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That works with clothes, but what about my financial records?
Part of me knows that I really don’t need my electric bills from 1994 from a house that has since been sold, but they really don’t take up much room and they would be difficult to recreate if I ever did need them.
This time of year, I hear people recommending that you dispose of financial records that are over 3 years old. This may be correct for tax purposes. I’m not a tax expert so I really can’t say.
But, if you want to apply for Medicaid, you need to be able to ‘look back’ 5 years to see if you’ve made a gift that might create a penalty period. Or rather, you need to be able to prove that you did NOT make a gift in the past 5 years.
And since I’m never sure of what may happen in my life, I want to be prepared, just in case.
So my goal for this spring is to dispose of financial records from 2005 and before. Yes I know that 2006 was 6 years ago and not five, but at least I’ll get rid of those electric bills from 1994!
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