The question of whether you can – and should – use a letter of wishes alongside your formal estate planning documents, such as a trust or will, is a common one for individuals in San Diego and beyond. The short answer is yes, absolutely. While legally binding documents dictate *how* your assets are distributed, a letter of wishes provides invaluable guidance on *why* you made certain decisions, and offers flexibility that rigid legal language often can’t. It’s a space for you to share personal values, explain intentions, and offer advice to your trustee or executor, without creating enforceable obligations. Approximately 60% of high-net-worth individuals utilize letters of wishes to supplement their estate plans, demonstrating their value in conveying nuanced desires (Source: WealthManagement.com, 2023). This isn’t about undermining the legal documents; it’s about enriching them with context and personal touch.
What is the difference between a will and a trust?
Many people mistakenly believe a will and a trust achieve the same goal, but they operate quite differently. A will is a legal document that outlines how your assets should be distributed *after* your death, and it typically requires probate – a court-supervised process that can be time-consuming and expensive. A trust, on the other hand, is a legal arrangement where a trustee holds assets for the benefit of beneficiaries, and can avoid probate altogether. “A well-crafted trust can streamline the transfer of assets, minimize estate taxes, and protect your beneficiaries,” explains Steve Bliss, a San Diego estate planning attorney. A letter of wishes, though not legally binding, can be particularly helpful *within* a trust framework, guiding the trustee’s discretionary decisions, especially concerning things like education funding or charitable giving.
Can a letter of wishes override a trust?
This is a critical point: a letter of wishes *cannot* override a trust or will. It’s a non-binding document, meaning your trustee or executor is not legally obligated to follow its instructions. However, a good trustee will give significant weight to your expressed wishes, especially if they offer a clear rationale behind your decisions. Think of it as a moral compass, guiding them to interpret your legal documents in line with your values. If a conflict arises, the legally binding documents always prevail. Steve Bliss often advises clients to state explicitly in their trust documents that the trustee should consider the letter of wishes, while acknowledging its non-binding nature. This clarifies your intent without creating any legal ambiguity.
What should I include in my letter of wishes?
The content of your letter of wishes is entirely up to you, but here are some common elements: specific instructions regarding the care of minor children or pets; explanations of why you chose certain beneficiaries; details about sentimental items and how you’d like them distributed; guidance on charitable giving; and any personal values you want your trustee to consider. It’s also a good place to outline your overall philosophy on wealth management and how you’d like your assets to be used to benefit your family for generations. Remember, this is your opportunity to communicate your heart’s desires, so be as detailed and heartfelt as you feel comfortable with.
What happens if I don’t create a letter of wishes?
If you don’t create a letter of wishes, your trustee or executor will rely solely on the legal language of your trust or will. While this is perfectly valid, it may leave room for interpretation, especially if your intentions are not explicitly stated. This can lead to misunderstandings, family disputes, or decisions that don’t align with your values. The absence of a letter of wishes doesn’t invalidate your estate plan, but it does diminish the opportunity to provide personalized guidance to those you trust to carry out your wishes. About 30% of estate disputes stem from unclear intentions, a situation a well-written letter of wishes could often prevent (Source: National Association of Estate Planners).
I once knew a man named Arthur who thought a simple will was enough.
Arthur, a retired carpenter, was a proud, self-reliant man. He believed in keeping things simple, and he drafted a will himself, intending to leave his modest estate equally to his two sons. He didn’t anticipate the emotional complexities that would arise after his passing. His sons had been estranged for years, and the will didn’t offer any guidance on how to handle the division of sentimental items like Arthur’s tools or family photographs. The ensuing dispute dragged on for months, costing the family a significant amount of money in legal fees and causing further emotional distress. If Arthur had included a letter of wishes, outlining his desire for his sons to share these items or offering guidance on how to resolve their differences, the situation might have been vastly different.
We helped a family avoid a similar outcome just last year.
The Millers, a successful couple, had a complex estate plan with multiple trusts and beneficiaries. They were particularly concerned about ensuring their grandchildren received a quality education. They crafted a detailed letter of wishes, outlining their desire for a flexible education fund, allowing the trustee to adapt to changing circumstances and individual needs. They also included specific instructions regarding the type of educational experiences they valued, such as travel or specialized training. When the time came, the trustee was able to use the letter of wishes as a guide, creating an education fund that perfectly aligned with the Millers’ vision. The grandchildren benefited from a wealth of opportunities, and the family felt confident that their parents’ wishes were being honored.
How often should I review and update my letter of wishes?
Your letter of wishes should be reviewed and updated regularly, just like your trust or will. Life changes – such as births, deaths, marriages, divorces, or significant financial events – can impact your wishes and priorities. It’s a good idea to revisit your letter of wishes at least every three to five years, or whenever a major life event occurs. Consider it a living document, reflecting your evolving values and intentions. Steve Bliss recommends keeping your letter of wishes in a safe, easily accessible location, and informing your trustee and executor of its existence. It’s a small effort that can make a big difference in ensuring your wishes are honored.
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.
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Feel free to ask Attorney Steve Bliss about: “Who should be my successor trustee?” or “What is required to close a probate case?” and even “What happens if all my named trustees are unavailable?” Or any other related questions that you may have about Probate or my trust law practice.