Document Locator System

The Document Locator System

Most people have no idea where to start searching for their important records. They usually keep them scattered in various locations – tax records in a file cabinet, savings bonds in a home safe, wills at an attorney’s office, some contracts or deeds in a bank safe deposit box.

There’s a reason many people do not have an organized recordkeeping system: Organizing your records is stressful and confusing.

The Document Locator System is effective because it takes away that stress and confusion. This simple recordkeeping system provides an easy way to keep track of your important personal (not business) records, keeping them organized and available. You will not miss out on a tax deduction because you did not keep the necessary receipt. More importantly, the document locator system will help a spouse or executor locate your documents in case of death or disability.

Set Up Tabbed Sections

Set up tabbed sections in your files with the following captions (customizing sections as appropriate to your particular situation):

1. Banking
2. Children
3. Credit and Loans
4. Employment
5. Estate Planning [including wills and post-mortem matters]
6. Important Personal
7. Insurance
8. Investments
9. Major Assets
10. Professional Residences
11. Tax Records
12. Vehicles [including boats]

File the Documents

File the documents and other records listed in Column 1 in the file sections recommended in Column 2 of the Document Locator. Where the original or a copy is filed elsewhere, note this location in Column 3 of the Document Locator. You can also use Column 3 for any notes regarding the document (such as Passport – “Renew by October 12, 2022” or IRA – “Take first distribution by December 31, 2022”). Where your filing system suggests a file section other than that recommended in Column 2, just substitute your location for the recommended one. For items other than those named here, use the blank spaces at the end of the Locator.

This Document Locator is shown at the end of this Financial Guide.

Tip: Put a photocopy of the Document Locator, which will contain the locations of all your important documents, in a fireproof safe or safe deposit box.

Tip: In addition to the Document Locator System, prepare a post-mortem letter to a spouse or executor. This is also an essential part of helping your heirs and family members get your affairs in order in the event of death or disability. The purpose of such a letter is to provide them with the information needed to locate records or assets. This will prevent erosion of your estate by unnecessary taxes, unfounded claims, or just plain loss of assets.

The key is to develop and follow some type of recordkeeping system, not necessarily the one recommended here. If you have any questions, contact your financial advisor.

Tip: Cull your records every so often. By getting rid of the papers you no longer need, you minimize the ever-encroaching mountains of paper we all have to handle.

Documents You Should Be Able To Locate Easily

Certain documents, records, and other information should be easily locatable in an emergency. These include (1) your personal records, (2) a list of your assets, (3) your estate planning records, and (4) your financial records.

Personal Records

• Birth certificates of family members
• Death certificates of deceased family members
• Marriage license
• Divorce decree and custody agreement (if divorced)
• Passports (updated)
• Social Security numbers for family members
• The names and addresses of family members, close relatives, and any persons mentioned in a will
• Military records
• List of previous employers
• List of government employers
• Medical records and health insurance cards for family members

In most cases, the reason these documents are needed is self-explanatory.

List of Your Assets

• Description of all major assets that you own separately or jointly with your spouse or other person, together with the approximate values and location of deeds, titles, stock certificates, or other evidence of ownership.

Note: Include cash, realty, investments, IRAs, retirement plan benefits, life insurance policies, interests in partnerships or other business entities, jewelry and other luxury items, automobiles, boats, antiques, coin collections, collectibles, art objects, and debts owed to you by others.

• Appraisals of valuable items
• Description of the approximate amounts of pension, military, and/or other benefits you or your spouse may be entitled to on retirement or death
• Insurance policies (including group life, individual life, health, casualty, auto, etc.) and identity and phone numbers of insurance agents

Estate Planning Records

• The whereabouts of your will and codicils, along with the name and address of the attorney who prepared them
• Title to cemetery plot or other burial arrangement
• Post-mortem letter to spouse or family members, to be opened after your death
• Living will or other directions in case of disability

Financial and Other Records

• Location of all safe deposit boxes, keys, and passwords
• Important canceled checks
• The names and addresses of your CPA, attorney, and any other professionals concerned with your financial affairs
• Photographic or video record of house and its contents (for homeowners’ insurance purposes)
• One statement for each bank account, IRA, mutual fund, broker, or other account you own, along with the name and telephone number of the primary banker, broker, or other contact person for each account
• Brokers’ confirmation slips for purchases
• A statement or other reference for any bank account that is not in your name
• One statement or payment stub for each credit card, line of credit, or outstanding loan
• Income tax returns for at least six prior years (including all supporting records for the past six years), and all prior gift tax returns
• Records showing the original cost of any realty owned, cost of all improvements that can be added to tax basis, and depreciation taken (for business or rental property)
• Bills of sale or receipts for major items
• Equipment and appliance manuals and warranty information

Where to File What