Will vs Letter of Wishes: Understanding the Difference in Estate Planning
When preparing an estate plan, most people focus on their Will. While a Will is the cornerstone of estate planning, there is another document that can play an important supporting role: a Letter of Wishes.
Although these two documents often sit side by side, they serve very different purposes. Understanding how a Will differs from a Letter of Wishes can help ensure your intentions are clearly communicated while keeping your estate plan both practical and legally sound.
What Is a Will?
A Will is a legally binding document that outlines how your estate should be administered and distributed after you pass away. In Queensland, a properly executed Will provides formal instructions to your executor and is governed by the Succession Act 1981 (Qld).
A Will typically deals with the core elements of your estate plan, including:
Appointment of your executor
Distribution of your assets and residue estate
Specific gifts of money or property
Guardianship arrangements for minor children
Establishment of testamentary trusts
Because a Will creates legally enforceable obligations, it should contain clear, structured instructions relating to items of value and legally significant decisions. Once signed, the directions contained within the Will must be followed by the executor when administering the estate.
What Is a Letter of Wishes?
A Letter of Wishes is a separate document that accompanies your Will but is not legally binding. It provides additional guidance, explanations, and personal preferences that may help your executor, trustees, or family understand your intentions.
Unlike a Will, a Letter of Wishes does not create legal obligations. Instead, it acts as a practical guide that sits alongside the formal legal document.
The Letter of Wishes is typically only shared with executors or beneficiaries after your death and is used to provide context or guidance that would not be appropriate to include in a legally binding Will.
What Can Be Included in a Letter of Wishes?
Because a Letter of Wishes is flexible and non-binding, it can cover a wide range of personal matters that fall outside the strict legal framework of a Will.
Common topics include explanations for estate planning decisions. For example, some people use a Letter of Wishes to explain why they have chosen to include a testamentary trust in their Will or why assets have been distributed in a particular way. This can help beneficiaries understand the reasoning behind those decisions.
Guardianship guidance is another common inclusion. While the legal appointment of a guardian for minor children must be made in the Will itself, a Letter of Wishes can provide additional instructions about how children should be raised. Parents often include preferences about schooling, extracurricular activities, values, religious upbringing, and family relationships.
Pets are also frequently addressed in a Letter of Wishes. While pets can technically be gifted as property in a Will, some people prefer to simply outline their preferences for the care of their animals without creating a binding obligation.
Digital assets and online accounts are increasingly included as well. A Letter of Wishes can provide instructions about social media profiles, online subscriptions, and other digital accounts, ensuring executors understand how you would like those matters handled.
Another common use is for personal belongings with sentimental value. Many people own items that are meaningful but not financially significant enough to warrant inclusion in a Will. A Letter of Wishes allows you to express preferences about how these items should be distributed. For example, you may wish for grandchildren to select books from a collection or for certain belongings to be donated to specific charities.
Finally, many people include funeral or cremation preferences. While these instructions are not legally binding in a Letter of Wishes, they can provide helpful guidance for loved ones during a difficult time.
Why Not Put Everything in the Will?
One of the key reasons for using a Letter of Wishes is flexibility. A Will must be executed formally and any changes require proper legal amendment or a new Will.
A Letter of Wishes, however, can be updated easily. It allows you to revise personal preferences without the need to formally alter your Will each time circumstances change.
This is particularly helpful for matters that may evolve over time, such as personal belongings, digital accounts, or guidance for guardians as children grow older.
The Importance of Keeping the Two Documents Separate
Because a Letter of Wishes is not legally binding, it should never be used for instructions that must be followed with certainty. If a particular direction is critical or involves significant assets, it should always be included in the Will itself.
The Will establishes the legal structure of your estate plan, while the Letter of Wishes provides additional personal guidance.
Used together, these documents create a balanced estate plan that combines legal certainty with thoughtful communication for those you leave behind.
A Personal Element to Estate Planning
Beyond practical instructions, a Letter of Wishes can also serve a deeply personal purpose. Some people use it as an opportunity to leave messages for their loved ones, explaining their decisions or sharing reflections about family and life.
These letters often become treasured documents that provide comfort and clarity during a time of loss.
Final Thoughts
Estate planning is not only about distributing assets. It is about communicating your intentions clearly and ensuring that your loved ones have the guidance they need.
A well-drafted Will provides the legal foundation for your estate plan, while a Letter of Wishes allows you to share the personal details, explanations, and guidance that a formal legal document cannot always capture.
Together, they form a thoughtful and comprehensive approach to protecting your legacy and supporting those you care about most.