A letter of intent is frequently recommended for parents of disabled children to share information for when the parent dies. However, letters of intent or a letter of instruction can also be a helpful resource for executors, says the article “Planning Head: For detailed instructions consider a letter of instruction” from The Mercury. This letter is especially valuable if the executor doesn’t know the decedent or their family members well.
For disabled children, legal documents address specific issues and aren’t necessarily the right place to include personal information about the child or the parent’s desires for the child’s future. Estate plans need more information, especially for a minor child.
The goal is to create a document to clarify what the parents want for the child after they pass, whether that occurs early or late in the child’s life.
For a disabled child, the first questions to be addressed in the estate plan concern who will care for the child if the parent dies or becomes incapacitated, where the child will live and what funds will be available for their care. However, once those matters are resolved, there are more questions about the child’s wants and needs.
The letter of intent can answer questions about the unique information only a parent knows and is helpful in future decisions about their care and living situation. It can also explain why certain decisions were made and help allay anger and resentment among beneficiaries.
The letter of intent concerning an estate should also include information about a funeral or burial wishes and contain everything from the music list for a ceremony to the writing on the headstone.
Once the letter of intent is created, the next question is, where should you put it so it is secure and can be accessed when it is needed?
Please don’t put it in a bank safe deposit box. This is a common error for estate planning documents as well. The executor may only have access to the contents of the safe deposit box after letters of administration have been issued. Access is normally granted after the funeral and sometimes long after the funeral. By then, it will be too late for any instructions.
Keeping estate planning documents in a safe deposit box presents other problems. If the bank seals the safe deposit box on notification of the owner’s death, the executor can not proceed. This delay can sometimes be prevented by having additional owners on the safe deposit box if permitted by the bank. Any other owners will also need to know where the key is located and have access to it.
The better solution is to keep all essential documents, including wills, financial power of attorney, health care powers, living wills, or health care directives, insurance forms, cemetery deeds, information for the family’s estate planning attorney, financial advisor, and CPA, etc., in one location known to the trusted person who will need access to the documents. That person will need a set of keys to the house. If they are kept in a fire and waterproof safe in the house, they will also need the keys or combination to the safe.
If the parents move or move the documents, they’ll need to remember to tell the trusted person where these documents have moved., Otherwise, a lot of work will have been for naught.
Reference: The Mercury (Jan. 19, 2022) “Planning Head: For detailed instructions, consider a letter of instruction.”