7 Situations Where You Would Use a Codicil

7 Situations Where You Would Use a Codicil


A codicil is a document that’s used to update a will. It’s generally used when a person has already created an existing will but wishes to make small changes to reflect financial circumstances or lifestyle changes that could impact the estate. This document lets them make alterations without having to create an entirely new will. If you’re unsure when it’s best to use one or create a new will, we have outlined seven situations where you could use a codicil.

Marriage

In certain areas and provinces, you don’t have to create an entirely new will if you’ve been recently married — you can just add them to your current will through a codicil. Only in the case where you live in an area where a marriage voids a will, or if there needs to be a large number of changes made, should you create an entirely new will.

Divorce

A codicil is also used when you’ve gone through a major life transition such as divorce. When a divorce is finalized, it’s crucial to update your will through a codicil to avoid having your ex inherit your property or assets upon your passing. In some places, a divorce will immediately invalidate a will, so it’s important to talk with an advisor regarding your circumstances.

Change in Financial Situation

You may also wish to change your will to redistribute your wealth, give to charity, or provide a gift to someone. You can use a codicil in many of these cases to make any changes to your will without creating a new one.

Birth or Death

Whenever a family goes through a birth or death, you can use a codicil to add or remove those people from your will. For instance, if you’ve recently given birth or adopted, you can easily add these family members to inherit assets from your estate through a codicil.

Change of Executor or Guardianship

If your executor has passed away or decides they no longer want the job, you can easily name a new one in a codicil. You may also want to make a change to any named guardians if you undergo a divorce or if the person has moved away.

Change in Assets

Your old will may no longer represent your current wishes regarding the distribution of your estate. Instead of drafting a new will, you could use a codicil to express your new intent. This is highly useful when addressing the distribution of property that you forgot to mention in your original document or when you sell a property, business, or shares that were listed in your original will.

Adding or Excluding Beneficiaries

A codicil can also be used to add or exclude beneficiaries from the original will. A common example of this is when you want to add a grandchild to the will who didn’t previously exist.

Of course, there are also a number of scenarios when creating a new will is a better option than using a codicil. That’s why you should always talk to an estate advisor first.

5 Outside Factors that Can Help You Determine Your Investment Spend

5 Outside Factors that Can Help You Determine Your Investment Spend


Your investments are heavily influenced by a number of external factors, ranging from interest rates to commodity prices.  Before you invest, it’s essential to understand how these factors affect your returns. Read on to learn more about the most important outside factors that can help you determine your investment spend.   

Interest Rates

When the economy starts to expand rapidly, the Bank of Canada (BOC) often raises interest rates in response to prevent too much borrowing. In contrast, when the economy begins to slow down, the BOC lowers interest rates in order to stimulate borrowing to boost the economy. These changes in interest rates can impact investments quite significantly, especially if companies need to pay more for loans or materials when the rates rise, as this often leads to lower profits. However, some investments will rally when the interest rates spike, such as short-term bonds. It’s important to talk to an advisor who understands the relationship between investments and interest rates to guide you with your financial decisions.

Current Events

A devastating natural disaster like a hurricane, new government policies, political uprisings, and elections can have a direct impact on the stock and bond market. Even a relatively small incident can have severe consequences for your investment portfolio. That’s why it’s vital that you are well diversified and taking on the appropriate risk level for your age and financial condition.

Taxes

Taxes also affect your investment portfolio. Without the right tax plan, your returns could take a big hit, which is why it’s important to pay careful attention to the income tax consequences of your investment decisions. Otherwise, you could end up paying high capital gains tax that could have otherwise been avoided.

The State of the Economy

High unemployment and low economic growth can cause people to become more frugal, keeping more money in their own pocket. This eventually creates more stress on the economy and in turn, on your investments. This is yet another reason why it’s important to have a long-term strategy in place that you can stick to through good and bad times.

Commodity Prices

The prices of commodities such as oil, gold, lumber, and wheat have a tremendous impact on the earnings of public companies and the markets. For example, the price of oil can affect a wide spectrum of companies, from manufacturers to retailers. Companies like Amazon have to ship all their products and therefore, rely on the cost of fuel. If they can’t pass on the price to consumers, then they have to internalize the damage which can hurt the stock prices along with your investment in the company.

As you can see, there are many outside factors that can help determine your investment spend. If you don’t have time to stay informed, it’s best to hire someone who can manage your portfolio for you. Our team of financial advisors are here to help you shape your portfolio to ensure maximum earnings no matter which direction the outside factors move in. Contact us today to get started!

3 Ways to Improve the Structure of Your Business

3 Ways to Improve the Structure of Your Business

Many small business owners mainly focus on setting up the operating procedures, company policies, accounting systems, and hiring processes when structuring their business. However, there are processes often forgotten that are crucial to a company’s overall growth and security. If you want to improve the structure of your business, don’t forget to do these three critical things.

Develop a Proper Compensation Plan

Do you have an effective compensation plan in place to draw in top talent who can lead your company? You need more than just a competitive salary structure in place to keep your business operating in the long run. An improved compensation strategy can attract the best talent, incentivize employees to achieve company goals, accelerate their ability to achieve growth goals, and keep the business growing even during hard times. This not only helps to build your business over the long term but also increases productivity and profitability in the interim.

Put a Tax Strategy in Place

Are you overpaying taxes and losing money? If you’re not sure, it’s time to review your tax strategy. Why? Because if you’re profitable, taxes become one of your most significant expenses. Learning how to take advantage of tax maximizing strategies can help your business earn more. What you need is a proactive, forward-facing tax planning strategy that takes into consideration your specific business objectives to minimize taxes and maximize returns.

Get a Succession Plan

Another necessary component to remember when structuring your company is creating a succession plan. Believe it or not, many small businesses don’t have one in place because it’s often a topic most owners don’t like to think about. However, without one, your company could face tough times if you or a key employee is unable to fulfill their role. A succession plan maps out the process to train and develop critical functions to ensure there are no staffing gaps. It’s a necessary process to prevent business disruption and ensure the continued success of an organization in the event that a critical player becomes incapacitated, passes away, or leaves unexpectedly.

If you’re ready to create a comprehensive strategy to effectively structure your business, contact us at The Beacon Group of Assante Financial Management Ltd. We can help you plan for the future, grow your business, and protect your legacy through a tailored tax, compensation, and succession plan. We can help give you the peace of mind you need today and into the future.