Understanding the Letter of Wishes: A Guide for Settlers and Executors

Q: Is a letter of wishes legally binding?

No, a letter of wishes is not legally binding and serves only as a guideline for trustees.

Q: Can I include funeral wishes in my letter of wishes?

Yes, a letter of wishes can include funeral preferences and other personal directives.

Q: How does a letter of wishes differ from a will?

A will is a legally binding document that dictates how assets are distributed, while a letter of wishes is non-binding and provides guidance.

Q: Should I consult an attorney when drafting a letter of wishes?

While it&#039;s not required, consulting an attorney can help ensure your letter effectively communicates your wishes, especially in complex situations.

Definition & Meaning

A letter of wishes is a document created by the settlor of a trust that expresses non-binding intentions and guidance for the trustees. While it is not legally binding like a will, it serves to communicate the settlor's desires regarding the distribution of assets, gifts of sentimental value, funeral arrangements, and advice on raising minor children. This document may also include additional directions for the executors of a will. It is sometimes referred to as a side letter or a memorandum of wishes.

Table of content

Legal Use & context

In legal practice, a letter of wishes is primarily used in the context of estate planning and trusts. It helps trustees understand the settlor's intentions, which can be particularly important when making decisions about asset distribution. This document is relevant in areas such as family law and estate law, where clear communication of wishes can prevent disputes among beneficiaries. Users can manage their estate planning needs using legal templates from US Legal Forms, designed by qualified attorneys.

Key legal elements

Non-binding nature: The letter does not have legal enforceability like a will.
Expression of intent: It communicates the settlor's wishes to trustees and executors.
Guidance on asset distribution: It may outline how the settlor wishes their assets to be handled.
Additional directions for executors: It can provide further instructions related to the will.
Personal wishes: It may include sentimental gifts, funeral preferences, and advice for guardians of minor children.

Real-world examples

Here are a couple of examples of abatement:

Example 1: A parent creates a letter of wishes to guide the guardians of their minor children, outlining their values and preferred parenting style to ensure the children are raised according to their beliefs.

Example 2: A settlor includes a letter of wishes with their trust, specifying that certain family heirlooms should be given to specific relatives, even though the trust document does not legally enforce these wishes. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Key Difference
California	Letters of wishes may be referenced in trust documents to clarify intent.
New York	State law allows for letters of wishes to guide trustees but does not enforce them.
Texas	Letters can be used to express non-binding wishes regarding guardianship.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Difference
Will	A legal document that outlines how a person's assets will be distributed after their death.	Legally binding and enforceable; a letter of wishes is not.
Trust	A legal arrangement where one party holds property for the benefit of another.	A letter of wishes provides guidance to trustees but does not establish the trust itself.
Memorandum of wishes	Another term for a letter of wishes, often used interchangeably.	No significant difference; both serve the same purpose.

Common misunderstandings

What to do if this term applies to you

If you are considering creating a letter of wishes, start by outlining your intentions clearly. Think about the guidance you want to provide to your trustees or executors. You can explore US Legal Forms for templates that can help you draft this document effectively. If your situation is complex or involves significant assets, it may be wise to consult a legal professional for tailored advice.

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Quick facts

Type: Non-binding document
Purpose: To express wishes regarding asset distribution and personal preferences
Common Uses: Guidance for trustees, funeral wishes, advice for guardians
Legal Status: Not enforceable in court

Key takeaways

Frequently asked questions

What is the purpose of a letter of wishes?

The purpose of a letter of wishes is to provide guidance to trustees and executors about the settlor's intentions regarding asset distribution and personal preferences.