Your Final Instructions: Why You Need a Letter of Instruction

A letter of instruction is a non-legal document that complements your will, allowing you to explain complex or personal issues in a more thorough way. While the letter doesn’t have legal authority, it allows your heirs and executor to understand your wishes—and the reasoning behind them—and more easily carry out the tasks described in your will.

A letter of instruction can save your loved ones time and money. It can also save unnecessary hard or hurt feelings, providing an explanation for why you’ve divided your assets as you have.

Your letter of instruction should cover:

• The immediate concerns of your death and burial. You should provide instructions about organ donation, funeral services, burial, obituaries and any other related items you would like to have carried out at the time of your death.
• A complete list of all assets. Include financial assets as well as other valuables or personal property.
• Financial account information to help your executor find and access your accounts. Bank/investment account numbers, passwords, PINs and other information can expedite the execution of your estate. You should also point your executor to where you store financial records and legal statements, including the location of your safe deposit box.
• Contact information for beneficiaries.
• Information about your wishes regarding care of pets.
• An explanation of how your will disperses personal or sentimental assets or heirlooms. Often, these are the items that can lead to confusion or conflict among your heirs. Explaining how and why you have divided your personal property can help your heirs better understand and accept the dictates of your will.
• Information about how you would like a professional practice or intellectual property handled.
• Specific instructions about care of a minor child or incapacitated adult child. While this should be laid out in your will, the letter of instruction allows you to explain in more detail your goals, philosophies, aspirations or concerns for the child.

Your death will no doubt be an emotional and difficult time for your loved ones. A letter of instruction can take some of the confusion out of the process. It also allows you to share a final word with them, through a personal message of your wishes and your intent.

The complexity of your estate and your family situation will determine what you need to include in your letter and how long or detailed it should be. Just like your other estate planning documents, your letter of instruction should be reviewed and updated regularly and should be stored in a safe place that is accessible to your relatives or executor.