Planning Briefs

Here's A Fast And Easy Way You Can Supplement A Will

Published Tuesday, February 11, 2014 at: 7:00 AM EST

Do you want to provide guidance above and beyond the terms of your will? You can use “letters of instructions” to fill the gaps. Although such documents aren’t legally binding, they still can be helpful. Here are several issues you might address in this way:

A letter could detail an inventory of your assets, including checking and savings accounts; safe deposit boxes; retirement plans; Social Security and VA benefits; stocks, bonds, and other investments; real estate holdings; and life insurance and other insurance policies.
It also could specify where important papers are located—for example, disclosing where your income tax returns and credit card information may be found. This can ease matters for your executor.
It also might address other personal matters, including funeral, burial, or cremation arrangements; addresses and telephone numbers of people and organizations to be notified when you die; and other specific instructions (for example, providing holiday gifts to caretakers).
Finally, you could use a letter of instruction to indicate personal preferences, such as your wishes regarding a child’s education. You also might explain the bequest each heir will receive and the reason for the choice.

Letters of instructions are meant to supplement, not replace, a valid will. Nevertheless, they can offer valuable guidance at a time of need.

This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.

An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.

Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).