As executor, you will need a good record keeping system to handle all the documents of the estate that will come your way. An efficient filing system and good record keeping will keep you from wasting time searching for information when needed. Moreover, beneficiaries, insurance companies, banks, and other organizations may hit you with questions; therefore, it would save time if you had the necessary documents on hand. So, a good record keeping system will help you administer the estate smoothly.

Retain Important Documents

In the article Set up the Home Office, a good record keeping system was established by using storage boxes for filing and retaining important documents common to most estates. However, since estates are different, other documents are necessary that are relevant to your estate. So, using the established record keeping system, consider the following documents for record retention:

1. Miscellaneous file box.
   1. Add a folder called Essential Records. File the decedent’s social security card, passport, driver’s license, birth certificate, and other documents relevant to the decedent.
   2. Add a folder called Estate Records. File the death certificates, will, and other documents related to the estate plan.
   3. Add folders for each financial institution listed on the Inventory of Assets. In each folder, retain documents and bank statements related to the account. For brokerage accounts, retain statements, trade confirmations, and other documents related to the account.
   4. Add a folder called Retirement. File documents for IRA’s, Keough accounts, and other retirement accounts associated with the decedent. Use a separate folder for each retirement account.
   5. Add a folder called Social Security and Medicare. Retain all documents related to social security and medicare accounts. Include the insurance card for a supplemental medicare insurance policy.
   6. If the decedent was employed on the day of death, add a folder called Employment. File documents related to employment, employment benefits, and other documents related to the decedent’s employment.
   7. If the decedent had a car, add a folder called Automobile. Retain the registration, auto insurance policy, title, loan papers, if any, repair records, if any, and other documents related to the decedent’s car.
   8. Add a folder called Estate Management. File the attorney’s bills, accountant’s bills, and other documents related to the costs of administering the estate.
   9. Keep a journal of the work you have completed for the estate and store in this file box.
2. Taxes file box.
   1. Add a folder called Final Taxes. File 1099’s, w2’s, receipts, and other tax documents needed to file the final return for the decedent.
   2. If you need to file estate income tax returns, add a folder called Estate Income Tax. Retain the 1099’s, w2’s, receipts, and other documents related to the Estate Income Tax return. Call your tax professional for other items needed.
   3. Retain three years of past returns for the decedent including amended returns.
3. Real Estate file box.
   1. Establish a folder for each property the decedent owned. In each folder, retain the deed, home insurance policy, mortgage papers, keys, and other documents related to the property.  If the decedent had rental property, include the lease and the account information related to the security deposit. 

Also, there is no need to file credit cards and subscriptions because you should cancel those accounts as you notify the issuers of the death.

Electronic Record Keeping

In addition to developing a good record keeping system for paper documents and other property, you can also build an electronic record keeping system. On your computer, you can set up folders and download bank statements and other documents into the folders. Also, if you communicate by email, create separate email folders for estate related emails. However, not all documents are accessible online. Therefore, it is best to establish a record keeping system to handle all documents consistently and use the online documents for reference.

Conclusion

As previously mentioned above, estates are different. Therefore, develop a record keeping system that you understand and helps you administer your estate efficiently. By working efficiently and having the information you need readily available, you will have a smooth estate administration.

What type of record keeping system would be easier for you? Please add your comments in the comment section below.

Recommended Reading: 

The Executor’s Guide – The Executor’s Guide by Nolo will guide you through setting up a record keeping system and other pertinent tasks in settling a decedent’s estate.