Managing Your Important Documents
Protect your family from administrative stress. Jasmine Hathaway, an after loss professional and co-founder of PALS, offers this step-by-step checklist for managing your vital documents—both paper and digital—so your loved ones can focus on what truly matters.
Navigating the vast sea of paperwork and digital files that accumulate throughout a lifetime can feel overwhelming. Whether you’re downsizing, managing a loved one’s estate, or simply trying to get organized, knowing which documents to keep, which to discard, and how to store them is crucial.
As professionals who assist families after a loss, we’ve seen firsthand the difficulties that arise when vital information is missing. From bureaucratic hurdles to inaccessible online accounts, having a clear system for your important documents is a gift you can give your loved ones. While we embrace a digital world, some documents are still best kept in physical form, while others benefit from a smart combination of both.
Here’s a comprehensive guide to help you sort through your documents and implement best practices for storing them.
What Documents to Keep
When you’re sorting through a lifetime of papers, it can be tempting to shred everything, especially if you believe everything important exists online. However, we recommend holding on to a few key types of documents. These categories cover everything from legal matters to sentimental archives.
1. Legal and Estate Planning Documents
These are often the most critical documents to locate and secure. They are essential for carrying out a person’s final wishes and administering their estate. Many of these rarely have online copies.
- Will or Trust Documents: The foundation of your estate plan, outlining the distribution of your assets.
- Powers of Attorney: Legal documents that grant someone the authority to make financial or medical decisions on your behalf.
- Advance Directives/Living Wills: Instructions for your medical care should you become incapacitated.
- Funeral Instructions: Pre-paid burial or cremation plans, or any written instructions for your final arrangements.
2. Financial Records
Executors and family members need access to these records to understand a person’s financial landscape, including assets, debts, and accounts. While many of these are available online, a physical backup can be a lifesaver if digital access is a problem.
- Bank and Investment Account Information: Account numbers and contact information for banks and investment firms.
- Tax Returns: Keep at least the past 3-7 years.
- Retirement Account Information: Details on IRAs, pensions, and other retirement savings.
- Credit Card and Loan Statements: A few recent months can provide a roadmap to accounts that need to be closed or managed.
- Property Deeds and Mortgage Documents: Records of ownership and outstanding loans on real estate.
3. Insurance Policies
These documents are vital for filing claims and understanding coverage.
- Life Insurance Policies: The physical policy document may be required for a claim.
- Health Insurance Information: Cards or Explanation of Benefits (EOBs) can be useful for understanding medical history or resolving bills.
- Homeowner’s or Renter’s and Auto Insurance: Keep policies for as long as they are active.
4. Identification and Government Records
Certain agencies may require original documents for legal filings or survivor benefits.
- Birth Certificate
- Social Security Card
- Marriage and Divorce Records
- Military Service Records: Particularly important for burial benefits or VA claims.
- Naturalization or Immigration Papers
5. Medical Records
These documents can be useful for a variety of reasons, from filing claims to understanding medical history and resolving outstanding bills.
6. Sentimental or Family Archives
Not all documents are about legal or financial matters. Some hold immense sentimental value for family members.
- Old letters, journals, and family trees.
- Labeled photographs, scrapbooks, and yearbooks.
- Best Practices for Storing Your Documents
- A thoughtful storage system can make all the difference. Combining physical and digital methods offers a strong layer of protection and accessibility.
Physical Storage
Even in a digital age, some documents are best kept in a safe, physical location.
- Fireproof Safe or Lockbox: Use this for original, hard-to-replace documents like birth certificates, passports, and wills.
- Safe Deposit Box: Consider this for the most critical documents that are rarely needed, but remember to let your family know where to find the key.
- Organized Filing System: For less critical, but still important, papers (like tax returns or medical bills), use a well-labeled filing cabinet or file boxes to keep everything in order.
Tips for a Thoughtful Search:
- Start with obvious places like file cabinets, safes, and desk drawers.
- Don’t forget to check less obvious spots like boxes in closets, basements, or under beds.
- Look inside books or notebooks for tucked-away papers.
- When in doubt, err on the side of keeping a document until you can consult with an estate attorney, CPA, or other professional.
Digital Storage
The average person has hundreds of online accounts, making a digital storage plan more important than ever.
- Digitize Paper Documents: Scan important papers to create digital backups.
- Secure Cloud Storage: Services like iCloud, Google Drive, or OneDrive can work well. For enhanced security, consider a dedicated password manager or a service designed for secure document storage.
- Organize Your Digital Files: Use a clear folder structure and consistent naming conventions to make documents easy for others to navigate.
- Grant Access: This is the most crucial step. Use features like Apple’s Legacy Contact or Google’s Inactive Account Manager to designate who can access your accounts after you’re gone.
- Designate a Digital Executor: Talk to your estate planning attorney about naming a “digital executor” in your will to manage your online accounts.
- Regular Review: Schedule a yearly date to review your digital assets. Check that your legacy contacts are up to date and that all documents are current.
- A Note on Password Managers: These tools can be invaluable for organizing your online life. They can securely store not just passwords but also account information, which can serve as a valuable roadmap for your loved ones. The key is to ensure the tool itself has a robust security and legacy access plan in place.
Don't stress! Follow these helpful hints to stay organized and enjoy your time with family and friends. Hosting Holiday Meals Ask your guests to help Lists! Lists! Lists! (grocery, menu, etc.) Remember the batteries Use disposable pans & Plates as much as possible Consider Grocery delivery Service Also, support any local farmers markets or farms by buying any produce from them! Stay focused, Hydrated & keep that protein level up! Have 10 quiet minutes? Wrap a present! Grab a glass of wine Turn on a Christmas movie Be sure to have your camera ready but don’t forget to sit back & enjoy the moments Set the coffee to automatically brew. You'll love having a hot cup of coffee to start your day! Most Importantly... Enjoy this time with your family and friends . Yes, it can be stressful; yes, it can be overwhelming, but it can also be fun! Allow yourself to enjoy it - stress and all!
