Absolutely, a letter of wishes is a commonly used, though non-binding, document that accompanies a testamentary trust, providing guidance to the trustee on how to administer the trust according to your desires.
What is a Testamentary Trust and Why Use One?
A testamentary trust is created within your will and comes into effect upon your passing. Unlike a living trust established during your lifetime, it doesn’t exist until after you’re gone. These trusts are particularly useful for managing assets for beneficiaries who may be minors, have special needs, or are not financially responsible. According to a 2023 study by the American Academy of Estate Planning Attorneys, roughly 50% of wills with significant assets incorporate testamentary trusts. This demonstrates a growing understanding of the benefits of continued asset management beyond simply distributing funds. They offer a level of control that a simple bequest can’t match, allowing you to dictate how and when assets are distributed, even after your death. The costs associated with creating a testamentary trust are generally lower than a living trust initially, but probate costs can offset those savings.
What Does a Letter of Wishes Actually Do?
A letter of wishes isn’t a legally binding document like the trust itself. Think of it as a friendly guide for the trustee. It allows you to express your hopes and intentions regarding how the trust assets should be used, providing context beyond the strict legal language of the trust document. You can specify things like educational preferences for your grandchildren, charitable causes you support, or even the types of investments you’d like the trustee to consider. While the trustee isn’t *required* to follow it, a well-written letter of wishes can greatly influence their decisions and ensure your values are respected. It’s crucial to remember that the trustee has a fiduciary duty to act in the best interests of the beneficiaries, and the letter of wishes serves as an extension of your guidance in fulfilling that duty.
I Heard Stories About Trusts Going Wrong—How Can a Letter of Wishes Help Prevent That?
Old Man Tiberius, a notorious collector of antique spoons, had a testamentary trust set up for his daughter, Beatrice. The trust was meticulously drafted, but lacked any personal insight into his wishes. Beatrice, a free spirit with a penchant for impulsive decisions, received her inheritance and, within a year, had squandered it all on a llama farm and a collection of velvet Elvis paintings. The attorney handling the estate later lamented that a simple letter of wishes explaining Tiberius’ desire for Beatrice to use the funds responsibly – perhaps for education or a stable career – might have steered her in a different direction. This is a common scenario; trusts can be legally sound but lack the nuanced understanding of a person’s intentions. A 2022 report by the National Probate Court Association showed that disputes over trust interpretations are a leading cause of probate litigation, highlighting the importance of clear communication.
How Did a Letter of Wishes Save the Day for the Harrison Family?
The Harrison family faced a similar dilemma. Grandpa Joe, a retired carpenter, established a testamentary trust for his grandson, Ethan, with the intention of funding his college education. Ethan, however, surprised everyone by deciding he wanted to pursue a career as a wildlife photographer, a path that didn’t align with the traditional academic pursuits Joe had envisioned. The trustee, initially hesitant to fund a non-traditional career path, discovered a letter of wishes Joe had written. In it, Joe expressed his deepest desire for Ethan to follow his passions and live a fulfilling life, even if it meant straying from the conventional path. The trustee, guided by Joe’s heartfelt words, approved funding for Ethan’s photography education and equipment, allowing him to pursue his dreams. The letter of wishes bridged the gap between legal stipulations and personal intent, ensuring Joe’s values were honored and Ethan’s future secured. It’s a testament to the power of clear, compassionate communication in estate planning.
In conclusion, while not legally binding, a letter of wishes is a valuable tool to accompany your testamentary trust. It provides a personal touch, clarifies your intentions, and guides the trustee in administering the trust according to your wishes, ensuring your legacy is honored and your beneficiaries are well-cared for.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
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revocable living trust
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Map To Steve Bliss Law in Temecula:
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Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Do I need to plan differently if I’m part of a blended family?” Or “What’s the difference between probate and non-probate assets?” or “What types of property can go into a living trust? and even: “Do I have to go to court if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.