Creating a Letter of Wishes (UK)

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Creating a letter of wishes is an invaluable part of estate planning, enabling you to put your wishes in writing and ensure that they are respected after death. This is particularly important for the elderly or those with terminal illnesses and their families, who may be the beneficiaries of any estate.

The primary purpose of a letter of wishes is to provide clarity and peace-of-mind to its author while also ensuring his/her wishes are honoured upon death. It avoids potential family disputes or complications that may arise if the deceased’s intentions are not made clear.

When drafting a Letter of Wishes in the UK, it's essential to understand its validity and legal status.

Despite popular misconceptions, a Letter of Wishes does not actually need to be witnessed. More importantly, it isn't legally binding at all.

The purpose of this document is to offer guidance to executors and trustees. It is a means to articulate personal preferences and desires, creating a context for the stipulations in your will. However, it is not a substitute for – hence should not conflict with – the contents of your will.

Now you may be wondering, "What if the Letter of Wishes were to be witnessed? Wouldn't that make it more official?" Interestingly, the answer is no. In fact, the act of witnessing this document could potentially cause more harm than good.  

If your Letter of Wishes is witnessed, it can give an impression of a formal, legally binding document. This could inadvertently open the door to possible legal disputes, especially if the letter contradicts or post-dates your will. Any contention can lead to a costly case of contentious probate in the Court of Chancery.

So, while the Letter of Wishes serves a valuable purpose in predicting uncertainties and expressing desires, it does not need witnessing, and more significantly, it doesn't have the legal weight of a will.

The Genie AI team understands how vital such documents can be for both individuals and their families – which is why we offer free templates online for all levels of user to draft their own letters without needing legal approval or expertise from expensive lawyers. Furthermore our community template library ensures you will never miss out on changes within industry standards when creating your document.

Definitions (feel free to skip)

Witness: Someone who sees and can attest to the signing of an official document.
Beneficiaries: Individuals or organizations who are entitled to receive something, such as assets or money, from another individual or organization.
Executor: A person responsible for carrying out the instructions of a will or other document.
Real estate: Land and any buildings or other structures on it.
Stocks and shares: A type of financial security that represent ownership in a business, entitling the owner to a share of the business’s profits.
Cash: Money in the form of paper notes and coins.
Jewellery: Decorative items such as necklaces, rings, and earrings, made from precious metals and stones.
Personal possessions: Items owned by an individual that are of personal value or interest.
Legally binding: A document or agreement that is legally enforceable, meaning that it must be followed and cannot be broken.
Estate planning: The process of preparing for the management and distribution of an individual’s assets after their death.

Contents

• Understanding the importance of a letter of wishes and why it is important to create one
• Deciding who should be the beneficiaries of the estate and what assets should be included
• Drafting the letter of wishes, outlining the wishes for the estate after death
• Having the letter of wishes reviewed by a legal professional
• Choosing an executor to manage the estate and any assets that may be left behind
• Deciding where the original copy of the letter of wishes should be stored in a secure location
• Making copies of the letter of wishes and distributing them to the executor, beneficiaries and other relevant parties
• Keeping the letter of wishes up to date as necessary, to reflect changes to the estate or wishes that were outlined in the document

Get started

Understanding the importance of a letter of wishes and why it is important to create one

• Understand why a letter of wishes is important: A letter of wishes is a document that allows you to set out your wishes and instructions to the trustees of a trust, such as how you want the assets of the trust to be used, how you want the trustees to act, and/or who you want to benefit from the trust.
• Research the advantages and disadvantages of creating a letter of wishes: Advantages include more control over the trust assets and the ability to set out the specific wishes of the settlor. Disadvantages include the potential for dispute between trustees and beneficiaries, as well as the potential for the letter of wishes to be overridden by the trustees if they have conflicting interests.
• Understand the legal implications of creating a letter of wishes: A letter of wishes is not legally binding, however, it can be taken into consideration by the trustees when deciding how to administer the trust.

When you can check this off your list: Once you have a thorough understanding of the importance of a letter of wishes and its potential benefits and drawbacks, you can check this step off your list and move on to researching the necessary steps to create a legally valid and enforceable letter of wishes.

