Key Points
- A letter of wishes is a non-binding document that provides guidance for trustees in managing trust assets.
- The letter is meant to inform and guide the trustee, rather than being a legally binding instruction.
- Including a letter of wishes in your estate planning can simplify trust management and alleviate potential frustrations and controversies.
What is a Letter of Wishes and How Does it Simplify Trust Management?
A letter of wishes is a non-binding document that provides guidance for trustees in managing trust assets. It is meant to inform and guide the trustee, rather than being a legally binding instruction.
The letter is created by the grantor, the person responsible for creating the trust, to provide context and reasoning for how the trustee should manage and distribute the assets.
The goal of the letter is to simplify trust management and alleviate potential frustrations and controversies that may arise when the trustee is operating without clear guidance.
Behind the Scenes of Trust Management: The Role of Letters of Wishes
Behind the Scenes of Trust Management: The Role of Letters of Wishes
A letter of wishes is not a list of circumstances with instructions on how to manage or distribute the trust. Rather, it is a document that provides context and reasoning for the trustee to consider when making decisions.
The letter should include items such as the grantor's vision for how vacation property, a family business, or a farm should be used, as well as reasoning for the instructions provided.
Practical Steps to Create a Letter of Wishes for Your Estate
Practical Steps to Create a Letter of Wishes for Your Estate
- Include your vision for how vacation property, a family business, or a farm should be used.
- Provide reasoning for your instructions, such as the development of strong values, work ethic, and morals.
- Create life events and experiences through hobbies, travel, and entertainment.
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