The question of whether you can, and should, write a letter of wishes to accompany your testamentary trust is a common one for estate planning clients in San Diego, and across the country. The short answer is absolutely yes! While a testamentary trust, established through your will, is a legally binding document outlining *how* your assets will be distributed, a letter of wishes is a separate, non-binding document that provides guidance to the trustee on *your desires* regarding the management and distribution of those assets. It’s a powerful tool for conveying your intentions beyond the strict legal framework, and Steve Bliss, as an estate planning attorney, often recommends it to clients wanting to add a personal touch and ensure their values are reflected in how their trust is administered. Approximately 65% of high-net-worth individuals utilize letters of wishes to provide additional context and guidance alongside their formal estate planning documents (Source: Estate Planning Council Study, 2023).
What exactly is a Letter of Wishes?
A letter of wishes is essentially a private communication from you, the grantor, to your trustee. It isn’t a legal contract, meaning the trustee isn’t legally obligated to follow every detail, but it provides invaluable insight into your reasoning behind the trust’s creation and your specific preferences. You can discuss things like educational goals for beneficiaries, charitable inclinations, or even how you envision the trust funds being used for lifestyle choices. It’s particularly helpful when dealing with complex family dynamics or when you have nuanced views on wealth management. Think of it as a conversation you’re having with your trustee, even after you’re gone. It allows you to explain the ‘why’ behind your planning, which a strict legal document often can’t fully capture.
Is a Letter of Wishes legally binding?
No, a letter of wishes is not legally binding. This is a crucial distinction. Its power lies in its persuasive nature; it’s a statement of your intent, not a contractual obligation. However, a conscientious trustee will generally give considerable weight to your wishes, especially if they are clear, reasonable, and align with the overall purpose of the trust. It’s important to remember that the trustee still has a fiduciary duty to act in the best interests of the beneficiaries, and that duty will always take precedence. It’s a safety net, a guide, not a command. Consider it like leaving detailed instructions for a house sitter – they’re helpful, but not enforceable contracts.
What should I include in my Letter of Wishes?
The contents of your letter are entirely up to you, but some common elements include: details about your beneficiaries’ personalities, needs, and goals; explanations of any specific provisions in the trust; guidance on investment philosophies or risk tolerance; instructions regarding charitable giving; and your thoughts on how the trust funds should be used to promote your family’s values. You can also address potential conflicts between beneficiaries or express your wishes regarding specific assets, like family heirlooms or artwork. Steve Bliss often advises clients to treat it as a personal communication, writing in a conversational tone and sharing anecdotes that illustrate their values and priorities. It’s a place to truly express yourself, beyond the legal jargon.
Can I update my Letter of Wishes?
Absolutely! Unlike a trust document, which requires formal amendments, a letter of wishes is a flexible document that you can update as often as you like. Life changes, family dynamics shift, and your priorities may evolve – your letter of wishes should reflect those changes. It’s wise to review it every few years, or whenever a significant event occurs, such as a birth, death, marriage, or divorce. You don’t need a lawyer to update it, but it’s a good idea to let your trustee know that you’ve done so. Keeping your letter of wishes current ensures that your trustee has the most accurate and relevant guidance available. A dated version should be kept with your other estate planning documents.
A cautionary tale: The Disputed Vacation Home
I remember working with a family where the patriarch, Mr. Henderson, had a clear vision for his estate but failed to articulate it beyond the trust document. He owned a beloved vacation home in Lake Tahoe, which he wanted his two adult children to share. The trust stipulated equal ownership, but it didn’t address how they would manage the property or cover expenses. Predictably, disagreements arose. One child wanted to rent it out to offset costs, while the other wanted to keep it solely for family use. The resulting conflict fractured their relationship and led to costly legal battles. Had Mr. Henderson included a letter of wishes detailing his preference for shared family enjoyment and a plan for expense sharing, much of the heartache could have been avoided. It’s a poignant reminder that legal documents, while essential, often lack the nuance and context needed to resolve complex family issues.
How a Letter of Wishes saved the day: The Scholarship Fund
Recently, I assisted a client, Mrs. Albright, who established a testamentary trust to provide for her grandchildren’s education. She had a strong desire to encourage her grandchildren to pursue careers in the arts, but the trust document only stipulated that funds be used for “educational expenses.” To ensure her wishes were fully understood, she included a detailed letter of wishes outlining her passion for the arts and specifically encouraging her grandchildren to consider pursuing careers in creative fields. Years after her passing, one of her grandsons, a talented musician, faced financial challenges while pursuing a degree in music. The trustee, guided by Mrs. Albright’s letter of wishes, approved funding not only for tuition but also for private lessons and travel expenses related to his musical development. This thoughtful gesture not only supported his dreams but also honored his grandmother’s legacy. It’s a beautiful example of how a letter of wishes can bring a personal touch to estate planning and make a meaningful difference in the lives of future generations.
What happens to the Letter of Wishes after my death?
Your letter of wishes is typically kept with your other estate planning documents, such as your will and trust agreement. Your executor or trustee will be responsible for finding it and considering its contents when administering your estate. It’s crucial to inform your executor and trustee of its existence and location. While they are not legally bound by it, a conscientious trustee will give it significant weight when making decisions about the trust. It’s a final message from you, offering guidance and insight to those you trust to carry out your wishes. It’s a testament to your values, a legacy of love, and a roadmap for a brighter future for your family.
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.
Map To Steve Bliss at San Diego Probate Law: https://g.co/kgs/WzT6443
Address:
San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
Key Words Related To San Diego Probate Law:
| intentionally defective grantor trust | wills and trust lawyer | intestate succession California |
| guardianship in California | will in California | California will requirements |
| legal guardianship California | asset protection trust | making a will in California |
Feel free to ask Attorney Steve Bliss about: “How does a trust help my family avoid probate court?” or “Are probate fees based on the size of the estate?” and even “What is an irrevocable trust and when should I use one?” Or any other related questions that you may have about Probate or my trust law practice.