How long to keep important papers
Escrow officers are our friends. Well, why not? They perform a
great service for real estate transactions. As a neutral third
party, they hold all the papers and the money and the bills from
providers and this and that. When everything is in place, they take
the appropriate documents to the recorder’s office to transfer
title and then they disburse the money. It’s a good thing.
How long to keep important papers
Escrow officers are our friends. Well, why not? They perform a great service for real estate transactions. As a neutral third party, they hold all the papers and the money and the bills from providers and this and that. When everything is in place, they take the appropriate documents to the recorder’s office to transfer title and then they disburse the money. It’s a good thing.
But the title and escrow offices provide many other services for the local real estate offices. They help agents with marketing efforts, keep us updated on the news of our industry, hold educational seminars (often with food!) for our edification, and on and on. Oh, and don’t forget…they give us desk calendars, pens and notepads!
This week I was given some information by Michelle Taylor of the Chicago Title office in Hollister, and since it was pertinent to my life I’ve decided to pass it on to you.
The question is: How long should you save records and where should they be stored?
In my family, we have two schools of thought. When my mother died a few years back, my siblings and I sorted through the accumulation of fifty-plus years and then sold the old family homestead. Tucked in the dark recesses of the garage “in the eaves” storage area were all the tax forms, going back to the 1940s. I’m surprised there was no spontaneous combustion!
Sixty years strikes me as somewhat excessive. I am more of the mindset if you love a piece of paper, let it go. If it comes back to bite you, it wasn’t real love anyway! But here are some guidelines for you to consider.
Real estate records and photos and ID numbers of valuable personal property should be held at least as long as you own the property. (Hold onto real estate records for another few years to make sure nothing comes back at you. Keep the originals in a safe-deposit box with copies at home, preferably not in the garage attic space.
Family papers such as birth, marriage and death certificates, school records, military information, adoption or divorce papers and such should be held indefinitely in the safe- deposit box.
Health records of things like immunizations, hospital stays and operations should also be held indefinitely, but can be kept at home.
Keep copies of your estate information such as wills, trusts and burial instructions in both your home files and your safe-deposit box. The originals should be with your lawyer. (Lawyers, see next week’s column for what to do with all YOUR records!) (Not really.)
All receipts, contracts and records of the costs associated with any real property should be held as long as you have that property. Then you can dump them with the new owner! Keep copies of them in two places.
Keep warranties and guarantees in a home file as long as you own the item. Check this file once a year and bring it up-to-date or you may end up with a huge box of paper. Women, keep the instructions there, too. Men, we know you don’t read instructions so you might as well throw them out.
Insurance records including policies, inventories, photos and appraisals should be at home with copies held elsewhere. The recommendation is to keep them for four years after the expiration of the policy. Make sure you update your inventory each year.
Bank account records, credit account records and tax records should be kept for 7 years. Keep them in home files. (Mom, can you hear me over the harp music up there? You only needed them for 7 years!)
For investment records such as securities, buy and sell orders, cancelled checks, statements and contracts for retirement plans have to be held at least three years beyond sale. Obviously, retirement records should be held indefinitely. Keep certificates in the safe-deposit box, with copies at home. All other records can be kept in home files.
Passports and social security cards should be held in safe-deposit box.
Keep an inventory of all the items in your safe-deposit box in your home files and update it as the contents change.
Some people keep safes at home for important documents. Don’t get caught with this one! A friend of mine kept her valuables including jewelry and important documents in a super-duper fire-proof safe. Guess what? Someone stole the safe! Is that not just a kicker? It’s best to get a safe-deposit box at a bank near you. You can get the size appropriate for the amount of things you need to keep in it, and the cost is minimal.
Whoa, doggies. There you go! All the information you need to maintain exemplary records. Please see to it in your spare time. (Hmmm, yes. Well…)
On to a quick look at the market: No major new developments. Inventories continue to be hefty. The amount of activity is increasing slightly. Buyers are coming back into the marketplace because inventories are high, loans are good, and no major disasters have occurred to spook us. Consumer confidence is returning, and jobless rates are down across the nation. Call your local Realtor to determine if now is a good time for you to make a move.
And be kind to your Realtor!
