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Lithia Motors Families: Why a Letter of Instruction Can Simplify Estate Planning

Healthcare Provider Update: Healthcare Provider for Lithia Motors: Lithia Motors employees typically receive healthcare benefits through a variety of insurance providers, including major national insurers such as UnitedHealthcare, Aetna, and Blue Cross Blue Shield. These insurance partners offer comprehensive health plans that cater to the needs of Lithia Motors' workforce. Potential Healthcare Cost Increases in 2026: In 2026, Lithia Motors employees may face significant increases in healthcare costs, driven by a combination of factors impacting the Affordable Care Act (ACA) marketplace. Premiums for ACA plans are projected to rise sharply, with some states experiencing hikes upwards of 60%, primarily due to the expiration of enhanced federal subsidies and escalating medical costs. As a result, employers like Lithia Motors may adjust their benefit structures, potentially shifting a greater share of healthcare expenses onto employees. Navigating this landscape will require diligence in understanding upcoming benefit changes and making informed decisions about health plan selections to mitigate rising out-of-pocket costs. Click here to learn more

'Lithia Motors employees can bring more clarity to their estate plans by using a well-organized letter of instruction, which is a practical way to help families navigate important decisions with greater confidence.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Lithia Motors employees can create a smoother transition for their families by using a clear letter of instruction, which can be an effective way to support loved ones during estate administration.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Why a letter of instruction can support your estate plan.
What to include in a letter of instruction.
How Lithia Motors employees can use a letter of instruction to help streamline estate administration.

Important Lessons

Estate planning documents like a will and a revocable trust are important, but they might not give your family all the information they need to handle your affairs when you pass away, especially for Lithia Motors employees with complex benefits.

In addition to an estate plan, a letter of instruction can offer your loved ones more information about your assets and personal preferences.

A letter of instruction can contain additional details, such as burial plans and the placement of essential documents, but it should not conflict with your estate planning documents.

Your loved ones might not know who to call, where to find your assets, or how to recognize reputable creditors if something were to happen to you today. By providing clear, supplemental guidance, a letter of instruction can help reduce the stress and work involved in the estate administration process.

A Letter of Instruction: What Is It?

A letter of instruction is an informal document outlining your assets and last wishes, sent to an executor, personal representative, or family members. It adds helpful information not included in legally binding estate planning documents like a will or revocable trust. For Lithia Motors employees managing multiple retirement and savings plans, a letter of instruction can help simplify administration for family members, even though it is not legally required.

Since this letter is informal, it can be updated without consulting an attorney as circumstances change over time. It can contain supplementary information that supports your estate plan, but it should not contradict anything in your legal estate planning documentation.

How to Compose an Instructional Letter

Funeral Plans

You might provide information about your preferred funeral or burial type, funeral home, clergy member, music, speakers, or tribute. You can also include details about pre-paid or pre-arranged funeral or burial plans and where related paperwork is located. Some people also provide biographical details—something Lithia Motors retirees can include for clarity.

Crucial Records

You can note the location of your Social Security card, recent bank account statements, deeds, titles, mortgage documents, important records, and estate planning documents. Some individuals also indicate where to find recent tax returns, which may help identify assets or income sources. If these documents are stored in a lockbox or vault, providing access instructions may be helpful.

Contact Details for Financial Representatives

The names and contact information for bankers, tax preparers, lawyers, insurance agents, real estate agents, and financial advisors can be included in the letter. These professionals can assist with background information, asset identification, account transfers, and final tax filings.

Details of the Assets

You can list your assets’ locations, titling, identifying details, and current values. This may include real estate, stock certificates, savings bonds, annuities, time shares, bank accounts, brokerage accounts, retirement accounts, company interests, safe deposit boxes, life insurance, and personal belongings with monetary or sentimental value.

Computer Files and Online Accounts

You may wish to list your digital files and accounts and designate a successor in your estate planning documents to manage them, since state and federal laws may limit access without written approval. For Lithia Motors retirees who store retirement and benefits information online, this documentation may help reduce challenges.

Details of Debt

You can include information regarding your debts, such as account numbers, balances, statements, and lender contact details.

Beneficiary Details

The beneficiaries listed in your estate plan, along with their contact details, may be included in the letter. This makes it easier for an executor to locate and communicate with those who will receive assets—an important step for families with Lithia Motors retirement accounts.

Pets

You can specify who you want to care for your pets and any specific instructions if your estate documents do not mention them. You may also include your veterinarian’s contact information.

Distribution List for Personal Property

Some states allow individuals to draft a separate document listing specific items of tangible personal property and their intended recipients, as long as the will references the list. Even in states where this is not legally binding, a letter of instruction can still guide your executor and help minimize disagreements.

Private Notes and Clarification of Goals

Some people include private notes or explanations for their decisions regarding inheritance or financial principles. Although not legally binding, these notes can help prevent misunderstandings.

What Does a Letter of Instruction Not Need to Include?

A letter of instruction should not repeat information already found in your estate planning documents. It is intended to provide additional details only.

It also should not be used to make changes to legally enforceable estate documents. Informal updates are not binding and may create conflicts.

