What if you cross the rainbow bridge first? Why you should set up a pet trust

Most Canadians know they should have a will and most don’t want to think about it. Writing a will puts people in an uncomfortable spot where they’re required to make tough decisions about family, inheritance and legacy. Faced with these realities, many people pause and the process of creating a will is left unfinished. The data shows that 78% of Canadians who start an estate plan fail to finish it.

But pets have a way of cutting through those feelings. The thump of an eager tail or the calm of a cat’s purr can be enough to cheer up Canadians and help them move forward with writing their will. In fact, as new data from online estate planning platform Willful shows, pet owners complete their estate plan at almost three times the rate of non-pet owners. The reason? They need to know their pets are protected and cared for after they’re gone.

Some ruff numbers

Willful’s data, which is based on more than 44,000 completed wills from users across Canada, shows a strong national trend. About a third of Canadians (36%) set aside money for the guardians of their pets in wills, and they’re leaving them thousands of dollars. 

The cost of pet care

If you inherit a pet, what will you be responsible for? You can be reasonably sure you’ll need to fund your inherited pet’s protection and care. (Plus, chew toys, an elf costume or the occasional treat.) How much you’ll need to spend depends on a variety of factors: type, age and number of pets, complexity of care and even the region you live in.

Dogs make up 57% of all pets named in wills. “Best friend,” indeed. Cats come in second (not that they care) at 38%. Unsurprisingly, dogs and cats account for the majority of animals set to inherit, but birds and horses also feature prominently in Canadians’ final wishes.

According to Willful, the average trust is $11,121 per pet, but there are variations. Horse inheritances average out at $21,876, a reasonable sum to prevent guardians from being saddled with equine expenses. Bird owners bequeath $12,133 on average, which seems high to non-initiates but makes perfect sense if you’ve ever spent time with a macaw. Trusts by dog owners ($11,705) almost equal the overall average. (The average cat trust isn’t available.)

Also interesting is the regional breakdown. While owners in Calgary ($4,714) and Toronto ($4,892) set aside similar amounts, the average in Vancouver is $6,070.

Why writing your pet into the will makes purr-fect sense

Jokes about being a “cat parent” aside, there are many thoughtful reasons to provide for your pet in your will.

In general, most Canadians leave the care of their pets to family members, with children being the most often appointed guardian. Living with an animal has enormous benefits but there are costs to care as well. Providing generously relieves the financial burden and lessens stress during a chaotic transition.

Another consideration is that while animal companions are loved ones, unlike human successors, they’re considered property. This means that even without a request, they could be bought and sold or even euthanized.  

Five steps for Fido’s future

Caring for an animal is a life-long commitment tied to their life, not yours. Luckily, providing for your pet after death is a pretty simple process. 

1. Make a legally valid will. The will must be written (you can use an online tool to prepare it), stored as a physical document (printed out is fine), witnessed by two people of legal age and lastly, signed by the witnesses and a testator.

2. Choose a pet guardian. The person you name as a guardian for your pet should be reliable, stable and able to look after your beloved companion.

3. Decide on and set aside a cash amount. Being named as a pet guardian shouldn’t be a burden. Come up with a figure that will realistically cover the animal for the remainder of its life.

4. Document your pet’s care instructions. Inheriting an animal can be puzzling. Do your guardian a favour by detailing your pet’s preferences, habits and care needs. Write down your vet’s info, preferred food brand treats and their favourite activities.

5. Appoint an executor. Simply put, an executor makes sure the things you say in your will actually happen. This person will be responsible for getting your hairy heir to their new home.

Not all Canadians have pets, but everyone needs a will. For those who do, pets offer a simple reminder that even the most uncomfortable conversations are easier with a little companionship.

This article was written by Keph Senett from MoneySense and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.