Wednesday, January 15, 2025

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7 documents you must ALWAYS keep

STEVEN JONES

Paperwork is a pain in the rear end, and most people do a ‘clear-out’ every so on.  But the following documents must never be thrown away:

  • Copies of past tax returns: You’re required by law to keep your tax records for five years. However, often the only record of any contributions to retirement funds, charitable donations, and expenditure on rental properties, is contained in your tax return.
  • Marriage certificates, antenuptial contracts, and divorce papers: You will need these when opening a bank account, applying for credit, or purchasing fixed
    If you are divorced, you will only be able to remarry if you can prove your unmarried status.  Also, estate duty is materially impacted by your
    marriage regime.
  • Life assurance policies: You took out life insurance to provide for your loved ones, should something happen to you. Make sure that they are in a place that your beneficiaries can find them.
  • Short-term insurance policies: The time to know where these are, and what they contain, is before you have the break-in, not afterwards.
  • Your most recent utility bill: With the marvellous service offered by banks nowadays, you can virtually guarantee that your FICA documentation will be lost at least once.  And try getting your bank account unfrozen without the required documentation …
  • Title deeds and vehicle registration papers: You normally forget about these until you want to sell your car or house. Getting replacements is costly and time-consuming.
  • Proof of payment: Most durable goods have guarantees that are honoured if you can produce the proof of purchase. It’s also a good idea to keep proof of things like traffic fines paid—especially if you want to avoid a night in the lock-up.  The watchword should be: “If I cannot prove payment, will it cost me money and/or inconvenience me?”  If the answer is “yes”, then keep that slip.

Steven Jones is a registered SARS tax practitioner, a practicing member of the South African Institute of Professional Accountants, and the editor of Personal Finance and Tax Breaks.

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