When estate planning, people often focus on documents such as, Wills and Trusts however, there is another useful document that is often overlooked: a Letter of Wishes.
While it is not a legally binding document, a Letter of Wishes is a useful tool designed to complement your Will or Trust and provide additional understanding of your goals and intentions. In this blog post, we will explore what a Letter of Wishes is, why you might need one and how it can be a useful component in your estate planning.
What is a Letter of Wishes?
A Letter of Wishes, often referred to as a Memorandum of Wishes, is a non-binding document that is designed to provide guidance to your executors or trustees about your goals and/or intentions concerning your estate and other important matters. This could include instructions regarding how you wish for your assets to be handled or how you wish your executors or trustees to act.
It is recommended to store your Letter of Wishes alongside your Will or Trust document to ensure this is not missed by your executors or trustees however, it is important not to attach any documents to your original Will as this can cause issues with regard to the validity of the document later on when your executors are required to apply for Probate.
Why might I need a Letter of Wishes?
There are no set rules on what a Letter of Wishes can and can’t contain so you are free to include anything you see fit however, it is important to remember that a Letter of Wishes is not legally binding and therefore, your executors or trustees are not required by law to follow any instructions outlined within it. You should also ensure that your Letter of Wishes does not contradict or conflict with the instructions outlined within your Will or Trust; a Letter of Wishes is designed to complement your Will or Trust and provide additional guidance to your executors or trustees.
Here are some reasons why you may want to use a Letter of Wishes:
Provide details regarding any funeral wishes you have
Outline any specific gifts of personal property or items of sentimental value
Justify any decisions you have made; such as, if you have chosen to exclude someone from your Will or Trust
Provide guidance to your chosen guardian about how you wish for young children to be cared for. This could include your thoughts regarding their education or religious beliefs
Outline how long you wish for a Trust to remain in place
There are many other reasons why you might want to use a Letter of Wishes and that is one of the benefits of this document; it provides flexibility for you to update your wishes at any time. All that is required is for your Letter of Wishes to be written in clear, easy to understand English and that it is signed and dated by yourself.
In conclusion..
A Letter of Wishes is a great tool when it comes to estate planning, allowing you to provide personal guidance, clarify your intentions and offer context to your executors or trustees and even your loved ones. While it is not a legally binding document and there is no legal obligation for your executors or trustees to follow it exactly, it can be a useful way to provide them with the clearest indicators possible when it comes to your wishes, ensuring these are respected and understood.
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