Social security cards, birth certificates, marriage licenses, tax papers — we all have a number of documents in our home that it is important to keep safe. Unfortunately, I have had several clients with unexpected disasters like floods and fires or simply misplacing these items in a messy room. In Texas, we are subjected to extreme weather that underlines the importance of storing your important documents safely. I advise clients daily with regard to where to store their important documents. I am a proponent of using safety deposit boxes because they are offsite, secure from fire and floods and inexpensive. If you do not want to use a safety deposit box, then a good fireproof safe is recommended, but understand, they are limited to a certain temperature and period of time. Years ago, I was told by a client that they put their documents in a freezer bag and then in their freezer. All of these are better than having no system.
Not having these documents when you need them can prevent you from being able to do important life things, such as renewing your driver’s license or filing taxes. Not only that, replacing these things can be arduous and annoying. To ensure you always have these documents when you need them, I recommend you create a system for storing your important documents and communicating this to your family. We have prepared a personal records document at my office for clients that is designed to help them start the process of organizing their documents.
There are several reasons why it’s crucial to store important documents properly. First, you want to be able to grab them quickly if you need them — whether it’s because there’s a sudden disaster or you need to do something quickly with them. In my experience, one of the greatest delays in handling estates is due to the lack of organization left behind. Families spend a great deal of time trying to locate banking, insurance, titles, deeds and other important information when a loved one passes.
Beyond that, not correctly storing your documents can leave you at risk for other potential issues, like losing them or, worse, having them stolen. Identity theft is a real issue and not having documents stored properly can make you an easier target.
To some degree, what is considered an important document will vary by person or family. However, some documents are likely to be universally important to everyone. “The most important types of documents are government-issued as they are the hardest to replace,” says La Fond. “These are the things you will need in an emergency and having them scattered prevents you from a quick exit.” Below, experts told us these are some of the most important documents to store safely:
Birth certificates
Death certificates
Passports
Social security cards
Marriage licenses
Military service and discharge decrees
Property deeds
Vehicle titles
Insurance policies
Business licenses
Current Last Will and Testament or trust documents
Tax documents
Medical documentation
Estate planning is more than just having the correct documentation prepared, it is creating an organized system and communicating that to your loved ones. There are too many details to address in this article, but if you have further questions or are planning for your future, you should consult an attorney.