An estate plan typically includes formal legal documents, such as a will, trust, and powers of attorney. While these tools outline legal and financial directives, they may not convey the personal nuances of your wishes. A letter of intent (LOI), also known as a letter of instruction, bridges this gap, offering an opportunity to share additional instructions, values, and preferences that may not fit within the constraints of formal legal documents.

Although not legally binding, a letter of intent is invaluable for your loved ones and the individuals responsible for your estate plan. It ensures that your legacy extends beyond the distribution of assets to reflect your priorities and values.

What Is a Letter of Intent?

A letter of intent is a written document that supplements your estate plan by providing specific guidance to your family and your chosen representatives (i.e, executors in you will, attorney’s-in-fact in your power of attorney, or trustees in your trust). Unlike a will or a trust, which focuses on legal directives, an LOI offers flexibility to communicate personal instructions and wishes.

Our clients very often want to be more specific about the directions they leave in their planning, but our firm has learned through years of developing estate plans and administering them that specific directions in your legal documents may make it difficult for your chosen representatives to follow your plan in the future. This is because nobody has a crystal ball and putting specific directions in your legal documents may limit the options available in the future. Remember, your representatives are fiduciaries, which means if they don’t follow the directions in your legal documents then they could be liable. Because of this fact, the estate plans we develop emphasize making your legal documents flexible and focusing more on picking people as your representatives that you trust to make the right decisions in the future with the information then available.

The content of a letter of intent varies but often includes:

  • Detailed explanations for decisions made in the will or trust.
  • Personal messages to loved ones.
  • Funeral and burial preferences.
  • Guidance on the care of pets.
  • Instructions for handling sentimental items or heirlooms.

An LOI can also include practical details, such as contact information for your attorney, financial advisor, or executor, ensuring that all parties are informed and aligned.

A letter of intent addresses these details, reducing ambiguity, preventing misunderstandings and reassuring your family during a challenging time. We would recommend that in addition to putting your wishes in writing, you should also take the time to discuss your wishes with your family so they can ask questions and better understand your intent.

Drafting an Effective Letter of Intent

Be Clear and Concise

While the LOI does not need to follow legal formalities, clarity is key. Use simple language to convey your wishes and avoid ambiguous terms that may lead to confusion.

Aligning with Legal Documents

Your LOI should complement, not contradict, your will or trust. Any conflicts between the LOI and legally binding documents can create confusion for your representatives and loved ones.

Update Regularly

Life events, such as marriage, divorce, the birth of a child, or the acquisition of new assets, may require updates to your LOI. Regularly revisiting the document ensures that it remains relevant and reflects your current wishes.

Store It Securely

Ensure that your LOI is accessible to the executor, trustee, or family members who will need it. Store it alongside your estate plan and inform trusted individuals of its location. If you trusted Frankel Rubin to create your estate plan, we would recommend you keep the LOI in the front of the binder where it can’t be missed.

The Limitations of a Letter of Intent

While an LOI provides invaluable guidance, it is not a legally enforceable document. A letter of intent aims to clarify and supplement your estate plan, not replace formal legal instruments. Working with an estate planning lawyer ensures that the legal framework of your plan is sound, while the LOI adds a personal touch to your directives.

Crafting a Legacy That Reflects Your Values

An estate plan is more than a legal necessity—it reflects your life, priorities, and relationships. A letter of intent adds depth to your plan by addressing personal and sentimental matters, offering guidance to your loved ones and ensuring that your wishes are fully understood. Taking the time to craft an LOI and build a strong estate plan with our firm will secure your peace of mind and your legacy.

Reach out to Frankel Rubin today to get started, our experienced estate planning attorneys are happy to help. Frankel Rubin’s attorneys are licensed in Missouri and Illinois and our law firm services all of the St. Louis Metropolitan Area. We are especially convenient for estate planning in Clayton, Brentwood, Des Peres, Frontenac, Glendale, Webster Groves, Kirkwood, Ladue, Maplewood, Olivette, Overland, Richmond Heights, Rock Hill, Shrewsbury, Town and Country, Creve Coeur, Affton, Crestwood, Sappington, Sunset Hills, Maryland Heights, University City, Warson Woods, and St. Louis City.

Key Takeaways

  • Express Wishes: A letter of intent supplements legal documents by providing personal guidance and instructions to heirs and executors.
  • LOI Content: Common inclusions are explanations for asset distribution, funeral preferences, care for pets and personal messages.
  • Coordinate with Legal Documents: Aligning the LOI with legal documents and updating it regularly ensures its relevance and effectiveness.
  • LOI is Not Legally Binding: While not legally binding, an LOI reduces ambiguity, minimizes disputes and preserves family harmony.
  • Responsible Storage: Storing the LOI securely alongside legal documents ensures that it is accessible when needed.

Reference: Investopedia (Feb. 20, 2021) “What Is a Letter of Instruction?”