Estate Planning Basics: Wills, Trusts, and Letter of Intent
When my husband and I planned a trip to Australia, I wondered, “Would anyone in my family be able to settle my affairs if anything happened to us?” That moment reminded me of the importance of estate planning—something that’s not just for the wealthy but for anyone who wants peace of mind.
Estate planning involves preparing for the transfer of your assets, naming guardians for minor children, and making plans in case you become incapacitated. The sooner you start, the more control you have over your wishes.
Key Estate Planning Documents
According to Investopedia, every estate plan should include:
- Will or Trust
- Letter of Intent
- Durable Power of Attorney
- Healthcare Power of Attorney
- Beneficiary Designations
- Guardianship Designations
This article—Part 1 in our three-part series—focuses on wills, trusts, and letters of intent.
Wills
An AARP survey found that 2 out of 5 Americans over age 45 don’t have a will. A will ensures your wishes are carried out and prevents others from making those decisions for you. It’s not about wealth—it’s about clarity, fairness, and love for your family.
A will can cover valuables, heirlooms, and even sentimental belongings. An estate planning attorney can help you make thoughtful decisions, provide alternatives, and ensure the will minimizes estate taxes. You may also need to review your beneficiary designations with your bank, insurance agent, or investment advisor since those accounts often bypass wills.
➡ Download a Will Worksheet from AARP
Trusts
A trust can be an important part of an estate plan. According to LegalZoom, some benefits include:
- Avoiding probate and delays
- Minimizing taxes
- Protecting assets from creditors
- Maintaining privacy
- Allowing more control than a will
- Qualifying for benefits such as Medicaid
- Supporting a loved one with disabilities while protecting benefits
Because trusts are complex, consult an attorney for guidance. To learn more, explore these resources:
Letter of Intent
A Letter of Intent (also called a Letter of Instructions) is not legally binding, but it provides guidance to your executor and loved ones. Estate planners recommend including details such as:
- Where your will and important documents are located
- Burial or cremation instructions (veterans may request national cemeteries)
- Contact list of family and friends
- Insurance, bank, and investment account details
- Memberships that may offer benefits
- Tax returns and bill payment information
- A record of personal debts or recent large gifts
While not legally enforceable, a Letter of Intent eases stress for your family and ensures nothing important is overlooked.
Continue Learning
This series covers the six essential estate planning documents. Explore more:
- Part 1 (you are here): Wills, Trusts, and Letter of Intent
- Part 2: Durable and Healthcare Power of Attorney
- Part 3: Beneficiary and Guardian Designations
- Part 4: Preparing your digital life
Disclaimer: This article provides general information only and is not legal advice. For advice specific to your situation, consult a licensed attorney.
