Draft Letter of Wishes

To the trustees of the trust

This Letter of Wishes relates to the trust established in connection with the policy detailed below. I ask that you consider the contents of this letter when exercising your powers and discretions as trustees.

Personal details

• Full name: ______________________________
• Date of birth: __________________________
• Address: ________________________________

Trust & policy details

• Policy provider: ________________________
• Policy number: __________________________
• Trust type (if known): __________________
• Date trust created: _____________________

Revocation of previous Letters of Wishes

This Letter of Wishes replaces and supersedes any previous Letter of Wishes I may have provided in relation to this trust.

Capacity and voluntary statement

I confirm that I am making this Letter of Wishes voluntarily, freely and whilst having full mental capacity to do so.

Purpose of this letter

This Letter of Wishes is provided for guidance only and is not legally binding upon my trustees. I request that my trustees take its contents into consideration when exercising their powers and discretions. However, I acknowledge that they must exercise their own independent judgement and act in the best interests of the beneficiaries having regard to the circumstances existing at the relevant time. I recognise that circumstances may change and therefore expect my trustees to retain flexibility when making decisions.

Primary beneficiaries

I would wish my trustees to consider the following persons as primary beneficiaries — name, relationship, preferred proportion (%). The proportions stated are intended only as guidance and do not create any fixed entitlement.

Alternative beneficiaries

Should any primary beneficiary predecease me, be unable to benefit, or where circumstances make a distribution inappropriate, I would wish my trustees to consider the following alternative beneficiaries — name and relationship.

How I would wish funds to be used

• Financial security and wellbeing
• Mortgage repayment or housing needs
• Education and training
• Healthcare and medical requirements
• Family support and maintenance
• Protection of beneficiaries during periods of financial hardship
• Long-term financial stability

Timing of payments

Whilst recognising that trustees must retain discretion, I would wish them to consider my preferred guidance on the timing of distributions (for example, staged payments at particular ages or life events).

Guidance regarding children

Where a beneficiary is under the age of ___ years, I would prefer that trust funds are used for their maintenance, education, healthcare, welfare, housing and general advancement until they are considered sufficiently mature and financially responsible to manage funds independently.

Guidance regarding vulnerable beneficiaries

Where a beneficiary may be vulnerable due to age, ill health, disability, addiction, financial difficulties, creditor claims, undue influence, coercive relationships or other factors affecting their ability to manage funds responsibly, I would wish my trustees to consider:

• Retaining funds within the trust
• Making payments directly for their benefit
• Staggering distributions over time
• Obtaining professional advice where appropriate

Trustee guidance

When exercising your discretion, I would be grateful if you would consider:

• The financial needs of beneficiaries
• Their personal circumstances at the time
• Their health, welfare and future security
• The efficient use of trust assets
• Maintaining fairness between beneficiaries where appropriate
• Any significant changes in family circumstances

Family protection considerations

Where appropriate, I would wish my trustees to take into account the protection of trust assets from potential risks including divorce or relationship breakdown, bankruptcy or insolvency, creditor claims, financial exploitation, and poor financial decision-making. I would generally prefer trust benefits to be preserved and applied for the long-term benefit of my intended beneficiaries wherever reasonably possible.

Special considerations & additional notes

Space for any particular matters you would wish the trustees to consider, and any additional notes.

Future review

I acknowledge that circumstances, relationships and financial needs may change over time. I intend to review this Letter of Wishes periodically and may amend, replace or withdraw it at any time.

Important declaration

I have prepared this Letter of Wishes to assist the trustees in understanding my wishes and intentions. This document is not legally binding and is intended solely as guidance. I request that my trustees give due consideration to the matters set out above whilst exercising their powers independently and in accordance with the terms of the trust and their fiduciary duties. I understand that my trustees must act based upon the circumstances existing at the time any decision is made and that they may depart from these wishes where they believe it is appropriate to do so. I reserve the right to amend, replace or withdraw this Letter of Wishes at any time. This Letter of Wishes supersedes any previous Letter of Wishes relating to this trust.

Signature

• Signed: __________________________________
• Full name: _______________________________
• Date: ____________________________________

Optional witness

Not generally required, but may assist with evidencing authenticity.

• Witness name: ____________________________
• Address: _________________________________
• Signature: _______________________________
• Date: ____________________________________

A note to my trustees

I have created this trust and this Letter of Wishes to provide protection, flexibility and financial security for those I care about most. Whilst I appreciate that circumstances may differ from those existing at the date of this letter, I ask that you carefully consider the spirit and intention of my wishes when exercising your discretion. I thank you for acting as trustee and for undertaking this important responsibility.

Related reading: Expression of Wishes — how it works · Writing a policy in trust