WEALTH TIP OF THE MONTH

The Power of a Wish Letter:
Adding Heart to Your Estate Plan

 

What Is a Wish Letter?
 

A wish letter (also called a letter of instruction or side letter) is an informal, non-binding document that complements your formal estate planning documents. While your will and trust handle the legal distribution of assets, a wish letter provides personal guidance, context, and heartfelt instructions that help your loved ones navigate decisions during a difficult time.
 

Why You Need a Wish Letter
 

The Human Side of Estate Planning
 

Legal documents are essential, but they can't capture everything. A wish letter bridges the gap between legal requirements and personal wishes by:

 

• Explaining the"why" behind your decisions – Helping family members understand your reasoning and prevent potential conflicts

• Providing flexible guidance – It will address items that may change frequently without requiring formal amendments to your trust

• Sharing values and stories – It allows you to pass along family history, meaningful memories, and life lessons

• Offering practical details – It can include information that's too specific or minor for formal documents

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Real Benefits for Families

 

Reduces Family Conflict: When beneficiaries understand why you made certain

decisions, they're less likely to feel hurt or challenge your wishes.

 

Provides Clarity During Crisis: Your trustee and executor will appreciate clear

guidance on matters like funeral preferences, pet care, and sentimental item

distribution.

 

Creates Flexibility: Unlike a will or trust that requires legal amendments, a wish letter can be updated easily as circumstances change.

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Preserves Your Voice: Your letter becomes a lasting message that brings comfort and guidance to your family after you'e gone.

 

What to Include in a Wish Letter

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Personal Matters

• Funeral and burial preferences

• Messages to specific family members or friends

• Explanation of estate distribution decisions

• Spiritual or religious wishes

• Hopes and dreams for your children or grandchildren

 

Practical Information

• Location of important documents and passwords

• Care instructions for pets

• Distribution of personal items with sentimental value

• Business operation guidance

• Digital asset access and wishes

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Financial Guidance

• Suggested uses for inherited funds (education, home purchase, etc.)

• Charitable giving wishes

• Business succession thoughts

• Investment philosophy for trusts

 

Important Considerations
 

• Not Legally Binding: A wish letter cannot override the terms of your will or trust. It serves as guidance only.

• Review Regularly: Update your letter as life circumstances change – marriages, births, deaths, or relationship changes.

• Store Appropriately: Keep it with your estate planning documents and ensure your executor/trustee knows where to find it.

• Be Thoughtful: Write with care and compassion. Your words will be read during an emotional time.

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Consider asking yourself:

• "Have I thought about the personal items and family heirlooms I’d like to pass along?"

• "Would my family understand the reasoning behind my estate planning decisions?"

• "What stories or values do I want to share with future generations?"

• "Are there practical details I need to list that would make my executor's job easier?"

I encourage you to think about creating your wish letter. And if you have questions or want to discuss how this fits into your overall plan, please reach out. I'm always here to help.
 

A wish letter is a gift you give your family – the gift of understanding, reduced stress, and your continued guidance when they need it most.

Contact me to learn more.

barry.boscoe@brightonadvisory.com

Office: 818-342-9950

Mobile: 818-802-0686