Researching the necessary steps to create a legally valid and enforceable letter of wishes

• Read up on relevant legislation, such as the Inheritance Tax Act 1984
• Speak to an estate planning solicitor or professional for advice and assistance
• Gather all the information and documents related to the estate
• Research and understand the different types of letters of wishes, such as the executor letter of wishes
• Decide what type of letter of wishes is most suitable for the estate

When you can check this off your list:

• You have read up on relevant legislation
• You have spoken to an estate planning solicitor or professional for advice and assistance
• You have gathered all the information and documents related to the estate
• You have researched and understood the different types of letters of wishes
• You have decided on the type of letter of wishes most suitable for the estate
• You have ensured that all the necessary steps are in place.

Deciding who should be the beneficiaries of the estate and what assets should be included

• Consider the people you would like to benefit from the estate in the event of your death
• Identify any specific items or assets that you would like to be distributed to particular beneficiaries
• Make a list of all potential beneficiaries, including those who may be too young to inherit directly
• Make a note of all the items or assets that you would like to be included in the letter of wishes
• Think about any special arrangements you would like to make to ensure that certain items are looked after or managed in a particular way
• Consult with any other people who may have an interest in the estate, such as family members, to ensure that everyone is aware of your wishes
• Once you have considered all the potential beneficiaries and assets, decide who should be the beneficiaries of the estate and what assets should be included in the letter of wishes
• You can check this off your list once you have finalized your decisions and you are ready to move on to drafting the letter of wishes.

Drafting the letter of wishes, outlining the wishes for the estate after death

• Gather all the information you need to make sure that the letter of wishes accurately reflects your wishes
• Make a note of all the assets and possessions you want to include in the estate, as well as who should be the beneficiaries of each asset
• Write up the letter of wishes, detailing all the wishes for the estate and specifying who should receive what
• Make sure the letter of wishes is clear, precise, and unambiguous so that there can be no confusion or misinterpretation
• When you are satisfied with the contents of the letter of wishes, you can check this step off your list and move on to having the letter of wishes reviewed by a legal professional to ensure it is legally valid and binding.

Having the letter of wishes reviewed by a legal professional to ensure it is well drafted

• Find a legal professional to review the letter, such as a solicitor or a qualified legal adviser.
• Ask the legal professional to review the letter, ensuring it is well drafted
• They may recommend changes to the document, which you can agree to or decline.
• Once you are happy with the changes and the content of the document
• You can then check this step off your list and move onto the next step.

Once all parties have signed the document, you will have completed this step and can move on to the next step of choosing an executor to manage the estate and any assets that may be left behind.

Choosing an executor to manage the estate and any assets that may be left behind

• Choose an individual or institution to act as executor of the estate.
• Consider the individual or institution’s experience and ability to carry out the duties of the executor.
• Make sure that the individual or institution chosen is willing to accept the role as executor.
• Make sure that the chosen executor is aware of any specific duties that you wish them to carry out.
• Note down the name and contact details of the chosen executor in the letter of wishes.

You can check this off your list when you have chosen an individual or institution to act as executor of the estate and noted down their name and contact details in the letter of wishes.

Deciding where the original copy of the letter of wishes should be stored in a secure location

• Decide on a secure location for the original copy of the letter of wishes, such as a safe deposit box, a bank vault, or a secure filing cabinet.
• Make sure the executor knows where the original copy is stored.
• Ensure that the executor has access to the secure location to retrieve the original copy when needed.
• Once you have decided on and secured the location, you can check this step off your list and move on to the next step.

Making copies of the letter of wishes and distributing them to the executor, beneficiaries and other relevant parties

• Make copies of the letter of wishes
• Distribute the copies of the letter of wishes to the executor, the beneficiaries, and any other relevant parties
• Ensure that each copy is securely stored in the relevant person’s possession
• Once all copies have been distributed, you can check this off your list and move on to the next step.

Keeping the letter of wishes up to date as necessary, to reflect changes to the estate or wishes that were outlined in the document

• Re-assess the letter of wishes periodically to make sure it is still up to date with any changes in the estate or the wishes that were outlined in the document
• Make sure to document any changes made to the letter of wishes and keep copies of the original and the new version
• Make sure to update the executor, beneficiaries and other relevant parties when changes are made to the letter of wishes
• Once you have made sure that the letter of wishes is up to date, you can check off this step and move on to the next.

FAQ:

Q: What’s the difference between a Letter of Wishes and a Will?

Asked by Sarah on April 28th 2022.
A: A Letter of Wishes is an informal document that can be used in conjunction with a Will. Unlike a Will, which is legally binding, a Letter of Wishes is not legally binding and will not be taken into account by the court when administering your estate. It is simply a guide for your executors, outlining how you would like your estate to be distributed in the event of your death.

