Although it seems like an obvious option, few people actually write a Letter of Instruction to help their executor and beneficiaries to 
better handle estate matters.
An Executor’s job handling an estate administration can be difficult, but you can help your executor by providing a letter of instruction. If your fiduciaries and beneficiaries cannot find any of your documents or do not have all of the pertinent information about financial affairs, they might miss opportunities or even lose assets altogether. There can also be negative tax results for filing tax returns late or failing to make minimum withdraws from IRAs and other tax deferred assets. You can help avoid these problems by simply setting out a list of assets and how to access them.
A letter of instruction is not legally binding, but it is an easy way to provide guidance to the individuals who will be involved in your estate administration. The letter can include names and addresses of important people to contact when you die, including but not limited to, attorney, financial advisor and accountant. You can provide the location of important documents, a list of assets, passwords and PIN numbers for online accounts. You can also provide the following optional information:
*The location of any safe deposit boxes;
*list of contact information for lawyers, financial planners, brokers, tax preparers, and insurance agents;
*A list of credit card accounts and other debts
*A list of organizations that you belong to that should be notified in the event of your death (for example, professional organizations or boards);
*Instructions for a funeral or memorial service;
*Instructions for distribution of sentimental personal items;
*A personal message to loved ones, especially if your distribution of assets varies from the typical; and
*Whatever else you think assist your executor administer your estate.
Once the letter is written, be sure to store it in an easily accessible place and to tell your family about it. I suggest that clients keep a copy in multiple locations including with the original copy or their will. I also suggest reviewing it regularly to make sure it stays up-to-date.
To review your estate planning and Elder Law goals, please call 610 933 8069 to schedule a free initial consultation with Douglas L. Kaune, Esq. or email Doug at dkaune@utbf.com. Please also Check out our most recent Elder Law Reports available for free by clicking here.
