Key Takeaways
- You should hold on to important legal documents for as long as they're valid or useful.
- Short-term records, such as bills and statements, can usually be discarded once they are no longer needed.
- Storing important documents related to your taxes is recommended, in case the IRS requests them.
- Permanent records, such as birth certificates, wills, and property documents, should be stored securely.
- Make sure your most important documents are easy to find in an emergency.
When it comes to essential legal forms or contracts, the question of how long you should keep important documents often arises.
Many financial, medical, or legal documents have validity over a long period of time and maybe essential for your recordkeeping over the years.
The last thing you want is for essential tax records, estate planning instruments or proof of ownership forms and contracts to go missing when they are needed most.
In this article, we'll look at how long to keep documents and when they can be safely discarded. We also explain how to store important documents at home, so that nothing essential gets lost or damaged.
Forms and Documents That Can Be Discarded After 1 Month
Most documents you receive from your bank or other service providers can normally be safely thrown out after about 30 days or less.
However, for the purposes of record-keeping for a self-employed tax return you should normally store the following for about a month:
- Bank statements
- Cell phone bills
- Credit card statements
- Utility bills
Documents You Should Keep for Up to 1 Year
For your annual tax records, you will often need to keep a number of different documents, forms, and bills.
Ideally, you should hold all the following records in your files until you submit your annual tax return to the IRS:
- Annual 401k statements
- Paychecks and pay stubs
- Receipts for large tax-deductible purchases
- Records of charitable donations
- Stock purchases
For Up to 7 Years or Until They Expire
A good number of legal documents and financial forms may need to be kept long term.
Some legal paperwork might lapse after a certain time, if an ending date has been written into the text, such as a General Power of Attorney. If this is the case they can often be disposed of when this happens.
However, for tax purposes, the IRS often requires individuals to hold on to some supporting evidence for up to 7 years for future assessment, including:
- Bank statements
- Brokerage statements
- Charitable payment receipts
- Durable Power of Attorney documents
- IRS forms W-2 and 1099
- Insurance policies (until they lapse)
- Investment records
- Previously submitted tax returns
- Sales receipts (or until their warranty expiration date)
- Tuition payment receipts
Legal Forms That Must Be Permanently Stored
Some important forms and legal documents will need to be kept indefinitely. This is normally due to their use in essential record keeping, because they will be necessary later in life.
This is especially the case for estate planning documents, which are usually pre-planning for future incapacity or death.
The full list of important documents that must be stored forever include:
- Academic records
- Adoption papers
- Bill of sale of a major asset
- Birth certificates
- Death certificates
- Divorce decree
- Driver's license
- Durable power of attorney documents
- Employment contracts and records
- Last will and testament
- Living will
- Marriage certificates
- Medical records
- Passports
- Registration documents for major assets
- Retirement and pension records
- Social security cards
- Vehicle and property records (or until sold)
Where to Keep Essential Legal Forms and Documentation
For most essential legal documents you will need a certified copy or an original. It's important to organize your files carefully so that your most essential contracts, forms, and files can be easily found when they are needed.
Below are some of the options for where to keep important documents that you need to be able to access at any time:
| Storage option | Best for | What to keep in mind |
|---|---|---|
| Fire-resistant home safe | Passports, insurance papers, medical records, powers of attorney, and copies of IDs. | Keeps documents protected at home and easy to access. Make sure a trusted person knows how to open it. |
| Safe deposit box | Property deeds, certified records, and originals you rarely need. | Stored away from your home, adding protection from theft, fire, or flood. Access may depend on bank opening hours. |
| Attorney or estate planner | Wills, living wills, powers of attorney, and estate planning documents. | Useful for legal originals. Keep their contact details with your records so family members know who to call. |
| Digital storage | Backup copies of legal forms, bills, statements, and scanned documents. | Use secure cloud storage, an encrypted drive, or a USB stick. Digital copies help if originals are lost or damaged. |
Lawdistrict helps to take some of the difficulty out of record-keeping by assisting with the process of updating or personalizing essential legal contracts and documents. Try it now to create any form of your choice easily in minutes.
We also help with safeguarding documents. Once you've completed a document, it's automatically saved in your user dashboard, so you can access it any time, for anywhere in the world.
Key Takeaways
- You should hold on to important legal documents for as long as they're valid or useful.
- Short-term records, such as bills and statements, can usually be discarded once they are no longer needed.
