by Pieter Venter, B.Iuris, CFP®

What is a letter of wishes and where does this fit in?

To answer this it should be noted that a letter of wishes is not a Will and as such not subject to the Wills Act. It is merely an expression of wishes by a person to give guidance to the Executor to be taken into consideration while winding up an estate. It is a non-binding letter designed to sit alongside your will. It provides posthumous guidance to executors, trustees and family members, and provide an opportunity to set out your thought process either, at the time of making the will or at a later date.

In many cases, a letter of wishes will become the most important tool in assisting your executors and trustees in reaching pragmatic early decisions in line with your specific wishes – speaking out where a will cannot. A letter of wishes can be key to assisting your executors to manage family expectations, wealth, the family business, and general family dynamics of many years. Importantly, and unlike a will, it is a private document. The following example should be able to illustrate this.

A Testator has two children who are the sole beneficiaries. Instead of a lengthy listing of personal effects in the will the Testator can stipulate that the furniture and effects be devolved upon his daughters in equal shares. A letter of wishes may express the Testator’s desire that a specific child should get specific pieces of furniture or specific personal effects like jewelry or items of sentimental value. This can assist an Executor greatly when making distributions.

Impetus Wealth Advisors