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Your Estate Plan Should Include a Letter of Instruction

In any comprehensive estate plan, a letter of instruction (LOI) is an important component. An LOI can help your loved ones manage important information about you. It conveys your desires, includes practical information about where to find various items referenced in your plan, and provides advice to help those you designate manage your affairs.

Even with a new or updated estate plan, there exists a lot of information that your heirs need to know that doesn’t necessarily fit into the format of a will, trust, or other estate plan elements. In the absence of this information, it is easy for those in charge to miss important items, misinterpret your wishes, and become overwhelmed while sifting through all of the documents you left behind.

Things to Address in Your Letter of Instruction

All LOIs are as different as the people who wrote them; however, there are some standard details that every letter should include:

  • A current list of people and their contact information to inform of your death
  • A list of beneficiaries of your estate plan
  • The locations of important documents like your will, trust, financial statements, insurance policies, deeds, and birth certificate
  • A comprehensive list of assets such as bank accounts, investment accounts, real estate holdings, insurance policies, and military benefits, if applicable
  • PINs, usernames, and passwords for debit cards and online accounts
  • Usernames and passwords for social media accounts, music, or information accounts
  • Keys and combinations to digital safes, strong boxes, and safety deposit boxes and their locations
  • A list of credit card accounts and any other debts
  • A list of organizations in which you belong or are a paying member, such as professional organizations, boards, country or golf clubs, social or political clubs, and more
  • A current list of contact information for lawyers, brokers, tax preparers, financial planners, and insurance agents
  • Instructions for the distribution of personal items with sentimental value
  • Instructions for a memorial or funeral service
  • A personal message to family members

A Note About Your Digital Footprint

Your digital world often includes music libraries, personal and business resources, social media accounts, etc. When most of us create these accounts, we blithely accept the End User License Agreement (EULA) without much thought about when we are no longer around to manage its content and activity. A EULA designates the rights and restrictions that apply when using the software known as terms of service (TOS). Naming someone capable of managing your digital assets and their activity is important.

Most of your online accounts are not subject to typical estate planning tools like trusts and wills because they are not technically your property. Since most TOS are non-transferable, you will be unable to transfer your online accounts’ ownership legally. However, you can still make a plan for how they are handled when you die by ensuring someone has access to them.

Ensuring Your Loved Ones Can Find Your Letter

Once you write your letter, put it somewhere easily accessible and tell your family about it. If you don’t want anyone to read the LOI until your death, seal it in an envelope. You should review your letter once a year to be sure it reflects your most current wishes and information. Because your heirs read your letter of intent upon your death, it can be difficult for you to write and have any degree of satisfaction. The final words are sobering.

At Russo Law Group, P.C., we can help you compose a letter (as well as other estate planning documents), making sure that it compliments your estate plan. Remember that your LOI can bring real peace of mind and be a source of comfort to your grieving family members. It allows them time to contemplate and connect with others to celebrate you rather than sort through documents searching for important papers. Your LOI can also alleviate potential family conflicts and stress because you specifically address the distribution of personal items and reasons for your decisions. Your goal should be to ease the burden for those in charge of your estate and know that you have done all you can to allow your loved ones to reflect on your life and legacy.

When you are ready to take the next step, we will be here to help. Please contact us to discuss a tailored estate plan and letter of intent to meet your family’s needs.

This Post Has One Comment

  1. I never knew that an estate plan allows you to create instructions and wishes on how to handle your assets upon your death. I like your idea to create a letter that can be accessed by your heirs in case of these emergencies. I will keep this in mind if I need something similar in the future.

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