Death and Inheritance

Following a partner’s death, there can be serious financial difficulties if there is no Will. The surviving partner may find that their partner’s family do not acknowledge their rights to a shared home if there is no formal agreement. Recent landmark cases have greatly strengthened the position of same sex partners in inheritance disputes. New rules to provide for the family and dependents of a deceased person will put civil partners in the same position as spouses and same sex cohabitants in the same position as heterosexual unmarried couples.

Entering into a civil partnership will revoke an existing Will so if you register a civil partnership you will need to make a new one. The change of status from a single person to a civil partner is likely to have a wide-ranging impact on your financial planning. It would be well worth taking specialist advice on how entering into a civil partnership will affect you.

One of the biggest advantages of civil partnership for many couples is that they will be treated in the same way as married couples for tax purposes – they will be able to transfer assets between them without liability for Capital Gains Tax and, most significantly, will be exempt from Inheritance Tax if one partner dies and leaves their home to their partner – this will put an end to the distressing situation where the bereaved partner is often forced to sell their family home shortly after their partner’s death in order to pay the tax bill. However all the rules which prevent husbands and wives from avoiding tax liability will also apply to civil partners and so financial and tax planning will be important for those with capital assets and property.

For further information, contact Louise Coubrough or Melanie Hay.