Spring Cleaning

Spring Cleaning for Your Estate Plan: What to Keep and What to Toss

Spring is here! Time to shake off the winter blues, open the windows, and tackle the clutter—both in your home and in your paperwork. While you’re donating those size-two jeans you swear you’ll fit into again, why not take a moment to tidy up your paper and digital files and documents? Here’s a handy guide to what you should keep, update, and toss.

Documents to Keep:

1. Current Estate Planning Documents – Your will, trust, durable power of attorney, and healthcare directives should all be up-to-date and easy to locate. Store them in a secure, fireproof place and make sure your executor or trusted family member knows where they are. (Hint: Not in a shoebox labeled “Miscellaneous.”)
2. Life Insurance Policies – Active policies and beneficiary designations should be kept handy. Unlike that collection of takeout menus and 2-year-old ketchup packets, these are actually important.
3. Property Deeds and Titles – If you own a home, car, or other property, these documents should be organized and accessible.
4. Financial Statements – Bank, retirement, and investment account statements should be retained so you can keep track of your assets. Plus, they might come in handy when proving to your kids that, yes, you really did save for their inheritance.
5. Tax Returns – The IRS suggests keeping tax returns for at least three years, but if you have complex finances or enjoy living on the safe side, keep them for up to seven years. Anything older than that? It’s just taking up space where you could store more fun things (like vacation souvenirs, not more paperwork).
6. Business and Legal Documents – If you own a business, keep corporate records, contracts, and agreements indefinitely. No one wants to be scrambling for an important document when it’s buried under a pile of old receipts.

Digital Files to Organize and Secure:

1. Online Account Information – Keep a secure, up-to-date record of important login credentials for financial institutions, utilities, and subscription services. You don’t want your family guessing your passwords—“password123” might not be as secure as you think.
2. Digital Copies of Estate Planning Documents – Scan and store electronic versions of your CURRENT will, trust, and power of attorney in a secure, encrypted format. This ensures they won’t mysteriously disappear like your socks in the dryer.
3. Email and Cloud Storage Accounts – Organize and back up critical emails and documents stored in cloud services. Make sure your executor or trusted family member knows how to access them (preferably before they need to).
4. Photos and Personal Digital Files – Sort through digital photos and back up the important ones. Do you really need 15 blurry shots of your dinner in Cabo? Probably not.
5. Online Financial Records – Download and organize e-statements, digital tax returns, and investment summaries. This keeps everything easy to find when you need it.

Documents to Toss:

1. Old Tax Returns Beyond Retention Period – If they’re older than seven years and no longer needed for reference, shred them. The IRS isn’t coming for your 1998 return.
2. Outdated Estate Planning Documents – If you’ve updated your will, or power of attorney, destroy the old versions to avoid confusion. However, Trusts are different sometimes, talk to us before you shred previous versions of your Trust.  You don’t need your family arguing over which will is valid when you’ve already made your decision.
3. Expired Insurance Policies – If the policy has expired and no longer serves a purpose, get rid of it. Unfortunately, expired life insurance doesn’t appreciate in value like fine wine.
4. Bank Statements and Utility Bills Older Than a Year – Unless needed for tax purposes or legal matters, these can be shredded. Holding onto that electric bill from 2010? Time to let it go.
5. Medical Records No Longer Needed – Keep only those relevant to ongoing health conditions. Your old prescription for pink eye from five years ago? Probably safe to part with.

Best Practices for Secure Disposal:

• Shred sensitive documents before tossing them to protect your personal information.
• Digitize essential documents by scanning and storing them securely in an encrypted format.
• Review annually to keep paperwork organized and up to date.
• Leave Access Instructions – Create a list of where important physical and digital documents are stored and share it with a trusted family member or executor. No treasure map necessary—just a simple, clear list.

Taking the time to declutter your legal and financial documents now can prevent future confusion and stress for you and your loved ones. If you’re unsure whether certain documents should be kept or discarded, or if you need to update your estate plan, our office is here to help. Contact us for a review of your documents and ensure your estate plan is in good order for the years ahead!