• Never throw away copies of your federal and state tax returns, records of gifts you made or received, deeds, birth certificates, or marriage certificates.

• Retain for at least six years any records that support tax deductions or taxable income. Those records include canceled checks, expense records, employment and other contracts, and tax-related forms such as W-2s and 1099s. Keep in mind that the Internal Revenue Service (IRS) has three years to audit your return, but can go back six years if substantial underreporting of income is suspected. There is no time limit if fraud is suspected.

• Keep the cost records until the asset is sold plus six years, such as brokerage statements reflecting the purchase and sale of securities, other records detailing the cost basis of investments, contributions to nondeductible and Roth individual retirement accounts, and purchase and sale documents for significant assets, such as homes, land, and cars.

• Monthly or quarterly statements can be thrown away once you receive an annual detailed listing of transactions at year end. Old annual reports, proxy statements, prospectuses, and promotional information can be tossed when you receive current information.

Keeping your records organized will make it easier to find that paperwork when you need it. Organized files will also help your heirs readily locate all important financial information should something happen to you. This will help them identify all your assets and liabilities and let them know which professionals to contact, such as lawyers, accountants, and financial advisers.

To assist your heirs, be sure to gather and record details about safe deposit boxes; life insurance policies; hospital, medical, and disability insurance; homeowners insurance; employee savings and stock plans; individual retirement accounts; credit cards; income tax records; real estate records; outstanding debts; children's accounts and trusts; savings accounts; investments; and advisers. Many of these records should not be kept at home, but you should indicate where the original documents are located. Make sure to note where birth, marriage, and military records are kept, since these documents are usually needed to collect benefits. Update this record annually, and make sure your family knows where it is kept.