Q: Should I keep my estate planning documents in a safe deposit box?
A: No, safe deposit boxes are not the best place to keep documents that may be needed on short notice or after someone’s passing. The most effective option is to keep all your important documents in a fire-resistant safe in your home to save from monthly fees and save your loved ones from headaches if they need to retrieve important documents in a moment’s notice.
A safe deposit box is a secure container one rents from a bank or credit union. Customers rent them for a fee to keep items like personal documents, collections, and other important items. Renting a box can cost over one hundred dollars a year, but price varies based on the box’s size.
If the owner of the box loses capacity and kept his or her healthcare proxy, living will, and/or power of attorney documents in the box, there may be no way to get access to the documents. Without the power of attorney, an agent will be unable to open the safe deposit box if he or she is not a named renter of the box. You cannot predict the worst-case scenario, but you can plan for it.
Even the owner of the safe deposit box is limited in access because they can only be accessed during banking hours. Emergencies often do not occur during banking hours. An agent will often need to provide the original power of attorney to gain access if the agent’s name is not on the rental agreement and the document must specifically authorize access to the safe deposit box. In practice, a bank may be hesitant to allow entry to the box without the owner being present.
Once an individual passes away, banking institutions are often notified by the Social Security Administration that a death certificate has been issued. This often leads to the sealing of a decedent’s safe deposit box. If the original copies of important documents are in a box, an executor or trustee will not have access to those documents unless they begin a proceeding in Surrogate’s Court.
In New York, an interested party, like an executor, trustee, administrator, or guardian, can petition the Court to get access to a decedent’s deposit box, especially if you expect a Will, burial deed, or life insurance policy will be stored inside. To petition the court, an interested party will have to provide a death certificate, pay a fee, and provide the exact address of the box. If the Court receives all necessary documents and deems a petitioner’s request permissible, the Court will grant an order that allows the bank to unseal the box, allow the petitioner to take an inventory of the box contents, and then reseal the box. The petitioner must then submit the inventory to the Court and the Court can, if appropriate, empower the petitioner to collect all the items in the box and terminate the safe box agreement between the decedent and the bank.
Even if you are jointly using the safety deposit and both people are named on the paperwork, it is common practice in New York that once the bank is aware of the passing of one person, the entire safe deposit box is sealed and cannot be accessed without a Surrogate’s Court proceeding. Even if the joint renter is a spouse, the box will be sealed. A bank may allow a joint renter to look inside the box, but the contents cannot be removed until the Surrogate Court reviews the petition and grants access to the petitioner.
In conclusion, if you’re looking for somewhere to keep important documents you might need in a pinch, a safe deposit box isn’t your best option! A regular, old, trusty safe is your best bet; it will save you money in rent for a safe deposit box and it will keep your loved ones safe from the chaos and stress of trying to find or access important documents they will need if anything happens to you.
By Melissa Doris, Esq. & Erin Cullen
Melissa Doris, Esq. is an attorney with Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Trust and Estate Administration. Erin Cullen is a graduate of the Maurice A. Dean School of Law at Hofstra University. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.