Fidelity Letter of Instruction Form

What is the Fidelity Letter of Instruction

The Fidelity Letter of Instruction is a crucial document that provides specific guidance regarding the management and distribution of assets held with Fidelity Investments. This letter serves as a formal request to Fidelity, detailing how an account holder wishes their assets to be handled in various scenarios, such as in the event of incapacity or death. It is particularly important for ensuring that the account holder's wishes are clearly communicated and legally recognized.

How to Use the Fidelity Letter of Instruction

Using the Fidelity Letter of Instruction involves several key steps. First, the account holder must clearly outline their intentions regarding asset management, including beneficiary designations and specific instructions for asset distribution. Once the letter is completed, it should be submitted to Fidelity Investments through the appropriate channels, such as online submission or by mail. It is advisable to keep a copy for personal records. Regularly reviewing and updating the letter ensures that it reflects any changes in personal circumstances or preferences.

Key Elements of the Fidelity Letter of Instruction

A well-crafted Fidelity Letter of Instruction should include several essential elements to be effective. These include:

• Personal Information: Full name, account number, and contact details.
• Beneficiary Designations: Names and contact information of individuals or entities designated to receive assets.
• Specific Instructions: Detailed directives on how assets should be managed or distributed.
• Legal Signatures: Signatures of the account holder and any witnesses, if required.

Ensuring these elements are present helps maintain the document's legal validity and clarity.

Steps to Complete the Fidelity Letter of Instruction

Completing the Fidelity Letter of Instruction involves a systematic approach:

1. Gather Information: Collect necessary personal and account details.
2. Draft the Letter: Clearly outline your instructions, ensuring all key elements are included.
3. Review: Check the document for accuracy and completeness.
4. Sign the Document: Ensure that you sign the letter, and have it witnessed if required by state law.
5. Submit: Send the letter to Fidelity through the designated submission method.

Following these steps ensures that the letter is properly executed and submitted.

Legal Use of the Fidelity Letter of Instruction

The Fidelity Letter of Instruction is legally recognized as a binding document when executed properly. It must comply with relevant state laws and regulations governing estate planning and asset distribution. The letter should be clear and unambiguous to avoid any potential disputes among beneficiaries. Consulting with a legal professional can enhance its validity and ensure compliance with applicable laws.

Examples of Using the Fidelity Letter of Instruction

Common scenarios for utilizing the Fidelity Letter of Instruction include:

• Estate Planning: Specifying how assets should be divided among heirs.
• Incapacity Planning: Providing instructions for asset management if the account holder becomes incapacitated.
• Charitable Giving: Designating funds or assets to specific charities upon the account holder’s passing.

These examples illustrate the versatility and importance of the Fidelity Letter of Instruction in managing personal assets effectively.