Storing Your Important Documents

As an estate planner, the final question I get from clients before they walk out the door is “Where should I store all of my important documents?” Let’s parse this out into two questions:

1) What documents should I keep safe?

2) Where should I store my documents?

What Documents Should You Keep Safe?

First, what documents you should store depends on your personal situation. Important documents may include:

·         Estate planning documents (i.e. your Will, your Powers of Attorney),

·         Real estate documents,

·         Passports and social security cards,

·         Marriage and birth certificates,

·         Divorce decrees,

·         Adoption papers,

·         Tax returns,

·         Insurance policies,

·         medical records, and

·         Cryptocurrency passwords.

Where Should You Store Your Documents?

The easy answer is to store your important documents in a safe place. What constitutes a “safe place” will differ from person to person. Common options include:

·         A personal safe,

·         A safe deposit box at a bank,

·         Your office filing cabinet, or

·         In a folder in your kitchen drawer.

You might consider storing certain documents in different locations. For example, if you travel a lot, storing your passport in a safe deposit box may not be the most practical choice. We generally recommend somewhere that is reasonably convenient to you, and if storing documents at home, you should consider purchasing a fire-resistant lock box. At a minimum, we recommend keeping your original Will and cryptocurrency passwords in a fire-resistant location.

Who Should Know Where Your Documents Are Stored?

It’s essential that someone you trust (other than your spouse) knows the location of your important documents.  You want these documents safe, but if the location is a secret, your family may be unable to locate them when needed.  At a minimum, we recommend telling your personal representative and agent(s) where the documents are located – at least your estate plan documents. Additionally, it is important to ensure your trusted individual knows how to access those documents if they are locked in a safe or safe deposit box. Without a key or combination, they may need to hire a locksmith to access the contents of your safe after you die.

Colorado allows certain individuals access to a decedent’s safe deposit box – a successor of the decedent, a person reasonably believed to be an heir or devisee, a person nominated as personal representative, or an agent or attorney for any of the previous people. See C.R.S. 15-10-111. But, in order to access the documents, they will need to know that the safe deposit box exists and the location of the bank. 

The Importance of Storing Estate Planning Documents

In the past, law offices kept original estate plan documents for clients, but this practice is becoming less common. Clients would often forget where their documents were stored, or did not notify their personal representative where the estate plan documents were located. Clients moved out of state, or updated their estate plans without notifying their prior attorney.  This led to situations where valid Wills were never discovered by the heirs. Today, most law firms store electronic versions of your estate plan documents.

In the estate planning world, having your original estate planning documents, especially your original Will, is important. If a probate is opened, having the original Will allows for an informal probate which is less costly and less time consuming. A copy of a Will can be probated, but formal probate is required. Since law firms will keep electronic versions of your estate plan documents, it is important to notify your agent(s) and personal representative which law firm you used to draft your estate plan documents.

Cryptocurrency and Estate Planning

The storage of cryptocurrency passwords and keys has become a rising issue in estate planning. The holders of the cryptocurrency passwords or keys are the only people who can access the information or funds. If you hold any cryptocurrency, it’s vital to keep track of the location of your passwords or keys and ensure your successors on how to access such information. As cryptocurrency laws and guidelines evolve, it is important to stay up to date on this information.

The Bottom Line

You may be surprised at how often families struggle to find a loved one’s important documents after their passing.  Planning ahead and properly storing your documents now can prevent costly and time-consuming issues for your loved ones later.

If you have questions about your estate plan documents or need to update your documents, please call Dufford Waldeck to schedule an appointment.

By Lauren O'Dell