Estate planning in Florida is not just about drafting Last Wills & Testaments, Trusts, and Powers of Attorney. It is also about making sure your loved ones and fiduciaries understand your intentions, values, and wishes when administering your plan. One often overlooked but extremely valuable tool is the Letter of Intent (LOI), sometimes called a Letter of Wishes.
Unlike a Last Will or Trust, a Letter of Intent is not legally binding in Florida. However, it plays a critical role in guiding your family, Personal Representative, or Trustee when your legal documents alone may not provide enough clarity.
Why Use a Letter of Intent in Florida Estate Planning?
1. Clarifying Intentions
A Florida Will or Trust is legally enforceable, but it often lacks context. An LOI lets you explain why you made certain choices. This can reduce confusion, minimize the risk of family disputes, and ensure your decisions are carried out in the spirit you intended.
2. Distribution of Personal Property
While Florida law allows you to reference a separate written list for tangible personal property (under Fla. Stat. § 732.515), many people also use an LOI to express who should receive sentimental items—jewelry, heirlooms, artwork, letters, or keepsakes. Because these items often hold deep emotional value, written guidance helps avoid disagreements.
3. Guidance for Trustees: Letters of Wishes
In the day-to-day administration of a Trust, a Florida Trustee must give maximum effect to the settlor’s intent. But sometimes a Trust instrument cannot anticipate every situation. A Letter of Wishes provides Trustees with insight into your values, priorities, and expectations for how beneficiaries should be supported.
For example, you may express that funds will be used primarily for education, business startups, or healthcare, while discouraging wasteful spending. Though non-binding, Trustees often give significant weight to such guidance, and courts recognize these letters as important interpretive tools.
4. Special Instructions
LOIs can include instructions about:
- Pet care and funding for a caretaker.
- Family traditions or religious practices you hope continue.
- Maintenance of family property, such as a vacation home.
These kinds of directions, while informal, often mean the most to your loved ones.
5. Funeral and Memorial Wishes
Florida law allows your designated Preneed Guardian or Personal Representative to handle final arrangements. However, your LOI can lighten the burden on grieving loved ones by specifying preferences for burial, cremation, or memorial services.
6. Digital Assets and Passwords
Florida has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), giving fiduciaries limited authority to manage online accounts. An LOI can make this easier by listing your digital assets, usernames, and access instructions, ensuring nothing important is overlooked.
7. Financial Information and Family History
An LOI may include:
- A master list of bank accounts, insurance policies, and debts.
- Contact information for advisors, accountants, and attorneys.
- A family history or legacy message for future generations.
8. Personal Messages
One of the most meaningful aspects of an LOI is the opportunity to leave personal letters or blessings for family members. These words, while not legally operative, often become the most treasured part of your estate plan.
Best Practices for Florida Letters of Intent or Wishes
- Keep it separate from your Last Will or Trust so it can be updated without formal legal procedures.
- Date and sign it for clarity, even though it is not legally binding.
- Avoid language suggesting legal control over Trust assets, which could risk tax complications under IRC §2036.
- Review regularly as your family circumstances, relationships, or wishes evolve.
- Coordinate with your attorney to ensure it complements, not conflicts with, your binding estate documents.
Limitations Under Florida Law
- Not enforceable: Courts and fiduciaries cannot be compelled to follow an LOI.
- Risk of conflict: If instructions contradict your Last Will or Trust, the formal legal document controls.
- Privacy concerns: Sensitive details (like passwords) should be stored securely, not attached directly to your Last Will (which becomes public record in a Florida probate).
Conclusion: A Human Touch in Florida Estate Planning
A Last Will or Trust ensures your estate is administered legally. A Letter of Intent ensures it is administered personally and thoughtfully. Whether it is providing context for your decisions, easing family burdens, or guiding Trustees with your values, an LOI can be one of the most compassionate documents in your Florida estate plan.
The foregoing is a brief and general overview of the topic and the need for specific and experienced legal and tax advice is emphasized.
If you are creating or updating your estate plan in Florida, consider including a Letter of Intent or Wishes. The law firm of CASERTA & SPIRITI in Miami Lakes can help you draft one that complements your legal documents while reflecting your unique voice and values.