By Jackie Bedard, Carolina Family Estate Planning

As an estate planning attorney, I know Generation Y has a lot to think about…starting their careers, buying their first home, starting a family.  All of these things are beginnings, so it’s a rare day when someone in this generation wants to think about The End.  But there are 4 reasons that they might need to…

A lot of people think that youth is an excuse for putting off doing a will or trust.  But estate planning is not just about planning for your death.  It is also prepares you in the event you experience an incapacitating injury and are unable to make your own financial or medical decisions.  While the odds are certainly in your favor that you will not need an estate plan, should you have the misfortune of needing it, you and your family will be thankful.  Consider these four scenarios…

You need a plan in the event that you become disabled or incapacitated.

Unfortunately tragedies happen every day.  And you are not immune to them because you are young.  If something happens to you and you are no longer able to make decisions regarding your own financial, legal, and medical affairs you’ll need to make sure that there are basic documents in place such as a health care power of attorney, financial power of attorney and HIPAA authorization so someone can make decisions on your behalf.

You need to pass your assets.

You might be asking, “What assets?”  Even if you do not yet own your own home, you need to consider IRAs, retirement accounts and life insurance accounts offered through your employer. You need to make sure that beneficiaries are named in the right way to make sure that the people you want to leave them to get maximum benefit.

You need to name guardians for your children.

If you have children, you simply must name guardians.  You should be the one who decides who will raise them if you are no longer around.  You do not want this decision left to squabbling relatives or to a court system who doesn’t know you or your child.

You need to plan for your pets.

If you have a pet, chances are they are a big part of your life.  They are totally devoted to you and also totally dependent on you.  Have you stopped to think what might happen to them if something were to happen to you?  If you want to make sure your companion is cared for if the unexpected happens, you could choose to put together a plan for their continued care.  The plan may include directions about feeding, medical care and other needs along with funds necessary to provide for your pet’s support and to compensate the caretaker.

The scenarios above are just a few to consider when deciding if you need a will or trust.  I encourage you to talk with a wills and trusts lawyer.  Only then will you have the peace of mind of knowing that you are fully protected.

Meet Kylie.  Yesterday she turned 7 years old.  I can hardly believe that it’s already been almost 7 years since I went and picked her out as a pup.  Well, really, she picked me.  In honor of Kylie’s birthday, I thought it would be a good time to talk about including pets in your estate plan.

Include Your Pets In Your Will

Under North Carolina law, pets are considered personal property.  As such, if you have specific wishes about who you would like to care for your pet after your death, it is a good idea to include your pets in your will.  Understandably, some pets have shorter life spans, so if you are concerned about the need to update your will as pets come and go, you could consider including a more general statement.  For example, if you have dogs and have a close family friend that is a dog lover, you could consider a general provisions along the lines of “I want any dog that I may own at my time of death to pass to my friend, Jane Doglover.”  Your attorney should be able to advise you as to the best language for your particular circumstances.

What Is A Pet Trust?

North Carolina is one of several states that have adopted laws allowing for pet trusts.  A pet trust is a legal means of appointing someone to care for your pet and also set aside money to cover the cost of your pet’s care and maintenance.  Just as minor children are not legally able to own property under North Carolina law, neither are animals.  As such it is necessary to appoint a person to oversee and manage the money on behalf of your pet.  The pet’s caregiver need not be the same person that is managing the funds set aside for your pet’s care.  A pet trust is a great way of ensuring that your pet will be cared for in the manner that you desire.

Do I Need A Pet Trust?

As mentioned above, you can use your last will and testament to designate who you would like to receive your pet, but a pet trust can give some additional protection and flexibility.  First, while it would be possible to leave a monetary gift to the person you have given your pet to, this does not ensure that the person will accept the pet or keep the pet and it also does not ensure that the person will use the money given to them to care for your pet.   Thus, for some, a pet trust is a better alternative.

Other reasons you may wish to consider using a pet trust include:

1. You own a pet with a long life expectancy, such as a horse, bird, turtle or other reptile.  Especially for larger animals like horses that require boarding and more expensive upkeep, a pet trust is a useful planning tool.
2. Your pet has special needs and will require special care.  You may need to provide specific food and diet instructions, veterinary care instructions or grooming instructions.  A pet trust gives you more flexibility to include such provisions.
3. You have multiple pets and do not wish them to be separated.  Taking on the responsibility of several pets could be a significant financial burden for the caretaker.  A pet trust could be used to provide the necessary funds to provide for your pets’ care.
4. Your family is not well suited or interested in caring for your pet.  In such a case, you may wish to specify someone outside the family to care for your pet.
5. You have a family member or friend that is willing and able to care for the pet physically, but cannot afford to do so financially.  Again, the pet trust could be used to set aside some financial assets for the care of the pet.
6. You have specific wishes regarding the final disposition of your pet, i.e., burial or cremation.