Some people really do leave money to their pets. And it’s legal.
In June 2019, designer Karl Lagerfeld passed away. A chunk of his fortune, amassed after decades of helming the fashion house Chanel, was left to his cat, Choupette.
“There is no marriage, yet, for human beings and animals,” he told CNN in 2013. “I never thought I would fall in love like this with a cat.”
If the bequest seems unusual, it’s not. Estate attorneys told CNN they’re seeing more incidences of people making financial plans for their pets after they die. Some of the bequests are quite generous.
Twenty-nine states have enacted pet trust laws since 2008, and now every state, plus Washington, DC, has some form of guidelines, according to the American Society for the Prevention of Cruelty to Animals.
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It’s a twisty money matter, though. Pet bequests have been known to be challenged in court, sometimes successfully, by disinherited heirs. And since pets are considered, in all states, property, you can’t actually leave them money. But there are, increasingly, ways around that — and pet owners-slash-parents who want to find them.
Karl Lagefeld at a viewing for his photo calender 'Corsa Karl and Choupette' at the Palazzo Italia in Berlin, Germany, February 3, 2015. Lagerfeld took the pictures of his cat Choupette for the calendar.
Keeping a pet at home
An animal can’t inherit a house. However, if a person names a guardian for their pet, they can leave money and property to that person. And they can request that the guardian uses those assets to care for the pet, even in the deceased’s home. But there is no guarantee the guardian will follow those desires — and, in many case, they aren’t legally bound to honor the requests.
If a person favors pets over family, attorneys caution the reasons for disinheritance must be made clear. Sometimes people leave their children or grandchildren nothing out of anger and disappointment — document incidents so the court upholds your wishes.
In 2008, a New York probate court overruled controversial real estate mogul Leona Helmsley’s $12-million bequest to her beloved Maltese, Trouble, knocking down the dog’s share of her estate to $2 million. The judge also awarded $6 million to two grandchildren she had disinherited for “reasons known to them,” wrote Helmsley.
It made headlines across Asia early this year when one elderly Shanghai mother announced she was leaving her $2.8 million estate, through a veterinary clinic, to her cats and dogs because her children never visited her.
Setting up a trust
So if a person wants to set aside money for their pet’s care with a legally binding obligation that it’s used only for the pet’s benefit, then they usually need to establish a trust.
That was the route Majel Barrett-Roddenberry, actress and widow of “Star Trek” creator Gene Roddenberry, took. Before her death in 2009 at the age of 76, she set up $4 million trust for the couple’s dogs, and allocated an additional $1 million for an employee to care for them. (The arrangement triggered headlines “Star Trek fortune goes to the dogs.”)
Florida attorney Peggy Hoyt, author of “All My Children Wear Fur Coats,” told CNN she urges her clients to leave comprehensive instructions for pet caretakers. They “should have access to your home, care and feeding instructions for your pet, the name and contact information for your veterinarian and written instructions for the long-term or permanent care of your pet,” she said.
If a pet outlives its caregiver, state laws differ about who must take responsibility for the animal (The ASPCA offers an online guide, state-by-state.)
Leslie Ann Mandel, widow of science-fiction author Arthur Herzog III, thought of pretty much everything for her cat, dog and more than two-dozen cockatiels, each bird identified by name, in her will. Specifically, a trustee was awarded $100,000 and access to additional funds, but the birds had to be allowed to remain living in the aviary of Mandel’s Wainscott, Hamptons home after her death (in 2015). Her chief demand: “no cages.”
When things go wrong
What could go wrong? A lot.
Estate attorneys recommend people who want to add their animals to their wills set up a separate trustee for the trust who is not also the pet’s caretaker. It’s far more likely that their wishes will being carried out if there is more than one person administering the terms of the trust. If hit with a layoff or slew of medical bills, even a well-meaning caretaker may be tempted to divert funds towards their own needs.
A simpler solution is to leave a sum of money to an animal protection group. A handful of them, such as the Associated Humane Societies, run shelters throughout New Jersey which will care for cats and dogs after their owners have passed on.
“We require a $10,000 minimum donation for future care of the animal,” said Director of Development Danielle Mania. But “we don’t want them to have to live out their lives in a shelter. We try to find them a new ‘forever home.’”
