Every horse owner knows the hard work and cost that comes with it. The payoff, however, is having a deep connection with your horse, and forming a team with them. This applies to people who ride simply for pleasure, as well as those who compete. It is therefore important to give careful consideration to what will happen with your horse after you die to ensure they are looked after.
Horses are usually considered chattels (personal possessions) unless they are a working animal that may be regarded as a business asset. If no explicit provision is made in your Will about your horse, it will be treated the same as any of your other possessions.
Welfare
Initially, the executors of your estate have a legal responsibility to ensure the basic needs of your horse are met, and that they do not endure any unnecessary suffering. The Animal Welfare Act 2006 makes it clear that responsibility for your horse’s welfare is attached to those even with only temporary responsibility (such as an executor).
Gift
It is possible to gift your horse outright to someone in your Will or to an animal welfare charity. You will need to consider whether they will actually want your horse, and be able to provide it with the care and attention it needs. You will also need to consider whether the gift is of your current horse or any/all horses owned at the date of your death.
You may also want to consider making financial provision for the maintenance of the horse, if so, to consider how much (taking in to account inflation) and what to do with any surplus money after the horse dies. Further thought should be given to whether this gift is to be held within a trust arrangement that provide some conditions as to how the money can be used for the benefit of the horse. This is to ensure the recipient uses the money as intended, to look after your horse rather than for their own benefit!
If you are choosing to gift your horse, it is important that you keep your Will updated to take into account your horse’s changing needs, age and health, as well as the personal circumstances of those to whom you are gifting your horse.
Trust
Another option is to put the ownership of the horse in a discretionary trust for either named, or a class of, beneficiaries (for example your children). In these circumstances, you can make financial provision for the horse to ensure that the trustees have the financial ability and authority to care for them. You can have a document called a Letter of Wishes drafted which sets out provisions to include who you would like to look after your horse on a day-to-day basis, your choice of vet and farrier, where you would like your horse stabled, whether it can be ridden and to what extent. The Letter of Wishes can be customised and regularly amended as circumstances change.
Similarly, if you think it would be better if your horse is sold, or loaned out to a third party, you can stipulate this in your Letter of Wishes and set out any requirements of the trustees. For example, a minimum sale price or the level of experience of the new buyer/rider. The Letter of Wishes can set out who is to benefit from the sale proceeds or income generated from loaning them out. Whilst a Letter of Wishes is not binding on the trustees, it should be strongly considered by them when making any decisions.
Importantly, you should also inform the appropriate people where you keep your horse’s passport, which will be required if your horse is to be sold or transported.
Should you wish to speak with an advisor to make provision for your horse in your Will and to discuss the options in more detail, please contact us.