LOI = Letter of Instruction, not laughing out loud or lots of luck.
It goes along with your will and ties together loose ends that have not been addressed through your will or trust.
In an LOI you can mention to whom you would like to leave a piece of jewelry, your favorite tools, a piece of art, an expensive watch, etc. This helps your executor know your wishes and reduces any family friction as to "who gets what"!
You may also state certain requests and preferences in your LOI about funeral arrangements, services, burial or cremation as well as songs, prayers, rituals and family traditions.
If you are young and in good health with no intention of dying you may pose these questions to your parents or grandparents. You certainly want to honor their wishes and encouraging them to put these wishes in writing provides immeasurable relief to those left behind with the job of distributing their estate.
It also opens the door to:
Bring up inheritance issues for discussion.
Decide what "fair" means.
Ask family members what items they would like.
Consider how to deal with family dynamics and conflicts before they arise.
Be $ Smart - make your wishes known by preparing an LOI to ease the task for your loved ones.