Imagine this: You spend years building a legacy, carefully planning for your family’s future, and setting up a trust to provide for them. But what if, after you’re gone, your loved ones and trustees aren’t quite sure how you wanted things to play out? That’s where a Letter of Intent (LOI) comes in—a thoughtful, non-binding document that acts like a heartfelt letter to your family and trustee, offering guidance on your wishes without tying their hands.
Think of it as the gentle nudge that helps your loved ones and fiduciaries understand what you would have done in their shoes. It’s not legally binding (so no one has to stress over legalese, yay!), but it bridges the gap between cold legal documents and real human emotions—helping your trust work the way you intended and removing the burden from your loved ones from trying to figure out “What was she actually thinking?!”.
Want to know how to write one and what to include? Keep reading for an easy-to-follow guide!
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How to Write a Letter of Intent for Your Estate Plan (Without the Legal Jargon)
A Letter of Intent (LOI) is like a friendly guidebook for your loved ones and trustee(s)—a way to share your wishes without all the legal mumbo-jumbo. It’s not legally binding, but it can help ensure that your estate or trust is handled the way you envisioned.
Here’s an easy-to-follow guide to writing one:
Step 1: Start with a Warm Introduction
Begin your letter like you’re writing to a trusted friend or family member. You can keep it simple or add a personal touch.
📌 Example:
“To my dear family and trustee(s),“
“As I write this, my hope is that this letter serves as a guide rather than a set of rules. I trust you to make the best decisions, but I wanted to share my thoughts on how I envisioned this trust helping my loved ones.”
Step 2: State the Purpose of the Trust
Explain why you created the trust and what you hope it will accomplish. If you have little kids, feel free to mention what you want for them in each stage of their life (or until they receiving their share or control of their share).
📌 Example:
“I established this trust to provide long-term security for my family. My goal is not just financial support, but also to encourage independence, education, and meaningful life choices.”
Step 3: Outline Your Wishes for Trust Distributions
Here’s where you share how you’d like the funds to be used. You can include:
✅ Education & Career Development – Tuition, certifications, professional growth
✅ Health & Well-Being – Medical expenses, therapy, insurance
✅ Housing & Stability – Home purchases, rent support, emergencies
✅ Entrepreneurial Support – Starting a business (with a solid plan!)
✅ Family & Community Values – Charitable giving, family vacations, child-rearing support
📌 Example:
“I encourage the use of trust funds for education, homeownership, and entrepreneurial pursuits, provided they are well thought out. I want this trust to be a tool for growth rather than a safety net that discourages ambition.”
Step 4: What the Trust Should Not Be Used For
This section helps set boundaries without sounding harsh (if that’s your M.O). In my letter, I sound like me, which can sometimes sound harsh but I have some strong feelings about making sure my kids don’t end up perpetual students and actually do something with their lives.
📌 Example:
“While I trust my trustee(s) to use discretion, I prefer that funds not be used for extravagant purchases, reckless spending, or financial decisions that do not promote long-term stability.”
Step 5: Special Considerations
If any beneficiary has unique circumstances (e.g., struggles with finances, substance abuse, or legal issues), you can ask the trustee to use caution when making distributions. You can, of course, always include a provision for substance abuse directly in your Trust if this is an ongoing issue and you want to ensure your trustee can enforce it for any or all of your beneficiaries.
📌 Example:
“If a beneficiary is experiencing financial irresponsibility or personal struggles, I ask that the trustee distribute funds in a structured manner—paying directly for essentials like housing and medical care rather than providing lump sums.”
Step 6: Final Words of Encouragement
Wrap up your letter with some heartfelt words. This is your chance to leave a lasting message for your loved ones. Make it as personal as you want (in my letter of intent, I use nicknames as opposed to their actual name, and I express how incredibly grateful I am for their love).
📌 Example:
“Above all, I want this trust to be a source of support, not dependence. I trust you all to use it wisely and to continue the values of love, generosity, and hard work that mean so much to me.”
“With love and trust,
[Your Name]”
Final Thoughts
A Letter of Intent is your chance to add a personal touch to your estate plan. While it doesn’t hold legal weight, it helps guide your family and trustee(s) in making decisions that align with your wishes. Think of it as the last piece of advice you get to give—one that makes a difference long after you’re gone.
Ready to write your own? Start with these steps, and make it as formal or as heartfelt as you like!
