Including a Letter of Instruction in Your Indiana Estate Plan

When you think about putting an estate plan together, you probably focus on important legal documents like a Last Will and Testament, a Trust, or a Power of Attorney. These documents create the legal framework that directs the distribution of your assets and the handling of your affairs after your death, yet there is another valuable tool that can make your estate plan even stronger. A Letter of Instruction offers your loved ones practical guidance and personal messages that formal legal documents usually do not cover. The Indianapolis attorneys at Frank & Kraft discuss the benefits of including a Letter of Instruction in your Indiana estate plan.

What Is a Letter of Instruction?

A Letter of Instruction, sometimes called a Letter of Intent or Memorandum of Instruction, is not a legally binding document. Instead, it is an informal tool that provides detailed information to your Executor, Trustee, and family members. It fills the gap between the legal directions in your Will or Trust and the more personal, everyday matters your loved ones will face. While your legal documents handle the distribution of property and appointment of representatives, a Letter of Instruction can offer insight into your wishes, explanations for your decisions, and advice for managing your affairs. Some of the many benefits of including a Letter of Instruction in your Indiana estate plan include:

• Avoiding Disputes: One of the biggest advantages of including a Letter of Instruction is the opportunity to minimize confusion and potential disputes after you are gone. You can offer explanations for certain choices you made in your Will, such as unequal distributions or special gifts to particular beneficiaries. Providing the reasoning behind these decisions can help your family understand your perspective and prevent unnecessary conflict. In addition, you can include deeply personal messages meant to comfort and guide your loved ones. Expressing your feelings of love, gratitude, or encouragement can be a meaningful and lasting gift to those left behind.
• Practical Instructions: A Letter of Instruction can also provide essential practical details that will make handling your estate easier for those you leave behind. You might include a list of key contacts, such as your attorney, accountant, financial advisor, and insurance agents. A list of your financial accounts, retirement plans, and outstanding debts will save your Executor valuable time. Many people now also include information about digital assets, such as email accounts, online banking, and social media profiles, along with passwords and instructions on how to access them. Funeral and memorial preferences are another common inclusion. If you have prepaid for funeral services or created a funeral trust, your Letter of Instruction can direct your loved ones to the appropriate documents and contacts.
• Ease of Modification: Because a Letter of Instruction is not filed with the court, you maintain the freedom to update it as often as necessary without the formalities required for changing a Will or Trust. It is important to let your Executor know about the Letter of Instruction and to tell them where the original is stored. You may also choose to provide copies to your Trustee or close family members to ensure that the information is readily available when it is needed.

What Is a Legacy Letter?

In addition to a Letter of Instruction, some people choose to create a Legacy Letter. Sometimes referred to as an ethical will, a Legacy Letter is a heartfelt message intended to pass along your personal values, life lessons, and emotional reflections. Though it is not a legal document, a Legacy Letter can hold immense meaning for the people you leave behind. Writing a Legacy Letter gives you the opportunity to reflect on your life and share what you believe matters most with your children, grandchildren, friends, or others.

There is no set format for a Legacy Letter. You might want to begin by explaining your purpose in writing it, followed by a brief life story that highlights important experiences and turning points. Reflecting on the principles that guided your decisions can offer invaluable insight to future generations. Sharing advice, encouragement, and hopes for your loved ones can provide them with support long after you are gone. The emotional impact of openly expressing love, pride, and gratitude in a Legacy Letter can be one of the most treasured parts of your entire estate plan.

Incorporating a Letter of Instruction into your Indiana estate plan ensures that your loved ones are not left guessing about your personal wishes and practical matters. While legal documents are critical for managing your estate, a Letter of Instruction gives your plan a personal voice, offering both guidance and comfort when it is needed most.

Can We Help You Incorporate a Letter of Instruction into Your Indiana Estate Plan?

For more information, please join us for an upcoming FREE seminar. If you have additional questions about including a Letter of Instruction into your Indiana estate plan, contact the experienced Indianapolis estate planning attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.

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