A Letter Of Intent Can Help Your Estate Plan

For most people in Putnam County, a Last Will & Testament is a foundational document in their estate plan. A will expresses the testator’s preferences with regard to the disposition of their possessions. However, there are little details and statements that do not fit into the text of a will or other legal document like a healthcare directive. For this, it is recommended to create what is known as a letter of intent or letter of interest (LOI) – this can essentially serve as a cheat sheet of sorts for your executor after your passing.

Helpful & Sentimental

While a LOI is not legally binding and there is no strict legal format that a LOI must follow, it is still a good idea to ensure that its contents are either useful, such as a listed inventory of the estate’s assets, or sentimental, such as personal messages to loved ones. It is also somewhat common for the writer to try and explain certain beneficiary decisions or answer other questions, in an effort to maximize clarity and minimize any resentment or confusion.

An LOI is also the common venue for a person to set out instructions for the disposition of certain sentimental assets that have no monetary value – for example, a piece of art given to the deceased person by a grandchild. Since assets like this have no monetary value, they do not need to go through the probate process in most cases, and thus can be singled out to give to certain beneficiaries specifically. It can save time and trouble, particularly if sentimental assets are highly sought in your family.

Practicality Matters

While sentimental gestures and letters are commonly included in LOIs, other information can be included to help one’s personal representative represent the estate appropriately during the probate process. For example, many people include a list of passwords and passcodes in a LOI, so that their personal representative can access digital assets more easily. A list of organizations that one belonged to in life, such as political parties or social clubs, can also come in handy, particularly if memberships need to be terminated affirmatively.

Because there is no hard and fast form for an LOI in New York, a person creating their estate plan has broad freedom in terms of what to include in the letter. However, the letter must complement, rather than contradict, your preferences as established in your will and any other legally binding documents. If your documents are not uniform in terms of your wishes, it can create the confusion that having an LOI attempts to avoid.

Contact A Mahopac Estate Planning Attorney

Not everyone needs to have a letter of intent to go along with their estate plan, but having one can help to eliminate confusion and resentment in both your family and your personal representative. A Mahopac estate planning attorney from Meyer & Spencer, PC can help answer your questions about letters of intent and about estate planning in general – contact our office today to schedule a consultation.