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A codicil is essential tool in ongoing management of an estate plan. But it often little understood.
What Is a Codicil?
A codicil is a formal legal document that amends, rather than replaces, an existing will. Think of it as a supplementary instruction attached to your original will. It doesn’t start from scratch, but adds, alters, or revokes specific provisions while leaving the rest of the will intact.
A codicil must satisfy the same legal formalities as a will itself under the relevant state and territory Acts, usually this means: it must be in writing, signed by the testator (the person making the will), and witnessed by two independent witnesses who are present at the same time and who also sign the document.
Once validly executed, a codicil becomes part of the overall testamentary record. When the estate is eventually administered, the original will and any codicils are read together as a single set of instructions.
Why Use a Codicil?
Life changes, and estate plans sometimes need to keep pace with it, but not every change warrants an entirely new will. Common reasons to use codicils include:
- Minor amendments: Updating a specific bequest (for example, changing a cash gift amount, or correcting a beneficiary’s name after a marriage or name change, address or other contact information).
- Adding or removing a beneficiary: E.g. a newly born child, grandchild or removing someone due to estrangement or death.
- Changing an executor or trustee: If your originally nominated executor has become unable or unwilling to act, or you simply have a new preference.
- Updating specific gifts: Reflecting the sale or acquisition of a particular asset mentioned in the will (a car, jewellery, or a parcel of land).
- Cost-efficiency: A codicil can be quicker and cheaper to prepare than redrafting an entire will, particularly for a single, well-defined change.
However, codicils are best reserved for simple, discrete amendments.
How to Use a Codicil
- Identify the will being amended. The codicil must clearly reference the original will by date, so there’s no confusion about which document it modifies.
- Draft the specific amendment. The codicil should state precisely what is being changed, added, or revoked, vague or informal wording is a common source of estate disputes in courts.
- Execute it correctly. As with a will, the codicil must be signed by the testator in the presence of two witnesses, who then sign in the testator’s presence. Getting this wrong can render the codicil invalid.
- Store it with the original will. Because a codicil only makes sense alongside the will it amends, both documents should be kept together — ideally with your solicitor, the Trustee company, or in a secure location known to your executor.
- Seek legal advice. While DIY codicils are technically possible, genuine hardship can be caused by poorly worded amendments that created ambiguity, unintended revocations, or family disputes. A solicitor can ensure the codicil achieves precisely what you intend, without inadvertently disturbing other parts of the will.
When not to use a Codicil
Whilst it is indeed possible to have multiple codicils, with later codicils generally taking precedence over earlier conflicting provisions, it is generally not advisable when the amendments seek to override earlier amendments.
Additionally significant changes such as adding a testamentary trust provision to an existing will,, or if your circumstances have shifted substantially (a new marriage, divorce, significant asset acquisition, or a change in family relationships), a solicitor will often recommend drafting an entirely new will instead.
The risks in situations such as these range from confusion or ambiguity for executors, to increased potential for disputes, and potential probate delays.
Estate planning is an ongoing process, not a one-time event.
Your PCA can work with you and your legal advisers to help identify when a will review, codicil or broader estate planning update may be worth considering.
Or book an obligation free consultation with our team of experts today.
The information in this article is of a general nature and does not take into consideration your personal objectives, financial situation or needs. Before acting on any of this information, you should consider whether it is appropriate for your personal circumstances and seek personal financial advice.