Document Wrangling: What Records To Keep And For How Long

Most people I know have years of old papers tucked away in filing cabinets, piled up on desks, or stored in the infamous “To Be Filed” folder.  In the world of estate planning, these troves of documents are often left for heirs to sort through after a loved one’s passing.  A big reason for this is that we don’t know what records to keep or for how long.   

Here’s a list of the types of documents you should hang on to and the amount of time to keep these records. 

Keep indefinitely in a safe place (such as a fireproof box or safe)

• Birth certificates
• Adoption papers
• Marriage licenses
• Death certificates
• Divorce decrees
• Social Security cards
• Passports
• Military discharge papers
• Estate-planning documents (Wills, Trusts, Powers of Attorney)
• Life-insurance policies
• Deeds, mortgages and bills of sale
• Title to your current vehicles
• Tax returns (but not the supporting documents – see below for when to discard those)
• Year-end statements for investments
• Medical records
• Pension plan records
• Retirement plan records
  
  

Keep for seven years

• Supporting documents for your tax returns (note that the IRS can audit you for three years after you file a tax return; for six years if they think you’ve under-reported your income; and indefinitely if you didn’t file a return at all – click here for the IRS guidelines on record retention)
• Receipts for large items (such as large home appliances)
• Home purchase or sale and improvement records
• Medical bills/claims
  
  

Keep for one year

• Bank and credit card statements (unless the information supports your tax returns)
• Paycheck stubs 
• Utility bills
• Checkbook ledgers
• Monthly mortgage statements
• Investment statements (discard after you receive your year-end statement)
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Lastly, keep in mind that when discarding records, you should shred or otherwise destroy them to protect your confidential information.