- Storing important documents related to your taxes is recommended, in case the IRS requests them.
- Permanent records, such as birth certificates, wills, and property documents, should be stored securely.
- Make sure your most important documents are easy to find in an emergency.
When it comes to essential legal forms or contracts, the question of how long you should keep important documents often arises.
Many financial, medical, or legal documents have validity over a long period of time and maybe essential for your recordkeeping over the years.
The last thing you want is for essential tax records, estate planning instruments or proof of ownership forms and contracts to go missing when they are needed most.
In this article, we'll look at how long to keep documents and when they can be safely discarded. We also explain how to store important documents at home, so that nothing essential gets lost or damaged.
Forms and Documents That Can Be Discarded After 1 Month
Most documents you receive from your bank or other service providers can normally be safely thrown out after about 30 days or less.
However, for the purposes of record-keeping for a self-employed tax return you should normally store the following for about a month:
- Bank statements
- Cell phone bills
- Credit card statements
- Utility bills
Documents You Should Keep for Up to 1 Year
For your annual tax records, you will often need to keep a number of different documents, forms, and bills.
Ideally, you should hold all the following records in your files until you submit your annual tax return to the IRS:
- Annual 401k statements
- Paychecks and pay stubs
- Receipts for large tax-deductible purchases
- Records of charitable donations
- Stock purchases
For Up to 7 Years or Until They Expire
A good number of legal documents and financial forms may need to be kept long term.
Some legal paperwork might lapse after a certain time, if an ending date has been written into the text, such as a General Power of Attorney. If this is the case they can often be disposed of when this happens.
However, for tax purposes, the IRS often requires individuals to hold on to some supporting evidence for up to 7 years for future assessment, including:
- Bank statements
- Brokerage statements
- Charitable payment receipts
- Durable Power of Attorney documents
- IRS forms W-2 and 1099
- Insurance policies (until they lapse)
- Investment records
- Previously submitted tax returns
- Sales receipts (or until their warranty expiration date)
- Tuition payment receipts
Legal Forms That Must Be Permanently Stored
Some important forms and legal documents will need to be kept indefinitely. This is normally due to their use in essential record keeping, because they will be necessary later in life.
This is especially the case for estate planning documents, which are usually pre-planning for future incapacity or death.
The full list of important documents that must be stored forever include:
- Academic records
- Adoption papers
- Bill of sale of a major asset
- Birth certificates
- Death certificates
- Divorce decree
- Driver's license
- Durable power of attorney documents
- Employment contracts and records
- Last will and testament
- Living will
- Marriage certificates
- Medical records
- Passports
- Registration documents for major assets
- Retirement and pension records
- Social security cards
- Vehicle and property records (or until sold)
Where to Keep Essential Legal Forms and Documentation
For most essential legal documents you will need a certified copy or an original. It's important to organize your files carefully so that your most essential contracts, forms, and files can be easily found when they are needed.
Below are some of the options for where to keep important documents that you need to be able to access at any time:
| Storage option | Best for | What to keep in mind |
|---|---|---|
| Fire-resistant home safe | Passports, insurance papers, medical records, powers of attorney, and copies of IDs. | Keeps documents protected at home and easy to access. Make sure a trusted person knows how to open it. |
| Safe deposit box | Property deeds, certified records, and originals you rarely need. | Stored away from your home, adding protection from theft, fire, or flood. Access may depend on bank opening hours. |
| Attorney or estate planner | Wills, living wills, powers of attorney, and estate planning documents. | Useful for legal originals. Keep their contact details with your records so family members know who to call. |
| Digital storage | Backup copies of legal forms, bills, statements, and scanned documents. | Use secure cloud storage, an encrypted drive, or a USB stick. Digital copies help if originals are lost or damaged. |
Lawdistrict helps to take some of the difficulty out of record-keeping by assisting with the process of updating or personalizing essential legal contracts and documents. Try it now to create any form of your choice easily in minutes.
We also help with safeguarding documents. Once you've completed a document, it's automatically saved in your user dashboard, so you can access it any time, for anywhere in the world.
Most Popular Posts
Some states require a motor vehicle bill of sale form; others do not. Even if only for your personal records, anyone who buys or sells a vehicle needs
If you plan to travel with a minor, whether or not you are their parent, you can minimize inconveniences by carrying a few necessary documents...