Male   Female
  • Can I make my pet a life insurance beneficiary?
  • March 14, 2014
  • world's richest petsBy LifeQuotes.com

    You have read the stories; some billionaire leaves an entire estate to their favorite dog, without leaving their kids a dime. While your first reaction might be, “Oh, well, they are rich and eccentric,” what if you wanted to leave your favorite furry friend ALL of your worldly possessions? If a “regular” person had a decent-sized life insurance policy, could he or she leave it all Fido?

    Actually, yes.

    When an emergency arises, the pets are often among the last belongings considered, and in many sad circumstances, are shipped off to the nearest shelter. Even if you do not have a ton of dollars, you can use life insurance to care for your pet. But it is not as straightforward as naming your cat, dog or iguana the beneficiary to your insurance policy. Pets are legally considered property.

    “The reasons a pet cannot be the sole beneficiary of a life insurance policy are basically because it would be very difficult to verify the pet’s identity. Not to mention, a pet can’t sign off on any legal documents,” said Holly Anderson, spokesperson for State Farm Insurance.

    There are no agencies that provide life insurance for pets, but plenty that provide pet health insurance, including the American Society for Prevention of Cruelty to Animals.

    So, if you have a life insurance policy and want to make sure your pet is pampered for the rest of its life, the easiest thing to do is establish a living trust to accommodate your pet’s needs, and specify the proceeds of your trust to go to everything from a regular vet checkup to funeral services.

    “Lots of people have different options as to where they put their funds,” said Tricia Clements, legal assistant at Lane & Karlo, LLP, a law firm specializing in estate planning, and, most recently, pet trusts.

    This option is feasible, but there are drawbacks, according to Clements.

    Most trusts work by having a trustee appointed to manage and allocate the funds to their designated recipients. For a pet trust, this would mean establishing a trustee, appointing a caregiver for the animal, and creating a system of checks and balances to make sure your favorite animal is cared for properly.

    “There are numerous options to fund a pet trust. For example, somebody may have a life insurance policy and name the [pet] trust a partial or sole beneficiary,” Clements said.

    Another way to use your life insurance to care for your animals is to name the caregiver the sole beneficiary of your life insurance policy or make the policy a conditional gift. You can then possibly follow that up with specifying how the funds are to be used in your will, or have them sign a contract.

    “A [pet] trust has a trustee who manages the money and pays the caretaker. It is best to have the trustee and caretaker separate so there’s a system of checks and balances. The problem with making a life insurance policy conditional gift is that it cannot be enforced, so you need to be very comfortable with the person you leave this money to—you are basically giving them the money with no guarantee,” Clements said.

  • Category: Articles Library, Featured Articles, Life Insurance, Pet Insurance, Videos

2 Responses

  • Orval says:

    Furthermore, it affords runners or adventures optimum safety more so
    while on high risk expeditions. The whole purpose of the game is to put the ball inside the other’s
    team goal. The zeal for victory over dangers is another factor that
    attracts people to the extreme sports video.

    Review my web blog: idaho sports; Orval,

  • Karla Sullivan says:

    Thanks



Leave a Reply

Archives

About

Consumer Insurance Guide SM provides a wide selection of originally-authored articles and expert advice targeted to the self-directed insurance shopper. Our mission is to provide consumers with useful, money-saving information on all things having to do with making sound insurance purchase decisions.

Consumer Insurance Guide SM is owned by Life Quotes, Inc. 8205 South Cass Avenue, Darien, IL. For editorial, content feeds, advertising and lead purchase opportunities, contact Robert Bland at bob@lifequotes.com.

Originally founded in 1984 as Quotesmith Corporation, Life Quotes, Inc. owns and operates www.consumerinsuranceguide.com and www.lifequotes.com, two online consumer insurance information services that cater to the needs of self-directed personal and corporate insurance shoppers.

About Us  |   Contact Us  |   Press Releases  |   The Best Privacy Policy  |   Life Insurance  |   Careers
For Agents & Brokers  |   Site Map  |  


Copyright ©1984-2015 Life Quotes, Inc., 8205 South Cass Avenue, Suite 102, Darien, Illinois. Life Quotes, Inc. and certain of its personnel are licensed as insurance agents, brokers or producers in all states. CA agent #0A13858, LA agent #200696, MA agent #333509159. dba Life Quotes Insurance Services in CA under agent #0827712, in LA under agent #205078. dba Life Quotes Insurance Services, Inc. in UT under agent #90093. All rights reserved. Telephone (630) 515-0170. Founded 1984.
10.1.1.86