If the events of the last 6 months teach us anything, it is that we are still a hard-copy society for basic information. This unfortunate event is a reminder of the importance of properly filing and storing financial and life records.
Some of us keep records documenting the last 10 years worth of bank transactions. Others do not. Each household has to work out its' own system over time. Helpful guidelines on what to keep and where to keep it follow.
First, determine what to keep and what to throw away. Bank statements and financial statements beyond three years can go. Same with tax returns. However, if you own stock or mutual funds, it is wise to keep documents that show your cost basis in a fund (how much the security was worth when you acquired it). These records can help you determine your real costs when you sell, which is used in calculating capital gains for tax purposes.
Auto titles, insurance policies, birth, marriage and death certificates and property deeds should be kept. Generally they can be replaced, but the process isn't always fast. Anything you can do to safeguard and keep track of records you may need will save you the hassle of having to replace them.
As a general rule, documents you don't need very often can be kept in a safe deposit box. Just be sure more than one person's signature is on the registration card so a spouse or a child who needs immediate access to the box won't face obstacles in collecting its contents. Keep a record of what's in the box in a safe place at home. Having this record should help you replace documents in case you need to do so in a hurry.
Home is a better place for wills, living wills, powers of attorney, trusts, life insurance policies and passports. Keep these in a fireproof lockbox or safe so that family members can get to them in an emergency. Keep a separate record of each policy and contract numbers in another place, maybe in your safe deposit box, just in case the originals are lost. Copies of legal items should be kept elsewhere as well, maybe with a sibling, trusted friend, or lawyer. However, you don't want too many copies of your power of attorney floating around.
Stock and bond certificates and other securities are best kept in your safe deposit box as well as contract-based documents such as annuities. It's also a good idea to keep records of home improvements and other papers that can document the cost basis of your home. The same holds true of home-business records.
Finally, keep a record of your records. Make a list of what documents you have and where they are located. Make sure family members and those who need access to them know where to find the master list. In many families, only one person knows exactly where all the important documents are. If someone else has to take over it becomes a real problem.
Debbie Wilburn is County Agent/Family and Consumer Science Agent with the Hall (770)535-8290 and the Forsyth (770)887-2418 County Extension Service.
http://accesswdun.com/article/2002/4/195916