Life Events

A postmortem letter, often called a letter of instruction, is a document you write now for your family or executor to read after your death. It is not a will and it is not legally binding, but it can save loved ones weeks of searching and guesswork at a difficult time.

What the letter is, and is not

A will directs who receives your property and is subject to formal signing rules. A letter of instruction is informal. It tells your family where things are and what you would like done. Because it is not binding, never use it to change who inherits your property. Put those decisions in your will or trust, and keep the letter consistent with them.

What to include

• Key contacts: your attorney, CPA, financial adviser, insurance agent, banker and employer or business partners, with phone numbers.
• Document locations: the will, trusts, deeds, titles, birth and marriage certificates, military records and tax returns, plus the safe deposit box and where the key is kept.
• Accounts and assets: bank, brokerage, retirement accounts, life insurance and annuities, with institution names and how to reach them. Avoid writing full account numbers or passwords in the letter itself.
• Debts and regular bills: mortgages, loans, credit cards, utilities and subscriptions that need to be paid or cancelled.
• Digital life: where to find passwords (such as a password manager), email and social accounts, and your wishes for them.
• Business matters: who should run or wind down the business, key clients, bank and payroll details and where the records are.
• Funeral and burial wishes: preferences, any prepaid arrangements, and organizations to notify.
• People to notify: relatives, friends and groups who should hear directly.
• Personal wishes: care of pets, items with sentimental value and messages to loved ones.

Practical tips

1. Write it in plain language and date it.
2. Keep it somewhere your executor can reach quickly. A safe deposit box may be sealed at death, so a fireproof home safe or your attorney's office is often better.
3. Tell your executor and a trusted family member that it exists and where it is.
4. Review and update it at least once a year and after major life events.

Why the tax side matters

After a death, the estate may need to file a final individual return, an estate income tax return and possibly an estate tax return. Listing your tax preparer and where your past returns are kept makes this far easier. The IRS describes filing duties for decedents at irs.gov.

If you are putting together your estate plan or settling a loved one's affairs, contact our firm and we will help with the financial and tax pieces.