How Pet Trusts Work and Why More People Are Adding Them to Their Estate Plans

What Diane Keaton’s Dog Teaches About Smart Pet Planning

When news broke that actress Diane Keaton reportedly left $5 million to her golden retriever, Reggie, the story sparked fascination and debate. How does a person leave money to a pet? And is it even necessary to do so?

For celebrity estates worth millions, it’s easy to dismiss this kind of gesture as eccentric. But Keaton’s decision highlights something deeply practical, ensuring that a beloved companion will be cared for after its owner’s death. That concern isn’t exclusive to Hollywood. Every Arizona pet owner who considers their dog, cat, or parrot part of the family faces the same question: what happens to them if something happens to me? An Arizona estate planning lawyer can help answer that question by creating a plan that provides for pets just as thoughtfully as for any other family member.

Estate planning isn’t just for people

Arizona law recognizes pets as property, which means a person can’t leave money directly to an animal in a will. However, the law does allow for pet trusts — a flexible planning tool that lets owners set aside funds for a pet’s lifetime care. These trusts are valid throughout the state and can be customized to fit nearly any situation, from a single indoor cat to a horse ranch full of rescues.

A pet trust ensures that money earmarked for an animal’s care is managed by a trustee and distributed as needed to the designated caretaker. It can be tailored to reflect a pet’s specific needs, routines, and quality of life. Common expenses that a pet trust can cover include:

Veterinary care and medications: Routine checkups, emergency treatment, surgeries, and preventive care.
Food and supplies: Daily nutrition, treats, bedding, toys, and other essentials that maintain comfort and health.
Grooming and boarding: Costs for grooming services, pet sitters, or boarding facilities when the caretaker travels or becomes unavailable.
Training and exercise: Fees for obedience training, walking services, or exercise programs that keep pets active and well-behaved.
End-of-life care: Humane and dignified arrangements for the pet’s final needs, including cremation or burial costs.

Creating a trust like this gives owners peace of mind that their pets will be cared for exactly as intended, without leaving the responsibility or financial burden to chance.

How a pet trust works

While every estate plan is unique, a few key components form the backbone of any effective pet trust:

Naming a caretaker: This person is responsible for the pet’s day-to-day care and should be someone trustworthy, reliable, and willing to take on the role. It’s wise to name an alternate caretaker in case circumstances change.
Appointing a trustee: The trustee manages the funds placed in the trust, ensuring the money is used properly and in accordance with the owner’s wishes. This separation between trustee and caretaker helps maintain accountability.
Defining the pet’s needs: Clear instructions for diet, medical care, and quality of life help ensure that the pet receives the same level of care it enjoyed during the owner’s lifetime.
Allocating remaining funds: The trust should specify where leftover money goes after the pet’s death, whether back to family members, a charity, or an animal rescue organization.

Working with an Arizona estate planning lawyer helps ensure these provisions comply with state law and that the trust is structured correctly. Online templates often miss key legal details, creating loopholes or disputes later.

Lessons from over-the-top examples

History has plenty of cautionary tales about excessive pet inheritances. New York hotel magnate Leona Helmsley famously left her Maltese dog, Trouble, a $12 million trust fund, a sum later reduced to $2 million by the probate court. While Trouble still lived comfortably, the case proved that extravagant planning can invite legal challenges and unnecessary attention.

A balanced plan is the goal. Pets deserve security, but a well-structured Arizona pet trust can provide that without creating conflict among heirs. By outlining reasonable funding levels and clear instructions, owners can prevent disputes and ensure their pets are cared for as intended.

Planning responsibly for the pets you love

Diane Keaton’s $5 million dog trust may have made headlines, but the principle behind it applies to anyone with a pet they consider family. Estate planning isn’t about extravagance; it’s about preparation. Arizona law gives pet owners the tools to make sure their animals receive continuous care and financial support when they no longer can provide it themselves.

Planning ahead prevents uncertainty later. The Law Firm of Brown & Jensen helps Arizona residents create estate plans that protect every family member, including pets.

Whether for a dog, cat, bird, or horse, a pet trust ensures lifelong care and financial support. Contact us to schedule a free consultation with a member of our legal team to build a plan that secures your wishes and your pets’ future with clarity and peace of mind.

"Very knowledgeable in helping us set up our will and trust and walking us through it all." ─ Alexandra, ⭐⭐⭐⭐⭐