A Safe-Deposit box is a sturdy metal container in a bank's steel vault which is accessible only to the people the holder specifically authorizes. Each box requires two keys to open. One key is held by the customer. The other key is held by the bank.

Safe-Deposit Boxes are available in a variety of sizes and are rented on an annual basis.

A safe-deposit box is probably the safest and most private place to store important papers and valuable items such as jewelry. However, it is not the appropriate place to store all important papers.

In spite of the safety factor, keep in mind that safe-deposit boxes are loss-resistance, not loss-proof. Safe deposit boxes get robbed, floods happen, buildings collapse etc. Jewelry and other valuable items stored in a safe deposit box should be insured. 

If you store documents, investment property or securities documents in the safe-deposit box, the rental can be clamed as a deduction for income tax purposes.

Safe-deposit boxes are sealed on the death of the holder. They generally cannot be opened once sealed without the presence of a representative of the local taxing authority. If you do not want your safe-deposit box to be sealed upon your death, consider using an entity such as a corporation to rent the box. Generally, safe-deposit boxes registered in a corporate name are not sealed upon the death of a principal.

NOTE:

• Contents in a safe deposit box are safe if the bank fails.
• Keep a list of what is in your box, and note the location of the box and keys. Let the person who will administer your Will know where the list is kept. (Update the list at least once a year, or as you add or remove contents). 

Please share how this information is useful to you. 0 Comments