Estate Planning – What Happens to Your Horse if Something Happens to You?

The following information is intended to be a general guide for estate planning as it applies to your horses. The UHC recommends contacting a knowledgeable attorney to guide you through the details of estate planning involving your equine.

While it’s common for people to regularly think about what they need to do to establish their will and ensure that their property and belongings are taken care of in the event of their death, it’s not common that their horses are included in this process. Without a will, your horse could become the property of your heirs, and these family members may have no interest, or even the required knowledge, to inherit and care for your horse.

Some owners might just elect to have their horse sold at either a private sale or a dispersal sale at an auction. However, some owners may also be wary of this as once a horse leaves an auction, its fate can sometimes be unknown and the horse may end up in the wrong hands. Additionally, horses that are retired or have special needs might be more difficult to sell or place in a good new home.

How do I protect my horses if they outlive me?

One of the first things to consider when estate planning is “Who”: Who do you know among your equine contacts, friends, or family that has the knowledge, and most importantly, the desire to care for your horse after your death? Will this person not only be able to care for the horse, but will he or she also be able to successfully sell or rehome him?

Another consideration is “How”: How does this person you have identified take ownership of your horse? Here there are two options: Naming the horse in a will; or creating a trust for the horse.

Naming the Horse in a Will

A will is a legal document that allows you to leave property to certain individuals and organizations. Many owners will take the simplest option and state in their will that the horse must be given to this specific person. Some owners even leave a bequest of a specific amount of cash or property (if the horse is stabled on the owner’s property) to help cover the costs that will be associated with the care of the horse.

However, it is also important to note that a will does not automatically give your estate away the minute you die. It must go through probate, which means it is filed with the court and becomes a public document. Probate can take anywhere from 9 months to several years. During this time, assets are not readily available to pay for the horse’s needs.

Additional note: While probate assets are tied up during administration, the executor has a fiduciary responsibility to ensure the horses are cared for.

Creating a Horse Trust

A trust is a written statement that allows you to leave your estate to certain individuals or organizations and explain how your horse should be cared for after your death. Trusts do not go through probate, meaning funds are available immediately.

Testamentary Trust

This trust is created upon the horse owner’s death as outlined in the will and is irrevocable.

• The grantor (settlor)
• The trustee
• The beneficiary(s)
• The probate court

Inter Vivos Trust

Also known as a living trust, this document is created while the horse owner is still alive and bypasses probate.

It is important to note that each type of trust has its own specific considerations.

Is there a benefit of establishing a trust as opposed to simply putting the horse in my will?

A trust offers greater structure, accountability, and protection for the horse’s care.

What about putting my horse in a retirement home?

A retirement home may be an option, but owners must ensure sufficient funds are available for lifetime care.

Can I donate my horse?

Depending on suitability, horses may be donated to 501c3 programs and may qualify as a tax deduction.

Other Considerations

Registration Papers and Medical Records

Ensure all registration and medical records are complete and accessible.

Your Belongings

Consider planning for saddles, equipment, and farm assets.

Your Land

Conservation easements may help protect land from development.

Your Equine Business

Work with an attorney to plan for the future of your equine business.

Conclusion

The UHC strongly encourages working with a knowledgeable attorney to plan for your horse’s future.

Disclaimer: The UHC’s Estate Planning Guide should not be construed as legal or professional advice.