I'm 74 With a Beloved Dog, But I Don't Trust My Adult Kids to Care for My 'Third Child' If I Die. What Should I Do?

We asked estate planners how to protect his one-year-old Chihuahua when his heirs aren't up to the task. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Delivered dailyKiplinger TodayProfit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. 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Question: I'm a 74-year-old widower with about $1.5 million in my retirement account. About a year ago, I brought home a Chihuahua named "Peanut," who has given me great joy and become my constant companion.Unfortunately, I can't say the same for my two adult children, who quite honestly can't stand Peanut. Since Chihuahuas can live up to 20 years, and I don't trust my kids to take care of Peanut when I'm gone, I'm worried about what will happen to her. How can I make sure Peanut is cared for when I pass? I'm willing to pay someone if that's what it takes.Answer: First of all, congratulations on joining the 87 million dog owners in America, who find happiness and companionship through pet ownership. Understandably, you are worried about Peanut's well-being if she outlives you. Caring for a pet is a big responsibility and an expensive one, so you can't blame your adult children for not wanting to take on the burden.Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail.That's particularly true of Chihuahuas, which are known to break bones, suffer from dental disease and experience knee dislocations. Plus, they tend to be high-energy and require a lot of attention.At the last check, the average cost to care for a dog, including food, supplies and veterinary care, is about $1,937 per year, although it can vary by breed, according to Chewy.The good news is that there are ways to protect Peanut and keep the family harmony intact. But first, you have to decide who outside your children you can trust to take care of her."Is there anybody else in your life that would want to take care of the dog? It could be friends, family or sometimes a pet sitter you cultivated a relationship with, " says Patrick Schultz, senior wealth planner at Clark Capital Management.If you don't have anyone on the list, there are organizations like local ASPCA chapters, state and city-run programs and private pet sanctuaries and shelters that will take care of your pet in the event something happens. Often, they charge an upfront endowment fee or require a provision in your will to cover the cost of the pet's lifetime care.You can also appoint a professional trustee or a corporate fiduciary to designate a caregiver and oversee Peanut's care when you pass, but that can get pricey and is usually for people who own a stable of horses or a large collection of animals that require significant, ongoing financial management.Subscribe to the Retirement Tips newsletter, your guide to planning and enjoying a financially secure and richly rewarding retirement.Once you identify Peanut’s caregiver or caregivers, Wendy Sheinberg, a partner at Rivkin Radler LLP, advises establishing a pet trust within your existing revocable trust, if you have one. While you can create a standalone pet trust, it is often more cost-effective to incorporate it into your existing estate plan."If you go and set up a separate trust today, and if the pet is no longer with you, you'll have this free-standing pet trust that you paid a lawyer to set up that you no longer need. It's an unnecessary expense," says Sheinberg. "For most people, it makes more sense to do it within a revocable trust." When structured this way, the pet trust provisions typically activate only upon your passing, provided the pet is still alive.You can name a caregiver in your will, but without a trust, it could end up in probate court, which means your pet's care and funding could languish for weeks or months while the courts work things out. In that case, your pet could end up in a temporary shelter, placed in an unsuitable home or without the medical care they need."The trust lasted for 27 years, and the caregivers eventually admitted they had replaced the original cat with a lookalike three times over."The pet trust is where you outline all the specifics: who will care for your pet, how much of a stipend you’ll provide annually and how long the trust should last. Being specific and detailed is crucial, says Schultz.He recalls a case from his early days as an attorney where a client had established a pet trust for a cat that paid the caregivers $25,000 a year. The trust lasted for 27 years, and the caregivers eventually admitted they had replaced the original cat with a lookalike three times over."We no longer paid for that cat. Nobody wanted to litigate that, but the trust wasn't paying for Fluffy Number 3. That was not the woman's intent," he says.While $25,000 a year to care for a cat may be excessive, when creating your pet trust, calculate how much care really costs, including food, supplies, grooming and vet bills.If your caregiver is a little reluctant, you can offer additional compensation for their time and effort. Just make sure the estate can cover it, and also set a time frame.Sheinberg said the trust could include language such as: "I [would] like to have the trust end on the earlier of the trust exhaustion, the death of the pet or 20 years and 364 days after the grantor’s death."Because it is time-limited, it helps prevent someone from repeatedly replacing the pet. The trust could also require that bills be presented and that a microchip registered in your name be implanted in the pet to confirm its identity. "But at the end of the day, if you think someone might try to swap in a different pet, you need to choose other people," she says.The last thing you want is to do nothing. Your pet is treated as an asset under property law, which means if you don't designate a caregiver, it goes to your beneficiaries, and if it's your adult kids, they can do with Peanut what they want. I'm sure they would care for Peanut, but they may do it begrudgingly. It's better to have a plan so everyone is happy.If you don't have a will or a trust, your assets pass to your heirs according to state intestacy laws, or default rules set by the state. If there is no executor, no will and no obvious family member willing to take the pet, the probate court oversees the distribution of your assets, including the pet. If no one steps up, the court may ultimately authorize the executor to surrender the pet to a shelter or rescue organization.With a little planning and preparation, you can ensure Peanut is protected without causing any undue stress or family strife. A few hours spent with an attorney now will provide peace of mind for years to come. It is the best gift you can give both yourself and your loyal companion.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.