Inheritance Tax Implications
Inheritance Tax can be contentious issue. There is often a feeling of anger when loved ones have to pay a share of the gift to the government. Over the years many people have been misadvised on how to minimise their Inheritance Tax bills. The wrong advice could end up with you having a large bill at the end of it all. Working alongside our sister company Nsure Financial Services, we are able to offer comprehensive advice about tax planning and the best ways forward for your individual situation.
The system is progressing, but it still has a long way to go!
Thankfully, The Marriage (Same Sex Couples) Act 2013 was passed by the UK Parliament in July 2013 and came into force in March 2014. This means that same sex couples who are married or in a civil partnership have the same inheritance rights as opposite sex spouses. The rules of intestacy also apply if one partner dies without making a Will. As with opposite sex couples who cohabit but are neither married or in a civil partnership, the law does not recognise same sex relationships in relation to inheritance regardless of how long you have been cohabiting or even if you have any children together. If you want your partner to inherit at all or your spouse to inherit your whole estate you must make a Will.
If you are not married or in a civil partnership it is worth investigating the inheritance tax impact of keeping the status quo. There are various tax benefits to being married or in a civil partnership. It may not be the most romantic reason to get hitched but a quick visit to the registry office could save your estate literally thousands.
Common Law Marriage
In the UK there is no such thing as a common law husband or wife. You are either married or unmarried, in a civil partnership or not. The law views you as single, regardless of the commitment that you have shown to each other in many different ways.
Do not lull yourself into a false sense of security because you’ve been together for 20 years, own a house together and/or have children together. You have no inheritance rights without a valid Will or a valid marriage or civil partnership.