On the one hand, the paperwork takes up too much space. On the other hand, the absence of the right papers or instructions will complicate the process of dealing with someone’s death.
Keeping the right papers (including online passwords) in the right places will make it easier – and cheaper – for your family to deal with your funeral and Will. And long before that stage, dealing with old paperwork is a useful way to de-clutter.
Therefore, we have compiled a checklist of which papers you should retain and for how long. We also highlight the information your family would need to access readily if you die or need to have your affairs managed by someone else.
When organising your affairs, it is useful to regard your paperwork from someone else’s perspective. Try to put yourself in the position of a family member or solicitor sorting through your papers. For example, is your filing system simple to understand? And how will people access online accounts or investments?
Managing financial paperwork
Bank statements and tax certificates: These should be held for around six years. Although HMRC can, in some circumstances, look back further than this, it is rare for this to happen. At a minimum, bank statements should be kept for two years following the end of the tax year to which they relate.
Investments: Nowadays almost all shareholdings are held in uncertificated form. It is desirable to keep a written, up-to-date list of all your investments, noting which holdings are held in certificate form and which are not.
Old investments: Once an account or investment has been closed and any capital gains tax and income tax resolved, it is best to throw out all the old paperwork.
Utilities: It is useful to keep a note of all your providers for gas, electricity, telephone, internet, and the like, along with account numbers. You do not need to retain old bills.
Insurance: Original life insurance policy documents should be kept indefinitely. Other insurance documents should be stored safely for as long as the policy is in place.
Digital assets
Access to online accounts: Keeping a record of your digital assets is nowadays as important as keeping paperwork safe. There is a delicate balance here between security and enabling your Executors to have access to any passwords they will need.
Social media: Facebook now provides an option for an account to be deleted after someone’s death, or for the account to be left up as a memorial. In the latter case, you should nominate a person to manage the account.
Dealing with a death
Funeral plans: Many people prefer to write down a funeral plan rather than discuss it with family. If this is the case, be sure to file it in an obvious place, perhaps with a copy of your Will and Power of Attorney.
It is a good idea to ask your solicitor to hold copies of your principal documents, including a funeral plan and lair certificate.
Certificates: Birth, adoption, marriage and death certificates should be kept safe indefinitely in an obvious place.
Your Will: Having a valid Will saves family members from having to write to every potential beneficiary under intestacy, put what is called a Bond of Caution in place, and apply to the Court to have an executor appointed. The cost of administering an intestate estate is generally much higher than if there had been a valid Will in place.
Your general approach
Matters such as funeral plans or Facebook memorials are deeply personal and people understandably find them difficult to discuss. Nevertheless, the importance of having your affairs organised cannot be overstated. Following the death of a loved one, family members are likely to be emotionally vulnerable, and it is worthwhile doing everything possible to ease the tasks ahead for them.
If you are able to discuss with one or two family members where your papers are kept and who your solicitor is, and to have your paperwork in shipshape order, they will have good cause to feel grateful to you.
If you would like information or advice regarding Executries, please contact a member of our team who will be happy to help.
