WHEN YOU MAKE OUT A WILL

When you make out a will or bring one up to date, it is also the practical time to write what lawyers call a "letter of instructions." Don't be intimidated by the formal title; the letter is just an informal document that is not legally binding. Usually, it is addressed to your surviving spouse, one of your adult children, your lawyer or your executor.

Why is it worthwhile to go through this chore? So that your heirs are made aware of what your assets are and where they are, as well as how you want your personal affairs handled. These are important details that can change quickly and are usually impractical to put into a will.

At the very least, your letter of instructions should spell out the exact location of all your important personal papers and also note any personal requests that you want to make. To help you organize a letter that can be as necessary as your will, here are some reminders on what sort of information to include:

Who gets what. Let your heirs know how much they can expect when you die. List all benefits due them from your employer or your business. These include life insurance, 401(k), profit sharing, accident insurance or other fringes, as well as benefits from Social Security, the Veterans Administration or other sources.

People to contact. Put in the names, addresses and phone numbers of persons and organizations to notify in case of your death--relatives and friends, attorneys, accountants, employers, and banks, for instance.

The places you keep personal papers. Indicate the whereabouts of your personal papers, particularly your will, birth and marriage certificates, diplomas, military records, naturalization papers and similar vital documents. Be specific about these locations. Use language like "in my safe-deposit box at the Fifth National Bank" or "in the bottom left-hand drawer of my desk." There is an added plus if you have yet to file your papers properly: Making out this letter will force you to do so before they go astray.

Checking and savings accounts. List all of them--their numbers, the banks and their addresses, names of the owners and location of passbooks. Each year, banks and other financial organizations advertise for missing depositors who forgot their accounts or died without informing relatives about them. Your letter can avoid this.

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