Q: Can I use a Letter of Wishes in lieu of a Will?

Asked by Ethan on February 9th 2022.
A: No. A Letter of Wishes does not replace a Will and cannot be used in lieu of one. A Will is the only legal document that can dictate how your assets and possessions are distributed upon your death. It is important to have both documents in place to ensure that your wishes are carried out as much as possible after you are gone.

Q: Are there any tax implications for creating a Letter of Wishes?

Asked by Michael on November 12th 2022.
A: Usually, there are no tax implications for creating a Letter of Wishes. However, if the document contains instructions which may affect the tax position of any beneficiaries then this should be considered when creating the document. It is also important to note that any changes made to the document after it has been signed must also be dated and witnessed if they are to hold any legal weight.

Q: Does my Letter of Wishes need to be stored anywhere?

Asked by Noah on July 1st 2022.
A: Yes. It is important to store your Letter of Wishes somewhere safe and secure so that it cannot become lost or destroyed over time. Your executor should also have access to this document so they can carry out your wishes after you have passed away. Generally speaking, it is best practice to store the document with either your solicitor or with an estate planning specialist who can help ensure its longevity and security.

Q: Do I need to use specific language in my Letter of Wishes?

Asked by Emma on June 17th 2022.
A: No, you do not need to use specific language when creating a Letter of Wishes; however, it should still contain clear instructions about how you would like your estate to be distributed upon your death so that there is no confusion or misunderstanding about what you want to happen after you have passed away. You should also ensure that all relevant parties are named so that there can be no dispute about who should receive what upon your death.

Q: What happens if I don’t create a Letter of Wishes?

Asked by Abigail on August 15th 2022.
A: If you do not create a Letter of Wishes then all decisions regarding how your estate should be distributed will fall solely upon the discretion of whoever administers your estate (typically this will either be an executor or administrator). This means that decisions about who receives what from your estate could differ from what you would have wanted, potentially leading to disagreements between family members or other named beneficiaries upon your death which could cost time and money for them in legal disputes or court proceedings long after you have gone.

Q: Are there any restrictions on how I use my Letter of Wishes?

Asked by Logan on October 19th 2022.
A: Yes - while there are no legal restrictions as such on how you use your own personal letter, there may be restrictions depending on what industry or sector you operate in (for example if running a business such as SaaS, Technology or B2B), as well as any EU/UK laws which may affect how assets are distributed across jurisdictions within Europe or further abroad (such as trusts). Therefore it is best practice to seek professional advice if unsure so that all relevant laws and regulations can be taken into consideration when drafting up the letter itself and putting together an effective plan for distributing assets after death which complies with all relevant legislation or regulations where applicable.

Q: Is a Letter of Wishes appropriate for all individuals/estates?

Asked by Olivia on February 21st 2022.
A: No - while Letters of Wishes can provide guidance for individuals with relatively straightforward estates (such as those with few assets/possessions), they may not always be appropriate for everyone depending on their particular needs or circumstances (such as those running businesses or those living across multiple countries). In these cases it may be more appropriate for individuals to seek professional advice from either a solicitor or an estate planning specialist who will have specialist knowledge relating to their particular situation which will enable them to draft up an effective plan for distributing assets after their death which complies with all relevant legislation or regulations where applicable - this could include creating other documents such as trusts where necessary/appropriate depending upon individual circumstances/needs

Example dispute

Suing Companies for Damages Referencing Letter of Wishes

• A plaintiff can sue a company for damages related to a letter of wishes if there is a breach of contract, which is defined as a failure to perform an obligation set out in a contract.
• The plaintiff must provide evidence that they have suffered a loss as a result of the breach, and that the company is at fault.
• A plaintiff can use a letter of wishes to prove that the company was obligated to take certain actions or provide certain services, and that they failed to do so.
• The plaintiff must be able to demonstrate that the company’s actions or lack thereof caused the damages suffered by the plaintiff.
• If the plaintiff can successfully prove the above, they may be awarded damages, which can include compensatory damages, punitive damages, or both.
• Compensatory damages are designed to reimburse the plaintiff for any losses they have suffered, while punitive damages are intended to punish the company for their breach of contract and to deter similar behavior in the future.
• A plaintiff can also seek an injunction, which is an order from the court requiring the company to take certain actions or refrain from taking certain actions.

Templates available (free to use)

Letter Of Wishes Recommending Satisfaction Of Ebt Rewards

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