Legal Question in Wills and Trusts in California
Letter of Instruction
I need to include a letter of instruction with a distribution form for an IRA that my father left to me. What is a letter of instruction?
2 Answers from Attorneys
Re: Letter of Instruction
It's just a letter telling them what to do with the account (pay it to you immediately, or over time, for example). They may also want it to have a "medallion signature guarantee", which you can get at your bank or brokerage office.
Re: Letter of Instruction
It is a letter telling the broker dealer what to do with the IRA. Normally, if you are a beneficiary, a bene rollover IRA account is opened and you fill out an IRS distribution form. When there is more than one bene on an IRA account, the broker dealer will require an LOI (letter of instruction) from the executor of the estate of the deceased on how to divide up the cash and/or securities.
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