We all know a will is essential for distributing our possessions after we’re gone. It’s the legal document that dictates who gets what. But what about other things we want to pass on, like lessons learned, and the values we hold dear? That’s where an ethical will, sometimes called a legacy letter, comes in. Read on for pointers on ethical wills.
From The Heart
Though it is clearly important to take estate planning for tangible asset allocation seriously, it’s wise not to let the intangible but deeply significant aspects of our lives get lost in the shuffle. An ethical will goes beyond the practicalities of inheritance to convey beliefs, hopes, and love to family members and future generations. Sometimes also referred to as a letter of intent or a legacy letter, an ethical will is a way to leave a mark not just with what you have, but who you are. As attorneys at Offit Kurman explain, though not legally binding, ethical wills are a custom that dates back to biblical times:
A traditional Last Will and Testament or a trust directs how your tangible assets will be distributed upon your death. An ethical will instead can serve as heartfelt advice and guidance to your loved ones and future generations. While it is not legally binding, an ethical will can be deeply personal and meaningful. Ethical wills are not new. In fact, there is mention of an ethical will in the Book of Genesis in the Bible and they were traditionally recited orally to family members. It was not until the Middle Ages when they were recorded in writing with the hope that the message would be preserved and shared with future generations.
Ethical wills are also a great place to summarize the intentions that drove decisions about asset allocation. Sharing this information can turn out to be comforting to beneficiaries, especially if you have made nontraditional choices about distributing assets. You can even communicate your hopes for how gifted resources will be used. As Trust & Will notes, an ethical will, unlike the documents in a legally binding estate plan, can be written in a personal voice, and reference your memories. Just remember, an ethical will is not a legal document and cannot be used to actually direct assets to beneficiaries. When it comes to what to include in an ethical will, estate planning attorneys suggest:
Values: Leaving your worldly goods, your home, and other financial assets to the next generation is certainly important, but your ethical will might explain to your beneficiaries the values that you lived by that enabled you to acquire those assets.
Strengthening Family Connections: A document containing stories, anecdotes, and your successes and failures can help family members feel connected to your story and to each other…long after your death.
Clarifying Intentions: An ethical will provides you with the opportunity to explain your reasoning,…reducing the likelihood of misunderstandings or hurt feelings.
Providing Comfort and Guidance: An ethical will should be a sort of love letter to your family in which you provide words of encouragement, share the joy you felt with your loved ones, and impart wisdom and advice for their future reference.
Estate Planning Reminders: Care Plan, Fiduciaries and Bonds
As wonderful as it is to organize the assets and guidance you can leave behind for others, it’s of course important to also consider yourself during estate planning. Indeed, having money earmarked and plans made for your own needs as you age, and possibly decline, is likely the greatest gift you can ultimately give the upcoming generations of your family. A solid estate plan includes designating those you trust to act on your behalf when it comes time to administer your plan—aka your fiduciaries. Depending on location and circumstance, a fiduciary may be specifically referred to as an executor, personal representative, or trustee. Because of the responsibilities involved in the role, an estate bond is frequently required. The purpose of an estate bond is to guarantee that debts and assets will be properly handled in accordance with the estate plan and the law.
Colonial Surety Company makes it quick and easy to obtain estate bonds of all kinds. A user-friendly online service allows you to quote and obtain a bond that is instantly available to download or e-file. Fiduciaries in every state can efficiently obtain their estate bonds right here:
Estate planning attorneys can help clients secure court and fiduciary bonds with a few clicks on The Partnership Account® for Attorneys. Just select the bond needed, send it to your client for payment, and then download, e-file or print the bond. Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Court bonds include: appeal, supersedeas, injunctions, replevin, receiver and more.
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