Having a well-crafted estate plan is a critical part of protecting your assets for your descendants.
However, there is a lot of information your loved ones may need to know that is
not found in your Will and other estate planning documents. A good way to fill in the blanks is
to write a letter of instruction to your family members. This is a helpful
means for you to be candid with your family, to convey your wishes and let
them know what to expect after you have passed.
The letter of instruction is a piece that is written by you, in your words, and not written by your attorney. It is legally non-binding, but it is intended to be helpful for your family. The general idea of the letter is to give some guidance and comfort to your family before you die to help them later when they will be preoccupied dealing with grief and the burdens of wrapping up your affairs.
There are no rules about what the letter
needs to contain and no
particular format or style requirements. It can be as brief or as lengthy as you'd like. You can write one general letter directed to all your children, or you can write separate letters, tailored to each child. What to
include in the letter is entirely up to you. Topics may include:
- Your thoughts and beliefs regarding your end of life medical care.
- A list of people to contact when you die, including family and friends, the personal representative(s) of your estate plan, and a list of beneficiaries.
- Discussing charitable contributions you intend to make through your estate plan.
- Organizations you belong to that should be notified, such as professional organizations, boards, alumni groups, service organizations, clubs, etc.
- A contact list of professionals, such as attorneys, tax preparers, investment advisors, insurance agents.
- The location of
important documents, such as your Will, insurance policies, deeds, birth certificate,
financial statements, automobile titles. Be sure to include the location of
safe deposit boxes and who has access to them.
- A list of major assets, such as bank accounts, investments, insurance policies, real estate, pensions, etc.
- Contact information for credit card accounts, mortgage companies, and other creditors.
- Logins and passwords for online accounts.
- Funeral, memorial and burial/cremation instructions.
- A list of sentimental items to give to family members.
- A personal message for your family. This may be a good opportunity to discuss your estate plan, your
wishes, and perhaps tell your family members why you made your decisions.
This can help your family understand your intent and (hopefully) help prevent
any disagreements they may have regarding their future inheritances.
The above list is not exhaustive and you can include any number of topics in your letter.
Once you have written your letter, be sure to store it in an accessible location and tell your family about it. You may wish to revisit the letter from time to time and make changes if you desire. It would also be a good idea to have your attorney review it to ensure that nothing in the letter contradicts the language contained in your estate planning documents.