Wills & Probate | Increase Of Cohabitation – What Does This Mean For IHT?
Updated: Jul 31
The issue of cohabitation has been an ongoing discussion for years as it continues to grow throughout the UK. There are many that buy property, have children and other commitments etc without marrying.
The Office for National Statistics found that the number of cohabitating couples in the UK has increased by 22.9% in the last 10 years. The total number of couples cohabitating is thought to be around 3.6m.
No doubt many people believe that cohabitating works in many circumstances which is understandable, however, it has caused issues surrounding inheritance and inheritance tax (IHT).
At present, transfers between civil partners and married couples are not subject to IHT which means that a husband or wife can leave their estate to their partner tax-free.
This does not apply to cohabitating couples.
It is very important to ensure that you and your family are protected, especially as a cohabitating couple, as you may have an increased IHT liability compared to a married couple or civil partners.
To compound matters, if you do not have a Will in place and you have not planned for the future, your assets will fall as per the rules of intestacy. This means that your partner could be left without any financial support.
Prepare for the future and protect your loved ones.
Emma Aslett Penn Chambers Solicitors 0207 183 4595 The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.