We’re living in a truly digital age. As the world attempts to move to paperless transactions, having paper copies of your planning documents—wills, trusts, powers of attorney, and healthcare directives— can feel incredibly archaic. And while estate planning attorneys will be the first to chuckle and admit that, yes, the stack of papers representing your estate plan may seem excessive, it’s often also incredibly necessary. Having the original documents you signed before witnesses or a notary is the gold standard, in the opinion of the probate court. And not having them can make things that much more difficult for your loved ones. So, if you must keep these paper documents, what about their storage? Where’s the best place for their safekeeping? While there is no right or wrong answer to this question, consider the following:
Storage Option No. 1: Your Safe Deposit Box?
Some people believe that the best place to store their original estate planning documents is in their safe deposit box at a local bank. This may make sense if you have given your spouse or a trusted child, other family member, or a friend access to your box. However, giving someone permission to access your safe deposit box does not give them the same legal rights to it that you have. Because a safe deposit box is a rental arrangement (you are leasing the box from the bank), if you are the only one who signed the lease and you become incapacitated (unable to manage your affairs) or die, no one else will be able to open your box, not even the people to whom you have previously given access. In Texas, if you pass away and have not given permission for a trusted fiduciary to access your safe deposit box, then your heirs and beneficiaries will need to obtain a court order, which wastes time and money.
If you are not comfortable giving someone else immediate access to your box, some banks may allow you to add your revocable living trust as an additional lessee, which will give your successor trustee access to your box if you can no longer serve as trustee of your trust for any reason. Also, if you use a safe deposit box to store important items such as your estate planning documents, ensure that your trusted loved ones know which bank has the box—and the exact branch where it is located. They will also need to know where you keep the key.
One final caution about using a safe deposit box for your estate planning documents: Banks have limited hours. If your loved ones need to access your documents outside of banking hours, they will not be able to.
Storage Option No. 2: Your Home Safe?
Home safes are popular these days, but in order for yours to be a good place to store your original estate planning documents, it should be difficult to move (bolted to the floor!), fireproof, and waterproof. In addition, ensure that someone you trust has the combination to your safe or can easily gain access to the combination if you become incapacitated or die.
Storage Option No. 3: With Your Estate Planning Attorney?
Traditionally, many estate planning attorneys offered to hold their clients’ original estate planning documents for safekeeping (usually without charging a fee). Today, most estate planning attorneys do not want to take on the liability. In addition, as the years go by, it may become difficult for your loved ones to track down your attorney, who could have changed firms, become incapacitated, or died.
Storage Option No. 4: With Your Corporate Trustee?
If you have named a bank or trust company as your executor/personal representative or successor trustee, this may be a good option for storing your original estate planning documents, if they are willing to do so. Banks and trust companies often have specific procedures in place to ensure that your original estate planning documents are stored in a safe and secure area. If you choose this option, ensure that one or more of your loved ones know where your original documents are located.
Contact Us
Regardless of where you decide to store your original estate planning documents, ensure that your family members, a trusted friend or advisor, or your estate planning attorney knows where to find them. If your original documents cannot be easily located, it may be legally presumed that you purposefully destroyed them, depending on your state law. Without your estate planning documents, your money and property will be divided among your family according to state law and distributed outright. It will not matter that you wanted something different if no one can find your documents. If you have questions about the best place to store your documents or would like to discuss creating or updating your documents, call us. Nielsen Law PLLC provides family-focused estate and business planning to individuals and families in Austin, Round Rock, Cedar Park, and the Central Texas area. For more information, and to learn about our firm, please contact us. We look forward to working with you.
