In a digital world, paper can pile up fast—skip a few days of filing, and it adds up quickly.

Knowing what to keep or shred is key to staying organized and secure. This guide covers what to store, how long to keep it, what to shred, and how Trustworthy can simplify document management.

Key Takeaways

• Documents like birth certificates, Social Security cards, passports, marriage/divorce certificates, custody agreements, estate planning documents, loan payoff agreements, and property deeds must be kept forever.

• Junk mail, old credit card statements, expired insurance policies, and bank statements should be shredded with a cross-cut or micro-cut shredder.

• Regularly review your paperwork once a year to see what needs to be updated and what’s missing, and shred the outdated or unnecessary documents. 

Which Documents Should You Keep and For How Long?

Do you feel like you’re overflowing with paperwork? Before you begin throwing stuff out, it’s crucial to ask yourself, “What documents should I hold onto?” 

Personal and Legal Documents

Despite living in a digital world, some types of documents cannot be replaced with virtual forms, so you need to keep them forever: 

• Birth certificates

• Adoption papers

• Social Security cards

• Passports

• Custody agreements 

• Marriage/divorce certificates

• Wills and estate planning documents

• Property deeds

• Mortgage records

• Military discharge papers

• Record of any governmental employment (e.g., armed forces)

• Loan payoff statements 

Keep these incredibly important documents safe from physical harm and online dangers with a secure digital vault like Trustworthy's. Its Family Operating System® is designed to help families get and stay organized. With Trustworthy, you don’t have to spend hours uploading and sorting your documents into a filing system because the AI-powered Autopilot feature has tools to make this process much easier. 

A built-in mobile scanner allows you to instantly upload essential documents to your Trustworthy inbox. The predefined categories mean you don’t have to create a filing system from scratch for your old paperwork. Other features like document insights, filename suggestions, and summaries make filing and finding your paperwork stress-free. 

Financial and Tax Records

Your old financial and tax records may still be useful, so it’s essential to know how long to keep paperwork.  

Keep for 1-3 years:

• Utility bills (unless they are needed for tax deductions) 

• Bank statements (unless they are needed for tax filing disputes) 

Keep for up to 7 years: 

Experts recommend keeping previous tax returns and relevant documents for at least seven years. 

Paul Mendelsohn, a CPA in Livingston, New Jersey, told USA Today you must keep your tax documents because the “IRS can audit you for no reason, or any reason, for three years from the date you filed your return.” 

Mendelsohn also notes that sometimes the IRS can wait even longer than three years: “if you pay late, file an amended return, file a fraudulent return, or leave out income that is at least 25% of what you reported.” 

The seven-year storage rule exists because the IRS has up to six years to audit tax returns if there are significant issues, such as unreported income. This rule also applies to supporting documents like W-2 forms, 1099s, receipts, and expense records. When it comes to your taxes, it’s better to be prepared. Keep digital copies stored long-term with Trustworthy. 

Keep permanently: 

• Investment records. Mark Gallegos, a CPA in Chicago, told USA Today it’s crucial to keep these documents forever because they “are key for figuring out your cost basis, which impacts how much tax you might owe when you sell.”

• Records of major asset purchases, such as real estate or high-value items like cars

Medical & Insurance Records

Medical and insurance documents are vital to track medical history for diagnosis purposes and to protect yourself from future disputes. 

Keep for 1-3 years: 

• Health insurance policies until they have been replaced or expired

• Medical bills, until they have been paid and verified by your insurance provider, or if you need them for tax purposes 

Keep longer: 

• Medical documents for ongoing chronic illnesses, past surgeries, or paperwork related to disputes with your healthcare provider

• Insurance claims specifically for long-term care, like hospice care and ongoing treatments 

Trustworthy makes it easy and secure to share documents. Add trusted collaborators—like family or advisors—and control whether they have full or limited access.

To share with people outside your network, use SecureLinks™. These one-time, access-only links expire, giving you full control over who can view your documents.

When and How to Shred Sensitive Documents

How you dispose of your sensitive documents is key to avoiding becoming a victim of identity theft. According to Eftsure, payment card fraud losses are projected to hit a whopping $49 billion by 2023 and will continue to grow yearly. 

