Organizer Tips

Important Document Organizer
KEEPING FAMILY & HOUSEHOLD RECORDS

What to discard When was the last time you couldn't find an important paper you knew you had carefully put away some place? How much time do you spend trying to straighten out your household business affairs, especially at income tax time? How, in fact, do people decide what records are important to keep and what they can discard? How do they decide where to store and keep such records and papers? Even though each family or household must work out its own system, some general guidelines can be helpful.

As a starter, ask yourself a few questions:

    •   How easy or difficult would it be for other members of your household to figure out your record system? Or…do you even have a system?

    •   Who besides you knows where to turn for necessary information about the family household assets and obligations? Do you have a listing of people who

        are important contacts, such as tax counselors, attorneys, bankers, brokers, insurance representatives, employers, creditors, and debtors?

    •  Are you sure titles to property and possessions are held in the best way for all concerned? If not, you may want to ask an estate attorney or a trust officer

       at your bank for professional assistance. A good record 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 or separation, children reaching legal age, a long illness, a lawsuit, a natural

       disaster, loss of a job, and retirement. 

    •  What happens if the place where you live is burglarized or there's a fire and records are destroyed? What do you do when you lose track of important paper.

       Which can be replaced, and how do you go about that? Which ones cannot be replaced, and what do you do about those?

Papers to Keep in Safe Deposit Boxes Every family household has some important records. Each of us should have a birth certificate or an acceptable substitute. Since there are many occasions when the information on your birth certificate will be needed, it is important that you keep it in a safe place, preferably in a safe deposit box. If you have lost or misplaced birth certificates, consider applying for replacements now, before there is a pressing need. Otherwise, you may have to wait for one you need quickly. State registration of births has been mandatory since 1920, and you can contact your State agency to get a copy. The Bureau of the Census also will search its files for proof of age. By the same token, there will be death certificate for every person someday. These will be needed occasionally and also are best kept in a safe deposit box. If you need to find a fire proof / thief proof place to store these kinds of important documents, mySAFEBOX Sdn Bhd is the perfect place. Other important documents to be kept in your safe deposit box include marriage certificates, divorce or other legal papers regarding dissolution of marriage, adoption papers, citizenship records, service papers, and any other document that is either government or court recorded.

The original copy of a will, in most cases, is kept in your safe or the attorney who prepared it. This is highly desirable, since it may save complications later. The client receives two carbon copies, one of which may be put into his or her own attorney. However, there could be a legal delay in getting this copy at his or her death. The third copy, therefore, should be kept a place safer than home where it is readily accessible. Some of your important papers, such as investments, are of a business or financial nature. Certificates for securities are nonnegotiable (can't be sold or legally transferred) until they are signed by the owner. Nevertheless, such certificates can be lost or stolen, and the signature can be forged. In either case replacement involves both cost and delay. Such certificates then, when not left with the broker, should be kept in mySAFEBOX. Government bonds can be replaced with / without cost, but the delay would cause how much of your time? So it is best to keep these in the box too. Among other investment-type documents that require safekeeping are papers that serve as proof of ownership, such as deeds for real estate, other mortgage papers, contracts, automobile titles (if this applies in your State), leases, notes, and such special papers as patents and copyrights.

Renting Safe Deposit Boxes If you don't have a safe deposit box, then consider getting one. The yearly rental, at mySAFEBOX is inexpensive, only RM1.64 per day. Often the smallest size in mySAFEBOX is adequate, though larger sizes are available too at slightly higher charges. If you do have a safe deposit box, ask yourself if it is large enough to hold everything that should be in it-and small enough to keep out things that don't need to be there. If you store documents from investment properties or securities, the rental can be claimed as a deduction for income tax purposes. The box should not be used as a catchall for souvenirs and unimportant papers.

What Goes In And What Stays Out A guideline as to what goes in and what stays out of your safe deposit box might be: Put it in if you can't replace it or if it would be costly or troublesome to replace. Many items can be replaced rather easily. Copies of insurance policies can be obtained from your insurance companies. Copies of cancelled checks are usually available at your bank. Generally speaking, you do not need to keep the following in a safe deposit box: income tax returns, education records, employment records, bankbooks, social security cards, guarantees, and burial instructions.

Keeping Tax Records How long should you keep tax records? The Internal Revenue Service has 3 years in which to audit Federal income tax returns. However, this limit does not apply in unusual cases. If you failed to report more than 25 percent of your gross income, the Government has 6 years to collect the tax or to start legal proceedings. Also, there are no time limitations if you filed a fraudulent return or if you failed to file a return. But you don't have to keep everything for tax purposes. You can lighten your record load by discarding certain checks and bills once they have served their purpose. For example, you can throw away weekly or monthly salary statements---assuming you are paid in that way---after you check them against your annual W-2 Form. But save cancelled checks that relate directly to an entry on your tax return, and keep all medical bills for 3 years to back up your cancelled checks. In general, companies keep records up to 6 years.

Making Household Inventory Records Among your important papers keep a household inventory. If there is a fire or burglary in your home, this record will help you remember what has to be replaced and how much each item is worth. An inventory also may show that you need to increase your insurance because your possessions are worth more than you thought. The best way to go about compiling a household inventory is to start with a sheet of paper for each room in the house, apartment, etc. Forms on which to record items are available from several places, sometimes from your county Extension office.

