Getting an estate plan together is critical for all adults. One thing that some people don’t think about that may be helpful is including a letter of instruction. This is an informal document that provides guidance on a variety of personal, administrative and financial matters.
The letter of instruction is not legally binding, but it’s a good supplement for the estate plan because it can offer specific details that might not be included in other areas of the person’s estate plan.
Key components of a letter of instruction
There are several things that you should consider adding to the letter of instruction. Everything in this document may make it easier for your loved ones to get everything taken care of when you pass away. Some things to consider putting into the letter include:
- Personal and financial information
- Asset inventory
- Digital assets details
- Usernames and passwords
- Funeral and burial preferences
- Key contacts
- Personal messages
Unlike a will, which dictates the legal distribution of assets, a letter of instruction helps loved ones navigate practical matters. It provides clarity on minor but important details, reducing confusion and preventing potential disputes. Keeping this letter updated better ensures it remains useful as circumstances change.
The letter of instruction is only one part of the estate plan. It’s critical to get all of the legal components together so your loved ones have a solid plan to follow. It may be beneficial to work with someone familiar with these matters so creating the plan is as easy as possible.
