The last place you want to put legal documents is in a bank’s safe deposit box. Why? Because if you need them before or after business hours, they will not be available. Furthermore, when the holder of the safe deposit box dies, the box is frozen, and a court order is required to access the box, and a bank manager has to be present to inventory everything that is in the box. Which is why it is also the last place you want to put cash, unless you want a bank manager to inventory every last dollar.
So where is a good place to store legal documents. The executor of your estate, should have a copy of your property deeds, corporate books, LLC formation documents and your last years tax return. The executor should know the name of your financial advisor and his/her number, your accountant and his/her number.
By an inexpensive strong box from Staples or Office Max and keep your documents there, UNLOCKED. Legal documents have no inherent value, not even the paper on which they are printed. They are valuable only as a means of establishing who owns what. Your heirs should not where your strong box is and it should have your last year’s tax returns together with year end financial statements. Your deed and your original will, health care proxy, power of attorney and trust. The reason I state that it should be unlocked is in the event a thief comes to your home, he/she could open the box, see that they are useless papers to him and leave them. If the box were locked, the thief might think that there are valuables and take the box with him/her. This way, you have a greater chance of keeping these documents. We also don’t want to have to search the house for tiny keys that fit the box.
A copy of your will should be provided to your executor. If your executor is your spouse, then to the successor executor with information as to where the original is located. Every year, the executor should get updated information as to what financial institutions have your accounts and investments, what institutions have your 401(k)s and IRAs, and Long term care insurance, life insurance and home and car insurance.
A copy of your health care proxy should be given to your health care agent, with information as to where the original is located. If your health care agent is your spouse, a copy should also be given to the successor agent.
A copy of your power of attorney should be given to your attorney in fact, with information as to where the original is located. If your attorney in fact is your spouse, a copy should also be given to the successor attorney in fact.
Life insurance policy papers should be held in your strong box, with a copy provided to your beneficiary. Every few years, you should check with your life insurance carrier to make sure your beneficiary designation is up to date.
Every few years, you should speak with your 401(k) and IRA custodians to determine if the beneficiary designation forms are up to date.
With many mergers in the financial industry, many times title papers are lost in the mergers. Make sure that your financial institution still has your title forms, beneficiary forms and if pertinent trust forms.
It is way easier dealing with missing forms when you are alive, than when your heirs have to deal with missing forms and information after your death.
Be wise, plan and organize now.
Lenore has been practicing Trust and estate/elder for 25 years. She has her LLM masters in Taxation, and has offices in New York and New Jersey. You can contact her via telephone at (516)569-4671 or by email at Ldavis@lenoredavis.com.