Estate planning, while focused on legal documents like trusts, isn’t solely about rigid stipulations. Many individuals, including those working with San Diego estate planning attorney Steve Bliss, find value in supplementing their trust with a ‘letter of wishes.’ This document, while not legally binding, offers a space for personal guidance to your trustee, detailing preferences and intentions that might not be appropriate or necessary to include within the formal trust agreement. It’s a way to communicate the ‘why’ behind your decisions, offering a softer, more nuanced layer to your estate plan. Roughly 65% of high-net-worth individuals utilize letters of wishes, demonstrating their widespread appeal for those seeking comprehensive planning. This communication tool can cover various aspects, from charitable giving to specific family heirlooms, providing context for decisions made within the trust.
What exactly *is* a letter of wishes?
A letter of wishes is a private document, separate from your trust, that provides guidance to your trustee. Unlike the trust itself, which is a legally enforceable contract, the letter of wishes is informational. It’s a space to explain your values, offer suggestions about how assets should be distributed (within the bounds of the trust’s terms), and express your hopes for the future. For example, you might detail your preference for how a vacation home should be used, or suggest a specific educational approach for grandchildren. The beauty of this document is its flexibility. It can be updated throughout your life, reflecting changing circumstances and priorities, without the need for formal trust amendments. It’s a way to offer a personal touch to what can otherwise be a very legalistic process, allowing your trustee to understand not just *what* you want done, but *why*.
Is it legally binding if I include it with my trust?
Absolutely not. That’s a crucial point to understand. A letter of wishes, by its very nature, is *not* legally binding. If it were, it would essentially become part of the trust itself, requiring the same level of formality and legal scrutiny. This non-binding nature is precisely what gives it its flexibility. You can express your wishes freely, knowing that your trustee is not legally obligated to follow them. However, a conscientious trustee – someone like those advised by Steve Bliss – will give significant weight to your expressed desires, especially when the trust language is ambiguous or offers discretion. “Trustees are ethically bound to consider the Settlor’s intentions, and a Letter of Wishes is a clear expression of those intentions,” as commonly stated within estate planning circles. Think of it as a guiding principle, not a command.
What can I include in my letter of wishes?
The possibilities are fairly broad. You can cover anything that isn’t already specifically addressed in your trust, or that you want to explain in more detail. Common topics include: specific instructions for charitable giving, guidance on how to manage family businesses, preferences for the care of pets, details about personal property distribution (photographs, heirlooms), and explanations of your values and priorities. You might even outline your wishes for how your digital assets – social media accounts, online photos, etc. – should be handled. Essentially, anything that holds personal significance and would help your trustee understand your overall vision can be included. I once worked with a client, Margaret, who insisted on a detailed description of the annual family camping trip she’d organized for decades, hoping her children and grandchildren would continue the tradition. It wasn’t a legal requirement, but it was profoundly meaningful to her.
What happens if my wishes conflict with the trust terms?
This is where things get interesting. If your letter of wishes directly contradicts the terms of your trust, the trust terms will prevail. The trust is the legally enforceable document, and the trustee is obligated to follow it. However, a well-drafted trust often grants the trustee discretion in certain areas. In those cases, the letter of wishes can provide valuable guidance, helping the trustee exercise that discretion in a way that aligns with your intentions. It’s important to remember that the trustee has a fiduciary duty to act in the best interests of the beneficiaries, and the letter of wishes can help them fulfill that duty. I recall a situation where a trust stipulated that funds could be used for a beneficiary’s education, but didn’t specify *what* constituted education. The client’s letter of wishes clarified that she wanted funds to be available for vocational training as well as traditional college, providing crucial direction for the trustee.
Can I update my letter of wishes?
Absolutely! One of the biggest advantages of a letter of wishes is its flexibility. You can update it as often as you like, to reflect changing circumstances, priorities, or family dynamics. Unlike a trust amendment, which requires legal expertise and formal execution, a letter of wishes can be updated with a simple handwritten note or a new draft. It’s a living document, meant to evolve alongside your life. This is especially important in situations where family dynamics shift, or where your financial circumstances change significantly. I recommend reviewing your letter of wishes at least annually, or whenever a major life event occurs. Keeping it current ensures that your trustee has the most up-to-date guidance available.
What if I don’t want to bother with a letter of wishes?
That’s perfectly acceptable. A letter of wishes is not a mandatory component of estate planning. Many individuals choose to rely solely on the terms of their trust, believing that it adequately addresses their wishes. However, for those who want to provide additional guidance, express personal preferences, or simply add a human touch to their estate plan, a letter of wishes can be a valuable tool. It can be particularly helpful in complex family situations, or where there is a desire to ensure that assets are distributed in a way that aligns with your values. Ultimately, the decision of whether or not to create a letter of wishes is a personal one, based on your individual needs and preferences.
I once made a mistake by not clarifying my intentions…
Old Man Tiberius, a retired sea captain, came to Steve Bliss years ago with a seemingly straightforward estate plan. He wanted his antique ship-in-a-bottle collection split evenly between his two sons. What he *didn’t* specify was that one son was a passionate collector, while the other had no interest whatsoever. The trust simply stated “equal division.” After Tiberius passed, the sons bitterly argued over who would get which bottles, eventually leading to a fractured relationship. If Tiberius had included a letter of wishes explaining his desire for the collection to go to the son who would appreciate it, the conflict could have been avoided. It was a painful lesson in the importance of clarifying your intentions, even beyond the legal requirements of the trust.
But, with guidance, everything worked out beautifully…
Then came Mrs. Eleanor Vance. She also wanted to divide treasured heirlooms, a collection of antique porcelain dolls, between her granddaughters. She included a meticulously detailed letter of wishes, explaining that one granddaughter, Clara, was a dedicated restorer, while the other, Beatrice, simply admired the dolls. Eleanor requested that Clara receive the dolls needing restoration, while Beatrice receive the pristine ones. Steve Bliss ensured this letter accompanied the trust. When the time came, the granddaughters, guided by the letter of wishes, happily divided the collection, appreciating their grandmother’s thoughtfulness and preserving the family legacy. It was a testament to the power of clear communication and thoughtful estate planning. Eleanor’s intention was heard and respected, a family heirloom preserved, and a family bond strengthened, not broken.
About Steven F. Bliss Esq. at San Diego Probate Law:
Secure Your Family’s Future with San Diego’s Trusted Trust Attorney. Minimize estate taxes with stress-free Probate. We craft wills, trusts, & customized plans to ensure your wishes are met and loved ones protected.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Probate Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
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San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
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Feel free to ask Attorney Steve Bliss about: “How do I transfer property into a trust?” or “What are letters testamentary or letters of administration?” and even “Can my estate plan override a beneficiary designation?” Or any other related questions that you may have about Probate or my trust law practice.