Keeping Bank Statements Post-Mortem: How Long is Necessary?

Why Keep Bank Statements?

Bank statements are important documents that show how much money you have and how you spend it. Many people wonder how long they should keep these papers, and it’s an excellent question.

In today’s world, a lot of things are online. You might think you don’t need to keep paper bank statements. But it’s wise to keep them for a while. Here’s why:

The government might want to check your money.
You might need to prove something about your money later.
It helps you remember what you bought and when.

How Long to Keep Personal Bank Statements?

For most people, keeping bank statements for about two years is enough. This means you should keep them for 22 months after the end of the tax year.

But if you want to be extra careful, you can keep them longer. Some people keep their bank statements for six years, and businesses must keep them simultaneously.

How Long to Keep Business Bank Statements?

If you own a business, you must keep your bank statements longer. The government says you should keep them for six years. This is because:

The government might want to check your taxes.
You might need to show how much money your business made.
It helps you remember what your business spent money on.

What About Other Money Papers?

Bank statements aren’t the only essential money papers. Here are some others you should keep:

Tax papers: Keep these for at least three years.
Bills for lights, water, and gas: Keep these for a year.
Documents about your house or car: Keep these as long as you own them.

What to Do with Old Bank Statements?

When it’s time to get rid of old bank statements, don’t just throw them away. They contain important information about you; bad people could use it to pretend to be you.

Instead, you should cut the papers into tiny pieces. A shredder is a machine for this purpose. After you cut them up, you can recycle the pieces.

Keeping Bank Statements When Someone Dies:

If someone in your family dies, you might need to take care of their money papers. This can be hard and sad. But it’s essential to keep their bank statements for a while.

You should keep their bank statements for three to seven years. This is because:

You might need to show how much money they had.
The government might want to check their taxes.
You might need to pay the bills they left behind.

Different Types of Money Accounts:

People have different types of money accounts. Each type might need different rules for keeping statements:

Checking accounts: These are for everyday money. Keep these statements for about two years.
Savings accounts: These are for money you’re saving. Keep these statements for about two years, too.
Retirement accounts are for money you’ll use when you’re old. Keep these statements for a long time, maybe forever.

What to Do Right Away?

You can get rid of some papers right away. These include:

ATM receipts after you check them with your bank statement
Old bills you’ve already paid
Papers about things you don’t own anymore

What to Keep for One Year?

You should keep some papers for about a year. These include:

Pay stubs from your job
Monthly bank statements
Bills for things you bought

What to Keep for Seven Years?

You should keep some papers for a long time. Keep these for seven years:

Tax returns
Documents about the money you got from your job
Papers about big things you bought, like a car

How to Keep Your Statements Safe?

It’s essential to keep your bank statements safe. Here are some ways to do that:

Put paper statements in a locked box.
Save electronic statements on a computer with a password.
Make copies of important papers and keep them in a different place.

Questions People Often Ask:

Is it worth keeping old bank statements?

Yes, it can be helpful. They show how you spent your money in the past, which can be beneficial for taxes or proving you bought something.

Can the government check my taxes after I die?

Yes, the government can check taxes for up to three years after someone dies. If they think someone didn’t pay enough taxes, they can check for up to six years.

Who can see bank statements after someone dies?

Not everyone can see these statements. Usually, only these people can:

The person in charge of the dead person’s money (called an executor)
People who are getting money from the dead person
Government workers who need to check the statements

Keeping Your Money Papers Safe

It’s wise to keep your money papers safe. This includes bank statements. Here’s why:

It helps you remember how you spent your money.
It can help if someone says you owe them money.
It helps when you do your taxes.

Remember, you don’t need to keep everything forever. But it’s good to keep important papers for a few years. If you’re not sure, ask a grown-up or a money helper.

Keeping track of your money is part of being a responsible person. It might seem tedious, but it’s essential. And who knows? You might learn something interesting about how you use your money!

Wrap-Up:

Keeping bank statements might not seem exciting. But it’s an essential part of taking care of your money. Here’s what to remember:

Keep personal statements for at least two years.
Keep business statements for six years.
Keep retirement account statements for a long time.
Cut up old statements before throwing them away.
Keep statements in a locked box or on a safe computer.

Taking care of your money papers now can help you a lot in the future. It might save you time, stress, and even money! So, take a few minutes to organize your bank statements. Your future self will thank you!