THINGS TO REMEMBER
Use the checklist chart below to remind yourself what to keep and what you can discard.

Your Personal Checklist of Important Documents

Be Prepared! Life's emergency situations require advance preparation and planning. The first step is organizing your papers and communicating with appropriate individuals. Do you have an appropriate place for each document? Have you told anyone else where you keep your vital information? And have you shared your wishes in the event of your death? Many situations require that you take action now to avoid financial problems later.

Natural Disasters Wherever you live, there is always the risk of floods, fires, and other natural disasters that could result in the destruction of your home. Prepare yourself so that if such situations occur, you can minimize the impact. All sales receipts and contracts should be systematically filed for easy access when reporting a claim. The originals should be kept in a safe place, and a copy elsewhere, in case the originals are damaged or destroyed.

Theft Theft of personal belongings can occur in an instant. Your purse could be stolen from your office at work, or your camera from your vehicle. Are you prepared for this? Do you have a list of all your credit card numbers on file, with the necessary contact information, so you can quickly report stolen cards before they are used unlawfully? Or do you at least have your most recent credit card statements, with account numbers and company contact information, where you can quickly get to them to make your report?

Sudden Illness Contingency plans also may be needed for sudden injury or illness. If you were incapacitated, who would handle your affairs, and how would that person gain access to your important documents? Would they have durable power of attorney to act on your behalf? By making these plans ahead of time, you ease the stress your loved ones must face.

Contingency Plans And what if, while traveling out of town or overseas, you discover you need to sell your stock? Prepare for your trip by leaving a durable power of attorney and by giving a trusted person access to your stock certificates so that he or she can sell the stock for you in a timely manner. This way you avoid having to cut your trip short. Also, in these troubling times of terrorism, a loved one might need your dental records in order to provide a positive identification of your remains; this might also be necessary in case of mechanical problems on an aircraft or structural failure of a building which results in your death.

Tax Records Organizing your tax records not only makes tax preparation much easier, it also is essential in preparing for an audit. Supporting documents-such as bank statements, cancelled checks, credit card receipts and statements, and all other receipts and official information on income, losses, and deductions-should be available at all times. Consider going over this information with an accountant to explore possibilities for lowering your taxes in future years.

Get Organized (The forms can be downloaded HERE)
Your spouse and adult children-and any others who would need to handle your financial affairs-should know the location of all papers, contracts, documents, policies and other needed information. Each should know to whom to turn for advice in case of emergency.

The purpose of the forms that follow is to organize this information so that you, or others who might have to manage your affairs, know where to find all records and whom to contact, such as your lawyer, financial advisor, primary doctor, or dentist. It also can be used to create an effective filing system to manage your vital information. However, you might need additional or more comprehensive lists for credit cards and other items mentioned on our checklist. "Estate Planning: Your Records and Personal Information" s another Kentucky Cooperative Extension publication that you might use. You could develop your own list, or consult one of the many books created for this purpose. Such books are available from libraries, bookstores, Internet retailers, and office supply stores.

Ideally, you should keep a record of all significant purchases and property you own. Keep all Paid In Full statements for life, in case there is ever a question whether you have paid. A good way to keep records is to videotape each item as you buy it, speaking as you go about what the item is, its purchase date, how much you paid for it, whether there is an extended warranty, and what it is worth, and documentation of appraisal. This way you have an excellent record for insurance purposes and you increase your chances of recovering costs of lost, stolen, or damaged property. If the property is damaged or destroyed, you can also videotape it to show the extent of the damage.

Study the checklist with your spouse and others who need access to your personal information. We recommend using separate, "his and hers" checklists to account for all items. Analyze each point carefully and fill in your information. Consult the Location Code List to designate actual locations for all your original documents. For example, you might keep an original birth certificate in your safety deposit box and a copy in a portable fireproof box. Locations of originals and all copies should be noted on the list. Keep the list in a safe place known to your family.

Suggested Contents of Portable Fireproof Box
We recommend that you buy a portable fireproof box, if you don't already have one; it should be large enough to hold files and a few valuables, but not so large that you can't easily carry it out if you have a fire. Following are some of the items that you should keep in the box:
     •    List of insurance policies and contact information
     •    List of bank accounts and contact information
     •    List of debt obligations, due dates, and contact information
     •    Your family's passports
     •    List of doctors and contact information
     •    List of medications, prescription numbers, and contact information of all pharmacies that you use
    •    Copy of durable power of attorney, living wills, and healthcare proxies - Yours and all those of which you are attorney-in-fact or healthcare surrogate
    •    Copy of each of your wills and all those of which you are the executor
    •    Safety deposit box keys
    •    List of investment, retirement, and bank accounts, with all contact information
    •    Your original Social Security card (when you're not using it)

Finally, you should keep this checklist in your portable fireproof box. As you can see, much of the information on the list above is already called for elsewhere in the checklist. Keeping track of your vital information should be made as simple as possible. Don't make it any harder than it has to be.

Again, keep the original checklist with your will so that your executor or personal representative has access to both. Give other copies of this checklist to individuals such as your lawyer or your close relatives who have copies of your important documents. Keep copies of documents such as wills and trust agreements in your portable fireproof box for easy access.