Estate planning can be complex, but every piece plays a role in protecting your clients’ legacy. While a trust serves as the legal foundation for preserving wealth, a grantor’s letter of intent adds personal insight that can guide loved ones long after your client is gone.
This optional yet powerful document allows individuals to express the values, intentions, and vision behind their estate plan, bringing clarity to decisions and reinforcing the purpose of the trust for future generations.
What is a letter of intent?
A letter of intent—sometimes called a letter of wishes, statement of intent, family values statement, grantor letter, or side letter—is an informal yet meaningful addition to an estate plan. While not legally binding, this personal letter offers valuable context that supports formal documents such as a last will and testament or trust.
It gives the grantor an opportunity to articulate their intentions, guiding both the trustee(s) and beneficiaries in understanding the purpose behind their estate plan.
A well-crafted letter of intent can help:
- Outline suggested guidelines for distributions
- Communicate the overarching goals for the assets
- Explain the reasoning behind specific decisions
Though it doesn’t carry legal weight, a grantor’s letter of intent can be instrumental in clarifying a trust’s provisions. It provides insight that can guide trustees as they carry out the terms of the trust document, helping preserve both the vision and the structure of the estate plan.
What are the benefits of a grantor’s letter of intent?
While it may seem like a small detail, a letter of intent is often the grantor’s final chance to personally communicate their vision, priorities, and reasoning to both the trustee(s) and future beneficiaries. It can be an invaluable tool for bringing clarity and continuity to an estate plan.
Here are a few key benefits of including a letter of intent:
- Reduce the risk of family conflict.
A thoughtful explanation of the grantor’s decisions can ease the emotional burden on family members and may help reduce potential disputes among beneficiaries. It gives context to choices that may otherwise feel confusing or unexpected. - Reinforce family values over time.
Whether the trust is administered by a family member or a corporate trustee, a grantor’s letter of intent can provide guidance to a trustee and insight to the beneficiaries of the grantor’s wishes that extends beyond the legal documents. It may help uphold the values and principles that mattered most to the grantor, supporting consistency as the trust moves across generations. - Clarify the wishes of the grantor.
Legal terms in a trust may be deliberately flexible. A letter of intent may help the trustee make informed administrative decisions when considering the known wishes of the grantor.
A letter of intent is a powerful complement to any estate plan that can bridge the gap between legal structure and personal statement.
Best Practices for Writing a letter of intent
A letter of intent offers the grantor a meaningful way to share their intentions, values, and personal insights with trustees and future beneficiaries. While it is best to speak with an estate planning attorney regarding letters of intent, here are some things to consider.
- Consider every potential reader.
Both beneficiaries and trustees will likely read the letter of intent. It is important for a grantor to convey their message in a clear and respectful way to help the reader better understand the intent. - Share personal reflections and messages.
Including stories, values, and messages to loved ones can add meaning beyond financial instructions. These reflections help future generations better understand the grantor’s vision and the purpose behind their decisions. - Consider potential reasons beneficiaries might request distributions.
It can be helpful for a grantor to address how the trustee evaluates distribution requests: e.g., starting a business, buying a home, education, travel, etc. - Avoid contradictions with the trust document.
A letter of intent should not conflict with the trust. If discrepancies arise, the legal trust document will always take precedence. - Keep legally binding instructions in the trust or will.
Since a letter of intent is not legally enforceable, all binding directives must be included in the formal estate planning documents. - Review the letter with an estate planning attorney.
Collaborating with an attorney ensures the letter complements the trust document without creating confusion. Legal guidance helps align the letter’s content with the overall goals of the estate plan.
When done thoughtfully, a grantor’s letter of intent becomes a lasting expression of purpose and guidance.
How Cumberland Trust Supports Family Legacies
At Cumberland Trust, we work alongside estate planning attorneys, financial advisors, and accountants to support families through thoughtful, independent trust administration. As a directed trustee, we are a collaborative partner that prioritizes clients and strives to provide a seamless administration experience and personalized service.
Cumberland Trust provides:
- Independent, high-touch service
Our directed trust model separates investment management from trust administration—allowing families to maintain their trusted advisor relationships while benefiting from our impartial, high-touch trust services.
- Personalized attention
We maintain a low client-to-officer ratio–far below industry averages. This means your clients receive responsive service, tailored to their unique needs and family dynamics.
- Comprehensive trust administration
From traditional family trusts to more complex arrangements, Cumberland Trust offers a wide range of services that are often hard to find at larger institutions.
- Professional governance and accountability
Unlike some individual trustees – such as family members or friends – we operate under regulatory oversight and a high fiduciary standard. Our neutral approach encourages transparency and continuity over time.
If your client has crafted a thoughtful letter of intent, we’re here to help bring that vision to life. Connect with our team today to explore how Cumberland Trust can support their goals with integrity and care.