Estate Law Questions? Ask an Estate Lawyer.
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ANSWER: Tax records are kept for three years after the date of filing while non-tax records should be kept for seven years.
Yes, those would need to be kept for 7 years even though some of those items were used to prepare the tax returns.
7 years from 1-19-10.
There is a three-year statute of limitations on actions by beneficiaries against trustees for breach of trust. This statute begins running either when:
1. the beneficiary receives the trustee's account that "adequately discloses the existence of a claim against the trustee for breach of trust," or
2. when the beneficiary discovers or reasonably should discover the "subject" of the claim.
I suppose if a trustee concealed something wrongful that he did and the court finds that this wrong should have been reasonably been discovered sometime AFTER 8-3-14, you could be held liable for a breach of trust arising from your act of destruction or premature disposition of the records.
Because of the nature of this law, it is "good practice" in the industry to keep the records for 7 years from the last possible date of a wrongful act by the trustee. While there is no set STATUTORY guideline for how long a trustee is to keep the records, this is what is recommended by highly experienced probate lawyers.