Letters of intent explain wishes when writing a will
In December 2005 when a Missouri elder law attorney, Reginald Turnbull, presented on letters of intent to the National Academy of Elder Law Attorneys, I thought “what a great idea.” This absolutely should be used in connection with supplemental needs trusts for disabled children. I brought the idea back with me from the NAELA conference in Tucson, Ariz. Since then, it has occurred to me more than once that letters of intent should be used not just for special-needs and disabled children but for any minor children and also for older frail and disabled adults whose adult children are providing trusts for them in their wills.
Virtually anywhere where a trust will be administered for another person could be the subject of a letter of intent and the idea, once understood, is simple.
Estate planning has typically been a matter of designating where money and property is to go after the owner’s death. Really, though, the person making his will or establishing his trust would like to know more in many cases.
He or she would want to assure that the funds will be used properly after his or her death and that the people they care about, especially those who are children or who are disabled or vulnerable, will be properly cared for after they die. This is what a letter of intent is all about. It tells the trustee and also the guardian, if there is one, how the funds should be used and, even beyond money, what goals and needs are involved.
Best of all, a letter of intent can be written by the willmaker (testator) or trustmaker (settlor) himself or herself in his or her own words. Letters of intent could be used to look into the future and describe the kind of care and assistance you want your child or disabled elderly parent to receive if you were unable to provide it.
The letter of intent is a glimpse into the future should parents die, leaving funds for their child in trust.
Recently, I have seen more interest from adult children in establishing supplemental needs trusts or support trusts for elderly disabled parents, some with Alzheimer’s or dementia. Letters of intent can help not only the maker but also the trustee who needs direction and advice.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.