Wills for Couples That Are Cohabiting

Unmarried couples have no automatic right to leave money or assets to each other free from Inheritance Tax and without any form of Will it is unlikely that your partner will automatically inherit anything.

What this could mean is that if your are unmarried and your partner dies without a valid Will bequeathing the family home to you that you may end up homeless.

Even if a valid Will is in place you may have to pay Inheritance Tax on the part of the property you inherit, which could mean you have to sell the house to pay the Inheritance Tax bill.

IF you partners estate is going to be valued at over £312,000 including the value of the family home you will have to pay a 40% Inheritance Tax bill on everything over the £312,000 nil rate band.

For many this might mean having to sell the family home and downsize or maybe not being able to afford to buy a new home at all, the worst case scenario should always be the starting point for your planning.

It is possible in some circumstances to apply to the court for some money from your partner’s estate. If you have been living together you may be able to apply to the court under the Inheritance (Provision for Family and Dependants) Act 1975. The court will consider how long you lived together, your contributions to the relationship, how dependant you were on your partner and your needs and resources such as income and property. Even if an award is made this will still be subject to the Inheritance Tax rules where applicable.

We believe it is better to have put the correct Inheritance Tax planning, Wills and Financial Planning in place rather than to rely on the government and court's rules to decide your financial future.

If you want to understand how establishing Wills can play a part of securing your financial future please contact us for a free of charge no obligation in home consultation.