There are many elements to estate planning, and it is easy to overlook things. Doing so could make things difficult for those you leave behind.
One of those things you might overlook is a letter of instruction because it does not get as much attention as things such as wills and powers of attorney. What is a letter of instruction and why include one?
Think of it as a helpful guide to your estate
Letters of instruction are generally not legally binding. Therefore, you would not, for instance, cover who gets what in your letter. Rather, you can use them to guide people regarding the finer details of your wishes. Here are some examples.
- How you would like your funeral handled: Who to invite, whether you want burial or cremation and where the service should take place and where your remains or ashes should be put.
- Whom your executor may need to contact: You can save them from having to search for contact details by including those of creditors, your legal team, beneficiaries, financial advisor and other parties they might want or need to contact.
- A list of your assets and debts: While your assets and debts might change between the time you write the letter and when you pass away, spelling out what property you own and including details for your accounts, investments or debts can help as your executor administers your estate. Note that directions for their distribution still to be in your will or other estate plan document for them to be legally valid.
You can update or replace your letter of instruction over time to keep it up to date. Legal guidance can be helpful for the original and any updates.
