How Long Should I Hold on to Important Documents?
It is hard to know what documents to trash and when. Before you know it, your spare room, office, basement, or garage is overflowing with boxes of papers that all seem important. Trying to weed through the mess and figure out what to toss? Keep reading.
Posted on October 7, 2022
Which Documents Should I Keep?
There are some documents that you will want to hang on to forever and some that you should keep for a few years. Consider the following examples:
Documents You Should Always Have
These following documents should always be available, and you should properly store them to ensure you can grab them when you need them:
- Birth certificates
- Death certificates
- Marriage license
- Social Security card (Lost yours? Now you can request a replacement online.)
- Your current insurance policies (life, health, etc.)
- The newest version of your estate planning documents
Documents You Should Only Keep Temporarily
Some documents lose importance as time goes by. However, it would help if you hung on to the following documents for a few years (typically, between five and seven years):
- Papers related to charitable donations
- Tax returns
- Credit card statements
- Cancelled checks
- Bank statements
Why Is It Important to Keep Some Documents?
Should you pass away, it is crucial to have kept certain documents because the probate court may request them after your death. Maintaining important documents will help your family close your estate.
Other reasons to hold on to paperwork depend on your situation. For example, some people find themselves a party to a lawsuit. If that happens to you, you may need to produce documents, and it will be much easier if you can readily access the important ones.
FREE WEBINAR
5 Things to Know About
Estate Planning
When You Turn Sixty-Five
Digital Storage
Digitally storing your documents can significantly cut down on the clutter. Before you start digitizing your essential documents, you want to have a plan. Sit down, look at all your documents, and determine whether they are necessary. Use a critical eye as you decide what to keep. The next step is scanning each document into your computer, on to an external hard drive, or on a flash drive.
Some important considerations when digitizing your files include keeping up to date with current technology and password-protecting your sensitive information. As technology advances, make sure that you advance with it. The last thing you want is to be unable to open your files. Always encrypt or password-protect your information. It is the best way to protect yourself against hackers and identity thieves.
More from our blog…
Report: The Current and Future State of Estate Planning
Over the next two decades, experts foresee Baby Boomer households transferring more than $84 trillion in generational wealth. Amid challenging economic times, it is more important than [...]
Do You Pay Capital Gains Taxes on Property You Inherit?
When you inherit property, such as a house or stocks, the property is usually worth more than it was when the original owner purchased it. [...]
5 Rights That a Trust Beneficiary Has
As a trust beneficiary, you may feel you're at the mercy of the trustee. However, depending on the type of trust, beneficiaries may have rights [...]
14 Essential Questions to Ask Aging Parents This Holiday
Thanksgiving is a time when many families come together. About 45 percent of adults surveyed said they planned to travel for the holiday, per The Vacationer. [...]
Recent blog posts
FREE WEBINAR
5 Things to Know About
Estate Planning
When You Turn Sixty-Five