“One thing I don’t understand. If this is the digital age, then why do I have so many papers – legal, financial, and junk in files or piles? I need help…”
It is important to keep vital documents, but it is getting more difficult to know just what papers are those you need to keep vs the ones you can get rid of. Here is a handy guide to help make decisions about your important documents, especially when preparing to move.
What to Keep
Any documents that you need to establish your identity or property ownership and those that keep your financial assets safe should be kept … and they should be stored in a safe place, in a fireproof safe or digitized with appropriate back-up on the Cloud or hard copies.
- Birth certificates and adoption papers. Keep originals in a safe and make copies for ready reference, if needed.
- Social Security cards (copies). Never carry your Social Security card with you for identification.
- ID cards and naturalization papers (copies). Be sure you have a copy of your military ID, driver’s license, state-issued ID, passport or green card and any papers relating to citizenship, immigration or naturalization.
- Marriage and/or divorce document copies, including your marriage certificate or divorce papers, prenuptial agreement, alimony, or child support agreements.
- Church records of baptism, communion, confirmation
- Living Will and/or Health Care Proxies (copies); Last Will and Testament (copy); Power of Attorney (copy)
- Updated Medical Records
- Disability documentation or proof of benefits papers. Keep the latest statement.
- Professional appraisals. If you own high-value items that have been appraised, such as original art, heirloom jewelry, or antiques), be sure to keep these in the safe.
- Deeds and ownership forms. Mortgage papers or any real estate deed; title and registration for any vehicles.
- Financial account documents. A list of any bank accounts with account numbers and institution names should be kept, including checking and savings accounts, retirement and investment accounts, and insurance policies (with agent contact information). If you access these accounts on-line, access codes and passwords should be included.
- Investment records including retirement plan statements
- Safe Deposit box keys and updated inventory
- Credit Card information. A list of accounts and contact information for credit cards and any outstanding debts.
- Updated Household Inventory
- Online information, including log-in access codes and passwords.
Be sure to advise one or two trusted individuals where the safe is located and the combination (or where keys are located), so the documents can be accessed in an emergency.
To Keep in a Safety Deposit Box
Original documents (not copies) should be kept either with your attorney or in a Safety Deposit Box that can be accessed upon your incapacitation or death.
- Marriage Certificate (or Divorce/Settlement papers)
- Death Certificate
- Citizenship papers and Military records
- Pension papers
- Social Security Cards
- Real Estate Deeds and Settlement papers
- Savings Bonds
To Keep, but not forever!
The following documents need to be retained for a certain period. Depending on importance, store them in a home safe, in a safety deposit box, or with your attorney, accountant/CPA.
- Tax records and receipts (7 years)
- Self-Employment records and 1099s (7 years)
- Bank Statements and Salary Stubs (1 year)
- Real Estate sale or improvement documents (6 years after you sell)
- Medical records and bills (1 year)
- Manuals, Warranty documents, and receipts for household appliances, etc. (keep as long as you own items)
Some sources disagree on how long you need to save certain records. If the document supports a tax return, save it as long as you save your tax records (7 years). The IRS has six years to question a return and your return is for the previous calendar year, so seven years is a good rule of thumb.
What to Shred
Anything that has personal information: your name, address, phone number, social security number, or bank account information, should be shredded. Anything that has a signature, account number, social security number, or medical or legal information (plus credit offers), including the following:
- Old Tax forms (older than 8 years)
- Used airline tickets, luggage tags, and travel itineraries
- Visas and Passports
- Utility Bills
- Documents with Social Security numbers or checking account numbers
- ATM receipts; Bank statements
- Canceled and voided checks; Cancelled bank passbooks
- Receipts with checking account numbers
- Credit reports and histories; Credit card receipts; Expired credit cards; Pre-approved credit card applications
- Documents with your maiden name, phone number, email address, driver’s license number
- Salary stubs and employment records
- Identification cards (college IDs, state IDs, Employee ID badges, Military IDs)
- Documents with your signature (leases, contracts)
- Report Cards, Curriculum Vitae, Transcripts
- Address labels from junk mail and magazines
Once you have the documents that need to be shredded, what is the next step? Here are some options:
- Visit a document shredding service. OfficeMax, Office Depot, and Staples all have paper shredding services. The cost is around $1 per pound. Parcel and mail service companies like FedEx, UPS, and independent mailing companies also offer shredding services.
- Door-to-door shredding services, such as Shred Nations, ProShred, or Shred-It will shred at your location or offer pick up services.
- Chambers of Commerce will sometimes hold “Shredding Days” where they contract with a local shredding service to come to a convenient location and shred documents for members at a small fee.
WHAT TO TOSS
All other junk mail, newspapers, and other mail without sensitive information (as outlined above) can be held for recycling pick up.
So much for a paperless society! This guide will help you to sort through what is important and what you can safely shred or toss. You’ll have easy access to the important documents and will have them safely put away in case of fire or flood.
When planning a move, you’ll have peace of mind that the important documents will be safe and secure and available when you need them.