How Long Do I Keep Documents after a Loved One’s Death?

 

Losing a loved one is an incredibly difficult experience. During the grieving process, it can be challenging to know what steps to take regarding their important documents. While it may be overwhelming to think about, knowing best practices for storing and keeping documents proactively can help ensure that you have access to valuable information when you need it and help make the process of settling their estate much smoother.

Financial documents vary in importance and the recommended time to keep them differs, such as:

Tax Returns: The IRS recommends keeping tax returns and tax related documents “until the period of limitations for that tax return runs out.”[1]

  • Maintain records for three years unless special conditions apply (see below).

  • Store employment tax records for at least four years after the tax is due or has been paid.

  • Keep records for six years if you underreported income by more than 25% of your gross income.

  • Hold onto records for seven years if you claimed a loss due to worthless securities or a bad debt deduction.

  • Retain records indefinitely if you did not file a tax return or submitted a fraudulent return.

Bank Statements: When it comes to bank statements, holding for one year[2] can be sufficient. This is due in part to banks’ typical online record holding time of seven years.* Enrollment in online banking statements provides a central location for the documents to be easily accessed.

Storing documents digitally is a great way for individuals to reduce clutter of physical paper. However, it is necessary to establish proper back-up storage using cloud-based services or additional devices.  

Note: It is important to consult with a financial advisor or attorney to ensure you are following the appropriate guidelines and keeping documents you may need.

*Be sure to check with your individual bank(s) to verify the exact storage time and capacity for online statements and other documents as storage may be limited.

Personal Documents: Certain personal documents should be kept indefinitely, including, but not limited to:

  • Birth certificates

  • Death certificates

  • Marriage certificates

  • Divorce decrees

These documents, although replaceable, are often costly and can be time consuming to obtain again. These documents can also be valuable for family lineage.

Estate Related Documents: It is recommended that these types of documents should be kept for 7 to 10 years after an estate is settled. This includes wills, trusts, deeds, and titles. Although you might plan to shred these documents after 7 to 10 years, check in with your estate planning attorney before disposing of these documents. Keeping a digital copy may be beneficial. These documents can be important for resolving any potential disputes about the estate.

Medical Records: The recommended time that medical-related documents should be retained is at least seven years[3] from the date of the last entry or the date of the last health service. These records can be important for understanding inherited health conditions or for legal purposes.

Identification Documents: Driver’s Licenses, ID cards, passports, etc. should be kept for three years[4] after notifying the proper authorities. It is recommended to report the death to your local Department of Motor Vehicles (DMV) to cancel the license and prevent identity theft. However, you may want to keep a photocopy of the license for your records.

Conclusion

This guide offers general timelines for keeping a loved one’s documents after their passing but consulting a legal or financial professional ensures accuracy for individual situations. Regulations vary in each state, so verify that your information is accurate and up to date. Digital storage, except for official certificates, provides an organized system for easy access. Most importantly, take care of yourself and seek support if needed.

Tara M. Hendison, JD, CTFA, is a Certified Trust and Financial Advisor and an attorney. She received her Bachelor of Business Administration in Finance from Washington State University and went on to earn her Juris Doctor from Willamette University College of Law. To speak with Tara, call our office at 503-292-1041 or via email to info@allentrust.com.

 

Disclosure: This article is for informational purposes only and should not be considered financial, legal, or investment advice. While we strive for accuracy, financial markets, and regulations change. Readers should conduct their own research or consult a professional before making financial decisions.






[1] How long should I keep records? | Internal Revenue Service

[2] Dierking, David. “How Long Should You Keep Bank Statements?” Investopedia, 4 June 2023. 

[3] “Medical records of deceased patients.” Avant, 13 Aug 2019

[4] Weston, Liz. “How long after a spouse’s death should ID cards be kept?” OregonLive,

 
 
Tara M. Hendison, JD, CTFA