Understanding letters of wishes: a practical guide for clients

When setting up a trust or discussing your estate planning, much of the focus naturally falls on legally binding documents such as wills and trust deeds. However, there is another, often overlooked, document which can play a crucial role in guiding those who will manage your affairs: the letter of wishes.

This article explains what a letter of wishes is, how it works and why it can be an invaluable addition to your estate planning.

What is a letter of wishes?

A letter of wishes is a non-legally binding document that accompanies a trust or, in some cases, a will. It allows you to provide guidance to trustees or executors about how you would like assets to be managed or distributed.

Unlike a will or trust deed, a letter of wishes does not create enforceable obligations. Instead, it serves as a clear expression of your intentions, helping decision-makers act in a way that aligns with your values and preferences. 

Why use a letter of wishes?

Whilst trusts can offer flexibility, that same flexibility can sometimes leave trustees uncertain about how to exercise their discretion. A letter of wishes helps provide valuable direction.

Key benefits include:

• Guidance without rigidity — you can outline your preferences without legally binding trustees to a fixed course of action.
• Flexibility over time — If circumstances change, a letter of wishes can be updated more easily than formal legal documents (though amendments can only be made by the settlor of a trust or the testator of a will).
• Personal insights — It allows you to explain the reasoning behind your decisions, which can be particularly helpful in complex family situations.
• Confidentiality — Unlike a will, which may become a public document, a letter of wishes typically remains private.

What can be included?

The content of a letter of wishes will depend on your personal circumstances, but commonly includes:

• How and when beneficiaries should receive assets;
• Guidance on distributions for education, housing or healthcare;
• Views on managing family businesses or investments;
• Considerations regarding vulnerable or minor beneficiaries;
• Charitable intentions; and
• Wishes regarding guardianship of children (if not formally appointed elsewhere).

You may also include more personal messages to help trustees understand your values and priorities.

How does it work in practice?

Trustees are not legally bound to follow a letter of wishes, but they are expected to take it into account when exercising their powers. In practice, trustees will usually give significant weight to your stated intentions unless there is a compelling reason not to do so.

For example, if circumstances have changed significantly since the letter was written — such as a beneficiary’s financial position or personal needs — trustees may depart from your guidance to act in the best interests of all beneficiaries.

Keeping your letter of wishes updated

One of the key advantages of a letter of wishes is that it can be revised as your circumstances evolve. Major life events — such as marriage, divorce, the birth of children, or significant changes in wealth — should prompt a review of not only your letter of wishes, but of your wills and any trust deeds in existence.

A letter of wishes does not need to be witnessed by an independent adult and therefore, the document can be updated regularly. However, it is good practice to: 

• Date each version clearly;
• Ensure trustees know where the latest version is kept (usually with your solicitor); and
• Review the document regularly alongside your wider estate planning documents.

Is a letter of wishes right for you?

A letter of wishes is particularly useful if:

• You have an established discretionary trust (either in your will or during your lifetime);
• Your family or financial situation is complex;
• You want to provide nuanced guidance that may change over time; or
• You value privacy in your estate planning.

However, it should not be used as a substitute for proper legal documentation. Instead, it works best as a complementary tool.

Our approach

We recognise that no two clients are the same. Our approach is to take time to understand your personal, family and financial situations to ensure that your letter of wishes aligns with your will and any other trust structures.

We can prepare your letter of wishes in a clear and practical way for the trustees to follow, as well as advise you how and when to update your letter of wishes as circumstances change.

We also work with trustees and executors, helping to interpret and apply letters of wishes in a balanced manner.