Documents to shred immediately: 

• Junk mail with your personal information, like pre-approved offers for loans and credit

• Expired or replaced insurance policies 

• Old credit card statements and bank receipts that are no longer needed for tax or dispute purposes 

Simply scrunching up and throwing your old documents away is not secure. You must use a cross-cut or micro-cut shredder to ensure your sensitive documents are unreadable. For old paperwork that does contain your personal information, we recommend recycling it to minimize the environmental impact and your bit for the planet.

Best Practices for Organizing Important Paperwork

Once you decide what documents to keep, it’s time to organize that paperwork to reduce clutter and ensure there is always easy access to essential documents when you need them. Here are some of our favorite paperwork organization tips:  

Create a Digital Backup System for Essential Documents

Samantha Odo, a real estate agent who regularly deals with contracts, legal documents, and financial records at Precondo, advises:

“Relying only on physical documents creates unnecessary risks that can slow down transactions and lead to costly delays.

Paper documents are fragile and easily lost. A single misfiled contract can cause delays, and once a document is misplaced, finding it can take hours or even days. In my experience, deals often move fast, and clients expect quick turnarounds. If a buyer is ready to close but a key document is buried in a filing cabinet or lost in transit, it can cost the sale. 

Digital storage eliminates that problem by keeping everything searchable and accessible within seconds.”

Using encrypted cloud storage is the best option because you can access your documents from just about anywhere. Trustworthy uses bank-level security such as AES 256-bit encryption, multi-factor authentication, biometric authentication, physical security keys, advanced threat detection, and tokenization. 

Tokenization is an innovative security method that replaces your sensitive data with unique tokens to ensure that your original information is stored securely outside of your Trustworthy account. This is an extra layer of security that some banks don’t even offer! 

Use Fireproof Document Storage for Critical Papers

Some documents can’t be replaced with digital copies, so it's important to store the originals in fireproof and waterproof safes. For sentimental items or family heirlooms like photos, use a temperature-controlled safe to protect them from damage.

Set a Yearly Review Date to Keep Files Updated

Part of managing your paperwork is making sure it is always up to date. A good way of staying on top of this is using Trustworthy’s automated reminders to review your documents yearly or after major life events like marriage or divorce.

Review outdated documents, make a list of missing documents, and discard duplicates or unnecessary paperwork. 

Alternatives to Shredding: Secure Disposal Options

Not everyone has access to a shredder, so some safe document disposal alternatives we recommend include the following: 

Use Community Shredding Events for Bulk Disposal

Many towns will host events where local businesses, organizations, and non-profits will offer shredding services for free or at a low cost. 

Hire Professional Shredding Services for Large Amounts of Paperwork

If you have large amounts of paperwork that need to be shredded, it is a good idea to hire a professional shredding service to ensure its secure destruction. 

Consider Burning or Pulping Highly Sensitive Documents If Shredding Isn’t Available

If you don’t have access to a shredder for your sensitive documents, you can burn or soak them in water until they are unreliable before throwing them away. Ideally, shredding your paperwork is the most efficient and environmentally friendly method.  

Manage Old Paperwork with Trustworthy

Managing your old paperwork does not have to be a task you dread when using Trustworthy. Instantly scan, upload, and organize your essential documents into organized categories that are easy to find. Trustworthy makes document organization a breeze, and advanced security also gives you peace of mind that your documents are safe from physical and online threats.  

Get additional help from Trustworthy Certified Experts™, who can simplify the process of getting organized even further. They can show you how to gather and organize important items or put you in touch with recommended attorneys and advisors near you. 

Try out Trustworthy for free and stay as long as you like.  

Frequently Asked Questions

How can I tell if a document is sensitive enough to shred?

Documents that contain personal identifiers like your name, physical address, account numbers, and Social Security number are considered sensitive and should be shredded. 

What is the safest way to dispose of old credit cards?

Your old credit cards can be cut into multiple pieces with a pair of household scissors or using a micro-cut shredder designed for plastic cards. If using scissors, cut through the magnetic strip and chip. 

Should I keep paper copies of everything if I store them digitally?

This will depend on the type of document. Essential documents like birth certificates, wills, and property deeds require a physical copy, while less critical documents like tax returns can be stored digitally. 

How can I prevent accumulating too much paperwork in the future?

Going digital is the best way to avoid a growing pile of paperwork. Opt for online banking with electronic statements and digital receipts. Uploading documents online as soon as you receive them can prevent an accumulation of documents.