Podcasts are a convenient way for savers to boost their personal finance knowledge.
Codicil is a money term you need to understand. Here’s what it means.
What is a codicil?
A codicil is an amendment to a will that changes the document or adds to it. Just like the original will, a codicil requires the signature of two adult witnesses to verify that the person writing the codicil is the person he says he is and that he appears to be competent enough to write the codicil.
If you want to change your will, you can either write a completely new will or add one or more codicils to it. Now that wills can be written and stored electronically, it may be easier to draw up a new document.
When codicils originated in the 1400s, this was not possible. Writing a document was more time consuming and costly than it is today. That’s why many people added a revised statement to your will instead of creating a new one.
Unlike other legal documents, you can’t just sign a codicil in front of a notary public. While a notary can verify your identity, he can’t vouch for your mental state. This is another reason why you may want to just write a new will if you have to go to the trouble of having a codicil witnessed by two people.
Still, there may be situations where you’re making only minor changes and prefer to simply add a codicil. For example, perhaps you change the name of a listed beneficiary because she changed her last name due to marriage or divorce.
Or, perhaps you want to appoint a different person to be the executor of your estate after you die. In this case, a codicil might be the easier option. For larger changes, such as removing someone from your will, you may want to write a new will instead. Also, if you’ve added several codicils, it may be less confusing to create a new document.
If you’ve decided to add someone to your will, adding a codicil may be easier than writing a completely new will, especially if the addition is simple and straightforward. For example, you start volunteering at a local food bank and want to make a bequest to the organization in your will. You simply could add a codicil, naming the organization and how much you want to give to it.
Want to know how to start writing your will? Read more here.
More From Bankrate
5 min read May 24, 2022
These 10 money-themed books can help you improve your finances.4 min read May 13, 2022
There are many ways scammers can steal identities and use them for gain, usually of a financial nature.4 min read May 06, 2022
A significant portion of Americans experience financial worries.5 min read May 02, 2022
Identity theft is a term that covers a variety of crimes in which someone steals another person’s personal information.5 min read Apr 29, 2022
Look for a plan with a reputable provider that offers services that make you feel confident.5 min read Apr 29, 2022
If you discover the breach early and act without delay, you could minimize the damage.4 min read Apr 29, 2022
Here’s a breakdown of where identity theft occurs most often, according to FTC data.5 min read Apr 29, 2022
Stay alert and don’t think identity theft can’t happen to you.5 min read Apr 29, 2022