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Answer:
Dear
Tim,
You've
raised several good questions. First, all stock and
bond certificates should be kept in a safe deposit
box. I recommend making photocopies to keep at home,
so you won't forget what you own and how many shares.
Secondly,
if you decide to sell or deposit your inherited stocks
here at BUYandHOLD, first please verify that the securities
you wish to deposit are offered by clicking
here. After you open a BUYandHOLD account,
complete sign and return the Certificate Deposit Form
with your unsigned stock certificates to:
BUYandHOLD,
c/o Freedom Investments, Inc.
375 Raritan Center Parkway
Edison, NJ 08837
More
About Safe Deposit Boxes
Bank
safe deposit boxes are for the most part very secure,
with some exceptions (cited below). They come in several
sizes and are relatively cheap. The small version
typically measures 3" by 5" and ranges in cost from
about $15 to $40 or $50 per year. They are suitable
for a few pieces of jewelry and important papers.
The
fee for larger boxes, typically available at the main
office and not at the smaller branches, starts at
$100 per year.
When
you rent a box it comes with two different keys and
locks. You will be given two keys to one lock; the
key to the other lock is held by the bank. Both are
required to open the box.
Three
Points Of Caution:
(1)
The relatively new "self-service" boxes are definitely
less secure -- in that they do not require that
the second key, the one held by the bank.
(2)
If you don't pay your rental fee, after a certain
period of time the contents of your box may be turned
over to the state's Unclaimed Property Office.
(3)
Box contents are not FDIC insured. Check your homeowner's
policy to see if it provides coverage. Even if it
does, it may exclude box contents lost or damaged
due to flooding.
Discounts
Always
ask for a discount. Banks often give 5% to 10% off
to those who are already customers or who are senior
citizens. Many periodically reduce the annual fee
in order to entice new customers.
Box
Sturdiness
Not
all boxes are 100% safe nor 100% indestructible. Robberies,
although quite unlikely, occasionally occur. Serious
weather has also been known to destroy boxes -- a
number, for example, were hit by Hurricane Katrina.
If a bank is destroyed by fire or some other natural
disaster, contents may be permanently lost or seriously
damaged. Extreme heat from a fire that does not destroy
the bank building, could melt box contents. And, unfortunately,
banks have also been bombed, although fortunately
this is rare.
Taking
Precautions
I
recommend that you place your paper documents (including
your inherited stock certificates), stamp collection
and family photographs in a sturdy zip lock bag or
Tupperware type container. Better yet, use both.
Finally,
take a picture or video of the contents of your box.
Back this up with a written list of items.
Items
To Consider
Among
the items you might wish to keep in your safe deposit
box are those that cannot be replaced or that you
will need if your house is destroyed or seriously
damaged. Among them:
-
A copy of your will (the original should be with
your attorney)
- Stock
and bond certificates
- Insurance
policies
- Titles
to your house and cars
- Marriage
license
- Divorce
decree
- Expensive
jewelry
- Video
tape of the contents of each room in your house
or apartment
- Birth
certificates
- Family
heirlooms
Certain
documents that many people think should be in a safe
deposit box should not -- the reason being that access
to the vault area is limited, usually from 8 or 9am
to 4 or 5pm, Monday through Friday. And, of course,
no bank is open on national holidays.
Therefore,
do not store originals of documents you (or your estate)
might need in a hurry. That includes your will, living
will, power of attorney, medical directive and passport.
Access
Some
states still seal boxes when the owner dies. Ask your
attorney if you are living in one of these states.
If so, make certain someone else has access to your
box. Setting this up is usually quite easy and simply
requires completing a second signature card. Alternatively,
set up joint ownership of the box with a spouse or
trusted relative.
Good
luck!
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