When parents create a vulnerable beneficiary trust for a loved one, they spend a great deal of time getting the legal structure right. The tax treatment, the choice of trustees, and the terms of the trust all require careful thought and specialist advice.
However, there is a second document, quieter, less formal, and often overlooked, that can matter just as much: the letter of wishes.
For the trustees who will one day make decisions on your loved one’s behalf, a letter of wishes can be the difference between acting in the spirit of what you wanted and simply acting within what is legally permitted.
What is a letter of wishes?
A letter of wishes sits alongside a trust; it gives trustees your guidance, your values, your priorities, and your understanding of the person they are there to support. Whilst a letter of wish is not legally binding, Trustees are expected to consider it when exercising their discretion.
Think of it as your voice in a room you may no longer be in.
Trustees, whether professional or personal, may not know your loved one the way you do. They will understand their legal obligations, but they will not necessarily know what makes a good day for the person in their care. A letter of wishes bridges that gap.
What can it cover?
There is no fixed format, but a strong letter of wishes will typically address:
- The beneficiary’s daily routines, preferences, and what genuinely supports their wellbeing
- Medical or care-related information trustees should be aware of
- How you hope the trust funds will be used, specific therapies, maintaining a standard of living, prioritising independence
- Any concerns or particular circumstances you want trustees to understand
- Your long-term vision for their life and future
Take a family whose daughter has a learning disability. Her parents know she thrives with a structured weekly routine, that she benefits from a particular day service, and that sudden changes in her environment can cause significant distress. None of that appears in the trust deed. A letter of wishes is where that knowledge lives on, and where it can continue to shape the decisions made on her behalf.
Not legally binding — but hugely valuable
Some people assume that because a letter of wishes is not legally binding, it is not worth the effort. In reality, it is one of the most practical steps you can take.
Trustees generally want to follow its guidance. A clear, thoughtful letter helps them make better decisions with greater confidence, and reduces the risk of well-intentioned choices that simply miss the mark.
There is also a practical advantage. Because it is not a formal legal document, a letter of wishes can be updated at any time, without the cost or formality of amending the trust itself. A beneficiary’s needs change as they get older. Their circumstances evolve. The letter of wishes can evolve with them.
Comment
At Nelsons, we strongly recommend preparing a letter of wishes alongside every vulnerable beneficiary trust, and we support our clients in drafting one that is clear, practical, and personal to their family. While trustees must always act within the trust deed and their fiduciary duties, a letter of wishes provides essential guidance on how those powers should be exercised in practice.
Our Wills and Probate team includes experienced trust practitioners who understand both the legal and human dimensions of this work. We take the time to understand your family’s circumstances so that the guidance you leave reflects what genuinely matters, not just what is legally sufficient.
A vulnerable beneficiary trust, supported by a carefully considered letter of wishes, is one of the most effective ways to protect your loved one’s future.
How can we help?
Tom Glenister is a Senior Associate in our expert Wills and Probate team, advising on Wills, LPAs, administration of estates, including intestate estates, Grants of Probate, and Powers of Attorney.
If you are thinking about putting a trust in place, or would like advice on an existing arrangement, please get in touch with Tom or another member of the team in Derby, Leicester or Nottingham on 0808 189 9643 or via our online enquiry form.
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If this article relates to a specific case/cases, please note that the facts of this case/cases are correct at the time of writing.