Remember Fido: Closing the Gap in Pet Trust Planning

Many pet owners treat animals as family, but estate plans often omit pets. The American Institute of CPAs found 73% of adults have an estate plan; among them, 40% included pets. The AICPA also reported 95% of pet owners consider pets family and 62% budget for pet expenses. Industry data projects annual pet spending of $1,390 to $5,295 in 2025. The institute reported 57% of Americans own dogs and 40% own cats.

Survey responses point to simple causes for the gap. Forty percent of respondents said they had not considered discussing pets during estate planning, and 38% assumed family members would handle arrangements.

Cary Sinnett, director of financial planning at the AICPA, recalled a situation in which four siblings could not agree on custody of their mother’s dog; the dog remained in the house while the siblings visited on a rotating schedule. He urged advisors to add pets to conversations about dependents and to ask clients, “Where does Fluffy live if something happens to you?”

States treat pets as property, so owners cannot leave money directly to animals. Achim von Bodman of Watter CPA wrote that a pet trust is the appropriate legal vehicle. In a pet trust an owner transfers funds to the trust, names a human trustee to manage money, designates a caretaker for daily care, and provides written instructions on how funds should be used. Von Bodman noted that long-lived animals such as turtles or cockatoos require funding that may span many decades. Sinnett referenced Michael Jackson’s trust for his chimpanzee, Bubbles, as an example of planning for extended life expectancy.

Advisors recommend separating financial control from caregiving to reduce conflicts. Erin Itkoe of the AICPA PFP Champions Task Force described arrangements in which one person handles day-to-day care while another manages trust funds. The dachshund Winnie the Pooh had a roughly $100,000 trust that later produced a public dispute between a caretaker and a trustee and led to litigation. Sinnett suggested considering a corporate trustee to oversee disbursements and enforce the owner’s written wishes.

Planners also advise clients to specify what happens to any remaining funds after a pet dies. Common choices include naming a beneficiary, designating a charity, or returning assets to the estate. Itkoe described drafting trusts that list food, treats and birthday celebrations so a pet maintains its prior lifestyle and to reduce the chance of disputes.

Professionals working on estate planning for clients with pets reported that creating a pet trust requires clear documents that name trustees and caretakers, estimate ongoing costs and longevity needs, and identify a remainder beneficiary. Those steps are presented as ways to address gaps between how owners support pets during life and how plans provide for them after an owner’s death.