How long do you leave your holiday decorations on display in your home? We hear from a lot of people that they continue to enjoy their holiday decorations well into the new year . We’re all for squeezing every last drop of joy out of the season and we think you should leave your decorations up as long as you’d like! However, when the time comes to un-decorate, we highly recommend that you downsize holiday decorations: take the time to sort and organize them before you put them away. Always edit your collections before you store them. This concept is harder than it seems, but if you decorate your home for the holidays and still have more decor in storage, you may want to donate or re-home anything you didn’t display this year . If you’re ready to apply this principle, try this method: 1) Pull out ALL of your holiday decor and supplies at the start of the season. 2) Decorate your home and set up your gift wrapping area, holiday supplies etc. 3) Box or bag anything that didn’t make the cut this year for decor and supplies. 4) Retain any storage containers that could be useful to better organize the items you want to keep for next year. The pros recommend clear containers so you can see what’s in there! If you’re downsizing or short on space, consider: Choose unbreakable and easy-to-store options when you can. Fragile decorations that need a lot of protection take up a lot of space in storage. We know some downsizers who have chosen to go all-natural (as much as possible) with live garlands, wreaths, tree trimmings, floral arrangements, etc. so that there is less to store at the end of the season. You can always choose fewer areas to decorate , focusing on the spaces where you will most enjoy your holiday trimmings. When it’s time to store: Use the right container for the job . Specialty ornament containers may cost more, but they will protect delicate items. Consider off-site storage . We’re seeing more and more specialty storage solutions for small-space dwellers, including services that will pick up and deliver your holiday supplies on demand.
How do you decorate for the holidays? For many, transforming their home with elaborate holiday zeal is a seasonal ritual that lightens the mood and brings joy to the whole household. There are lots of ways to go crazy on the holiday decorations, but one of our particular favorites is the Christmas village . These table-top displays tend to grow over the years and can manifest as a full-on miniature town complete with tiny inhabitants going about their holiday errands. Collectibles advisor Charles Tinsley weighs in on What’s It Worth: Department 56. Department 56 Of all the versions of ceramic towns that pop up in American homes every December, the Department 56 Christmas Villages continue to be one of the most popular items in the Christmas collectibles market. The charming Department 56 ceramic pieces, decorated for the holidays and lit brightly behind their tiny windows, were the brainchild of Ed Banzinet , a talented designer who oversaw the Gift Import Department (Department 56!) of the Bachman Company in Minneapolis. The first Department 56 buildings were released in 1976. The Original Snow Village consisted of six pieces: four little houses and two churches. The Original Snow Village was based on an actual town near Ed’s home in Stillwater, Minnesota. Stillwater had a tradition of decorating the houses, stores and churches for Christmas with garlands, wreaths and bright lights. The first Christmas village set the character for the brand: highly detailed ceramic buildings that are brightly lit to create the look that originally inspired him. In the first two years of the collection, nine more pieces were added. These first designs in the collection remain the most highly prized by collectors today. A Focus on Popular Culture Like many decorative or seasonal collectables, Department 56 releases new designs every year, inspiring collectors to commemorate the years and the celebration of family milestones with new pieces. Department 56 enjoyed a popularity boost from an unlikely source: pieces based on the 1989 film National Lampoon’s Christmas Vacation . In the movie, Clark Griswold’s boss Mr. Shirley did not give Christmas bonuses that year, but did have a celebration in his large and well appointed home. This scene was the inspiration for the very popular miniature Boss Shirley’s House. The film inspired a whole host of buildings, characters and accessories, including Todd & Margo’s House. The Christmas Vacation series remains among the most popular and sought-after pieces. Over the years, Department 56 has released many other designs based on popular culture and holiday films, including “A Christmas Story” , many Disney characters, a vintage Harley Davidson store and even a miniature Downton Abbey . The greatest challenge for this particular collectible is that they are ceramic, and therefore fragile. The value decreases greatly if they do not come with their original box and packaging . Since they are usually associated with the holiday season, they spend most of the time in storage. They take up a lot of room which means collectors have to sacrifice valuable storage space in their homes. So, What’s it Worth? As is the case with many collectibles these days, the value of Department 56 pieces is not as high as it has been in the past , but they do continue to be highly sought after. Notable online auction sales in the fall 2021 include National Lampoon’s Christmas Vacation series . These designs remain at the top of the heap for collectors: • Todd and Margo’s House $2800 • The Department Store $500- $900 • Griswold Family Buys a Tree $375 The Dickens Village pieces are highly collected as well. In 2021 the top prices for pieces in this set were: • Kensington Palace $125 • Norman Church $220 • Dead Creek Village Mill $200 Smaller pieces in the collection such as “The Christmas Carol” may go for $40 to $50. Other sought-after designs include the Halloween Haunted Mansion ($800-$1000) and the Chick-Fil-A Dwarf House ($450). Common Designs Currently, the majority of the Department 56 collectibles are sold in larger lots, in their original boxes. Lots of 8-12 pieces may go for $200-$225 . Large collections of 75 or more pieces in their boxes may sell for as much as $1200 . If you love constructing a tiny village in your home for the holidays, and you have the space to store them, our advice is to continue enjoying your collection as long as you can! You could even scoop up some delightful additions to add a new neighborhood at a relatively low cost. When you’re ready to sell, you’ll probably do best to package them as a lot and sell them online or at a local auction house .