The newly deceased are primary targets for fraudsters and identity theft. Just because someone passes away doesn’t mean that their identity isn’t at risk of being stolen. As such, you should prevent your loved one’s sensitive documents from falling into the wrong hands.
You should shred all documents of a deceased person that contain sensitive information like account numbers, Social Security numbers, and passwords and PINs. However, the timing of when you shred these documents is important. You should keep tax documents for at least seven years, for example, but shred offers that come in the mail immediately.
Today’s in-depth guide covers what documents you should shred after a death and how long you should wait before shredding them, including:
Documents to shred immediately.
Documents to shred after 1 year.
Documents to shred after 7 years.
Documents to shred after 10 years.
Documents to never shred.
Why You Should Shred Documents After a Death
There is one crucial reason why you should consider shredding documents after a death: identity theft.
With the increase in identity theft and the misuse of other people’s personal information, it’s more important than ever to shred your fallen loved one’s documents. Fraudsters steal nearly 2.5 million American identities each year to open credit card accounts, apply for loans, and open cell phone plans.
Shredding non-crucial documents that contain sensitive information is the best way to prevent fraudsters from stealing your lost loved one’s identity. It’s not uncommon for fraudsters to sift through garbage to look for personal information.
So, shredding your loved one's documents rather than throwing them away is the only way to guarantee the safety of your loved one’s identity. Furthermore, it can take years before fraud is flagged on a dead person’s file, letting fraudsters open credit accounts, loans, and file for tax returns.
Emotional Considerations and Family Dynamics
Dealing with a deceased person’s documents can be more than just a practical task; it is often emotionally taxing. While some documents, such as personal letters or photographs, do not hold legal value, they could have immense sentimental significance.
Families should openly discuss these items, considering the emotional impact on all members. By setting aside time to review these items together, families can make collective decisions that respect everyone’s feelings and ensure that sentimental items are handled with care.
How Long to Keep Documents After a Death
Although keeping your deceased loved one’s identity safe is of the utmost importance, you shouldn’t immediately shred all the documents in your loved one’s file boxes.
This is because we recommend keeping most estate papers for seven to 10 years after a death. These documents include tax returns, property or investment sales records, and the estate’s bank statements and accounting records.
Nonetheless, you don’t have to hold on to all of the paperwork forever. Below, we explain how long you should store different types of documents after a death.
Legal Timelines and Compliance
It’s important to be aware of legal timelines when deciding how long to retain documents. For instance, tax documents should be retained for seven years to comply with IRS audit periods. In some cases, the IRS may extend this period up to six additional years if it suspects income was underreported.
Premature disposal of certain documents, such as tax returns, could result in legal complications, including fines or penalties if future audits or claims arise. Consulting state-specific legal requirements is also important, as some states may require longer retention periods due to probate laws.
Documents to Shred Immediately
In general, you should shred unimportant documents that contain your loved one’s name and address. You should also shred documents with sensitive data, such as account numbers and credit card numbers.
Here’s what you can shred immediately:
Credit card and insurance offers.
ATM receipts.
Sales receipts.
Paid utility bills.
Expired warranties.
Paid billing statements.
Documents to Save for 1 Year
Documents you can shred after one year include non-tax-related bank and credit card statements, pay stubs, receipts for larger purchases, and investment statements.
Documents to Save for 7 Years
In most cases, you should keep your loved one’s financial documents for at least seven years following the death, or seven years after you file any required estate taxes, whichever is sooner. These documents include:
Account statements.
Tax returns.
Tax-related receipts.
W2 forms.
Although the IRS has three years to audit an individual’s tax return, it can extend up to six years if the IRS believes your loved one underreported their gross income by 25 percent or more.
Medical Documents to Save for 10 Years
Although medical records are typically stored electronically, it’s a good idea to request them from your loved one’s medical provider. As a general rule of thumb, you should hold on to these medical records for about 10 years.
As the personal representative or legal executor of the deceased person’s estate, you have the legal right to access and maintain your loved one’s medical records. Retaining physical copies of medical records, such as health insurance cards, medical tests, prescriptions, medical history, and hospital discharge papers, for a decade ensures that any future insurance claims or disputes can be easily resolved.
Secure Disposal Practices
When it comes time to shred documents, security is key. Use cross-cut shredders to make the documents irrecoverable, and for large amounts of sensitive paperwork, consider paying a professional shredding service that provides a certificate of destruction. This ensures that your loved one’s sensitive information won’t fall into the wrong hands.
Documents You Shouldn't Ever Shred
You should keep most legal records of your loved one indefinitely. Legal records are any documents or files related to federal, state, or local laws. Some examples of documents to never shred:
Birth certificate.
Social Security card.
Divorce decree.
Death certificate.
Will.
Marriage certificate.
Prenuptial agreement.
Retirement plan.
Insurance policy.
What to Do With Documents You Should Keep
After a loved one passes away, it can be easy to get swamped with paperwork and documents. Since there are documents you should never shred, you need a safe place to keep them. Unless the documents are stored in a safety deposit box, they are prone to theft, misplacement, and destruction.
It’s also difficult to share paper documents with those who need access. However, Trustworthy can make the post-death document management process much easier for you and your family.
Trustworthy is a family-oriented digital storage platform that stores and secures sensitive information like wills, financial records, insurance policies, and much more. Trustworthy ensures your family’s documents are always available from any location.
Therefore, even if you lose or mistakenly shred an important paper document, you can always access the backup file on Trustworthy. In essence, Trustworthy offers the best solution for families that want to stay organized and efficient throughout life’s most uncertain moments. You can try a two-week free trial here.
We’d love to hear from you! Feel free to email us with any questions, comments, or suggestions for future article topics.
Trustworthy is an online service providing legal forms and information. We are not a law firm and do not provide legal advice.
