©2024. Published in the Puget Sound Business Journal, March 1, 2023. Reproduced with permission.
By Patti Payne – Columnist, Puget Sound Business Journal
Seattle attorney Stacey Romberg, founder of Stacey Romberg, Attorney at Law, has been in the estate planning business for 27-plus years.
On her website, there’s a whole section about planning for pets, plus links to articles she has been mentioned in, publications like “Bark Magazine” and “Cat Fancy.” It also lists blogs Romberg has done on the topic.
“I’ve had my own firm since 1999 and have long offered proactive estate planning for pets,” she says. “In our office, we have pets and we all believe in making sure our pets’ needs are going to be met, and that they’re going to have a good life, no matter what happens.”
Never doubt that people are vitally concerned about their fur babies.
“It is absolutely a big thing, a huge thing,” Romberg says, “It’s the primary driver for some people, because they’re so concerned what would happen if they were to pass away.”
And it’s not just a concern about dogs and cats and smaller animals.
“It’s large animals like horses, and that’s a whole different ball game. The longer the lifespan, the more the cost of care increases,” Romberg says.
The main concerns are whether there will be sufficient money; someone lined up who is willing to take over the care; and someone who will assume the role of care for the pet if that secondary person is unable or is deceased.
So how much does estate planning for Fifi and Fido cost? The costs vary. Romberg says if there’s an existing will, it can be fairly reasonable and simple to insert a trust for pets.
“You want to put in enough money into the trust that it’s not eaten up by administrative fees, and so we’re talking about $50,000 at a minimum to fund it, at least,” Romberg says.
And no one can predict what a pet will cost through end-of-life.
“That’s a crystal ball,” she says, “and not possible to read it.”
Pet trusts can get complicated, too. For instance, consider people who desire their pet to remain in the home.
“Some people want that. They want their pet to stay at home, so the home becomes an asset of the trust,” Romberg says. “People who live in the home must be paid in some way in order to care for the pets. And then we have to determine when the last pet dies, how the remaining money will be distributed.”
Do people always spend this pet trust money the way it was intended? Can they be held liable if they don’t adhere to the instructions in the trust? Romberg says it’s a matter of naming someone you know and believe in, who’s agreed to act as pet trustee, and then adding a clause that names that person.
“But there’s no guarantee unless there’s a trust. The person isn’t required to use that money in that way. If they want to drop the pet off at a shelter, there’s nothing preventing them from doing that,” Romberg says, adding that most people are asking someone reliable.
If you’re worried about that, there are measures you can put in place to ensure the money is used as intended.
“For instance, a professional fiduciary provides an extra layer of protection that your wishes will be professionally handled,” Romberg says. There are many such companies in Seattle, among them Profiducia, or Ohana Fiduciary Corp.
This planning is vital, says Romberg vehemently, because that animal is dependent on you.
“Having a pet is one of the most sacred responsibilities that you have – a very important part of your life. You must be certain that at least there is some sort of a plan in place. And it’s not really fair to make somebody care for your pet and not provide some sort of compensation. Pets can be expensive, primarily at end of life.”
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