When a family member or a loved one passes away, it takes an emotional toll on those who were closest to them. The grieving process can be lengthy and difficult, especially when combined with the stresses of common end-of-life tasks, such as funeral arrangements and the execution of the will. A letter of intent can ease the pressures of the many post-death undertakings.
A Letter of Intent (LOI), also referred to as a Letter of Last Instruction, is a document written to family members and friends, which includes any important information that they may need to manage if you become incapacitated or when you die. Because the letter of intent is not a commonly known document, there are many important points regarding its purpose. An LOI is useful for many reasons, but it is important to understand exactly what it can do, and how it compares to other personal documents, such as a will.
A letter of intent has no legal standing
Although a letter of intent can be practically and emotionally valuable, it has no legal significance. One of the things it cannot do is replace a will. If the LOI has clauses that contradict the will, the will takes priority. However, the letter can still include important notes, such as information about financial accounts and contact information that are not normally included in a will.
An LOI is practical and informative
Unfortunately, even when we prepare for the death of a loved one, we tend to forget about many simple, crucial factors; passwords or PINs to their bank and retirement accounts; the location of titles or deeds for the real estate they own; instructions on how to care for their pets. In these instances, the LOI can provide some peace of mind. Writers of an LOI are encouraged to list all of their important information regarding assets, contacts, etc. as well as their personal desires so they know they will be respected in any situation. These are some things you should include in an LOI:
- Account numbers and PINs for bank, retirement, investment, mileage and other accounts.
- Names and contact information for professionals who handle your assets (bankers, attorneys, etc.).
- Names and contact information of your beneficiaries.
- The location of keys to safe deposit boxes, titles/deeds to your home, and important personal documents.
- Instructions for how to care for your pets, plants, etc.
- Information on methods of transport for possessions
- Funeral arrangements
- Names of charities you would like people to donate to in lieu of flowers
It is more personal and detailed
The letter of intent is just that: a letter. This can be written at any time and is normally directed to the writer’s spouse, child, or another close family member or friend. Dealing with legal and financial issues after a loved one’s death or incapacitation can be overwhelming; it is natural to put little things aside. However, discussing those little things, such as which side dish will be served at the funeral, what kind of flowers will be used and who will read the eulogy, can add an unexpected stress to grieving family and friends. When dealing with these problems, you wish you could know what your loved one would have wanted. These small, personal, detailed notes can be included in the LOI.
It can be used at any time
The LOI is not specifically for circumstances involving the writer’s death. Unlike the will, which is only read following the person’s death, the LOI can be used to give instruction in other serious situations, for example, a medical emergency or a similar incident that may leave the writer unable to express his or her desires. The LOI guarantees that your loved ones personal wishes are being carried out even when you are unable to communicate with them.
At The Seniors’ Answer, we know how important it is to communicate to a loved one about how they wish for their matters to be resolved when the time comes. Peace of mind is often undervalued, and, in the case of an accident or death in the family, it can be difficult to find. A letter of intent can eliminate confusion and alleviate some of the difficulty, as well as guarantee that you are respecting the wishes of your loved one.
