Safety deposit boxes can offer peace of mind, but headaches if no one else has access

While most of us have a desire to keep important documents and treasured possessions locked away, a safety deposit box can lead to complications if no one else has access to it. David Boldovitch, a financial adviser, has observed families facing significant delays in claim payouts due to inaccessible life insurance documents stored in safety deposit boxes.

Similarly, Michael Cooper found out the hard way that a safety deposit box may not be the best place for a will, as it can be sealed upon the holder's death, right when the family needs it most.

Financial lives are becoming increasingly digitized, leading fewer items to require physical protection. However, concerns about cybersecurity and climate risks, such as floods and fires, may push some individuals to reconsider safety deposit boxes for rare, irreplaceable items. Vancity, a major Canadian credit union, maintains that the case for a safety deposit box hasn't disappeared; it's simply narrowed to a secure location for costly-to-replace items like original documents, collectibles, or sentimental objects with no digital equivalent.

Access to safety deposit boxes varies by institution. Vancity offers boxes at select branches, while other providers like National Bank have discontinued offering new boxes, but existing holders can keep their boxes with a transfer option if their branch closes. Banks like Scotiabank still offer safety deposit boxes at most branches, emphasizing the importance of writing down the location, key placement, and inventory of contents.

The trend among institutions suggests a shift away from physical infrastructure towards digital tools, highlighting the need for document literacy among millennials who are assembling their financial documents.