Advice to invest in your future, whether it’s for college, emergency funds, or retirement, is a common refrain. But investments aren't always measured in dollars. A letter of instruction is a way to invest in comfort and guidance for the people we leave behind and simplify their lives during an already difficult time. It’s never too early to create a letter of instruction, and it should be updated as your accounts and estate plan change.
“Most people don’t spend too much time thinking about their own funeral, and yet, many of us have a vision about our memorial service or the handling of our remains,” says Brian Blaustein of BlueMark Advisors.
While a letter of instruction is not a legal document, it’s meant to provide more personal and practical information about your estate. It’s typically addressed to your executor, family members, or beneficiaries, but it can be directed to anyone you choose.
“Think of a letter of instruction as a ‘cheat sheet’ guide to your estate,” he says.
Blaustein offers these six ideas to include:
- The location of legal documents, such as your will, insurance policies, titles to automobiles, and deeds to property.
- A list of financial assets, including savings and checking accounts, investment and retirement accounts. Include the custodian’s name, account numbers, PINs, and passwords where applicable.
- A list of pensions or profit-sharing plans, including the location of their explanatory booklets.
- The location of your latest tax return and Social Security statements.
- The location of any safe deposit boxes and their keys.
- Names and contact details for your investment advisor, insurance agent, attorney, and accountant.
You can also use a letter of instruction as an opportunity to clearly communicate your burial or cremation preferences. Blaustein advises including the location of your cemetery plot deed if you have one, names and contact info for people you want notified at end-of-life, and highlighting songs or speakers you’d like at your service.
“Although a letter of instruction is not legally binding, your heirs will probably be glad to know how you would like to be remembered,” he says.
Brian Blaustein is a financial professional with BlueMark Advisors. For the last 27 years, Blaustein has been helping individuals, business owners, and professionals with their insurance and investment plans. He takes a strategic, client-first approach and works closely with his team to create customized solutions to fit each person’s goals. He resides in Brighton with his wife, Shari, and sons, Benji and Max.