Last Updated on October 29, 2022 by Estate Planning FAQ
With the importance of planning your estate and the costs associated with preparation of the documents, it is important that your estate planning documents be stored in a secure place. This can be in a safe deposit box at a local financial institution. Alternatively, the documents may be stored in a fire box or safe located in the residence. Finally, in addition to making sure the documents are secured and placed in a safe place, it is equally important that those named in the documents to act on your behalf know where the documents are stored.
Use of a Safe Deposit Box
Many individuals over the years have chosen to store their valuable documents in a safe deposit box at the bank. The only concern with using a safe deposit box is that in addition to the testator or owner, it is necessary that someone else be listed as a signer on the account to access the safe deposit box. This is normally okay in a husband and wife situation. However at the death of the first spouse or in the instance of a single person if no one else is listed on the signature card, most financial institutions will require a court order to enter into the safe deposit box. There is usually fee associated with this. Also, if an emergency exists and the individual named in the documents needs to act on your behalf (i.e. as your power of attorney) storage in a safe deposit will significantly delay the power of attorney’s ability to act. Therefore, it is always recommended to have someone else placed on the signature card.
Safe or Fire Box at Home
An alternative to is to use a fire box for safe located within the residence. Due to the issues associated with a safe deposit box it is usually effective to just have the document and a safe or other secure location.Most products available today on the market have fire ratings and security ratings that will keep the documents safe in the event of a fire, tornado, etc. Also, most safes or fire boxes have in addition to combinations, key access or biometric access. In the event that a power of attorney needs to act in an emergency, it is easier to retrieve the document from the safe or fire box, especially if the bank is closed.
Who Should Store the Documents If Not the Owner
As far as options available for who should hold the original documents, the author has observed a number of options. If it is not the testators themselves who have the originals in their possession, many times it is the agent named as power of attorney. Alternatively, at times the law office where the documents were prepared will continue to retain the documents in their safe keeping. Sometimes the documents are left in the possession of the children regardless of whether the children are listed as the power of attorney or executor.
Above all the goal should be that the testator knows where the documents are and at a minimum those that are left in charge should have knowledge of the documents’ whereabouts for when the time comes to exercise and carry out what is set forth in the documents.