Where to Store Your Instruction Letter

You can keep a copy of the letter with your estate planning papers, provide one to your lawyer, or place it somewhere your family is likely to look first. You can also share a copy with your executor and discuss it with them if you feel comfortable. Updating the letter each year is useful as assets and personal information change—particularly for Lithia Motors employees with evolving retirement benefits.

Do You Need Guidance?

The Retirement Group can help you prepare for retirement if you are updating or creating your estate plan and want assistance organizing your family’s financial information. Call us at (800) 900-5867 .

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Sources:

1. Parker, Craig. “How to Write a Letter of Instruction: A Step-by-Step Guide.” Trust & Will, n.d.,
https://trustandwill.com/learn/how-to-write-a-letter-of-instruction . Accessed 1 Dec. 2025.

2. AARP Education & Outreach. “State Your Intentions With a Letter of Instruction.” AARP, 9 Nov. 2022,
https://www.aarp.org/money/retirement/letter-of-instruction/ . Accessed 1 Dec. 2025.

3. Kuffel, Hunter. “Writing a Letter of Instruction for Your Estate Plan.” SmartAsset, 12 Oct. 2025,
https://smartasset.com/estate-planning/letter-of-instruction . Accessed 1 Dec. 2025.

4. McDonald Jacobs. “Letter of Instruction in Estate Planning.” McDonald Jacobs: Portland, Oregon Accountants & Business Consultants, n.d.,
https://www.mcdonaldjacobs.cpa/letter-of-instruction-in-estate-planning/ . Accessed 1 Dec. 2025.

What retirement savings options does Lithia Motors offer to its employees?

Lithia Motors offers a 401(k) plan as a primary retirement savings option for its employees.

How can employees of Lithia Motors enroll in the 401(k) plan?

Employees can enroll in the Lithia Motors 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does Lithia Motors match employee contributions to the 401(k) plan?

Yes, Lithia Motors offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for Lithia Motors' 401(k) matching contributions?

The vesting schedule for Lithia Motors' 401(k) matching contributions typically follows a standard timeline, which can be confirmed in the employee handbook or by HR.

Can employees of Lithia Motors take loans against their 401(k) savings?

Yes, Lithia Motors allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.

What investment options are available in the Lithia Motors 401(k) plan?

The Lithia Motors 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.

Is there a minimum contribution requirement for the Lithia Motors 401(k) plan?

Yes, Lithia Motors may have a minimum contribution requirement for employees wishing to participate in the 401(k) plan, which can be found in the plan documents.

How often can employees change their contribution amounts to the Lithia Motors 401(k) plan?

Employees of Lithia Motors can typically change their contribution amounts at any time, but it’s advisable to check the specific guidelines in the plan documents.

What is the age requirement for employees to start contributing to the Lithia Motors 401(k) plan?

Employees must be at least 21 years old to start contributing to the Lithia Motors 401(k) plan, in accordance with IRS regulations.

Does Lithia Motors offer financial education resources for employees regarding their 401(k) plan?

Yes, Lithia Motors provides financial education resources and workshops to help employees understand and manage their 401(k) plans effectively.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Name of Pension Plan: Determine the specific name of Lithia Motors' pension plan. Years of Service and Age Qualification: Identify the required years of service and age for eligibility. Pension Formula: Review how the pension amount is calculated. Source Document: Find and cite the specific documents where this information is available, including page numbers. Name of 401(k) Plan: Determine the specific name of Lithia Motors' 401(k) plan. Who Qualifies: Identify the eligibility criteria for participating in the 401(k) plan. Source Document: Find and cite the specific documents where this information is available, including page numbers.

Restructuring and Layoffs: Lithia Motors announced strategic layoffs in 2024, aiming for $150 million in annual savings through targeted employee reductions. These layoffs focus primarily on U.S. operations rather than global ones, particularly targeting underperforming management at the store level. These layoffs are part of a broader plan to cut $250 million in expenses, including reducing inventory and third-party service costs (CBT News) (SEC.gov).

Pension and 401(k) Benefits: Lithia Motors offers a range of retirement benefits, including a 401(k) plan with company match, employee stock purchase plans, and performance bonuses. The 401(k) plan allows employees to manage their investments, take out loans against their vested balances, and choose different disbursement methods upon retirement. The company also offers pension benefits for eligible employees, including projections and beneficiary management (Built In) (Benefits Account Manager).

Stock Options and RSUs: Lithia Motors (LAD) offers stock options and RSUs to its employees as part of its compensation packages. Eligibility: These benefits are generally available to executives, senior management, and key employees based on performance and role. Company Acronyms: Lithia Motors uses LAD for its stock options and RSU grants.

Medical Insurance: Lithia Motors provides several health insurance plans, including High Deductible Health Plans (HDHPs) and Preferred Provider Organization (PPO) plans. Dental and Vision Insurance: Coverage is offered through a range of plans, with options for both basic and more extensive dental and vision care. HSAs and FSAs: These accounts help employees manage healthcare expenses by allowing pre-tax contributions.