Purge Your Piles of Paper: What to Save or Shred

Forms, receipts, documents—we all have stacks of them. Tossed on desks. Stuffed in drawers. Sure, we may use less paper than in years past. But when it comes to important documents, paper is still king.

What should you do with all that paper? Here are our recommendations on what to save (and for how long), what to shred (and when), and what to share (and with whom). Even if you’ve gone mostly paperless, you can use this guide to determine which digital files you should delete and which you should secure.

What to Save

You will need these documents long-term—not only yours, but (in some cases) those of a spouse or longtime significant other as well as minor children. Place the documents in a fireproof safe or in another secure location.

As Long as You Live

• Birth/death certificates
• Social Security cards
• Marriage licenses/prenuptial agreements
• Divorce decrees
• Passports
• Pension plan documents
• Copies of updated wills and living trusts
• Military records
• Copies of burial deeds
• Safe-deposit box inventory

As Long as You Own the Item

• Product warranties
• Vehicle titles
• Property deeds
• Mortgage documents
• Mortgage payment receipts
• Insurance policies
• Certificates of deposit
• Receipts for home improvements

What to Shred

These documents contain personal information such as name, address, phone number, Social Security number, or bank account number. Experts agree that they should be shredded when no longer needed.

• Bank statements (shred after one year; hold for five years if you may be applying for Medicaid)
• ATM statements (shred after reconciling with bank statement)
• Credit card bills (shred after 45 days, unless needed for taxes, insurance, or proof of purchase)
• Tax returns and supporting documents (shred after seven years)
• Retirement account portfolio changes (shred after reconciling with monthly or quarterly statement; keep proof of IRA contributions)
• Medical records (shred after five years, but keep information related to prescriptions, ongoing treatment, specific medical histories, and health insurance)
• Utility and phone bills (shred after reconciling with most recent statement, unless related to tax-deductible expenses)

What to Share

These are directives that normally involve another person, so you should share copies of the documents with concerned parties.

• Last will and testament and/or trust: This outlines who gets your assets after your lifetime and appoints a guardian for any minor children or dependents you may have.
• Financial power of attorney: This allows someone to transact business on your behalf if you are unable to do so. For example, the holder can buy, sell, pay debts, and handle real estate. Choose a trustworthy person, keep a copy of the document for yourself, and share a copy with the person you name as your agent.
• Health care power of attorney or health care proxy: This person makes medical decisions on your behalf if you are unable to do so. Again, choose a person you trust, keep copies of the document for yourself and that person, and share a copy with your doctor. You may also wish to share the details of the arrangement with your family.
• Advance directive or living will: These documents let those around you know if you want to use life-sustaining procedures in certain circumstances. Give a copy to your doctor. You may wish to share your wishes with family members.

Did You Know…

You can leave a gift to Vail Health Foundation in your estate plan? It would be our pleasure to help you with the process. If you would like to support our work well into the future, please contact us at Foundation@vailhealth.org or (970) 569-7766 to learn about your many giving options.

Information contained herein was accurate at the time of printing. The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.