Text Box: Harbor law review

Text Box: December 2002 Text Box: The following article is reprinted, in part,  from the University of Minnesota Extension Service newsletter with permission from Kathleen Olson, Regional Extension Educator for Goodhue County.   HOUSEHOLD RECORDS TO SAVE Phyllis Onstad, Family Resource Management   It won’t be tax season for a couple of months so let’s get ahead of the game and make sure all our household records are in order.  Do this chore in steps, so you can accomplish pieces of the whole, moving towards a good record keeping system that is easy to maintain.  At the same time you are sorting through your records, look for items that need to be stored in a safe place like a safe deposit box.   A well organized system for keeping your family records can pay big dividends when you need to find an important paper now.  When saving records, first determine what to keep.  With each piece of paper, ask yourself two questions: What could happen if I don’t have this piece of paper?  Will it cost more to replace this rather than keep it?  When in doubt, don’t throw it out.   In general the following records should be retained permanently: income tax returns, worksheets, and documentation for deductions (the Internal Revenue Service recommends keeping records for three years); plan permanent storage for all records that might be used as proof of ownership, such as deeds, mortgages, purchase agreements and canceled checks; keep proof of debt repayment, including canceled checks for insurance accident reports and claims and retirement and pension records; store correspondence relating to legal and important matters.   Household Records to Keep in Current Year These include budget for the year and paid utility bills.  For instance, keep canceled checks not needed to prove a tax deduction, or payment of a loan or large bill for one year.  Other household records need only be kept on currently owned items.  These include credit cards and charge accounts, insurance policies, vehicles, household furnishings and equipment and keys for those items.   Records That Need Permanent Storage and Annual Updating Employment benefit plans Financial plans and lists (such as address, safe deposit box contents) Household inventory Living Will or Power of Attorney for health care Wills and estate plans Health insurance Employment information Education records   Continued on page 2