Several factors determine how long it's appropriate or necessary to keep important household papers. These include the paper's origin or source, intended use, and required access. Consider these recommended guidelines:
Keep Indefinitely
Permanent or original records that do not change over time. Examples: Birth, marriage, death, adoption, military discharge, and naturalization papers.
Keep for Multiple Years
Records for proof of payment or transactions. Examples: Tax returns with documentary proof (keep for a recommended three to six years); title to a car until it is sold, transferred, or discarded; mortgage contract and receipts for home improvements until mortgage is paid in full and house is sold or all claims of major damage are settled; deeds until the property is sold or transferred.
Keep for One Year Minimum
Some files need only be kept annually and then safely discarded. Examples: Household budget; bank and/or credit union statements; homeowner or auto insurance policies until they expire and new policies are put into effect.
Keep Temporarily
Items that await an action to disqualify their further usefulness (usually less than a year). Examples: Credit card receipts until they are matched with the billing to be certain the charge was both legitimate and for the proper amount; billings until paid in full.
Next: When to Update Papers >>
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Lesson Contents
I. Introduction
II. How to Get Organized
III. Organize Important Papers
- a. Which Papers to Keep
- b. Where to Keep Papers
- c. How Long to Keep Papers
- d. When to Update Papers
- e. How to Replace Papers
Organize Your Important Household Papers belongs to a series called Legally Secure Your Financial Future. The series also includes information to help you communicate with others and begin preparing your estate plan.
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