What Is a Letter of Instruction?

A letter of instruction can be an essential component of your estate plan. Regardless of your wealth and family situation, there is vital information you should organize and communicate to loved ones, heirs, fiduciaries, and others, says Forbes' recent article entitled, "Letter Of Instruction: Roadmap To Take This Important Estate Planning Step."

Some people see their letter of instruction as an ethical will—a communication to their family that expresses their beliefs, wishes, wisdom, and thoughts. However, a letter of instruction may serve other purposes. Therefore, you might consider drafting several letters of instruction. One might be a guide for a trusted friend to handle financial and other matters if you have an emergency. Another may be akin to an ethical will left to a child or others. A third might be to the person serving as a health care agent who will make medical decisions for you if you can't do so.

A Comprehensive Guide for the Unforeseen

The essence of a letter of instruction is to provide a comprehensive guide for those who will have to settle your affairs once you are gone. As highlighted by Investopedia, it's not just about any other estate-planning document; it's about ensuring that your wishes are communicated and understood.

The Financial and Health Emergency Blueprint

In any emergency, be it financial or health-related, a letter of instruction serves as a blueprint. For financial emergencies, it's crucial to indicate where critical financial data is maintained and how to access it. This includes details about bills, creditor information, and other financial obligations. On the other hand, for health emergencies, the letter should provide critical health information, contact details for healthcare professionals, and any specific health challenges you might be facing. Your health insurance information should also be readily available.

Building Bridges with Key Contacts

One of the primary purposes of the letter is to ensure that there's no confusion regarding who to contact for what. Having a list of positions, names, and contact information is invaluable. This list should include professional advisers like your estate planning attorney, CPA, investment consultant, and banker. It should also have details of family members who can be contacted in times of need. Furthermore, trustees of trusts, the executor under your will, and powers of attorney agents should also be listed.

The Power of Clarity in Estate Planning

The importance of clarity in estate planning cannot be overstated. As pointed out by Trust & Will, a letter of instruction, also known as a letter of intent, is designed to provide explicit details regarding your preferences. It's about expressing the deceased's final wishes and ensuring the estate plan is executed as envisioned.

The Legal Perspective

From a legal standpoint, as highlighted by Brandon White Law, the letter of last instruction is a letter detailing specific instructions not found in other estate planning documents. It's about ensuring that all loose ends are tied up and that there's no ambiguity regarding your wishes.

Conclusion

In conclusion, a letter of instruction is more than just a document; it's a roadmap, a guide, and a means to ensure your wishes are respected and followed. It's about leaving no stone unturned and ensuring your loved ones have all the information they need to honor your legacy.

Reference: Forbes (June 18, 2023) “Letter Of Instruction: Roadmap To Take This Important Estate Planning Step”