By Sheyna Steiner
Laurie Channer, a pet owner in Chicago, says that over the past five years since she adopted her beagle mix, Marley, her pet health insurer, VPI, has reimbursed her thousands of dollars.
More recently, Marley had a lipoma tested along with a blood test as a precaution for dental cleaning. The cost to Channer at the time of service was $578.23. VPI reimbursed her $216.10. So Channer’s actual cost was $362.13.
Pet owners considering insurance might ask their vets about their experience with health insurance. Not all are comfortable recommending a specific company, but many vets have found that owners with insurance are more likely to seek treatment for their pets’ ailments.
“If you have to pay out of pocket, this depends on the practice area and economy, of course, but if you are paying more out of pocket, you might not go in quite as much or do quite as aggressive a course of therapy,” says Shawn Messonnier, a veterinarian and author of “The Natural Health Bible for Dogs and Cats.”
Pet owners who are consistent savers might open a savings account earmarked for pet health care.
“Making regular contributions to a savings account for your pet’s health care costs can be the right answer in the long run because many pets don’t face catastrophic illnesses or accidents. So that money builds and builds and without ever being taken advantage of,” says Kim Saunders, vice president of shelter outreach and public relations with Petfinder.com.
Estate planning for pets
Most pet owners are unaware that they can legally set up a trust to provide for the care of their pets.Forty states and the District of Columbia allow statutory pet trusts. That means you can set aside money for your pet and name a caretaker. A trustee oversees the finances and makes sure the pet is getting the care specified in the trust.
Pet owners living in states without a pet trust statute — Connecticut, Georgia, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Oklahoma, Vermont and West Virginia — can still set up a trust for their pets, but it won’t be as easy or enforceable as a specific pet trust.
Danny Meek, a Florida estate plan lawyer and blogger on Pettrustlawblog.com, explains why:
“In the 10 states that do not have statutory pet trusts, you can still set up a trust that will take care of your pet, but there are some big obstacles. Most states have specific rules against perpetuities, which are time frames that the documents cannot exceed, and a general trust is not necessarily enforceable by a third party,” he says.
Enforcement by a third party is particularly important if you want to make sure your pet is actually getting care.
“One of the benefits of the statutory pet trust is that if I’m the trustee and you’re supposed to be taking care of Fido and I see that you’re not, then I can go to the court and ask for a successor caretaker to be appointed or have myself appointed to make sure that the pet is being taken care of. In most states, the general trust statutes do not allow for that,” says Meek.
That leaves the door wide open for unscrupulous caretakers to take the money earmarked for the pet’s care and run — with predictably dire consequences for the pet.
Pet advocates such as Buchwald believe a discussion about a pet trust should be initiated by the attorney or financial planner assisting with a client’s estate plan.
Unfortunately, a large number of attorneys involved in estate planning are also unaware of the option of providing for companion animals, Meeks says.
“It’s hard to believe that a lot of attorneys are still unaware of this, but we’re educating them more and more on it,” he says. “Clients get most of their education from the professionals who are helping them out.”
Buchwald and the ASPCA see many pets relinquished to shelters after the death of their owners.
“The ASPCA just last week took in two pets from someone who had died, and the pets were at risk — there was no one to take care of them. There was a local caregiver and a will, but the will did not specify what should happen to them,” Buchwald says.
“They were obviously much loved and well cared for. They’re really lovely pets. The deceased had spent a lot of time drawing up with legal counsel a very elaborate, well-thought-out will when it came to her financial assets. It’s hard to believe she would have left them out had she known it was possible to provide for their care,” she says.
If your financial planner or estate attorney doesn’t mention planning for your pets, ask what would be appropriate for your situation and your companion animals.
Cost for a pet trust can range from $500 to $3,000, depending on its size and complexity. But if you add it to your basic estate planning package at the same time you draw up a will, says Meek, “then it could be very affordable for pet owners.”
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Eric Hundin