, as pets are legally viewed as part of one’s assets in an estate. “This can be unfortunate, as the executor of your estate has absolutely no control or responsibility over the pets once they have been delivered to their new homes,” she says.

That is why I specified my two dogs, by name, and nominated Pug Rescue, a public benefit organisation in Benoni, a place that I know, support and from time to time volunteer at, to take over their care. Both my dogs have special needs, and the organisation is equipped to deal with that. Cheryl and Malcolm, who run the place, will be provided with enough funds to take care of the dogs’ specific needs, and take them into their home, but also enjoy a handsome donation towards their ambition to build an animal hospital on their premises.

We all enjoy the freedom of testation in South Africa. This civil right allows us to draft our own wills and leave our assets to the people and places as we see fit – this includes making provision for your pets. Mabule says that tf you have straightforward requirements, you can complete a will application form, prepare a list of assets and liabilities, and write up instructions regarding what must happen to your estate including all details of beneficiaries. For more complex wills, it is advisable to seek advice from a financial planner or fiduciary expert, she adds.

She says it is important to remember that a pet cannot directly receive the benefits of your will, so you need to appoint a caregiver or trustee to look after the pet following your death. You also need to ensure that the pet is clearly identified, and that the caregiver has access to essential information such as the name of your veterinarian and the pets’ vaccination card.

Pet planning tips

Mabule shares a few considerations when including your pet in your will:

Choose a suitable caregiver. It is important to have a conversation with the person you choose to ensure they are willing to take on the responsibility.

Ask yourself these questions to ensure your chosen caregiver is a practical choice: Does my pet have a relationship with the caregiver? Are they able to take care of a pet? For example, do they have a suitable garden? (You can’t nominate someone who lives in a complex where pets are not allowed.) Are they planning to relocate in the future? Mabula advises that you draft an informal agreement with the caregiver to give you peace of mind and clearly explain unique care requirements. She told me I should also nominate an alternative caregiver should Cheryl and Malcolm no longer be in a position to adopt my dogs when the time comes.

One of the primary objectives of estate planning is ensuring that there is sufficient cash (liquidity) in the estate to settle liabilities and taxes. Money can be left for the benefit of your pet by setting up a testamentary trust where the trustee manages the funds and provides the caregiver with money as needed for a pet's welfare. But Mabule says one should only set up a trust for your pet if there is sufficient liquidity in the estate.

“The trust should also have a residuary beneficiary so that, when the pet dies, the trust is terminated and funds are transferred to this individual or entity, such as an NPO focused on caring for animals. You also need to consider interim provision for the pet while the estate is being wound-up and until the testamentary trust is in force.”