- Can you easily locate financial documents? Do you know where to find your car title? Can you answer important question for your loved if they can’t talk? If you answer “no” to any of these question, no need to panic- some adjustment towards getting organized will be necessary.
Organizing your important financial and legal documents can help to reduce stress and prepared for unexpected events. Here are some steps to consider when organizing your documents, how long to keep records, where to store or keep records, when to update or renew information and communicate to family members.
10 ways to categories documents
Financial/Money Documents
Bank statements, Credit card information and statements, loans records
Investments
IRA’s. Mutual Funds, Stocks and Bonds Certificate of Deposit (CD)
Income Tax
Tax returns, all documents such as W-2, 1099’s Business receipts etc.
Insurance
Original Policy documents, statements or any related documents
Estate Documents
Wills, trust, living wills and powers of attorney
Legal Documents
Real estate: deeds and titles, birth/marriage/divorce records, passports
Employment Related documents
Retirement and other benefits
Home Records
Large appliance purchase, Warranties and service records, list of all content in the home
Medical History
List of all medications, diagnosis, summaries of recent appointments.
Written Instruction
Leave instruction of any request, family history or wishes.
Now that the records are organized, the next question is: how long do you might want to know how long do you have to keep all these records.
According to the IRS there are different time period varying from 3 years to 7 years.
The standard recommendation is to keep Bank Statements, Credit Statements and other statements for 7 years.
All legal, estate and Retirement documents should be kept permanently.
When in doubt keep the document longer if necessary. It is better to have it and not need it than need it and don’t have it.
