Will

A will is a special type of legal document that takes effect only upon your death and requires a certain level of formality not associated with other types of legal documents.  (The type and degree of formality associated with executing a will varies from state to state, which explains why many estate planning experts consider generic will forms and software as loaded guns in the hands of unsuspecting, well-intentioned laypersons.)  Upon your death, your personal representative will pay your final debts, taxes, and administrative expenses and distribute your remaining assets according to the provisions of your will.  The provisions of your will may call for an outright distribution to your beneficiaries or the establishment of a testamentary trust for the delayed benefit of your beneficiaries.  In any case, unless you make a specific provision in your will for your pet, it will pass according to the provisions governing tangible personal property.

Revocable living trust

In general, a “trust” is a legally enforceable arrangement whereby a “trustee” receives legal title to trust property from a “settlor” or “trustor” and is bound to hold, administer, and distribute the trust property for the benefit of one or more designated “beneficiaries” according to the terms of the trust agreement, whether oral or written.   A “revocable living trust” is a particular type of trust whereby, during the lifetime of the settlor, the settlor is the trustee and may revoke the terms of the trust agreement; but when the settlor dies, a successor trustee named in the trust agreement will take over the trust property and distribute it according to the estate planning provisions.  As with a will, the trustee could be directed to establish separate trusts after the settlor’s death, including a trust for the benefit of a caretaker or a pet.  In any case, if the settlor is willing to incur the time and expense of preparing the trust agreement and transferring assets to the revocable living trust during his or her lifetime, this mechanism also avoids the hassles and costs associated with probating a will and judicial intervention in the estate administration process. (For more information about revocable living trusts, you may also consult www.livingtrustnetwork.com, a web site which is wholly unrelated to this one.)

Beneficiary designations for life insurance, retirement plans, etc.

Certain types of assets cannot be effectively transferred by simply executing a will or a revocable living trust.  For example, you cannot transfer “ownership” of a qualified retirement plan or an IRA during your lifetime – you can only make withdrawals and name a beneficiary to receive the remaining balance (if any) upon your death.  To name such a beneficiary, you have to complete and submit the necessary form in accordance with the law and policies of the plan administrator or custodian.

Another type of asset that requires execution of a beneficiary designation form is proceeds from a life insurance policy.  That is, if you want your life insurance proceeds to pass to a certain beneficiary (e.g., the trustee of your pet trust), you will need to complete and submit the appropriate form to the insurance provider.

Contractual arrangements with pet care providers

If you enter into a formal arrangement with an organization to provide pet care, you may also have to execute a contract evidencing the terms of the agreement between you and the provider.  In this case, you will need to consult with the provider (and, perhaps, legal counsel) to ensure that all of the necessary formalities have been met.