We provide the complete commercial debt recovery service; from outsourced early arrears collections through to expert litigation, all handled in-house by a multi-award-winning law firm.
We provide the complete commercial debt recovery service; from outsourced early arrears collections through to expert litigation, all handled in-house by a multi-award-winning law firm.
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Life can be unpredictable, and the loss of a loved one often comes as a shock. For those who have prepared a will, they can be reassured that their wishes will be honoured and their affairs managed according to their intentions. However, for the many who have not made such preparations, families are left to navigate intestacy laws. These laws dictate how their loved one’s estate is distributed.
For cohabiting partners, this situation can lead to significant challenges. Intestacy laws do not provide for cohabitees or partners, regardless of how long they have been together. This lack of legal recognition can create complications during an already difficult time.
A prevalent misconception is that, people often misunderstand the idea of ‘common law marriage,’ falsely believing that long-term partners are automatically entitled to inherit from one another. Unfortunately, this is just a myth. Cohabiting with your partner is more common than ever. Many couples choose this arrangement over traditional marriage or civil partnerships. More children grow up in unmarried families, and blended families become more common every day.
Unfortunately, the law has not kept pace with modern society. This is particularly true regarding inheritance and succession rights. Without a legally binding will, a cohabiting partner has no automatic entitlement to inherit the estate. They will also not receive pension benefits or claim life insurance pay-outs after their partner’s death.
If the property you shared is held solely in your name, or if it is co-owned as tenants in common, your partner may have to sell the property. This would be to satisfy the claims of children or relatives entitled to inherit under intestacy laws after your passing. At a time of bereavement and grief, this added burden can create additional stress.
Cohabiting partners are not assured the same protections regarding inheritance tax. There is no exemption for assets passing to a partner. If the estate is large, your partner may face a considerable tax bill, payable within six months of your death.
While the proposed Cohabitation Rights Bill aims to offer greater protection for cohabiting couples, meaningful change is not imminent. Progress remains slow.
Regardless of the relationship type, it is essential to recognise that intestacy laws provide legal protections for married couples and civil partners. However, there are significant limitations, especially when children are involved. If you are married with children, for example, the first £322,000 of the estate passes to the spouse, along with personal effects. The remainder is then divided between the spouse and children. This protection is not afforded to cohabiting partners.
Given these complexities, we strongly recommend that all couples—whether married, in a civil partnership, or cohabiting—make a will. A will ensures that your wishes are respected and that your partner or loved ones are properly provided for after your death.
It’s never too early to make a will. Whether you are in a traditional marriage, a civil partnership, or cohabiting with a partner, having a clear, legally binding will in place can prevent confusion, disputes, and financial burdens after your death. If you have children or are planning to start a family, it is even more important to ensure that your estate is divided according to your wishes.
Making a will with the help of a qualified lawyer will provide you with peace of mind. You’ll know your affairs are in order and your loved ones will be taken care of should the worst occur. A will is a simple, straightforward way to protect those you care about, particularly in a time of grief and uncertainty.
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For more information or assistance in preparing a Will, contact a Wills, Probate, Tax and Trusts team member on 01332 226 162 or fill in the form below.
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