Do You Need to Include a Letter of Instruction in Your Estate Plan?

Knoxville estate planning attorneys

Despite the abundant tools available to help you with your estate plan, you may find that you have pertinent, even crucial, information that applies to your estate plan, yet does not fit anywhere in your existing plan. With that in mind, the Knoxville estate planning attorneys at Stivers Law explain why you may need to include a Letter of Instruction in your estate plan.

Is Something Missing from Your Estate Plan?

The average estate plan includes several common documents, yet sometimes you still feel like something is missing. A Last Will and Testament typically serves as the foundation of an estate plan, allowing you to appoint an Executor for your estate, gift assets, and nominate a Guardian for minor children. It cannot, however, explain why you did not gift your estate equally to your children nor why you appointed a sibling, instead of a spouse, as the Executor. You might also include a trust, which can help achieve a variety of goals, and into which you will transfer assets. A trust agreement, however, is not the best place to leave detailed instructions about the upkeep of those assets or why you decided to pass down those assets in staggered disbursements. An advance directive can specifically grant an Agent the ability to make healthcare decisions for you if you cannot make them yourself and lets you make certain healthcare decisions yourself ahead of time. It cannot explain the reason why you made those decisions though. All these estate planning documents are essential pieces to the puzzle you put together to protect yourself, your assets, and your loved ones. You may still feel though that pieces to the puzzle are missing.

How Can a Letter of Instruction Help?

A Letter of Instruction is a document that you may include in your estate plan that provides instructions not found elsewhere in your plan. A Letter of Instruction, however, can also be used for other similar purposes. Anything you choose to include in your Letter of Instructions is not legally binding on anyone; however, the information you include can be crucial to your overall plan. Some common uses for a Letter of Instruction include:

  • Locations. Provide the location of important estate planning documents, such as your Will, life insurance policies, or a trust agreement.
  • Summaries. Provide a summary of all assets you own along with account numbers and/or online login instructions to access the accounts.
  • Lists. Names and contact information for people that need to be contacted after your death.
  • Instructions. Instructions for maintaining assets may be needed, which could be as simple as how to winterize your vacation cottage or how to value your rare coin collection.
  • Explanations. These may be necessary if you made controversial decisions within your estate plan. For example, if you gifted a large donation to a charity or disinherited a child, this is your opportunity to explain why you did what you did.
  • Wishes. Express your wishes regarding your funeral and burial. Ideally, you included a funeral component in your estate plan; however, you may wish to add details to ensure that your wishes are honored.

Although the instructions you include in a Letter of Instruction are not legally binding, they can go a long way toward assisting with the probate of your estate and can help prevent litigation. Anything you can do to make your Executor’s job easier will ultimately benefit your loved ones. Moreover, if any of the terms of your estate plan are likely to cause conflict or animosity, explaining why you included those terms can deter litigation, or assist your Executor to defend your wishes if litigation cannot be avoided.

Contact Our Knoxville Estate Planning Attorneys

For more information, please join us for an upcoming FREE webinar. If you have additional questions or concerns about including a Letter of Instruction in your estate plan, contact the experienced Knoxville estate planning attorneys at Stivers Law by calling (305) 456-3255 to schedule an appointment.

Author Bio

Justin Stivers is the founder and managing attorney of Stivers Law, an estate planning firm specializing in wills, probate, trust administration, and financial risk management services. Justin’s approach goes beyond just creating legal documents. From aligning investments with estate plans to ensuring comprehensive insurance coverage, he safeguards a client’s legacy from unforeseen circumstances. His commitment extends beyond individual transactions, fostering lifelong partnerships to provide ongoing support and guidance.

With an impressive track record, Justin is licensed by the Florida and the Tennessee State Bars. His professional portfolio boasts Series 65 registration as a Registered Investment Advisor, the Wealth Management Specialist™ designation, and a 2-15 License for Health, Life, and Annuities. His dedication to excellence has earned him positions like Board Member of the Estate Planning Council of Greater Miami, Business Eagle Member of the Florida Justice Association, and active membership in esteemed organizations like the American Academy of Estate Planning Attorneys.

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