Follow Susan Linkedin Twitter Facebook
Email Susan Email
Financial
May 15, 2018

Spring Cleaning

Sponsored Content provided by Susan Willett - Director of Trust Services, Old North State Trust, LLC

It’s the time of year when we normally turn to cleaning out closets, garages, etc. 
 
We have boxes, bags and armfuls of items to donate or trash, but what do we do with those items that need to be cleaned out of our home offices? 
 
Here’s a quick guide to financial spring cleaning.

 
Tax Returns

This is the question I am asked about most often – how long should you keep them? Seven years. That’s how long the IRS has to audit you.  Your chance of being audited is quite slim, unless you raise a red flag with excessive deductions, strange items, listing Fido as a dependent, etc.  Estates, businesses and the bigger fish are more likely targets.
 

Investment Account Statements

One year, unless there are gains/losses to support information claimed on your tax returns. Then, they should be kept with your tax information. Otherwise, I recommend keeping them for the shorter time period to track activity. You should be able to track cost basis, performance and any other needed information through separate reports from your advisor. 
 

Investment Performance Statements

I recommend keeping these for the life of the investment. That way, you can track how well the investments have performed and how the advisor has done, and you can keep the cost basis information, if it is not provided elsewhere.
 

Legal Documents

Documents, such as birth and death certificates, marriage licenses and divorce agreements, should be kept permanently. Estate planning documents such as wills, trusts and Powers of Attorney should be kept as long as they are in force. If they have been updated by a new version, then the original version should be destroyed to avoid confusion. In fact, an older version of a will could actually be probated and cause a great deal of harm. 

 
Real Estate Documents

These documents should be kept at least for the time you own the property.  I would also continue to hold for as long as needed for tax purposes. 
 

Miscellaneous Documents

Other documents, such as utility bills, etc. should only be held for as long as you would need the information – for example, to be able to obtain account numbers and prior billing information. 
 
I recommend disposing of old information by shredding with a crosscut shredder to protect against identity theft. To learn more ways to prevent identity theft, visit our website to read our article, “Defend Against Identity Theft with Common Sense and Skepticism,” from July 2017. It has several great ideas to protect yourself!

Old North State Trust, LLC (ONST) periodically produces publications as a service to clients and friends.  The information contained in these publications is intended to provide general information about issues related to trust, investment and estate related topics.  Readers should be aware that the facts may vary depending upon individual circumstances.  The information contained in these publications is intended solely for informational purposes, is proprietary to ONST and is not guaranteed to be accurate, complete or timely. 

Susan Willett is the director of trust services and oversees all aspects of trust administration for Old North State Trust, LLC. Old North State Trust, a North Carolina chartered trust company, provides: asset management services; income, estate and trust tax consulting; retirement planning and administration; and trustee and estate services to both individuals and businesses. Old North State Trust professionals have many years of experience and for over a decade have assisted clients in identifying and reaching their financial goals. For more information, visit www.oldnorthstatetrust.com or call 910-399-5470.  

Other Posts from Susan Willett

Onst insights blk
Ico insights

INSIGHTS

SPONSORS' CONTENT
Corey61

The Toughest Job There Is

Corey Lewis - Cape Fear Jobs
Img 0621

Tax Evasion Versus Tax Avoidance

Karen Durda - Century Accounting and Tax Services, Inc.
Hinnant

Intellectual Property Can Add Value to Your Hospitality Business

Chris Hinnant - Barnwell Whaley Patterson & Helms, PLLC

Trending News

Benefits Spring Up In Florence’s Wake

Staff Reports - Oct 19, 2018

TRU Colors Included In South By Southwest's Next Lineup

Vicky Janowski - Oct 19, 2018

Wilmington Area Home Sales Fell 48 To 63 Percent During Storm Month, Report Shows

Cece Nunn - Oct 19, 2018

Insurance Industry Sees A Flood Of Claims

Cece Nunn and Christina Haley O'Neal - Oct 19, 2018

Building, Rebuilding Homes After Hurricane

Cece Nunn - Oct 19, 2018

In The Current Issue

Building, Rebuilding Homes After Hurricane

Homebuilders discuss labor, working with other homebuilders associations in the state and more in the wake of Hurricane Florence....


Benefits Spring Up In Florence’s Wake

The aftermath of Hurricane Florence left the region with downed trees, flooded homes and displaced residents in need. This destruction, howe...


Insurance Industry Sees A Flood Of Claims

As Ian Archibald awaited the arrival of a State Farm Insurance adjuster at his Wilmington home on Oct. 9, his mind was also on a much more d...

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes