All You Need to Know About Safe Deposit Boxes
Sometimes, the lump in the mattress gets too big and/or uncomfortable. Even if not, the truth is you need a secure place to keep the documents and items that are most important to you. But you don’t want everything locked in a safe at home either, as this can be damaged in a fire or stolen. Where can you keep these valuables?
A safe deposit box can be the perfect solution to your peace of mind – and your valuables.
Let’s take a look at safe deposit boxes and how to manage them effectively.
What is a safe deposit box?
A safe deposit box is a small or modestly sized secure box located at your bank or credit union. The boxes can range in size from 2”x5” to 10”x15”, or even larger with some institutions. You can rent these boxes directly with your financial institution, with prices generally starting at $25 a year. You may need a single key to open the box, or your credit union may use a dual-key system, in which both you and the credit union must use a key to open the box at the same time. You can also only access the box when the credit union is open, so you’ll only want to store items you won’t need on a regular basis.
What to keep in your safe deposit box
Your safe deposit box should be home to items of significant financial or sentimental value. This can include:
- Important documents like property deeds, wills, birth certificates and insurance policies
- Expensive jewelry
- Rare collectibles
- Family heirlooms
- Copies of important legal documents, such as passports, Social Security cards and marriage certificates
Some people also choose to keep a USB with encrypted data or digital backups of important files in their safe deposit box. This offers an extra layer of security against loss or theft.
How often should I check my safe deposit box?
Safe deposit boxes offer a high level of security, but it’s important to occasionally check up on its contents. Experts recommend conducting a thorough inventory of your safe deposit box at least once a year to ensure the items inside it are still relevant and necessary to keep and store. Also, if you’ve experienced any significant life events this year; such as a change in marital status, the birth of a child or the purchase of a new property; it’s a good idea to revisit the contents of your safe deposit box to make any necessary updates.
Who should have access to my safe deposit box?
While the primary account holder typically has sole access to the box, it’s essential to designate a trusted individual who can access the box in the event of an emergency or unforeseen circumstance. For most people, this will be a partner, family member or close friend as an authorized user on their safe deposit box account. Whoever you choose, be sure it’s someone you completely trust and who understands the importance of maintaining confidentiality and security. It’s also crucial to communicate clearly with all authorized users so they understand their responsibilities and obligations regarding the safe deposit box.
What happens to a safe deposit box after its owner’s passing?
When the owner of a safe deposit box passes away, procedures for accessing it will depend on the policies of the financial institution where the box is held and the legal requirements of its jurisdiction. Typically, upon receiving notification of the box owner’s passing, the financial institution will restrict access to the safe deposit box until proper authorization can be obtained.
If the safe deposit box’s holder has designated a trusted individual as a co-signer or authorized user, they may be granted access to the box after presenting appropriate identification and documentation. In general, they’ll need to present a death certificate to prove the safe deposit box’s owner has passed away, as well as proof of their relationship to the owner.
Alternatively, if the deceased has named an executor of their estate, they may be responsible for obtaining access to the safe deposit box as part of the probate process. In such cases, the executor will need to present the necessary legal documentation, such as a court order or letters testamentary, to gain access to the box and its contents.
It’s important to note that safe deposit boxes are subject to the laws and regulations that govern estate administration. Failure to properly plan for the disposition of your safe deposit box upon your passing could result in long delays and complications for your heirs and beneficiaries.
Safe deposit boxes offer a secure and reliable solution for safeguarding valuables and important documents. Use this guide to learn what to keep in your safe deposit box and how to manage it effectively.