What Is a Letter of Wishes: Importance, Benefits, Limitations

Are you grappling with the complexities of estate planning and the uncertainty of ensuring your wishes are carried out precisely as you envision?

Enter the solution: letters of wishes.

What is a Letter of Wishes? A letter of wishes is an informal document accompanying a will that guides executors and trustees on how the testator wishes their estate to be managed or distributed. Though not legally binding, it helps estate planning through practical and personal insights that clarify preferences or intentions.

Discover how a simple, yet meticulously crafted document can provide clarity, direction, and peace of mind in the distribution of your assets. Join us as we answer the question ‘What is a Letter of Wishes?’

Do You Need a Letter of Wishes

A Letter of Wishes (LoW) is a cornerstone in personalized estate planning. The importance of a letter of wishes stems from how it is a unique avenue to express end-of-life values and wishes beyond the confines of a will.

Unlike legally binding documents, the LoW isn’t subject to public scrutiny, granting individuals the freedom to articulate personal aspirations and sentiments for their beneficiaries.

Though non-binding, the importance of a letter of wishes lies in providing additional clarity and instructions about decisions made in legal documents like wills and trusts. By encapsulating hopes, values, and aspirations, the LoW ensures a more nuanced approach to estate distribution.

Will vs Letter of Wishes: Complementary but NOT the Same

A will serves as a legally binding document that outlines the distribution of assets. A letter of wishes is a complementary document to the will that provides guidance, the reasoning behind certain decisions, and shares sentiments.

While a will dictates legal obligations, the importance of a letter of wishes is that it adds depth and clarity, enhancing the understanding of the testator’s intentions. It complements the will by expressing values and wishes but should not contradict its terms.

In case the letter of wishes unwittingly contradicts the will, the will typically takes legal precedence.

How to Write a Meaningful Letter of Wishes

When crafting a LoW, prioritize clarity and sincerity: 

• Begin by reflecting on your values, hopes, and aspirations for your beneficiaries.
• For family members, adopt a warm and compassionate tone, sharing personal anecdotes and expressing love and gratitude.
• When addressing trustees or executors, maintain a professional tone, focusing on practical instructions and clarifications regarding asset distribution and management, using clear and concise language to articulate your thoughts and wishes.
• Consider the emotional needs of your recipients and provide reassurance and guidance accordingly.
• Anticipate potential questions or concerns and address them proactively in your letter of wishes.
• Review and revise your letter to ensure clarity and coherence before finalizing it.
• Seek legal or professional advice to avoid clashes with your will and other estate planning documents.

Aim for clarity in your directives, and to anticipate potential questions or concerns recipients may have to smoothen proceedings when addressing your estate.

What is the Role of Letter of Wishes in Estate Planning

The role of a letter of wishes in estate planning is to address personal matters and provide flexibility in changing circumstances.

For instance, invaluable guidance to trustees and executors can be provided by allowing the testator to specify how assets should be distributed among beneficiaries based on their circumstances at the time of distribution.

Among others, these could include:

• A beneficiary’s financial stability
• Educational needs
• Health concerns
• Special family situations

Incorporating a LoW into an estate plan enhances clarity, ensures the fulfillment of personal wishes, and promotes smoother asset distribution. Its non-binding nature allows for nuanced instructions, facilitating a comprehensive approach to legacy planning alongside tools like powers of attorney. 

Respecting the Intentions of a Letter of Wishes

While a LoW isn’t legally binding, part of the reason for the importance of a letter of wishes is due to the fact that executors often consider its contents when fulfilling their duties.

However, they aren’t obligated to follow it, especially if it contradicts the will or legal requirements.

Nonetheless, suppose the LoW aligns with the testator’s intentions and provides valuable insights. In that case, executors may choose to honor the letter of wishes intentions, thus fulfilling the testator’s wishes to the best of their ability.

Benefits of Including a Letter of Wishes in Estate Planning

Incorporating a letter of wishes into estate planning offers numerous benefits:

• Family harmony — A LoW clarifies intentions and reduces potential conflicts among beneficiaries.
• Emotional support — The letter of wishes can bring reassurance, guidance, and expressions of love to family members during a difficult time.
• Flexibility — A properly crafted LoW allows for adjustments to asset distribution based on changing family dynamics or unforeseen circumstances.
• Personalization — Such a complementary document enables the testator to communicate personal values, hopes, and aspirations beyond legal documents. Specific instructions on sentimental items like family heirlooms or cherished possessions, guidance on educational or career aspirations for younger beneficiaries, and wishes for charitable contributions aligned with the testator’s passions and values can all be shared in the LoW.
• Comprehensive planning — Writing a letter of wishes creates additional understanding and structure around legal documents like wills and trusts. Even if it’s never finalized and shared with the beneficiaries of the will, it definitely helps the testators organize their thoughts and clarify their desires.

With a well-crafted LoW, individuals can plan their estate to reflect their values and intentions while promoting harmony and understanding among beneficiaries. To further assist in drafting a LoW, here is a letter of wishes template to use as a starting point. 

Conclusion: Leaving a Lasting Legacy of Love and Guidance

To fully understand ‘What is a Letter of Wishes’, you should realize that it transcends legalities to become a conduit for leaving a profound legacy of love and guidance. By expressing personal values, hopes, and aspirations, individuals can comfort and support their loved ones long after they’re gone. 

Consider this heartfelt aspect of estate planning so that intentions and sentiments are conveyed with clarity and compassion, fostering understanding and connection among family members for generations to come.

Our Digital End of Life Planner is available for FREE download.