Records Retention
I’m cleaning my attic and have two questions:
- Both my parents passed away during the 1990s. How long do I need to keep the final estate documents?
- I’ve owned three homes during the past three decades. How long do I need to hold on to the house closing documents?
While certain circumstances may warrant a different recommendation, generally I suggest the following:
- Estate paperwork: Keep the tax returns forever (Form 706 and/or Form 1041). Keep the “final” court filed document(s) forever (accounting and inventory). You may destroy everything else.
- Home purchase paperwork: Keep the settlement statement forever (HUD-1). Consider keeping the actual mortgage agreement forever. You may destroy everything else.
Simple rule to follow: keep tax returns and legal documents forever. (Keep all ancillary materials for at least 36 months… and then feel free to pitch.)
