Feb 12 • 3 min read
The Missing Estate Document
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If something happened to you tomorrow, would your spouse or family know where to find everything? Your bank accounts. Your investment logins. Your insurance policies. The location of your trust documents. Most people assume their estate plan covers all of this. But even a well-drafted trust or will can leave your family scrambling if they don’t know the practical details. Legal documents don't tell your heirs where things are, who to call, and how to access what they need. That's where a Letter Of Instruction (LOI) comes in. And it might be the most overlooked piece of your estate plan. In today's email, I’ll walk you through exactly how to create one. I’m also including a fillable PDF template you can download and start filling out today. *** Before we dive in, did you catch this week's podcast? 👇 The Document Most People Don't Have (But Everyone Needs)A letter of instruction is a simple document for your spouse, family, or executor. It outlines everything they would need to know if something happens to you, including:
Your will and trust handle the legal mechanics; a letter of instruction handles the real-world logistics. Why This MattersTo make this more concrete, imagine this scenario: You manage the household finances. You know which accounts are where, who your insurance agent is, and where the deed to the house is filed. Your spouse doesn't. If something happens to you, where do they start? Who do they call first? How do they even know what exists? Even the most carefully crafted estate plan can create confusion if no one knows how to navigate it. A letter of instruction fills those gaps and reduces stress at a time when clarity matters most. How to Create One (It's Simpler Than You Think)The hardest part is knowing where to begin. Here's a simple framework to help you get started 👇 Step 1 - Create a Master Inventory List all key financial information in one place:
Think of this as a roadmap, not a legal document. Step 2 - Organize It Logically Structure it in a way that makes sense for your family. You can organize by category (accounts, contacts, documents) or by person (who handles what). Clarity beats perfection! Step 3 - Add Personal Notes Remember, this letter will be read and used during a difficult time. A few personal instructions or words of encouragement can mean more than you expect. Step 4 - Consider a Password Manager You don’t need to list every username and password in the letter itself. Tools like LastPass or Dashlane (my personal favorite) allow you to grant emergency access to a trusted person. Simply reference the password manager in your letter and keep sensitive details stored securely. Step 5 - Store It Somewhere Findable This sounds obvious, but it's a common failure point. Make sure your spouse, executor, or trusted family member knows where the letter is. You'll also want to build in a simple process for updating it regularly as your accounts and circumstances change. Make It EasyTo simplify the process and help you take action, I created a fillable PDF template that walks you through everything step-by-step. 📝 Grab the Letter of Instruction template here. Bottom LineA letter of instruction isn't complicated, it doesn't require an attorney, and it can be written in an afternoon. But the peace of mind it provides—for you and your family—is hard to overstate. If you already have a trust, a will, and the other core estate planning documents in place, this is the practical companion piece that ties everything together. And if you've been putting it off, consider this your nudge. 😊 Block out an hour this week, open a blank document, and start with the basics. Your future family will thank you. 📚 What I've Been Reading
Thank you for reading! Please reply to this email with comments, questions, and/or feedback. Stay wealthy, Taylor Schulte, CFP® |