Tame the Personal Paper Chase
Apractical, and quasi-legal, question that almost everyone faces at one time or another has to do with personal and household papers and records. How long should we keep them? And where? Imagine you get into a fight with your landlord and need to consult an attorney. The first thing the lawyer will want is a copy of the signed lease. Getting a copy, especially from an angry landlord, may not be easy. Besides, if you’ve lost your copy, the landlord might have lost his, as well.
Some documents are easier to replace than others. Getting a copy of a pink slip showing ownership of your automobile from the DMV is no fun, but it is arguably easier than getting a record confirming your ownership of a specific corporate bond.
There are some key papers that you should keep in a safe deposit box or home storage box, documents that are difficult or time-consuming to replace:
Personal items such as birth certificates, citizenship papers, passports, marriage certificates, divorce decrees, death certificates, veteran’s papers, and your life insurance policy.
Documents relating to property, such as a household inventory (pictures and descriptions) of valuable items in case of fire or theft, deeds to real property, stock certificates and your automobile pink slip.
Important contracts such as the lease on your home. (Generally, you should keep contracts for four years or longer because that is the time period allowed for bringing a lawsuit on a written contract, although that period can be extended depending upon the circumstances.)
Save papers that you may find useful to prove you paid a bill or met an obligation. The four-year guideline is a good rule of thumb for such documents and those relating to tax receipts on real property, current bank statements, loan statements and loan payment books.
Tax lawyers generally advise keeping income tax records and even your tax working papers for about six years, the time period for the statute of limitations to expire on deficiencies. On the other hand, records that show the cost of property you acquired by purchase, inheritance or gift should be kept indefinitely. When you dispose of such property you may need to show any gain on an income tax return so you need to have information about cost. This also applies to papers showing the cost of major capital improvements to your home since they can be used to show your increased tax basis in the property.
Warranties on appliances or other items should be kept for the entire warranty period. One useful suggestion (it will help when you suddenly need a specific warranty): keep each warranty in an envelope taped to the underside of the appliance.
Of course, these are suggestions only. You can always choose to save papers for an even longer time period. Or never save them in the first place. There is no fast or certain legal rule for all of these records. Most documents can be replaced if you are willing to take the time and spend the money.
Klein is an attorney and assistant to the publisher of The Times. Brown is professor of law emeritus at USC and chairman of the board for the National Center for Preventive Law. They cannot answer mail personally but will respond in this column to questions of general interest about the law. Do not telephone. Write to Jeffrey S. Klein, Legal View, The Times, Times Mirror Square, Los Angeles 90053 .
