A long time ago, we told you what to store in a safe deposit box. Now, in case that wasn't clear enough, we have advice on what not to put in that same box, courtesy of Michael Hymes, CPA.
Don't put originals wills, trust instruments, or powers of attorney in a safe deposit box. Instead, keep these in a fireproof safe at home or at your attorney's office.
Why? When someone dies, a safe deposit box may be sealed for weeks, which could result in result in delays. You might even have to spend money securing a court order to open the box. Further, and here's the Catch-22: the will's executor will not be able to get to the box without the will that shows that he is indeed, the executor, resulting in headaches and delays.
So, just to be clear: Don't put original copies of legal documents in a safe deposit box if they will be needed by anyone who cannot gain access to them. As we said before, feel free to put copies of legal documents in the safe deposit box.
But how safe are safe deposit boxes from damage or theft? A checklist on safe deposit box use suggests sealing documents and other items in airtight plastic bags or containers to prevent water damage, and even keep a list of the items in the box. Remember, there is no FDIC insurance coverage on items in a safe deposit box.
