Picture this, if you will: It’s a beautiful Sunday morning, and you’re enjoying a nice plate of eggs Benedict with a side of Croissant au Beurre d'Isigny. Suddenly, you remember that there is a clause in your trust you’ve been meaning to amend.

You head downstairs, walk over to the safe, and open it.

“Oh no!” you cry. “It’s soaked in purple water and completely destroyed!”

What happens now?

While the purple water may be unlikely, fire, water damage, theft, and simple misplacement are very real threats to important estate planning documents. Reconstructing or replacing a lost trust can also mean additional legal work, expense, and headaches that could have been avoided with a little preparation.

Fortunately, there are several precautions you can take today to make sure a ruined document doesn't ruin your Sunday or your estate plan.

Rule #1: Don't Keep Just One Copy

One of the simplest precautions you can take is to maintain a complete copy of your trust and related estate planning documents somewhere separate from the originals.

And when we say “copy,” we aren't talking about photocopying a single sheet of paper. A trust can consist of dozens of pages, amendments, schedules, and other related documents. You want a complete copy of the entire executed trust and any subsequent amendments.

A physical copy stored separately from the original is a good start, but an electronic copy provides another layer of protection. Consider maintaining encrypted digital copies using secure cloud storage and/or an encrypted flash drive stored in a separate, secure location.

At the Law Office of Jessica R. Ward, electronic copies of clients' trust documents are also maintained, providing another potential source for the documents if a client's physical copy is lost or damaged.

Why are copies important? Reconstructing the terms of a trust when the original document has been destroyed can create unnecessary legal complications. The exact options available will depend on the circumstances, the property held by the trust, and what evidence of the trust remains. If both the original and all copies have been lost, an estate planning attorney can evaluate whether the trust can be reconstructed, restated, or otherwise addressed without unnecessarily creating an entirely new estate plan.

That can be particularly important when assets have already been titled in the name of an existing trust. Simply creating a brand new trust may require additional work to properly coordinate or transfer those assets.

The takeaway: Keep a complete copy of your trust somewhere other than where you keep the original and maintain a secure electronic backup as an additional safeguard.

Rule #2: Protect the Original From Fire and Water Damage

Having backups is important, but protecting the original document is still worthwhile.

A standard filing cabinet, desk drawer, or inexpensive lockbox may keep your paperwork organized, but it may offer little protection against serious fire or water damage.

Instead, consider storing your original trust and other important estate planning documents in a fire-resistant and water-resistant safe. When shopping for a safe, pay attention to its actual fire and water ratings rather than assuming that any safe marketed as “fireproof” or “waterproof” provides complete protection.

For important paper documents, consider looking for a safe that has been independently tested for approximately 30 to 60 minutes of fire protection at temperatures around 1,550°F to 1,800°F. For water protection, look for a safe that has also been tested to withstand several inches of water for an extended period, such as 24 hours. Ratings and testing methods vary between manufacturers, so be sure to check the specific certification and testing information for the safe you are considering. The important thing is not simply seeing the words “fireproof” and “waterproof” on the box, but understanding how much protection the safe was actually tested to provide.

For an additional layer of water protection, documents can be placed inside an appropriate sealed, water-resistant document pouch or container within the safe.

No storage method can guarantee that a document will survive every possible disaster. The goal is to create layers of protection: a protected original, a separately stored copy, and a secure electronic backup.

Rule #3: Don't Forget About Theft

Fire and water aren't the only threats. A perfectly fire-resistant safe doesn't do much good if someone can pick it up and walk out the front door with it.

Whenever practical, a home safe should be secured according to the manufacturer's instructions. Depending on the safe and your home, that may include properly bolting it to the floor or another suitable structure.

Location matters too. Keeping a safe somewhere discreet can make it less likely to be immediately discovered during a burglary. However, don't become so creative that your successor trustee or loved ones have no idea where your estate planning documents are located.

The people who may eventually need your trust should know how to locate or obtain it, even if they don't currently have unrestricted access to it.

What About a Safe-Deposit Box?

After hearing all of this, you may be thinking:

“Why don't I just put my trust in a safe-deposit box at the bank?”

A safe-deposit box can provide substantial physical security, but there are some important considerations before making it the sole location for documents that your family or successor trustee may need.

First, the contents of a safe-deposit box are not insured by the FDIC. FDIC insurance protects qualifying bank deposits; it does not insure the documents, cash, jewelry, or other property placed inside a safe-deposit box.

Banks also generally do not insure the contents themselves, although coverage may sometimes be available through a homeowner's or renter's insurance policy or another insurance arrangement.

There is also the issue of access. A trust document is most useful when the appropriate people can obtain it when it is needed. Access to a safe deposit box can depend on who is authorized on the account, the bank's procedures, and the circumstances at the time access is requested.

For that reason, if you decide to use a safe-deposit box, you should make sure the appropriate people know that the box exists and discuss accessibility with your estate planning attorney and financial institution.

A safe deposit box can be part of a good storage strategy. It simply shouldn't create a situation where your documents are wonderfully protected but practically impossible for the right person to retrieve.

The Best Protection Is Redundancy

There isn't one magical place where every trust should be stored. Instead, think in terms of redundancy.

Keep the original trust in a secure location protected against fire, water, and theft. Maintain a complete copy somewhere separate from the original. Keep a secure electronic backup as well.

Finally, make sure the appropriate people know how your estate planning documents can be located when they're needed.

Your trust may have taken considerable time, thought, and money to create. Protecting the documents themselves is a relatively simple step that can save your family significant frustration later.

And, of course this means you can return to your Sunday eggs Benedict and Croissant au Beurre d'Isigny with just a little more peace of mind.

If your trust has been lost or destroyed, or if you do not yet have an estate plan, contact Attorney Jessica Ward at the Law Office of Jessica R. Ward at (925) 459-1777 to discuss your estate planning needs.