Katie Cummings, CFP®, shares creative ways to share wealth while the benefactor is still alive and able to witness the impact.
Providing for Your Pets in Your Estate Plan
Before his death, Chanel designer Karl Lagerfeld was accompanied everywhere by his beloved cat, Choupette. The beautiful snow-white feline was featured in product launches, had an Instagram account, and was the subject of two books. When Lagerfeld died in 2019, it was rumored that the cat had become one of the largest beneficiaries of his estate, estimated to be over $200 million.
Of course, you don’t need to be an ultra-wealthy fashion scion to care about the future of your pets. For many of us, our pets are more than animals – they are our family. But what happens to them if something happens to you?
Just like a human loved one, your pet depends on you. That’s why it is important to include them in your estate plan. Without clear direction, your pet’s future could be left to chance; but, with some foresight, you can ensure that they will continue to receive the love and care you want for them.
Here are a few suggestions of how you can protect your pet as part of your estate plan.
Choose a Caregiver
Designate someone you trust to care for your pet. Talk to them ahead of time to make sure they are willing and able to assume responsibility. When a person passes away, the authorities may have to default pet ownership to the next of kin, and if there haven’t been proper discussions prior, they may end up being rehomed. You may also want to consider a backup caregiver in the event that the first choice is unable to care for your pet.
Leave Detailed Instructions
Include information about your pet’s routines, medical needs, food preferences, and even personality quirks. If you have a trusted veterinarian, dog walker or pet sitter, be sure to include that information in your documentation as they may be able to provide perspective in your absence.
Set Aside Funds
You can leave money or property to your chosen caregiver with instructions for their use in caring for your pet. Alternatively, you can set up a pet trust, a legally enforceable way to provide money for your pet’s ongoing care.
Work with a Professional
An estate planning attorney can help you structure everything legally and effectively. They will likely have experience counseling clients and can share ways in which clients have accomplished this aspect of their legacy plan. While trusts for pets are legally recognized in most states, there may be variations in how they will be structured and enforced.
Planning for your pet is about love, responsibility, and peace of mind. It’s one more way to make sure your legacy reflects your values, and the lives that matter most to you.
Giving before You Are Gone: Clever Ways to Distribute Wealth
For a long time, putting your estate in order and planning your legacy was a straightforward process. You wrote out a will, named your survivors, and detailed who would receive what when you passed.
These days, there are new ideas around how wealth is transferred, including distributing the funds while the benefactor is still alive and able to witness the ripple effects of their gift(s). Here are a few examples of creative ways to share your wealth with your loved ones and charitable causes now or in the immediate future.
Give Generously – and Tax Free
The IRS allows individuals to give up to $19,000 per recipient (in 2025) each year without triggering gift taxes. That means a couple could jointly give $38,000 per recipient per year. This is a smart way to gradually transfer wealth to children, grandchildren, or even friends, without eating into your lifetime gift and estate tax exemption. Some savers opt for an annual gifting strategy where they help pay for a loved one’s tuition, down payment or other savings, all while reducing their taxable estate.
Pay Directly for Medical Expenses or Tuition
Instead of giving cash, you can pay tuition or medical bills directly on someone’s behalf. These payments aren’t subject to gift tax limits, no matter how large. It’s a stealthy, IRS-approved way to support someone you love without affecting your annual gift limit.
Set Up a Donor-Advised Fund (DAF)
While not new, donor-advised funds are being used in new and creative ways. A donor-advised fund is like a charitable investment account. You contribute cash, stocks, or other assets, get an immediate tax deduction, and then recommend grants over time to your favorite charities. A donor-advised fund could be co-managed by parents and children and centered around the values and philanthropic efforts dear to them.
Start a Legacy Business or Family Foundation
If you want to blend entrepreneurship, family, and philanthropy, consider starting a small business or foundation with your loved ones. It could be a scholarship fund, a nonprofit, or a community initiative. Involve your children early so they can help shape the mission and be inspired to carry it forward.
Establish a Family Trust or Living Trust
A trust allows you to control how your wealth is distributed, both while you’re alive and after. A revocable living trust lets you maintain control of your assets and smoothly pass them to heirs without going through probate. You can also set conditions – like age restrictions or purpose-based use (education, housing, etc.) around the funds. Additionally, an irrevocable trust may be used to remove assets from your estate, potentially lowering estate taxes and protecting wealth from creditors.
Gift-Appreciated Assets
Rather than selling appreciated stocks and paying capital gains tax, gift them directly to loved ones in lower tax brackets or donate them to charity. Charities can sell these assets tax-free, and you get a full-value deduction. Family members who receive the assets may also benefit from a stepped-up cost basis if they inherit it, but that benefit doesn’t apply to lifetime gifts, so remember that timing is crucial.
Invest in Life Experiences, Not Just Inheritance
Sometimes the best gift isn’t cash, it’s shared experience. Use your wealth to fund family travel, multi-generational events, or special experiences that create lasting memories. These are hard to replicate and deepen emotional bonds. Better yet, frame these experiences as value-based with a visit to a place connected to your family history or by volunteering together as part of a trip abroad.
Make Loans with Forgiveness in Mind
You can make intra-family loans at below-market interest rates. If structured correctly, they can fund a loved one’s home, education, or business venture. You can then forgive these loans over time within gift tax limits which essentially makes a loan into a gift gradually.
Talk About It Early
The biggest financial gift you can give is clarity. Don’t keep your wealth plans a secret. In many cases, adult children are not inheriting as much as they think they will. Talk with your family about your intentions, your values, and how you want your money to reflect both sides of the coin. These frank conversations may prevent future disputes and may also help them to understand you and carry your legacy forward with perspective and wisdom.
Parting Thoughts: Give While it Matters Most
Distributing wealth before you’re old or gone isn’t just about smart tax planning, it’s about living generously. You can see the results of your giving, help your loved ones avoid stress, and bring more purpose to your financial decisions. Whether it’s helping your child buy their first home, funding your grandchild’s tuition, or expanding a charity’s impact, you get to be part of that story now.
The Importance of End-of-Life Planning
End-of-life planning is not at the top of our to do list, especially when we are healthy. Unfortunately, death is inevitable. As Kilroy Oldster said, “death is the great equalizer of human beings.” We all experience death, it’s unavoidable.
For many of us, it is an uncomfortable and even taboo subject matter to approach. Here is where a financial advisor can play a significant role in helping you plan for that moment, ease your anxiety, and help your loved one act on your wishes efficiently and accurately.
A Financial Checklist for a Single Parent
Parenthood comes with a lot of responsibility and that weight is amplified if you’re among the 23% of single parent homes in the U.S. As a single parent, managing your finances and getting to a point where you feel comfortable are important as you take care of yourself and your family. Though your budget may be smaller than those in two-income households, there are many things you can do now and going forward to set yourself up for success and protect your family’s future.
