Managing Household Records

From the Federal Citizens Information Center

When was the last time you couldn't find an important paper you knew you had carefully put away? How do people decide where to store and keep such records? And how do they know what to keep, what to throw away, and when? Do you have an easy to figure out system you or a loved one can refer to in case of an emergency?

Every household must work out its own system, but some general guidelines can be helpful. A good system will provide a bird's-eye view of what happens to property after you die or when a member of your household dies. Other changes can alter plans too -- for example, divorce, a natural disaster, loss of a job, or retirement.

Getting It Together

You need to know what you have, which means you'll need to go through the house and gather your documents. Decide where you're going to place your stacks, your "staging area." It could be your office, a corner of the den, or wherever you know your important papers can accumulate undisturbed as you assemble them.

Next, go on your paper chase. Check all those drawers, bins, etc. for loose papers and bring them to your staging area. This isn't the time on deciding what to throw away. It's better to focus on this single task, to avoid feeling distracted or overwhelmed.

Safe Deposit Box

If you don't have one, get a safe deposit box in a bank convenient to your home. In many cases, banks will let you take out a box, even if you're not a customer. Remember that you should use your safe deposit box for originals; you'll still need copies at home if something tragic should happen to you and your safe deposit box is sealed. If you'd rather have your records at home, then get a fireproof safe. A good rule of thumb is: Put documents in the box if you can't easily replace them or if you don't know what might happen if you don't have it.

If applicable, you should have official or certified copies of the following for the safe deposit box:

• Birth certificates
• Citizenship papers
• Marriage certificates
• Adoption papers
• Divorce decrees
• *Wills
• *Advance directives
• *Powers of attorney
• Death certificates
• Deeds
• Titles to cars
• Household inventory
• Veteran's papers
• Bonds and stock certificates
• Important contracts
• Passports

*Since the safe deposit box will be sealed at your death, keep a copy of your will someplace accessible. The same goes for the advance directive and the power of attorney since you may not be able to give others access to the safe deposit box.

Active File

These are the papers and financial records you deal with on a regular basis and need to refer to. Keep these readily accessible at home.

• Tax receipts, i.e., such as those received for charitable deductions
• Unpaid bills
• Paid bill receipts
• Current bank statements
• Current cancelled checks
• Income tax working papers
• Employment records
• Health benefit information
• Credit card information
• Record of passwords
• Insurance policies
• Family health records, including vaccination histories
• Appliance manuals and warranties
• Receipts of items under warranty
• Education information such as copies of diploma, transcripts
• Inventory of safe deposit box (and key)
• Loan statements
• Loan payment books
• Receipts for expensive items not yet paid for

Dead Storage

All active file papers over 3 years old. This may not necessarily apply to everything, for example, appliance manuals to which you frequently use.

Items to Discard

• Salary statements (after checking on W-2 Form)
• Cancelled checks for cash or nondeductible expenses
• Expired warranties
• Coupons after expiration date
• Other records no longer needed such as those that were replaced by newerversions, manuals of appliances that were replaced, etc.

How Long to Keep It?

Bank statements - 6 years

Birth certificates - Forever

Canceled checks - 6 years

Contracts - Until updated

Credit card account numbers - Until updated

Divorce Papers - Forever

Home purchase and improvement records - As long as you own the property or are rolling over profits from it into new property

• Household inventory - Until updated
• Insurance, life - Forever
• Insurance, car, home, etc. - Until updated
• Investment Records - 6 years after tax deadline for year of sale
• Investment certificates - Until cashed or sold
• Loan agreements - Until updated
• Military service records - Forever
• Real estate deeds - As long as you own the property
• Receipts for large purchases - Until sold or discarded
• Service contracts and warranties - Until sold or discarded
• Social Security card - Forever
• Tax returns - 6 years from filing date
• Vehicle titles - Until sold or disposed of
• Will - Until updated

Created for NEA members and their families, the “new and improved” NEA Member Benefits website informs, assists, and keeps you up-to-date on ways to get the best value for your hard-earned money. You'll find exclusive members-only offerings and giveaways. You'll also find valuable interactive tools to help you invest and plan for retirement. Now, you can check your balances and get rate quotes and apply online for many NEA-sponsored products including: credit cards, personal loans, life insurance, auto and homeowners insurance, mortgages and home equity loans, and NEA Valuebuilder™. Visit www.neamb.com and take full advantage of your Association membership.