Estate Planning for Unmarried Couples: Understanding Your Legal Position

Protecting Your Partner and Estate

A common misconception is that unmarried couples who live together for many years, or even have children together, are legally treated the same as married couples. However, this is not the case, particularly when it comes to estate planning. Without a Will, unmarried partners have no automatic rights to each other’s estate, which could lead to financial difficulties and legal complications for the surviving partner.

Why Unmarried Couples Need a Will

If one partner in an unmarried couple dies without a Will, the rules of intestacy apply. Under these rules:

The deceased’s estate typically passes to their children or closest relatives, leaving the surviving partner with no automatic entitlement.

If the couple has no children, the estate may go to other family members, completely bypassing the surviving partner.

The surviving partner may have to make a legal claim against the estate for financial provision, which can be time-consuming and costly.

By drafting a Will, unmarried couples can ensure their estate is distributed according to their wishes, providing financial security for the surviving partner.

Inheritance Tax Implications

Unmarried couples do not benefit from the same inheritance tax (IHT) exemptions as married couples. This means:

Any inheritance left to a surviving partner is subject to IHT if it exceeds the tax-free threshold.

Proper estate planning, including tax-efficient strategies, can help minimize tax liabilities.

Additional Legal Protections

Beyond Wills, unmarried couples can take further legal steps to protect each other, including:

Lasting Powers of Attorney – allowing one partner to make financial or healthcare decisions for the other if they become incapacitated.

Living Wills (Advance Directives) – outlining medical treatment preferences should one partner be unable to communicate their wishes.

Seeking Professional Guidance

Estate planning is crucial for unmarried couples who wish to safeguard their partner’s financial future. If you need to review your situation or seek professional advice, contact me today to ensure you have the right protections in place.

ARTICLES DO NOT CONSTITUTE TAX, LEGAL, OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

THE FINANCIAL CONDUCT AUTHORITY DOESN’T REGULATE WILLS, TRUST PLANNING AND MOST FORMS OF INHERITANCE TAX (IHT) PLANNING. SOME IHT PLANNING SOLUTIONS PUT YOUR MONEY AT RISK, AND YOU MAY GET BACK LESS THAN YOU INVESTED. IHT THRESHOLDS DEPEND ON INDIVIDUAL CIRCUMSTANCES AND THE LAW. TAX AND IHT RULES MAY CHANGE IN THE FUTURE.