There are many things that, as a cohabiting couple, you may not be aware that you are not entitled to. The most common myth about cohabiting rights is “common law”, which is the belief that because you have decided to live together as a family you will get the same financial rights and benefits that you would as a married couple.
As an example, cohabiting couples are not entitled to any tax breaks or sharing of allowances (e.g. personal allowance) that married couples are. One of the most important things to remember is that if you are part of a cohabiting couple and one of you dies without a Will, your surviving partner will receive no benefit. If they are named as a beneficiary in a Will there will be no spousal exemption in relation to inheritance tax, so the tax will be applied on both the first and second death!
Those are just a few things to be aware of; the list regarding entitlement of cohabiting couples is long and complex. We would strongly recommend you seek sturdy financial advice on your finances, including your home and the legal basis of how this is held. The advice will be unique to each couple and their circumstances, but the advice may well be … to get married. Whilst many people do not want to get married for numerous reasons, in some cases, it really is the simplest and most effective solution. For those who really abhor the idea, there are certain areas of planning that can help, but be sure to consult a professional.
Redwood Financial is one of the souths leading Wills, Trusts & Estate Planning providers and we are dedicated to helping families to Grow, Protect and Enjoy their wealth. With our unrivalled knowledge of estate administration, we can advise on any situation. Come along to one of our FREE Public Seminars on Wills, Trusts & Estate Planning. We are currently taking bookings for Ryde, Isle of Wight and Botley in October and Hayling Island in November. Book online at Book Me A Place!: call us at 01489877 547 or Email firstname.lastname@example.org.