Enhancing Your Estate Plan: The Importance of a Letter of Wishes

If you have gone through the estate planning process, chances are you are familiar with the four essential documents:

  • A living trust

  • A will

  • A durable power of attorney

  • An advanced medical directive

These legal instruments are the foundation of a comprehensive estate plan, ensuring the distribution of your assets according to your direction and that your healthcare preferences are respected. However, one additional document is invaluable but often overlooked: the letter of wishes.

What is a Letter of Wishes?

A letter of wishes is a non-binding document that complements your estate planning documents. It serves as a personal message to your trustees, executors, and beneficiaries, providing guidance and clarification on how you would like certain matters handled upon your passing. While not legally enforceable, a letter of wishes carries significant moral weight and can help ensure your intentions are realized.

What Should the Letter of Wishes Include?

The beauty of a letter of wishes lies in its flexibility and creativity. You can include an array of topics and instructions tailored to your unique circumstances and intentions. 

Some common elements to consider adding to your letter of wishes are:

  • Explanation of your rationale behind specific provisions in your will or trust

  • Instructions for the care of minor children or dependents with special needs

  • Guidance on the management and distribution of personal assets, such as family heirlooms and other sentimental items

  • Wishes regarding your funeral arrangements or memorial service

  • Personal messages to your loved ones, expressing your love and sharing life lessons

How Important Is It to Personalize a Letter of Wishes?

One of the key benefits of a letter of wishes is the opportunity to personalize your plan and communicate your intentions. While the typical estate planning documents are filled with legalese and technical jargon, a letter of wishes allows you to speak in your own voice. This special touch can provide comfort to your loved ones during a difficult time and help them feel more connected to you and the legacy you leave behind.  

The Process of Writing a Letter of Wishes

Writing a letter of wishes may seem daunting. However, reflecting on your life and thinking about how you would like to be remembered can also be a rewarding experience.

Here's a step-by-step guide to help you get started:

  1. Begin by reflecting on your values, beliefs, and the messages you want to convey to your loved ones.

  2. Make a list of the topics you want to cover, such as the distribution of personal assets, care instructions for dependents, and personal messages.

  3. Draft your letter with the goal of being clear, concise, and easy to understand. Avoid using legal jargon or making the letter too lengthy.

  4. Review and revise your letter to ensure that it accurately reflects your wishes and intentions. If you feel brave and have a trusted person in your life, have them read it and ask questions about anything that may seem odd or unclear.

  5. Share the letter with your estate planning attorney and trusted advisors to ensure it aligns with your estate planning documents. Remember, the letter of wishes is not a legal document. The estate planning documents will ultimately govern matters.

  6. Store the letter in a secure location alongside your other estate planning documents.

Real-Life Examples

To illustrate the significance of a letter of wishes, consider these real-life examples:

  1. Despite having a comprehensive estate plan, a sudden change in the health of their adult child, who was a beneficiary, led the Smiths to update their letter of wishes. This document allowed them to specify new care instructions and financial arrangements in light of the unexpected situation.

  2. Ensuring the care of their pets. Although their will and trust included provisions for their pets, the letter provided specific details about their daily routines, preferences, and the contact information of the veterinarian, ensuring a seamless transition of care.

  3. Upon the passing of the family patriarch, a letter of wishes was used to clarify intentions and the distribution of personal belongings among family members. This not only prevented potential conflicts but also ensured that cherished family heirlooms were distributed according to his wishes.

  4. A widow left a letter of wishes that shared her life story, including her values, beliefs, and hopes for the future. This document was cherished by her children and grandchildren, serving as a personal connection and a source of guidance for generations to come.

Conclusion

A letter of wishes is a valuable addition to your estate plan. It provides a platform for you to share your personal thoughts, wishes, and instructions with your loved ones, complementing the legal documents and ensuring that your intentions are understood. By taking the time to craft a thoughtful letter of wishes, you can leave a lasting legacy that goes beyond the distribution of your assets.


About the author:

JP Geisbauer is a Certified Public Accountant, a Certified Financial Planner ®, and the founder of Centerpoint Financial Management, LLC, a financial planning, investment management, and income tax planning firm located in Irvine, CA. JP Geisbauer is dedicated to helping California-based business owners and executives transition into retirement. He has been quoted in many news outlets including Forbes, Newsweek, US News & World Report, MarketWatch, YahooFinance, CNN and NerdWallet.

Need help with your transition into retirement? Schedule a complimentary 30-minute call with JP here.

Disclaimer:

This article is for general information and educational purposes only. Nothing contained in this article constitutes individual financial, investment, tax, or legal advice. Before taking any action on any topic discussed in this article, consult with your own financial planner, investment advisor, tax professional, and/or attorney for advice on your specific situation.

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