LETTER OF WISHES
Back to GlossaryDefinition
A non-binding document written by the creator of a discretionary trust to share personal thoughts and perspectives with those who will be serving over the years as trustees. Commonly contained are posthumous expressions of thanks or love to the objects of the trust.
Summary
A Letter of Wishes is like a personal note that someone who creates a discretionary trust leaves behind for the trustees (the people who will manage the trust). While it's not legally binding, it serves as guidance to help trustees understand the creator's personal intentions, values, and wishes for how the trust should be managed. Think of it as a heartfelt letter explaining 'here's what I hope you'll consider when making decisions about this trust.' It often includes personal messages of gratitude and love for the beneficiaries, making it both a practical guidance tool and an emotional communication from beyond.
Usage Context
Understanding Letters of Wishes is important when studying trust administration, estate planning, and the relationship between legal obligations and moral guidance in fiduciary relationships. This concept often comes up when examining how trustees exercise their discretion and balance legal duties with the settlor's personal intentions.
Common Confusions
- Thinking the Letter of Wishes is legally binding like the trust deed
- Confusing it with a will or testament
- Believing trustees must follow it exactly
- Assuming it can override the trust's legal terms
- Thinking it's required for all trusts to have one
