Decluttering can feel like such a relief, but when you’re going through those stacks of documents, it’s not always easy to figure out what to keep and what to toss. Some papers are critical to hold onto, and others are overstaying their welcome.
Here’s a general overview of some of the documents you should hold onto and others you might be able to let go.
Keep in mind, these are just general guidelines—consult with relevant experts about specific documents and any questions you have!
What to Hold Onto: Insurance Documents and More
Active Insurance Policies
Whether for health, auto, home, or life, insurance policy documents are your go-to when making a claim or updating your coverage. Hold onto them until the policy expires or is replaced.
Many insurance companies have gone digital, but make sure this is the case before you get rid of anything.
Pro tip: scan them for digital backup so you’re covered.
Insurance Claim Records
Don’t just toss those papers if you’ve ever filed a claim. Keep them for a few years—especially for home or health insurance. They’re lifesavers if there’s ever a dispute or if you need a reference for something down the road.
Tax Documents
Tax time can get messy without the right paperwork. The IRS recommends keeping tax returns and supporting documents for at least three years, sometimes up to seven.
For example, seven years is the magic number if you’re claiming a loss from bad debt or worthless securities.
Keep them indefinitely if you didn’t file a return or filed fraudulently. These records are key if the IRS ever has questions.
Property Records
If you own a home, every paper tied to it is gold. Think purchase agreements, mortgage details, and insurance policies. Renters should keep lease agreements and renters insurance info until they move out.
For tax purposes, hang onto property-related records until you dispose of the property, and the limitation period expires for that tax year.
Other Important Documents to Keep
- Current ID cards and passports
- Social Insurance Number (SIN) cards
- Birth and death certificates
- Marriage licence
- Divorce certificate
- Wills, living wills, and powers of attorney
- Any parenting, custody, or other agreement or court order arising from a marital separation
- Immigration documents
- Military service records
- Pension plan documents
- Current business licences
- Issued educational diplomas and degrees
What You Might Be Able to Let Go Of
After three years, it’s usually safe to get rid of these:
- Securities and trade confirmations
- Vehicle loan documents or personal property loan records for loans that have been paid off
- Mortgage documents for properties that are no longer owned
- Employment contracts or benefits agreements that have expired
- Expired rental or lease contracts
- Expired utility contracts
- Membership agreements that are no longer active
After seven years, most of these are okay to get rid of:
- Year-end bank statements kept for tax purposes
- Income tax returns and supporting documentation
- Titles, contracts, and deeds for properties that have been sold
- Credit card statements saved for tax or business purposes
- Pay stubs no longer required for tax filings
- Charitable donation receipts
- Medical bills and related records
- Brokerage and mutual fund account statements
- Documents from closed estates
- Records for home purchases, sales, or improvements
Decluttering doesn’t mean you have to throw caution to the wind (or all your papers in the shredder). A little thought goes a long way in ensuring you’re keeping what matters and letting go of the rest.
And when in doubt? Hold onto it a little longer—especially if it’s tied to insurance.
Always consider whether other purposes, such as insurance claims or creditor requirements, mean you should keep records even longer than tax guidelines suggest.
If you have any questions about your Salt Lake City insurance documents and what you should hold onto, contact us today!
