Money Management Newsletter

Family Business

Family Records

What to Keep & For How Long

Dr. Jo Turner, Professor

Family and Consumer Economics

Family records are an important part of any family money management system.  They are needed for proof of property ownership, as proof for income and estate taxes, for family finance and for measuring a family's financial progress.  If records are lost or misplaced, extra cost and time may be involved in trying to replace them.

Most families have three types of records:  personal, financial and property.  Some should be kept permanently and others for shorter periods.

Permanent personal records pertain to changes in your family situation such as adoption, divorce, education, employment, military service, health and medical care, marriage, birth or death, funeral or burial, citizenship, social security number and up-to-date copy of your will.

Insurance records may be personal and financial and should be kept as long as the policies are in effect.  They should be reviewed periodically to be sure they provide the protection needed by the family.

Permanent financial records include those pertaining to valuable purchases, important contracts and contents of a safe deposit box.

Safeguard credit card numbers, installment agreements, bank records and investment, budget and expenditure records, but only as long as necessary.

For income tax purposes, the Internal Revenue Service recommends keeping records at least three full years from the time tax is filed, for example:  records that support your 2000 income taxes should be kept until April 15, 2004.  Some financial advisors recommend keeping the records for as many as ten years.

Property records, such as deeds, improvements on real property, purchase receipts for personal property and an up-to-date inventory of personal and household goods, should be kept current and permanently.

Titles, receipts and guarantees for durable goods, such as automobiles and equipment, should be kept as long as you own the property.

Keep sales records for non-durable goods, such as clothing and household items, until you know the item purchased performs satisfactorily. Keep use and care information and warranties for as long as you own the item.

For more information on record keeping contact your local Extension agent.

Original Publication date: July 2001.