Most pet owners who have pet insurance say it's worth the cost
What to know
Pets provide comfort and companionship, but they can also be a big financial responsibility. Emergency veterinary surgery can run anywhere from $1,500 to $7,000, according to 2024 data from Yelp; pulling a tooth can cost $500 to $3,000. Pet insurance can ease some of the worry of pet ownership by helping cover the cost of veterinary care if your pet gets sick or is injured.
To see how pet owners feel about pet insurance, Experian recently surveyed more than 1,200 consumers.
Nearly 1 in 3 Pet Owners Say They Have Pet Insurance; 92% of Those Who Have It Say It's Worth It
The cost of pet insurance may be one reason just 29% of pet owners we surveyed said they have it. On average, premiums for pet accident and illness insurance cost $383.30 annually for cats and $675.61 annually for dogs, according to the North American Pet Health Insurance Association. Adding wellness coverage can nearly double that cost.
Among pet owners surveyed who have pet insurance, however, 92% say pet insurance is worth the expense. As one respondent said, "I have pet insurance so I don't have to decide between taking care of [my pets and] paying my mortgage."
Even among pet owners without pet insurance, 53% believe it's worth the cost. This suggests that price is the only thing keeping many pet owners from buying pet insurance. "Pet insurance would help us with unexpected pet costs [and] allow us to budget better," one respondent noted.
You can typically purchase three types of pet insurance.
- Accident-only insurance covers injuries or accidents, such as insect bites, being hit by a car or eating something toxic. It doesn't cover pre-existing conditions or preventive care.
- Accident and illness insurance adds coverage for illnesses, such as cancer, diabetes, ear infections or urinary tract infections. It doesn't cover preventive care or pre-existing conditions.
- Wellness coverage can typically be added to the above policies to pay for routine vet visits and preventive care. For example, a wellness plan might cover dental cleanings, annual exams and vaccinations.
Exactly what's covered by each type of plan can vary widely, so it's important to investigate the details before you buy.
Vet Visits More Frequent Among Those With Pet Insurance
While pet insurance does cover a portion of your veterinary expenses, you're typically still responsible for paying a deductible plus a percentage of the vet bill. In addition, you usually have to pay the vet upfront, then file a claim with the insurance company and wait to be reimbursed.
However, since most plans reimburse anywhere from 70% to 90% of the cost of covered care, pet insurance can make a significant dent in your vet bills. That may be one reason pet owners with pet insurance visit the vet more often than pet owners without it. Half of pet owners with pet insurance surveyed said they take their pet to the vet more than once a year, compared to just 20% of those without pet insurance.
This could indicate that pet owners with insurance are less likely to delay veterinary care due to cost. Frequent vet visits can catch potential health problems early while they're easier and less expensive to treat. Regularly visiting the vet for routine preventive care can also help keep your pet healthy, reducing the overall cost of veterinary care.
Those With Pet Insurance Tend to Spend More on Their Pets, Feel More Financially Confident
In general, survey respondents who have pet insurance said they spend more on their pets. On average, over half (55%) of those with pet insurance spend $100 or more on their furry friends each month, compared to 24% of those without pet insurance.
Of course, this spending may include pet insurance premiums, which would increase a pet owner's average pet expenses. However, people with pet insurance may also be spending more on veterinary care because they know the bills will be covered.
Survey responses indicated that people who are confident about their personal financial situation are also more likely to have pet insurance than those who aren't. Over one-third (41%) of pet owners we surveyed who feel extremely or very confident about their personal finances in the next 12 months have pet insurance. By comparison, just 22% of those who feel somewhat confident and 12% of those who feel only a little or not at all confident about their personal finances have pet insurance.
Feeling financially confident may spur pet owners to purchase pet insurance, knowing they can afford it. On the other hand, having pet insurance to help with unexpected vet bills might make pet owners more confident about their financial situation.
The Bottom Line
While pet insurance can be pricey, the majority of pet owners with the coverage say it's worth the cost. You can save money on pet insurance by choosing your coverage carefully, opting for a higher deductible and shopping around to compare prices. If you decide pet insurance isn't for you, building a solid emergency fund, keeping credit utilization low and maintaining good credit can give you plenty of options for handling an unexpected vet bill.
Methodology
Experian surveyed 1,279 U.S. adult consumers to gather opinions on pet insurance. Survey conducted July 3, 2024. The sample was collected using a third-party company and was not from Experian's consumer credit database.
This story was produced by Experian and reviewed and distributed by Stacker Media.
