By Dr. James Philpot

When you die, will your survivors know your immediate wishes? They will if you have provided them an estate document called a last letter of instructions.

A last letter of instructions (sometimes called a side letter or a letter of intent) is an informal guide to your estate and your final wishes. The last letter allows us to relegate many small details of estate settlement to a separate document, thus avoiding a cluttered last will and testament. This separate document also guides survivors regarding funeral arrangements and other items that must be handled quickly, before the last will and testament begins to direct the probate process.

A last letter is not a legally binding document and is not a substitute for a properly executed last will and testament or other estate legal documents. However, because it is not a legal document, there are no legal requirements for a last letter, and it can be prepared and updated easily without an attorney. Last letters commonly include an estate explanation, funeral wishes, guardian instructions and last words or instructions to survivors.

The last letter can serve as a “plain English” explanation of your estate plans to your executor. Your estate’s legal documents (will, tangible property list, living will, etc.) will give the legally binding instructions, but you can fill in details in your last letter. For example, you can explain unequal treatment of beneficiaries, or you can suggest how you would like to see your daughter manage the land she has received as an inheritance. Sometimes the last letter will include a full financial inventory.

The clear expression of final disposition wishes is an important part of a last letter, because it can spare survivors much decision making while they are still grieving. In your last letter you can discuss whether and what type of funeral you want, including such items as: songs, officiant(s), charities to receive memorial gifts, choice of wardrobe, pallbearers and desired disposition of remains. If you have already pre-planned your funeral and/or already own a burial plot, this should also be mentioned.

How do you want the guardian of your minor children to raise them? You likely have already named in your will a trusted person with values similar to yours. In your last letter, you can discuss your general parenting style and desires for your child(ren) as well as alert your child(ren)’s guardian to any important information about your child(ren). You can also address such issues as your preferences for the child’s religious participation, education and other activities This can provide invaluable comfort and guidance to survivors. Final statements should be made with much caution, however. This is not the place for confession, contempt or revenge. Sometimes final statements are put into separate letters to the intended recipients, to be delivered by the estate’s executor.

When you have prepared your last letter(s), they should be delivered to your executor to be kept with your other estate documents. Like any other part of your financial plan, you should also review your last letter(s) periodically to ensure they continue to fit your situation.

This article appeared in the May 9, 2015 issue of the Springfield News-Leader.  It is available online here.

Dr. James Philpot, CFP is associate professor of finance at Missouri State University. Views expressed in this article reflect those of the author, have been distributed for educational and informational use only, and are not to be construed as legal advice.