Want to Declutter? Here’s What to Keep, What to Toss—and When

August 12, 2020

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If you’re looking for ways to declutter your home, a great place to start is with certain financial and other records. Before you dive into your decluttering project, however, you should know that not all of your old records should be treated in the same way.

Which Records Should You Keep, and for How Long?

Accident reports and claims (settled cases)	7 years
Audit reports of accountants	Permanently
Bank statements	7 years
Bank deposit slips	1 year
Bank reconciliations	1 year
Cancelled checks (see exception below)	7 years
Cancelled checks for important payments (i.e., taxes, purchases of property, special contracts, etc.). These checks should be filed with the papers pertaining to the underlying transaction.	Permanently
Contracts and leases (expired)	7 years
Correspondence (legal and important matters only)	Permanently
Deeds, mortgages, and bills of sale	Permanently
Insurance policies (expired)	10 year
Insurance records, current accident reports, claims, policies, etc.	Permanently
Investment account statements	Permanently
Property appraisals by outside appraisers	Permanently
Property records, blueprints and plans, deeds, mortgages, remodeling/renovation records	Permanently
Safety deposit box record storage, include documents such as birth, marriage and death certificates, wills, stock certificates, advanced medical directives, deeds, passport. Check with your accountant and attorney if you have questions.	Permanently
Sales receipts for major purchases (car, appliances, furniture, etc.) after disposition of the asset	7 years
Savings bond registration records	3 year
Stock and bond certificates (cancelled)	Permanently
Stock and bond certificates (current)	Permanently
Tax returns and worksheets, revenue agents’ reports and other documents relating to determination of income tax liability, including W-2s, 1099s, estimated payment vouchers, K-1s, and charitable giving receipts.	Permanently
Utility bill receipts (save permanently with tax returns if you take a deduction for home office)	1 year

More Recommendations for Decluttering

Home Offices

If you use a room in your home exclusively as a place to conduct business, you may be able to deduct that portion of your home as a home office expense on your income tax return. Each year you maintain a home office, you should save your utility bills, mortgage payment receipts, statements showing mortgage interest and real estate taxes paid, receipts for office equipment, and records for any vehicles that you use for business.

Safe Deposit Box

Every household should invest in a safe deposit box to store important documents like those listed in the table above. Doing so protects you from losing these vital records due to fire, burglary, natural disasters, or simply a lack of organization. Storing important documents items in a dresser drawer, closet, or worse yet, not in any particular place, is inviting trouble.

Let your immediate family know where your papers are located—and the name of your attorney and accountant—in case something happens to you. Write down this information, as well as where you have bank accounts (including account numbers), prepaid funeral arrangements, etc., and place it in a sealed envelope inside your safe deposit box. Let a trusted family member or friend know that you have a safe deposit box, and where you keep the keys. Note that they will not be able to access your safe deposit box without your permission or without a power of attorney document that you have prepared in advance giving them permission to do so.