A letter of instruction is an estate planning tool with which many people are unfamiliar, but which nevertheless plays an important role in the estate planning process. Learn more about North Carolina letters of instruction in this presentation.

1. “A letter of instruction is an estate planning tool with which
many people are unfamiliar, but which nevertheless plays an
important role in the estate planning process.”
NORTH CAROLINA
LETTERS OF INSTRUCTION
PART 1
CHERYL K. DAVID
North Carolina Estate Planning and Elder Law Attorney

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A good letter of instruction can be one of the most important estate
planning tools you create, even if it doesn't have the same legal powers as
the other vital devices you include in your plan.
To help explain what a letter of instruction is, why it can be so useful, and
what role it can play in your estate plan, today we begin the first of a two-
part discussion on this important estate planning tool.
SHOWING THE WAY

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It might be easiest to think of a letter of instruction as a kind of road map. A
letter of instruction contains bits and pieces of information that might
otherwise go left out in your broader estate plan.
When we take a step back
and look at the estate
planning process from a
broader perspective, every
tool you create as a part of
your plan is designed to
address issues that occur
either after you have died
or after you have become incapacitated. In both of these situations your
plan will rely on others to carry out your wishes and represent your
interests. These representatives will be called upon to perform specific tasks
depending on what the circumstances are, and what kinds of authority your
estate plan grants.
So, when it comes time for others to represent your interests, will they have
the information they need to go about their business as easily and as
quickly as possible. For example, if you have included a durable financial
power of attorney in your estate plan, your agent will be called upon to
manage your property and financial affairs in the event you become
incapacitated.

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Should that happen, will your agent know what to do? Will your agent know
what banks hold your financial accounts? Will he or she have the
information needed to access such accounts? Will your agent know who
your lawyer is, or your banker, or your doctor? If not, how will your agent
find that information out?
A letter of instruction is designed to answer these kinds of questions. While
we will go into more detail about the kind of information you include in
your letter in our next session, for now what you need to understand is that
the letter itself is really just a way for you to pass on vital information to
those who will be responsible for managing or carrying out your estate plan.
OF LETTERS AND LEGALITY
A letter of instruction
can be one of the most
useful tools you
choose to include in
your plan, but it's
important to
understand how it's
different than the
other tools upon
which your plan might rely. Letters of instruction are informal estate
planning tools,

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meaning there is no specific law that addresses them or imposes
requirements you must meet in order to create them.This means that,
should the time ever come when a judge is asked to rule on the validity of
your letter of instruction and the wishes it contains, the court will not
enforce the letter's provisions. Unlike, for example, a last will and
testament, your estate plan cannot be relied upon as a legally valid estate
planning tool.
However, this legal informality is also one of the letters of instructions
greatest assets.
Because there are no requirements that come with making a letter of
instruction, you are free to use them when and how you like, include
whatever information you like, and change them whenever you like.
YOU NEED TO MAKE YOUR LETTER WITH YOUR
ATTORNEY'S GUIDANCE

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A good letter of
instruction is one
that compliments
your estate plan,
and aids those who
will be asked to
carry out the
wishes you
expressed in your
plan. Though the
letter itself is an
informal tool, it
often serves as the plan's linchpin, bringing all of the other pieces of your
plan into focus so that your representatives will be able to easily manage
your estate.
So, to craft a letter of instruction that does what it is intended to do, you
need to make it in light of the other estate planning tools you and your
attorney have decided to include in your plan. In other words, you cannot
simply rely on your letter of instruction as a standalone estate planning
device, nor can you make it without knowing what your other estate
planning devices do.

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If you'd like more information about letters of instruction, want to get
started on crafting an estate plan, or want to know what you can do to make
your letter of instruction more useful, contact us so we can discuss it.

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ABOUT THE AUTHOR
Cheryl David is a graduate of UNC-Chapel Hill, the
University of Baltimore School of Law, and the
prestigious Trial Lawyer’s College presided over by
Gerry Spence. A former Administrative Judge, Cheryl
is certified as an Estate Planning Law Specialist by the
ABA accredited Estate Law Specialists Board, Inc. She
is also a member of the American Academy of Estate
Planning Attorneys, Medicaid Practice Systems and
the National Academy of Elder Law Attorneys.
In 2008, Cheryl received the honor of becoming a Fellow with the American
Academy of Estate Planning Attorneys. The Fellow program recognizes Academy
Members who demonstrate advanced expertise and significant practical
experience in the total estate planning, trust, tax planning, guardianship, probate
and estate administration fields. In order to maintain this advanced expertise,
Cheryl takes over 36 hours of continuing education in Estate Planning, Elder Law,
and Taxation each year. Also a Financial Planner, she holds the Series 7 and 66
Investment Licenses in addition to both Insurance and Long Term Care/Medicare
designations.
Her professional capabilities, together with over 25 years in practice, have
combined to bring positive change to the lives of over 4500 clients and their
families.
528 College Road
Greensboro, NC 27410
Phone: (336) 547-9999
Fax: (336) 547-9477
WWW.CHERYLDAVID.COM