Letter Of Instruction Template: Free Samples & How-to Guide

Nick Leason

-Sep 28, 2025

Letter Of Instruction Template: Free Samples & How-to Guide

A Letter of Instruction template provides a structured format for conveying specific directions or wishes, often concerning assets, healthcare, or final arrangements. This guide covers what LOIs are, how to use them, and offers free templates.

Key Takeaways

A Letter of Instruction (LOI) is a document that outlines specific instructions or wishes, often related to financial assets, healthcare, or end-of-life arrangements.
LOIs are not legally binding like wills, but they provide valuable guidance to executors, family members, and other relevant parties.
Common uses for LOIs include detailing investment preferences, funeral arrangements, digital asset management, and healthcare wishes.
Templates can streamline the LOI creation process, ensuring essential information is included and the document is clearly formatted.
While not a substitute for a will, an LOI can complement estate planning documents by providing specific details and personal preferences.

Introduction

A Letter of Instruction (LOI) serves as a vital communication tool, offering clarity and guidance on various personal matters. Unlike a legally binding will, an LOI expresses your wishes and provides detailed instructions to your family, executors, or other relevant parties. It's a flexible document that can address a range of topics, from financial assets and healthcare preferences to funeral arrangements and digital legacy. This guide explores the purpose, uses, and creation of Letters of Instruction, offering templates and best practices to help you create your own.

What & Why

What is a Letter of Instruction?

A Letter of Instruction is a written document that outlines specific directions or preferences. Think of it as a detailed note to your loved ones or executors, providing clarity on matters that might not be explicitly covered in your will or other legal documents. It's a way to communicate your intentions and wishes, making the decision-making process easier for those you leave behind.

Why Use a Letter of Instruction?

Clarity and Guidance: An LOI offers a clear roadmap for handling specific situations, reducing confusion and potential disputes.
Personalization: It allows you to express personal preferences and wishes that might not be suitable for a formal legal document.
Flexibility: You can easily update an LOI as your circumstances and wishes change, without needing to revise your will.
Complementary to a Will: An LOI works alongside your will, providing additional details and context.
Ease of Access: It can be kept in an easily accessible location, ensuring it's readily available when needed.

Common Uses for Letters of Instruction

Financial Assets: Detailing investment account information, stock preferences, or instructions for managing specific assets.
Insurance Policies: Providing information on life insurance policies, including policy numbers and beneficiary details.
Digital Assets: Listing online accounts, passwords, and instructions for managing digital assets like social media profiles and email accounts.
Funeral Arrangements: Expressing preferences for funeral services, burial, or cremation.
Healthcare Wishes: Outlining preferences for medical treatment, end-of-life care, or organ donation.
Personal Belongings: Specifying who should receive sentimental items or personal property.
Business Interests: Providing instructions for the management or transfer of business ownership.

Benefits of Having a Letter of Instruction

Reduces Burden on Loved Ones: By providing clear instructions, you ease the stress and burden on your family during a difficult time.
Prevents Disputes: Clear communication of your wishes can help prevent disagreements among family members.
Ensures Your Wishes are Followed: An LOI increases the likelihood that your specific preferences will be honored.
Provides Peace of Mind: Knowing your affairs are in order and your wishes are documented offers peace of mind.

Risks of Not Having a Letter of Instruction

Confusion and Uncertainty: Without clear instructions, your loved ones may be unsure of your wishes.
Potential for Disputes: Lack of clarity can lead to disagreements and conflicts among family members.
Assets May Not Be Distributed as Desired: Your specific wishes regarding asset distribution may not be followed.
Increased Stress and Burden on Loved Ones: Dealing with your affairs without clear guidance can be overwhelming for your family.

How-To / Steps / Framework Application

Steps to Writing a Letter of Instruction

Identify Your Goals: Determine what specific instructions or wishes you want to convey in your letter. Make a list of the key topics you want to address.
Gather Information: Collect all relevant documents and information, such as account statements, insurance policies, and contact details.
Use a Template (Optional): Start with a template to ensure you include all essential information and follow a clear format (see section below for template resources).
Be Clear and Specific: Use clear, concise language and provide specific details. Avoid ambiguity or vague statements.
Organize Your Letter: Structure your letter logically, grouping related information together. Use headings and subheadings to improve readability.
Include Contact Information: Provide contact details for relevant individuals, such as your attorney, financial advisor, or executor.
Consider Digital Assets: Include instructions for accessing and managing your digital accounts, such as email, social media, and online banking.
Review and Revise: Carefully review your letter for accuracy and clarity. Make any necessary revisions.
Sign and Date Your Letter: Sign and date your letter to authenticate it. While not legally required, it adds a level of formality.
Store in a Safe and Accessible Place: Keep your letter in a safe place where your loved ones can easily find it when needed. Inform them of its location.
Update Regularly: Review and update your letter periodically, especially if your circumstances or wishes change.

