What is a "letter of intent" in estate planning?

A "letter of intent" in estate planning serves as a non-binding document that expresses a deceased person's wishes regarding the distribution of their assets. It allows the individual to communicate intentions, preferences, and important information to heirs and executors. While it informs and guides those responsible for managing the estate, it does not have the legal force of a will or contract, meaning it cannot be enforced in a court of law.

This kind of document is particularly useful for clarifying the deceased's expectations, including any specific desires about how certain personal items should be handled or how the executor should manage the estate. Since it is not legally binding, it can be more flexible and informal than a will, allowing for the inclusion of personal sentiments or explanations that might not be suitable in a legal document.

Other options describe legal constructs that do not accurately reflect the nature of a letter of intent. For example, a legally binding contract for asset distribution would imply enforceability in law which does not apply to a letter of intent. Similarly, a guideline for property management after death or a formal will without legal significance would misrepresent the role of the letter of intent and its purpose in estate planning.