How to Add Explanations or Instructions to Your Estate Plan

Once your estate plan is in place, you may feel like you have pertinent, even crucial, information that applies to your estate plan, yet does not fit anywhere in your existing plan. When important information needs to be included in your estate plan but there is nowhere practical to include it, including an explanatory letter with your estate planning documents may be the solution. An Indianapolis estate planning attorney at Frank & Kraft explains how to add explanations or instructions to your estate plan.

Something Is Missing in My Estate Plan

The average estate plan will include several common documents. For example, 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 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. A Letter of Instruction can help fill in all those missing pieces.

What Is a Letter of Instruction?

As the name implies, 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:

• Provide the location of important estate planning documents, such as your Will, life insurance policies, or a trust agreement.
• Provide a summary of all assets you own along with account numbers and/or online login instructions to access the accounts.
• Names and contact information for people that need to be contacted after your death.
• Instructions for maintaining assets. This could be as simple as how to winterize your vacation cottage or how to value your rare coin collection.
• Explanations for controversial decisions you made within your estate plan. For example, if you gave a large donation to a charity or disinherited a child, this is your opportunity to explain why you did what you did.
• Express your wishes about 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.

A Letter of Instruction Can Be an Important Addition to Your Estate Plan

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 an Indianapolis Estate Planning Attorney

For more information, please download our FREE estate planning worksheet. If you have additional questions or concerns about estate planning, contact an experienced Indianapolis estate planning attorney at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.

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