Key Elements to Include in Your Letter of Instruction

Personal Information: Your full name, address, and date of birth.
Contact Information: Contact details for your executor, attorney, financial advisor, and other relevant individuals.
Financial Assets: Information on bank accounts, investment accounts, retirement accounts, and other assets.
Insurance Policies: Details of life insurance policies, including policy numbers and beneficiary information.
Digital Assets: List of online accounts, passwords, and instructions for managing digital assets.
Funeral Arrangements: Preferences for funeral services, burial, or cremation.
Healthcare Wishes: Preferences for medical treatment, end-of-life care, and organ donation.
Personal Belongings: Instructions for distributing sentimental items or personal property.
Business Interests: Information on business ownership and instructions for management or transfer.
Debts and Liabilities: Details of any outstanding debts or liabilities.
Other Instructions: Any other specific instructions or wishes you want to convey.

Framework for Organizing Your Letter

You can organize your letter into sections based on the different topics you want to address. Here's a suggested framework:

Introduction: Briefly state the purpose of the letter and who it is intended for.
Financial Information: Detail your financial assets, bank accounts, investment accounts, and insurance policies.
Digital Assets: List your online accounts, passwords, and instructions for managing your digital footprint.
Personal Wishes: Express your preferences for funeral arrangements, healthcare, and personal belongings.
Other Instructions: Include any other specific instructions or wishes that don't fit into the above categories.
Closing: Thank the reader and express your gratitude.

Examples & Use Cases

Example 1: Detailing Investment Preferences

An LOI can specify your preferences for managing your investment portfolio after your passing. For example, you might instruct your executor to maintain a specific asset allocation, continue investing in certain sectors, or sell specific holdings.

Example 2: Specifying Funeral Arrangements

Your LOI can outline your wishes for your funeral service, including the type of service, location, music, and any specific requests, such as charitable donations in lieu of flowers.

Example 3: Managing Digital Assets

You can use an LOI to provide instructions for accessing and managing your digital accounts, including email, social media, and online banking. This can prevent your digital legacy from becoming inaccessible. — How To Watch Steelers Games Today

Example 4: Expressing Healthcare Wishes

An LOI can complement your advance healthcare directive (living will) by providing additional details on your preferences for medical treatment and end-of-life care. — Living In Garden City, MO: A Comprehensive Guide

Use Cases Across Different Life Stages

Young Adults: Specifying digital asset management, student loan repayment preferences.
Families with Young Children: Designating guardianship preferences, outlining financial support for children.
Individuals Nearing Retirement: Detailing retirement account management, long-term care preferences.
Seniors: Expressing end-of-life care wishes, funeral arrangements, and distribution of personal belongings.

Best Practices & Common Mistakes

Best Practices for Writing an Effective Letter of Instruction

Be Clear and Concise: Use simple, straightforward language and avoid jargon.
Be Specific: Provide detailed instructions and avoid vague statements.
Be Organized: Structure your letter logically and use headings to improve readability.
Be Comprehensive: Cover all relevant topics and include all necessary information.
Be Up-to-Date: Review and update your letter regularly to reflect changes in your circumstances or wishes.
Keep it Accessible: Store your letter in a safe place where your loved ones can easily find it.
Inform Your Loved Ones: Let your family and executor know that you have a letter of instruction and where it is located.

Common Mistakes to Avoid

Using Vague Language: Avoid ambiguous terms or statements that could be misinterpreted.
Failing to Update: An outdated LOI may not reflect your current wishes or circumstances.
Not Being Specific Enough: Provide sufficient detail to ensure your instructions are clear and actionable.
Confusing it with a Will: Remember that an LOI is not a legally binding document like a will.
Not Storing it Properly: If your letter cannot be found, it cannot be followed.
Not Informing Loved Ones: Your family needs to know about the LOI to access and utilize it.

FAQs

1. What is the difference between a Letter of Instruction and a will?

A Letter of Instruction is a non-legally binding document that provides guidance and details on your wishes. A will is a legally binding document that dictates how your assets will be distributed after your death. An LOI complements a will by offering specific instructions and personal preferences.

2. Is a Letter of Instruction legally binding?

No, a Letter of Instruction is not legally binding. It serves as a guide for your loved ones and executors but does not have the same legal authority as a will or trust.

3. How often should I update my Letter of Instruction?

You should review and update your Letter of Instruction periodically, especially if you experience significant life changes, such as marriage, divorce, the birth of a child, or changes in your financial situation. — UPS Driver Jobs: How To Apply

4. Where should I store my Letter of Instruction?

Store your Letter of Instruction in a safe and accessible place, such as a home safe, safety deposit box, or with your attorney. Inform your loved ones and executor of its location.

5. Do I need an attorney to create a Letter of Instruction?

While you don't need an attorney to create a Letter of Instruction, it's always a good idea to consult with an estate planning attorney to ensure your LOI aligns with your overall estate plan and to discuss any legal implications.

6. Can I include funeral arrangements in my Letter of Instruction?

Yes, you can and should include your preferences for funeral arrangements, such as the type of service, burial or cremation wishes, and any specific requests.

Conclusion with CTA

A Letter of Instruction is a valuable tool for communicating your wishes and providing guidance to your loved ones. By creating a comprehensive and up-to-date LOI, you can ease the burden on your family and ensure your preferences are honored. Download our free Letter of Instruction template today and take control of your legacy. Ensure your loved ones are prepared – start drafting your Letter of Instruction now!

Last updated: October 26, 2023, 14:30 UTC