The UK is renowned as a nation of pet lovers. In particular, its cats and dogs.

The UK pet population was estimated in 2018 to include 9 million dogs and 8 million cats. More widely 12 million (44% of) households had a staggering 51 million pets.

The pandemic has reputedly led to the price of puppies more than doubling during lockdown – one cause being the need for companionship as we all spend more time at home - and now often selling for £3,000 or more.

A Cavalier King Charles Spaniel (the breed of choice for my own household) has now increased from £1,100 to over £2,200. And the Home Secretary, Priti Patel, pledged to clamp down on “absolutely shocking” pet thefts (either litters of puppies or unsuspecting dog walkers who are set upon).

Pets themselves do not only have an intrinsic monetary value but can also surprisingly be wealthy in their own right – whether that is through inherited or self-made wealth.

The pet rich list

Border collie Lulu (8) recently became a multi-millionaire when retired Nashville businessman Bill Dorris (84) left her US$6.4 million in a Trust to provide for her long-term care. Lulu joins the ranks of other wealthy pets, although still has a way to go to match Gunther IV.

Reputedly the world’s wealthiest pet, dog Gunther IV inherited a reported US$375 million fortune (from his ‘dad’ Gunther III (who had, in turn, inherited his own fortune from his human owner).  It is not known whether he has wisely invested his inheritance.

Closer to home, multi-millionaire publisher Miles Blackwell left his chicken – a Scots Dumpy hen (a traditional Scottish breed so named for its very short legs) named Gigoo - £10m when he died in 2001. Blackwell (56) died three weeks after his wife (46) passed away. A year earlier the childless couple had sold the family business (the Blackwell publishing empire) to retire to the country to breed sheep and hens. Gigoo was presumably a firm favourite and saw out its life in the manner to which it was accustomed.

Self-made pet millionaires include Taylor Swift’s cat Olivia Benson (a Scottish fold cat – all of whom descend from a single Coupar Angus native with ears distinctively folding forwards), who has an estimated worth of US$97 million from stardom on tv and ads.

How can I ensure my pet is cared for if I die? 

Firstly, put in place a Will. Research would consistently suggest that most people living in Scotland do not have a Will.

Wills are surprisingly affordable, but without one the outcome may not be as you would choose. Scots succession law does retain – and this often comes as a shock – a system of ‘forced heirship’.

In Scotland, it is not possible to absolutely disinherit a spouse, civil partner or children (though in practical terms there are ways to mitigate the inheritance of a potential beneficiary who is not flavour of the month).

In Scotland, pets do not have the capacity to own property – and so a bequest directly to a much-loved pet is doomed for failure.

Bequests for pets

In Scotland, the suggested route for pets within a Will would be a bequest (a sum of money) to a trusted friend (of the homo sapiens variety).  That friend would then care for the pet.

The maker of the Will would need to make an assessment as to the friend’s character – will she or he look after the pet (in the same manner as the owner) and indeed be willing to do so. Pets can live for many years and so this is a not inconsiderable burden (those of us with pets know the ongoing cost of feeding, grooming, and insuring them).

In Lulu’s case, Mr Dorris left her in the care of his friend Martha Burton (88), who was to be reimbursed for Lulu’s ‘reasonable monthly expenses’.

The payment of the bequest is conditional upon the friend accepting the welfare obligations placed upon her or him. To increase your pet’s safety net – and to prevent the friend from otherwise despatching (humanely naturally) the pet shortly after being paid - the Will-maker may wish to consider use of a Trust. That may be either a liferent Trust or a discretionary Trust.

Legal trusts for pets

A liferent Trust (paying income – the fruits of the Trust - to the friend) that may extend for the pet’s lifetime – and so incentivising the friend to ensure its long term health and wellbeing – with the capital being directed otherwise (potentially to charity or family and friends).

Or a discretionary Trust with a pool of potential beneficiaries (including the friend) bolstered by a letter of wishes (a non-binding expression of the Will maker’s desires). That Trust may alongside or on the death of the pet be used for wider charitable or animal welfare purposes.

Trusts themselves make for excellent planning tools in many situation. Whether for young or old beneficiaries, a transfer of value down the generations, as part of inheritance tax planning (which is levied at an eye-watering headline rate of 40%) and to protect from themselves those who are more inclined to spend than save – not just for pets - whether during lifetime or on death.

In all of this regular checks (proof of life) of the pet would needless to say be essential.

Providing for your pet's future without you 

The strong theme when it comes to planning for pets (or humans) is to be like Mr Dorris – prepare and don’t leave your affairs to chance.

For a discussion in confidence about how you may best protect you, your loved ones, and your pets please contact Burness Paull Private Client team.

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