What Financial Paperwork Should You Keep?

Key takeaways

• Be sure to keep track of key documents like your estate plan, insurance paperwork, home and vehicle titles, tax returns, and more.

• Whether stored physically or digitally, it’s important to keep important documents in a central, safe location.

• Ensure someone you trust knows where to find your documents and knows how to access them in an emergency.

• Estate documents: Copies of your current will, trust documents, financial and healthcare powers of attorney, advanced directives, information for guardians of your children, and lawyer contact information

• Personal documentation: Birth certificate, Social Security card, photocopy of your driver’s license, passports, marriage certificates, divorce decrees and death certificates

• Account information: Details on where you maintain accounts (banking, checking, investment, retirement, credit, etc.) and account numbers

• Insurance paperwork: Names of your insurance companies (medical, disability, life, home, flood, earthquake, auto, etc.), policy numbers, policy declaration documents, and details on how to file a claim

• Property documentation: Deed to your current home, receipts for improvements to your current residence, titles to cars you currently own, etc.

• Tax returns: Hang on to these—and the documentation that supports them—for seven full years

• Safe deposit box: Depending on where you live and what size box you need, you can pay anywhere from $30 to a few hundred dollars each year to enjoy the security of a bank vault. Keep in mind that access to your box’s contents may be limited to regular business hours.

• Fireproof box or home safe: To secure documents at home, a fireproof box or home safe with keycode access will do the trick. Consider protecting your essentials from moisture damage by sealing your documents in waterproof bags and using packs of desiccant (materials used to help maintain dryness, like silica).

• A trusted professional or friend: If you have documents stored in a single place, you risk putting all your eggs in one basket. Consider giving copies of your documents to an attorney and/or trusted relative to ensure that you have backups in a second location.

• Password protection: You can easily password-protect your own documents, image files and folders on your device—if you can click it, you can secure it.

• Encryption: As you store sensitive files, consider encrypting them. Someone seeking access will need to have a decryption key to access your file contents. With a quick web search, you can find several guides to the best encryption software offerings currently on the market.

• A flash drive: Transfer or back up your important files using a flash drive, and store the drive in your fireproof box or safe deposit box.

• Cloud storage: Cloud storage is another great option. Consider options like Apple iCloud, Microsoft OneDrive, Google Drive or Dropbox. Sometimes you can find a free plan, but paid subscriptions may have added features and additional storage space. The big advantage here is that your files are accessible anywhere, and you don’t have to worry about a physical device being destroyed.