Legacy Planning Tips for Letters

Letters are important for both personal and business endeavors and letters are an important part of legacy planning.  In addition to being a licensed California attorney for over 20 years, I am recognized as a legal specialist in the field of estate planning by the California State Bar.  As a legacy advocate I advise clients how to make estate and trust administration easier for their loved ones by writing helpful letters.  This article is for you if you are in the season of legacy planning.  Here are some legacy tips for incorporating letters into your estate plan.

I recommend that people make decisions about their future planning.  Planning is necessary to help with emergency situations if you become sick or disabled.  Planning also makes a difference at end-of-life.  When your decisions and instructions are “put in writing,” not only will your financial and legal affairs be in order, but you will have avoided unnecessary court involvement, which includes court costs and court delays. 

Your final words and instructions make it easier for your loved ones to take care of you in an emergency and take care of your estate upon your passing.  I encourage clients to add instruction letters to their estate plans as well as letters to loved ones.  I encourage them to make decisions and to write letters to communicate instructions about their minor children or pets or businesses. 

I’ve only been a licensed attorney for the last 22 years, but I’ve been a letter writer my whole life.  My mom received a very important letter from me when I was in elementary school.  The topic was “Alounence”.  Even though allowance was spelled incorrectly, the objective of the letter was clear.  I was asking for a weekly allowance, and I signed my letter with a formal sign-off: “please consider.”  I was not successful in the allowance case but both my spelling and my letter writing skills have improved over the years. 

A Gift Letter of Instruction

A Gift Letter of Instruction is also known as a Specific Gift list.  This letter directs your Executor and/or Trustee to deliver specific gifts upon your passing.  This letter of instruction can include a specific gift list of money and property.  A specific gift list is a list that identifies the gift item and the gift recipient.  The legal requirements for creating a specific gift list are that the list must be (1) in writing; (2) signed by you; and (3) dated.  You can type this specific gift list, but it must also be (1) printed, (2) signed by you; and (3) dated.  Digital photos of specific gifts are now being used in lieu of lengthy descriptions and are particularly helpful for firearms, jewelry, and art.  A specific gift list directs the Executor and/or Trustee to deliver the gifts if the personal property items are still part of your estate upon your death.  If the item cannot be found because you sold it; lost it; or you gifted it prior to your death, then the gift shall “lapse” which means that the gift goes away. 

A specific gift list is recommended anytime there is more than one beneficiary.  For example, I am married with three children.  Upon my death, my husband will inherit all my personal property.  Upon both of us dying, our trustee will be tasked with dividing all our personal property into equal shares for our three children.  However, anything on a specific gift list does not need to be appraised and split into equal shares.  For example, if I want my vehicle to be distributed to just one of the children, that beneficiary does not have to pay for the vehicle or buy-out the others. 

Letter of Instruction For Pets 

Your letter of instruction can share instructions for the care of your beloved pets. Your letter can include contact information for your pet’s vet; any medications they take; and any allergies they may have.

A Guardian Letter of Instruction 

Letters are not required but they help provide necessary instructions to the potential guardian of your minor children.  You can share your wishes for your child’s future or leave a special message for when they reach a certain age or milestone.  If you do not include a guardian letter of instruction, the state of California uses the following standard and will allow expenditures for the child’s health, education, maintenance and support until they reach age 18 years. 

Business Letter of Instruction 

A Business Letter of Instruction is also known as a business succession plan.  Business owners are motivated to provide instruction letters for the succession of their business.  There is a tendency for many business owners to procrastinate even when they acknowledge the need for planning.  I recommend that if you own a business that you take time to clearly define motives and select the best course of action to enable you to reach your goals.  The basic reasons for business succession planning are (1) to provide liquidity for owners; (2) to minimize transfer taxes; (3) to provide for the continuation of the business; and (4) to provide for family members.  All business owners need to establish a plan for succession of ownership and control of the business.  Most often, the interest in a small business is the major asset in the estate of a shareholder, partner or member.  When family businesses fail to pass to succeeding generations, a substantial portion of the value of the business may be lost, and the future support of the retired owner or the surviving spouse and other family members may be jeopardized.

A Disposition Letter of Instruction 

A Disposition Letter of Instruction is a letter communicating your cremation or funeral arrangements and instructions.  The agent under your Healthcare Directive is the person who has the power to order internment, cremation, and memorial services.  Even if you have not prepaid or preplanned your cremation or burial, a letter can communicate your wishes to be cremated or buried.  This is a difficult decision for your loved ones to make on your behalf if you did not indicate or communicate your decision. 

Letter Regarding Organ Donation 

Once you have completed your Healthcare Directive, you have provided important information about organ donation.  You can write an additional letter if there is more information you would like to communicate about organ donation.  The Healthcare Directive allows you to express an intention to donate your bodily organs and tissues following your death.  If you have a donor sticker on your driver’s license you will want to make sure that your agent under your Healthcare Directive knows whether you have made a decision to donate all of your organs OR any needed organs.  You will also want to direct whether the organs you donate are for transplant only or whether the organs you donate can also be utilized for research and education.

Legacy Love Letters 

A legacy love letter is separate from the legal documents that form an estate plan.  Upon your death, a will and trust provide only an inheritance of real property and personal property to loved ones.  In my expert opinion, a legacy love letter is more important than any other legacy document. I want to teach and inspire people to write these impactful letters, so I have written a how-to guide.  I believe that your loved one’s memories of you and your legacy gift of love, faith, hope, and gratitude is more important than all the stuff that you leave behind.  To get a free guide on choosing the ingredients for your Legacy Love Letter and more information about Gwen and her upcoming book, please visit legacy-love-letters.com or www.facebook.com/legacyloveletterproject .