Sentimental Assets

Include A Clear Letter Of Instructions In Your Estate Plan

A solid estate plan starts with leaving no doubt regarding your intentions. Writing a clearly communicated letter of instruction can go a long way when it comes to clearly detailing all your thoughts and wishes. Although the letter, unlike a valid will, isn’t legally binding, it can be valuable to your surviving loved ones.

The Devil Is In The Details
Although the content can vary from person to person, one of the main purposes of a letter of instruction is to provide details on final wishes that haven’t been conveyed in the will. Think of the letter as a way to fill in some of the ‘gaps’ or resolve matters that may be left open to interpretation.

For example, your letter can detail vital financial information that was omitted or glossed over in your will. Typically, this can include an inventory of real estate holdings, investment accounts, bank accounts, retirement plan accounts and individual retirement accounts, life insurance policies, and other financial assets.

Along with the account numbers, list the locations of the documents, such as a safe deposit box or file cabinet. And don’t forget to provide the contact information for your estate planning team. Typically, this will include your attorney, CPA, investment advisor, and life insurance agent. These professionals can assist your family during the aftermath.

Many people also use a letter to lay out their wishes for personal possessions. Keep in mind that without spelling out your intentions, bitter disputes may erupt over items that have more sentimental value than monetary worth, including furniture, photographs, jewelry, and artwork.

Content Is Up To You
There are no hard-and-fast rules for writing a letter of instruction. The basic elements are outlined above, but the choices are ultimately up to you. Remember that the letter isn’t legally binding, so there is no obligation to include any particular item. Conversely, you can say pretty much whatever else you want to say.

Rewrite If Necessary
Completing your letter of instruction shouldn’t be the end of the story. You may have to revisit it for rewrites or edits you didn’t accommodate before. For example, you may have neglected to specify certain accomplishments you want mentioned in an obituary.

In addition, it’s likely that some of your personal information will change over time, such as bank account numbers and passwords. Update the letter when warranted. Think of it as an ongoing process.

Finally, make sure the letter is secured in a safe place. Any printed version should accompany your will or be located somewhere else that’s accessible to trusted family members. At the same time, you must be able to update the letter whenever you need to.

Clarity Counts
If you haven’t done so already, draft a letter of instruction and, most important, make sure that your family knows where to locate it. We can help fill in the blanks if you need help.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.