| Organized records can ease a family's burden | | | | Other relevant documents: Your birth certificate, |
| following one's demise. Losing a loved one is hard | | | | marriage certificate, divorce decrees, and military |
| enough. But grief is often compounded when | | | | records should be kept indefinitely. |
| one's financial records are in disarray. | | | | Life- and estate-planning documents: You should |
| Keeping organized records is a gift to your family | | | | always make sure you have on file an up-to-date |
| and to yourself. It helps ensure that your wishes | | | | copy of your will, your living will, your healthcare |
| are followed, that your assets are accounted for, | | | | proxy, and your power of attorney documents. |
| and that your money is available to meet your | | | | Copying important documents |
| family's needs in a timely fashion. | | | | When copying an original will, never remove the |
| The following is expert advice on what you need | | | | staples. If the original will appears to be tampered |
| to keep on file, how long to keep it and who | | | | with, its validity may be questioned in probate |
| should get copies. | | | | court. |
| Fire proof your papers | | | | You should keep the original of your will. Or, if you |
| Consider buying a fire-retardant box or safe to | | | | prefer, you can give it to your lawyer for |
| file important financial documents and insurance | | | | safekeeping so long as you keep a copy in your |
| policies that you keep at home. | | | | files and indicate on that copy where the original |
| Tax records: These include any forms and | | | | can be found. You needn't give a copy of your will |
| statements that show income or verify | | | | to your executor unless you wish, although you |
| deductions (W-2s, 1099s, canceled checks, | | | | should let him or her know where it is, Levine said. |
| receipts, etc.), as well as copies of your return. | | | | And you shouldn't give a copy to your heirs. It's a |
| Keep them for a minimum of three years. That's | | | | private document, and you may wish to choose |
| typically the amount of time the IRS has to audit | | | | other heirs at a later date. |
| a return, and sometimes three years of tax | | | | If you've set up a revocable trust in which you're |
| records are required for an estate audit, said | | | | the trustee, give a copy of the trust to your |
| estate planning attorney Roger Levine of Levine, | | | | successor trustee or make sure he or she knows |
| Furman & Smeltzer in East Brunswick, N.J. | | | | where it is. |
| To be safe, however, experts recommend you | | | | Give a copy of your health-care proxy and your |
| keep them for six years, since that's the time the | | | | living will to your general doctor and to the person |
| IRS has to audit a return if you underreport your | | | | you named as your medical agent. You might also |
| gross income by more than 25 percent, said | | | | consider giving a copy to a close friend or trusted |
| Cindy Hockenberry of the National Association of | | | | neighbor, if you don't live near your family or |
| Tax Practitioners. | | | | medical agent, Levine suggested. |
| Homeowner records: The deed and title to your | | | | If you've assigned power of attorney to |
| house, your closing and mortgage statements, | | | | someone, that person should know where the |
| and any receipts documenting how much you | | | | document can be located in the event that it's |
| spent on home improvements should be kept | | | | required. |
| indefinitely. These will help you - or your heirs - | | | | Make a locator list |
| track the house's value (and appreciation) when | | | | One of the most useful things you can do for |
| it's sold. | | | | your family is create a list of where all your |
| Investment records: Retirement and brokerage | | | | accounts, policies, and other valuable documents |
| account statements, especially those indicating | | | | are located. |
| purchases, distributions and stock splits, should be | | | | For each item, include relevant information such |
| kept indefinitely, since they create a paper trail of | | | | as the type of account or policy, the company, |
| your investments, and they can be used to | | | | bank or area where it's housed, the account or |
| determine the cost basis when you sell your | | | | policy number, and the name, address and phone |
| stocks or funds. They also help your heirs trace | | | | number of the agent, broker or lawyer you've |
| the origins of an investment if you bequeath it to | | | | dealt with. Be sure to give a copy of the list to |
| them after you die. | | | | someone you trust, or let that person know |
| Insurance records: You should keep records of | | | | where the list can be found in case of |
| your insurance policies - life, health, disability, auto, | | | | emergency. |
| homeowner, liability, etc. - for at least as long as | | | | Obviously, your locator list will need to be updated |
| the policy lasts, and possibly longer if you've | | | | periodically. "But even if the list becomes out of |
| arranged for tail coverage, which covers you for | | | | date, it's a starting point," Levine said. |
| a certain period after policy expiration. | | | | |