How is Your Legal Health?

Staying in shape means more than physical well-being. Your legal health is also very important. If you keep legally fit, you can avoid problems that could be very costly in terms of your time and money. Here are a tips on how to get legally healthy and stop problems before they start.
It you want to stay legally healthy you should take special care with documents by:

• reading them carefully before you sign
• asking for an explanation of anything you don’t understand
• keeping copies
• putting all important agreements or contracts in writing
• using certified mail for important documents so you can prove that you sent them
• keeping documents like wills and trusts up-to-date by reviewing them after a marriage, certified domestic partnership, divorce, birth or death

You should use a bank safe deposit box to store documents that you rarely use such as:

• automobile ownership certificate
• birth certificate
• divorce (dissolution) papers
• grant deed and policy of title insurance
• life insurance policy
• marriage license
• naturalization papers
• passport
• will and trusts

You should keep for at least six years such papers as:

• agreements, loan papers and similar documents
• bank statements and cancelled checks
• copies of income tax returns (bad debt or worthless securities deductions – 7
• years)
• insurance policies, including auto, homeowners and public liability
• real estate tax bills

In case of theft or fire, you should keep in a safe place a list of personal property, including:

• descriptions of the property
• identification numbers
• receipts
• photos

You should get and keep receipts for:

• rent payments, if you pay in cash
• most purchases or payments

Your legal health will also will improve if you:

• make a will once you are 18-years-old
• make and keep notes on important conversations, especially if you talk about money, agreements or property
• pay attention to any legal notices or demands you receive
• get help for problems instead of ignoring them

ABOUT THE AUTHOR:
Fred Abramson is a New York based attorney specializing in business law and litigation. In addition to advising small busi­ness own­ers, he has suc­cess­fully rep­re­sented a range of New York com­pa­nies, from non-profits to exec­u­tive search firms. You can find him on Twitter: @fredabramson, or check out his website and blog.
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