While millions of Americans rent a safe deposit box, few pay attention to questions such as who can access the box and how it is protected. About the only time people consider these issues is when there is a problem, and then it may be too late.
To help you decide whether to use a safe deposit box and for information on their proper use, read the information below before making your decision.
- 2” x 5” x 24” for $20
- 3” x 5” x 24” for $25
- 4” x 5” x 24” for $30
- 5” x 5” x 24” for $33
- 3” x 10” x 24” for $50
- 5” x 10” x 24” for $68
- 10” x 10” x 24” for $100
A safe deposit box is a convenient place to store items that would be difficult or impossible to replace. Its two most important features are privacy and security. While many people like to keep valuables at home in a safe or file cabinet, those places are not as resistant to fire, water or theft. And insurance companies often charge lower premiums on valuable kept in a safe deposit box as opposed to a home.
It’s always a good idea to store personal items that would cause great amounts of trouble if lost. Insurance policies, wills, birth certificates, mortgages, leases, stocks, bonds and CDs are just a few things that should be considered. Even other valuables such as jewels, medals, collectibles, photographs and negatives might be stored here.
However, things you could need in an emergency might not need to be placed in a safe deposit box. Originals of power of attorney, passports, medical care directives and funeral instructions are just a few examples of items that might not need to be stored. Consider making copies for yourself to store and giving the originals to your attorney, close friend or relative.
You can jointly rent your box with a spouse, child or other person who would have unrestricted access to the box. An alternative is to appoint a deputy or agent (not a power of attorney) who will have access to your box.
(Note: In some states, your co-renter may face delays in accessing the box if you die. Also, merely giving someone else a key will not be enough to grant access. He or she also must sign the bank’s rental contract as a joint-renter.)
You should be aware that if a local, state or federal law enforcement agency persuades the appropriate court that there is “reasonable cause” to suspect you are hiding something illegal in your box (guns, drugs, explosives, cash or money obtained illegally), it can obtain a court order to open the box and seize the contents.
The IRS can freeze your assets, effectively placing a hold on your MATCU accounts and safe deposit box until the dispute is resolved. Private parties can also freeze your assets, but doing so involves going before a judge and proving that there is a legitimate dispute over a debt.
The companies that manufacture safe deposit boxes and the vaults that house the boxes make them highly resistant to fire, flood, heat, earthquakes, hurricanes or other disastrous conditions. However, there is not a 100 percent guarantee against damage and substantial losses sometimes occur.
You can help prevent water damage by sealing items in airtight bags or containers. Put your name on each item, keep a list of the box’s contents, make copies of documents and even take photos of the contents. This will increase your chances of successfully identifying, claiming or recovering an item should something unexpected happen.
By law, the NCUA only insures deposit accounts at insured institutions. Although you may be putting valuables into an area of the Credit Union that has the word deposit in its name, these are not deposits under the insurance laws that the Credit Union can use, for example, to make loans to other members. A safe deposit box is strictly a storage space provided by the Credit Union.