Paperwork seems to be a thing of the past with most legal and business documents being created, signed, and stored digitally. However, there are a few hard-copy items that are vital.
The three categories
The first category is considered Essential Life Documents. These documents require top-level care. Things that fall under this tier are Social Security cards, Passports, Wills, Health Care Proxies, Birth and Marriage Certificates, Titles, Deeds, and Divorce Papers.
The second level is referred to as Important Reference Documents. These types of paperwork should be stored for easy access. The item you would store this way includes 401(k) or IRA statements, Life Insurance policies, House Insurance policies, and Tax Returns for multiple years.
The last group is things that would require quick access. These documents should be carried with you. The most obvious are your Driver’s License or State ID, and Health Insurance Cards.
Proper storage means better care
When someone thinks of safes, people usually go to bulky units with a combination lock. But any box with a locking device that is water and fireproof provides excellent secure storage for those most important documents considered in the essential life category.
A key factor of having one of these types of boxes is making sure that a trusted family member or anyone who would need access to the safe in the event of an emergency has the code or knows where to find the key.
Additionally, burglars tend to scour master bedrooms in search of valuables, so consider putting the safe somewhere else. For those who live in a high-crime area they could go to the bank and use a safety deposit box. It also would help to make digital backups of these documents by copying them and storing them on a flash drive.
Important reference documents could be stored online
Many documents are important to have for reference, but not necessarily physical copies in hand. For these types of documents, there should be uploaded electronic versions to a storage device, and then the originals can be shredded or put in a filing cabinet.
To understand how this works, people need to understand the language. Cloud storage means that someone’s files are kept on a highly secure, remote computer server. By using a service such as Apple, iCloud, Google Drive, or Microsoft Onedrive, a person can access files they have uploaded from a device, like a computer, a tablet, or a phone.
Files stored in this manner can be organized into folders. Access should also be given to different family members who may need to help in an emergency to manage affairs. In addition to keeping these documents for which a person no longer needs physical copies, a cloud storage is also useful for keeping backup copies of any type of document.
Carry quick access documents
Many people already do this, and it seems obvious to mention. But for those quick access documents like a driver’s license and medical insurance cards, these need to be in someone’s possession.
Spend a little time this week to sort through your most important documents and get your paperwork in order. It doesn’t take long to scan them, take pictures of them, and/or make photocopies. Make it a point to revisit your documents every six months to make sure everything is up to date and in order.
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