A ‘Letter of Wishes’ should be used as a guide to trustees or executors about your personal preferences and reasoning on discretionary matters. However, this document is not legally binding in the same way as a Will or Trust deed is. Those wishing to ensure that their estate is distributed according to their wishes should remember that instructions in a Will can be enforceable by law, while a letter of wishes is not, and so these documents should be drafted with that in mind.
Perhaps one of the most famous examples of a Letter of Wishes not being followed is that of the late Princess Diana.
When a Letter of Wishes is Not Followed
Initially, the Will of Princess Diana seemed fairly straightforward when details of its contents were released to the public in 1998, which included, amongst other things, how Prince William and Prince Harry’s inheritance should be distributed. However, it was later discovered that there was a Letter of Wishes, dated the day after she signed her Will, which stipulated that all of her jewellery and three-quarters of her personal property (“chattels”) be passed on to her sons, while the remaining quarter of her chattels should be left to her 17 godchildren.
Although her intentions seemed clear, in both the Will and the Letter of Wishes, it transpired that these wishes were not strictly followed. Instead, her executors petitioned the probate court for a Deed of Variation (changing a Will after death), which was granted to them. The variation allowed the executors to alter the provisions set out within these documents and distribute Diana’s estate differently.
One of the main variations was the delay in the distribution of Prince William and Prince Harry’s inheritance, which meant that they received their trust at the age of 30, instead of 25, although they could still receive interest from the trust fund from the age of 25.
But it was the changes to her Letter of Wishes which caused one of the biggest upsets. The executors gave the 17 godchildren ‘one item’ each from Diana’s estate, rather than the one-quarter of the value of all her personal property (aside from her jewellery). These changes to Diana’s Letter of Wishes were not discovered until several years later, when details of the alterations were revealed through unrelated court proceedings.
The parents of the godchildren were understandably upset by this, but there was no legal recourse to argue against this decision. It is not clear why the executors made these changes, but the court allowed them to ignore the Letter of Wishes because amongst other factors, it contained words such as “discretion” and “wishes”, and it was agreed they could use their own discretion when it came to honouring those wishes.
Understanding the Difference Between a Will and a Letter of Wishes
If someone has taken the time to write a Letter of Wishes, you would hope that executors will carry out those wishes accordingly. However, as this example shows, loopholes can be found, and careful consideration should be taken when drafting this type of document, especially in how it is worded and what is included.
One of the main and most important differences between a Will and a Letter of Wishes is the legal status. A Will is a legally binding document that has strict formalities in how it must be executed that dictate the formal distribution of an estate. In contrast, a Letter of Wishes does not have the same legal requirements and can only provide additional, non-binding guidance for executors and trustees. Consequently, a Letter of Wishes is not enforceable by law in the same way as a Will.
What Can a Letter of Wishes Be Used For?
Typically, a Letter of Wishes can be used to include more detailed information about personal preferences and explanations around what is included in the Will and how it should be distributed. For example, you can include more detailed information surrounding preferences for your funeral, such as the service and whether you would like a burial or cremation. You can also include details for more unusual items, such as how digital assets should be handled, as this might be too complex to include in a Will. A Letter of Wishes can also be used to provide more detailed explanations and reasoning behind your decisions, and why and who should receive specific personal belongings.
Get Legal Advice
While a handwritten letter explaining your wishes can seem more personal, it is still important to seek professional advice about what to include and the wording that is used, as without legal support, there is a greater chance of wishes not being carried out. It is also vital to ensure that valuable and important items are included directly in the Will or Trust to avoid discrepancies over how these items, or the estate, should be distributed.
At Rose & Rose, our specialist estate planning solicitors can advise clients on Wills, Trusts, and Letters of Wishes, including other important items such as Lasting Powers of Attorney.
We can also provide specialist advice and guidance in Will disputes and Inheritance Act Claims.
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