A beneficiary letter of instruction is a document that outlines your wishes for the distribution of your assets after your death. It is not a legal document, but it can be helpful in ensuring that your wishes are carried out. A beneficiary letter of instruction can be used to specify how you want your assets to be distributed, who you want to receive your assets, and how you want your assets to be managed. It can also be used to provide instructions for your funeral and burial.
There is no one-size-fits-all beneficiary letter of instruction template. The specific content of your letter will vary depending on your individual circumstances and wishes. However, there are some general elements that are common to most beneficiary letters of instruction. These elements include:
Who Will Receive Your Assets?
The first step in creating a beneficiary letter of instruction is to identify who you want to receive your assets. You can leave assets to individuals, organizations, or trusts. If you are leaving assets to individuals, you should specify their full name, address, and relationship to you. If you are leaving assets to organizations, you should specify the organization’s name and address. If you are leaving assets to trusts, you should specify the name of the trust and the trustee.
How Will Your Assets Be Distributed?
Once you have identified who will receive your assets, you need to decide how you want your assets to be distributed. You can distribute your assets in a variety of ways, including:
- Per stirpes: This means that your assets will be distributed to your descendants in equal shares.
- Per capita: This means that your assets will be distributed to your descendants in equal shares, regardless of their generation.
- By representation: This means that your assets will be distributed to your descendants according to the rules of intestacy.
- In a specific amount: This means that you can specify the amount of money or property that you want to leave to each beneficiary.
Who Will Manage Your Assets?
If you have significant assets, you may want to appoint a trustee to manage your assets after your death. A trustee is a person or organization that is responsible for managing your assets according to your wishes. You should choose a trustee who is trustworthy, competent, and has experience managing financial matters.
Other Considerations
In addition to the basic elements discussed above, you may also want to include other information in your beneficiary letter of instruction. This information could include:
- Your funeral and burial wishes
- Your organ donation wishes
- Your digital asset wishes
- Your pet care wishes
Conclusion
A beneficiary letter of instruction is a valuable tool that can help you ensure that your wishes are carried out after your death. By taking the time to create a beneficiary letter of instruction, you can provide peace of mind for yourself and your loved ones.
If you are considering creating a beneficiary letter of instruction, it is important to speak with an attorney to make sure that your letter is legally valid. An attorney can also help you to identify your assets and distribute them according to your wishes.
