Letter of Wishes

A letter of wishes (sometimes called a memorandum of wishes) sits outside the formal legal architecture of a trust. It cannot override the trust document, but it gives trustees meaningful context: why certain beneficiaries may need different treatment, how the settlor felt about responsible use of wealth, what values should guide discretionary distributions, or how specific assets — a family business, a collection, a vacation property — should be handled. Trustees are not legally required to follow it, but most take it seriously as a window into the settlor's intent.

For families at higher levels of wealth, a letter of wishes often addresses questions the trust document deliberately leaves open. A discretionary trust intentionally gives trustees broad flexibility; the letter of wishes helps trustees exercise that flexibility wisely. A hypothetical patriarch might use his letter to explain that one child has a disability requiring conservative distributions, while another has demonstrated entrepreneurial drive that the family hopes to support.

Because it is non-binding and private — typically not filed with any court — a letter of wishes can be updated frequently without legal formality, making it more practical to keep current than amending the trust itself. A common confusion is treating the letter as legally enforceable; it is not. Another is writing it once and never revisiting it. Estate counsel and the family's advisors at firms experienced with managing substantial wealth often recommend reviewing it after any major family or financial change.