May 26, 2026
When someone dies, dealing with all the stuff they left behind can be very overwhelming. In fact, there are estate cleanout services that specialize in cleaning out a home after someone has passed, which Angi reports typically charge between $1,250 and $6,000.
If you decide to DIY the process, you may find yourself dealing with more than old dishes and furniture from decades ago. Many people also keep financial records, and when you are faced with receipts and tax documents, you have to figure out whether you can toss them in the trash or should keep them around.
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Let’s pretend, for example, that Sally’s mother has passed away recently. Sally’s dad died years ago, so now Sally is clearing out the home her mom lived in and must be responsible for deciding what to do with everything inside.
Sally has found a whole box of tax records and receipts, and she’s wondering if she needs to keep them. Here’s what the experts say, along with some other details that Sally should keep in mind as she figures out if the records need to be retained.
How long to keep tax records after a death
According to Trust and Will, it is a good idea to keep tax records for seven years after a loved one has died.
Trust and Will recommends this, despite the fact that the IRS will typically only audit the tax return of a deceased person for up to three years after a death.
That’s because, as Oberheiden P.C. explains, this time limit can be increased to six years in some cases, including when a revenue stream is grossly underreported. So, Sally should make sure to hold onto any recent receipts and returns for at least this period of time.
Sally (and others who have lost loved ones) also have certain obligations if they are named as the executor of the estate, including, in most cases, to file returns for both the deceased person and for the estate itself. The IRS indicates you’ll need to file Form 1040 for the deceased and Form 1041 for the estate.
Sally may need these old receipts and old tax documents to help file all these forms. The returns can also be useful to track down property or income streams that the deceased person owned if Sally doesn’t have a clear list of assets.
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For decades-old records, though, it’s unlikely Sally would need to keep those, especially given that the step-up basis rules typically reset the value of assets to their fair market value on the date of the death for purposes of calculating capital gains taxes. She won’t need very old records to determine the original value.
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What other records and forms do you need after a death?
In addition to sorting out records, Sally will need to take some other steps to make sure she has all the forms and documents necessary to settle the estate.
The New York State Comptroller recommends finding important papers, including:
- Burial or funeral plan
- The will or trust agreements, if the deceased left them behind
- Deeds to property
- Insurance policies
The Comptroller also advised that the executor will need to open a new bank account to hold money owed to the estate, inventory assets, and determine their present value, apply for a tax ID, file appropriate tax forms, and navigate the probate process.
Probate can take time, with the American Bar Association reporting it usually takes around six to nine months. Since this process can involve filing papers with the court, notifying creditors, and dealing with the IRS, getting legal help is often the best move.
An attorney who is guiding you through probate can be an invaluable source of information on what records to keep and what can be safely thrown away. Sally should interview several attorneys and find out about their costs and services so she can get the support she needs to settle the estate and protect her mom’s legacy.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
