Investor Education – Estate Planning
Letter of Instruction for Wills
What is a letter of instruction?
A letter of instruction is an informal, nonlegal document that generally accompanies your will and is used to express your personal thoughts and directions regarding what is in the will (or about other things). Unlike your will, a letter of instruction remains private. Therefore, it is an opportunity to say the things you would rather not have become public. A letter of instruction is not a substitute for a will. Any directions you include in the letter are only suggestions and are not binding. The people to whom you address the letter may follow or disregard any instructions.
Technical Note: A letter of instruction is also known as a side letter or testamentary letter.
Tip: Even though a letter of instruction generally supports your will, you should not actually store them together. If the documents are together, the letter may be considered part of the will and be published for all to see. Put it someplace safe and let a beneficiary know where it is located.
Why use a letter of instruction?
To express burial wishes
A letter of instruction is a good way to express burial wishes. A letter left with a close family member, friend, or associate can be delivered immediately upon death, saving time and avoiding potential problems later. You may want to consider including in the letter the location of any burial plots you own and how your remains should be disposed of, whether by burial, cremation, or donation to science. You can also indicate the type of service you want and any other memorials.
To state nature and location of information You can use a letter of instruction to state the nature and location of any information your executor may need to settle your estate, such as:
- Where your will and trust documents are located
- Where your deeds and titles are located
- Where your insurance policies are located
- Where your birth and marriage certificates are located
- Where your military discharge papers are located
- The names and locations of banks you use and any account numbers
- Who your attorney is
- Who your accountant is
- Who your life insurance agent is
To explain your reasons
You may want to use a letter of instruction to explain the reasons behind particular provisions in your will. Your letter might include the reasons for specific bequests or the disinheritance of a particular beneficiary. For example, you might explain that you are leaving the contents of your wine cellar to a friend, instead of a relative, because that friend is a connoisseur.
To advise your executor
You can include any specific knowledge that would help your executor manage your affairs. For example, you may know how best to handle such things as stamp collections, works of art, collectibles, or investments.
You may choose to provide your executor with instructions on when to consult a tax attorney regarding the tax consequences of certain post-mortem elections and other decisions that will have an impact on taxes.
To advise your beneficiaries
You may want to advise your beneficiaries about how to handle the property you left them.
Tip: Be sure to review and update your letter of instruction as your circumstances change.
For more information on this topic, please contact us. At Bartlett & Co, we assist high net worth individuals and their families in defining & reaching their life goals.