Letter of Wishes (UK)

A Letter of Wishes in the United Kingdom is a legally binding written instrument.

A Letter of Wishes is an important estate planning tool in England and Wales for several reasons. First, it allows the testator to communicate personal and sentimental wishes that would be inappropriate or impractical to include in the formal Will — for example, funeral and burial preferences, the distribution of specific personal effects and jewellery not mentioned in the Will, messages to family members, and guidance on how the executors should manage the estate during the administration period.

Second, in the context of discretionary trusts — which are widely used in estate planning, particularly in conjunction with Wills leaving assets to a discretionary trust for the benefit of a class of beneficiaries (such as children and grandchildren) — the Letter of Wishes provides crucial guidance to the trustees on how the settlor wishes the trust fund to be managed and distributed. Trustees of a discretionary trust have very wide powers under the Trustee Act 2000 and the trust deed itself, but they must exercise those powers in good faith and with proper consideration of all relevant factors. A letter of wishes is one of the most important such factors. The letter can guide the trustees on: the relative financial needs and circumstances of each beneficiary; which beneficiaries should receive income and which capital; how the trust fund should be invested; any conditions (such as attaining a specified age or achieving an educational qualification) that the settlor would like to attach to distributions; and any particular family circumstances or tensions that the trustees should be aware of.

Third, because a Letter of Wishes is not a legally binding document, it offers the testator a degree of flexibility that is not available with the Will or trust deed. The testator can update the letter at any time without formality — no witnesses, no deed, no probate implications — simply by writing a new letter or amendment. This makes the Letter of Wishes far more adaptable to changing family circumstances than the Will itself.

A Letter of Wishes should be stored with the Will but separately (to avoid any argument that it forms part of the Will) and the executors and trustees should be told of its existence. It should be updated whenever the testator's circumstances or wishes change materially.

A Letter of Wishes is recommended in the following circumstances:

Alongside a Will: Every testator who makes a Will should also consider writing a Letter of Wishes to supplement the legal provisions of the Will with personal guidance for their executors and family.

Discretionary trust planning: Where a Will includes a discretionary trust (e.g. a discretionary nil-rate band trust, a spousal bypass trust, or a trust for minor children), a Letter of Wishes is essential guidance for the trustees on how the settlor intends the trust to be administered.

Funeral and burial wishes: To record specific funeral, burial, or cremation wishes that cannot easily be incorporated into the Will (which may not be read until after the funeral has taken place). The Letter of Wishes can be made accessible to family members without disclosing the full contents of the Will.

Personal effects and sentimental items: Where the testator wishes to express preferences about the distribution of personal jewellery, family heirlooms, or other items of sentimental value that are not specifically bequeathed in the Will.

Blended family situations: Where the testator has a complex family structure (e.g. children from multiple relationships, step-children), a Letter of Wishes can explain the reasoning behind the Will's provisions and provide additional guidance to reduce the risk of family conflict.

Messages to beneficiaries: A Letter of Wishes can include personal messages to beneficiaries — expressions of love, values the testator wishes to pass on, or advice for the future — that would be out of place in the formal legal document of a Will.

Regular review: A Letter of Wishes should be reviewed and, if necessary, updated whenever the testator's family circumstances, financial position, or wishes change materially — and at minimum every three to five years.

Parties in United Kingdom should prepare a Letter of Wishes (UK) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Wills Act 1837, Section 9 sets formal requirements for valid wills in England and Wales. The Administration of Estates Act 1925 governs intestate succession. The Inheritance (Provision for Family and Dependants) Act 1975 allows dependants to contest estates. The Probate Registry processes applications for grants of probate. HM Revenue and Customs (HMRC) administers inheritance tax under the Inheritance Tax Act 1984. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A UK Letter of Wishes should include the following key elements:

1. Introduction: The testator's full name, date, and a clear statement that the letter is intended as a non-binding expression of wishes to guide the executors and trustees.

2. Funeral and burial wishes: Specific preferences regarding funeral service (church, civil, humanist), burial or cremation, choice of coffin, music, readings, and any requests regarding donations in lieu of flowers or attendance at the funeral.

3. Distribution of personal effects: Guidance on the distribution of personal possessions, jewellery, and family heirlooms among family members and friends — items that may not be specifically mentioned in the Will.

4. Guidance for trustees: If the Will includes a discretionary trust, detailed guidance on the trustees' exercise of their discretions — including the relative needs of beneficiaries, conditions for distributions, investment philosophy, and any sensitive family circumstances.

5. Guardianship wishes: If the testator has minor children, guidance for the appointed guardians on upbringing, education, values, and other personal preferences.

6. Messages to beneficiaries: Personal messages, expressions of love, or values the testator wishes to leave for specific family members.

7. Digital assets: Guidance on accessing and managing digital accounts, social media, and online assets — an increasingly important modern addition.

8. Date and signature: The letter should be dated and signed by the testator, with a note that it is subject to update and supersedes any previous letters of wishes.

Additional compliance elements for a Letter of Wishes (UK) used in United Kingdom include: Under the Wills Act 1837, Section 9 sets formal requirements for valid wills in England and Wales. The Administration of Estates Act 1925 governs intestate succession. The Inheritance (Provision for Family and Dependants) Act 1975 allows dependants to contest estates. The Probate Registry processes applications for grants of probate. HM Revenue and Customs (HMRC) administers inheritance tax under the Inheritance Tax Act 1984. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.