Thinking about downsizing your home? Tackling paperwork can feel overwhelming, but a smart strategy will help you keep what matters, digitize for convenience, and securely dispose of the rest. Here’s how to make your move-and your files-lighter and more organized.
What to Keep (and for How Long):
- Vital Documents: Always keep originals of birth certificates, passports, wills, powers of attorney, home deeds, and insurance policies in a secure, accessible spot. You may want to consider a safe deposit box at your local banking institution.
- Tax Records: In Canada, keep tax returns and supporting documents for at least 6 years from the end of the last tax year they relate to. Shred anything older unless advised otherwise by your accountant.
- Property & Investment Records: Keep documents related to the purchase, sale, or improvement of your home and investments indefinitely or until you no longer own the asset. These will be important to have on hand when selling your home.
- Medical Records & Legal Documents: Keep as long as they are relevant or for future reference.
What You Can Shred:
- Old Bills & Statements: Once paid and reconciled, shred utility bills and credit card statements unless needed for taxes.
- Receipts & Warranties: Shred receipts for items you no longer own and expired warranties.
- Tax Documents Over 6 Years Old: Unless specifically required, these can be shredded.
Tip: Always shred anything with personal information to protect against identity theft.
Organizing & Digitizing Tips:
- Sort First: Group documents by type-financial, legal, medical, property, and personal.
- Digitize: Use a scanner or scanning app to create digital copies of important papers and photos. Name files clearly and back them up to secure cloud storage or an external drive.
- Photos: Organize old family photos by year, event, or person. Discard duplicates or blurry shots, and store originals in acid-free folders or boxes for preservation.
Secure Disposal:
- Shredding: Use a personal shredder for small amounts, or take bulk papers to a professional shredding service (many local UPS stores offer this).
- Electronics & Media: For old hard drives or devices, erase data thoroughly or use a professional e-waste service to ensure your information is unrecoverable.
Final Tip: Downsizing is a chance to simplify your life. Keep only what you truly need, digitize for easy access, and shred the rest-securely! Everyone’s situation is unique. For personalized advice on document retention or disposal, please consult your accountant, lawyer, or other trusted professionals.
Ready to make your next move the easiest yet? Let’s get organized together.