“Where is Mom’s Social Security card?” It’s a common refrain when someone can’t help with their own affairs. Confusion and uncertainty compound the difficulties of dealing with a family emergency. There is a way to help those who will have to act in a family emergency. It’s called a “letter of instruction.”
How an Hour Now May Eliminate Uncertainty in Times of Family Emergencies
The letter of instruction is NOT a legal document. It does NOT replace a will or trust, a Health Care Power of Attorney or Living Will, or a Durable Financial Power of Attorney. On the other hand, the letter of instruction offers practical guidance usually not contained in any legal document. It’s a good way to let to those trusted to take care of your affairs know what you would want them to know.
Since the letter of instruction is not a legal document, it does not need to be notarized or signed in the presence of witnesses or with any other special formality.
It is also different than the “Separate Writing” that lawyers sometimes recommend accompany a Will or Revocable Living Trust. That document directs the distribution of your personal property after your death. [For example, Aunt Sally’s watch goes to my daughter Amanda; and Grandpa’s shotgun to Billy.]
Who should write the Letter of Instruction?
A husband and wife should prepare one together. The person who handles the family financial affairs should write one for the person who will have to take over in case of death or incapacity.
When is it used?
A Will is usually not read until some time after the person’s death. The letter of instruction should be readily available and in a place where a family member or other friend can find it in the event of emergency. For example, my family knows ours is in the top left-hand desk drawer in my study.
What’s in the letter?
The letter should give the contact information for the people to be notified in the event of a family emergency, and should also tell the location of all important papers . . . and passwords! It could even spell out personal preference in how various matters are to be handled, including funeral arrangements.
It should contain the specific locations of items mentioned in the letter, such as: “My insurance papers are in my safe deposit box,” or “My Social Security file is in the bottom left-hand drawer of the living room desk.”
Who should have the letter?
You should consider making the letter available to someone outside the household. If you choose to provide a copy to the person who would most likely take over if something happened, you need to remember to send them updates when you change the letter. Mostly, however, it is important that someone be able to find the Letter in the event of an emergency.
How to get help with your letter
Androscoggin Bank’s Trust and Wealth Management Group has a comprehensive list of items that should be included in the letter. Please contact any member of the Wealth Management department for more information on how to prepare your letter of instruction and what to include.
And once you have your letter, don’t forget to update it on a regular basis.
By Barry Kohler, JD, CFP, bkohler@androscogginbank.com
Trust Services are offered through AndroscogginTrust, a division of Androscoggin Bank. Investment Management Services may be offered through AndroscogginTrust, a division of Androscoggin Bank or HeadInvest, a wholly-owned subsidiary of Androscoggin Bancorp, MHC and a registered investment advisor with the Securities and Exchange Commission.
Other investment or insurance products may be offered through INVEST Financial Corporation, member FINRA, SIPC. INVEST is not affiliated with Androscoggin Bank, AndroscogginTrust or HeadInvest.
Any investment management, securities, advisory services and insurance products offered through Androscoggin Trust, HeadInvest (a registered investment advisor) or INVEST Financial Corporation (a registered Broker Dealer and Registered Investment Advisor, and its affiliated insurance agencies):
ARE NOT BANK DEPOSITS, ARE NOT FDIC INSURED; AND ARE NOT OBLIGATIONS OF, OR GUARANTEED BY, ANDROSCOGGIN BANK OR ANY AFFILIATE; AND INVOLVE INVESTMENT RISKS THAT MAY RESULT IN THE POSSIBLE LOSS OF PRINCIPAL.