De Cat or Default

Estate planning in America may not feel as glamorous as life on a Chanel runway, but it matters as much for ordinary families as it did for Karl Lagerfeld and his famously pampered cat, Choupette. After Lagerfeld’s death in 2019, attention shifted to the idea that his blue-cream Birman might inherit a portion of an estate possibly worth hundreds of millions. While the thought of this may seem humorous, the financial consequences might be serious reality. Lagerfeld had to make carefully structured arrangements for Choupette’s care because (according to this Atlantic article) in France, pets cannot directly inherit money. In the United States, the basic principle is similar. Without a clear, updated plan, what you intend and what actually happens can diverge meaningfully.

For American families, a well-crafted estate plan could be the difference between your wishes being carried out on your terms versus undergoing an expensive process guided by default state rules. Unlike Lagerfeld, most people aren’t worrying about art collections or fashion royalties, but they are thinking about children, grandchildren, homes, retirement accounts, businesses, and sometimes their beloved “fur babies.” If you want assets held for the benefit of a pet, a child with special needs, or a financially inexperienced heir, that needs to be spelled out in writing. Trusts or beneficiary designation can typically get the job done. But those documents shouldn’t live in a vacuum. They can be affected by things like changing tax laws or shifting family dynamics. These and other variables are why “set it and forget it” is one of the quietest estate-planning mistakes out there.

Use Choupette as a cautionary tail tale. The lesson is simple: review your estate plan regularly so it reflects your current life, not the one you had a decade ago under a different set of tax laws. Marriages, divorces, births, deaths, business sales, and moves across state lines can all make an older plan at least partially outdated and potentially counterproductive. Beneficiary forms on IRAs and life insurance will override the trust you painstakingly drafted and paid for. Your named executor or trustee may no longer be the right person or even be alive. A review with legal and financial professionals helps align outcomes with your wishes. They’ll help you understand documents, the titling of accounts, potential tax implications, and the practical question of “who actually does what” when you are no longer here. That way, whether your closest companion is a spouse, a grandchild, or a spoiled cat, your legacy plays out according to your design rather than default.