FINANCIAL WELLNESS COACH: How to plan for your pets’ care after your death

I constantly worry about whether I have done everything correctly for my two pets after my passing. I have no family in South Africa, and I would like guidance on how to make sure my pets are cared for. What should I consider, and what is the easiest way to have a lump sum set aside for each of the two pets for their care and vet costs until their deaths?

Answer:

Your anxiety is completely understandable. Pets play an important role in our lives and we want to ensure that they are properly cared for should we die before them.

The first important point is that, in South African law, pets cannot inherit directly. You cannot leave money to your dog or cat in the same way that you leave money to a person. This means the planning has to be built around people, instructions and money.

Here are the six important decisions that you need to make:

1. Who will care for the pets

This person needs to be chosen carefully. They must be willing, capable and suitable. Ideally, you should identify a primary ­caregiver and a backup caregiver. If there is no suitable individual, then you can speak to animal welfare organisations, breed-specific rescue groups or reputable sanctuaries. Some organisations may be willing to assist, but they should be approached in advance. Do not simply name an organisation in your will without confirming that it is prepared and able to help.

2. Update your will

Your will should specify who gets the pets and whether a cash amount will be paid to that person for their care. The wording must be clear. For example, you may leave each pet to a named person, together with a fixed amount to be used for food, vet costs, grooming, medication, insurance and general care.

The risk with a simple bequest is that once the money is paid to the caregiver, it may be difficult to control how it is used. In most cases, it works if you trust the person. If the amount is large, or if you are worried about oversight, then a more formal structure such as a trust may be needed.

A testamentary trust is created in your will. You could leave a sum of money to it with instructions that it must be used for the care of your pets. A trustee would then manage the funds and pay the caregiver or service providers as needed. It is more formal and comes with administration and costs.

3. Calculate the amount needed

Start with the current annual cost of each pet. Include food, treats, vet check-ups, vaccinations, chronic medication, grooming, pet insurance, boarding, bedding and emergency vet bills. Then multiply this by their likely remaining lifespan and add a buffer.

For example, if a pet costs R2,500 a month to care for, that is R30,000 a year. If the pet may live another six years, the base cost is R180,000. You may then add an emergency medical buffer for unforeseen vet costs. You need a sensible estimate that gives the caregiver enough money to take care of the pet properly.

4. Prepare a pet care letter

This is separate from your will. A will deals with the legal transfer of assets. A care letter deals with the day-to-day practicalities. It should include each pet’s name, age, microchip number, vet details, medical history, medication, food preferences, routine and any special instructions.

5. Plan for delays while your estate is administered

Estate administration takes time. Pets will need food, shelter and care immediately, not months later when the estate is finalised. This is often the missing piece in planning.

Make sure your executor, neighbour, friend or caregiver knows where the pets are, how to access the house, who the vet is, and what must happen in the first few days. You may even want a small emergency fund or arrangement with the caregiver so that there is no delay.

6. Speak to the right professionals.

Your financial planner can help to calculate the amount to set aside and make sure there is liquidity in your estate. Your attorney must draft the will correctly. If a trust is needed, the attorney can advise on the structure and wording.

This is not overthinking. It is responsible planning. The goal is simple: when you are no longer there, your pets should move from your care into the care of someone you trust, with the money and instructions to keep them safe, loved and properly looked after for the rest of their lives. DM

Kenny Meiring is an independent financial adviser. Contact him on 082 856 0348 or at financialwellnesscoach.co.za. Send your questions to kenny.meiring@sfpadvice.co.za

This story first appeared in our weekly DM168 newspaper, available countrywide for R35.