The importance of wills and estate planning for couples
Estate planning might not be the most romantic conversation for couples, but it is arguably one of the most important discussions you can have with your partner about your future together. Creating a comprehensive will and estate plan guarantees that your wishes are respected and your loved ones are protected, regardless of your marital status.
- The necessity of a will
Despite its importance, approximately 68 per cent of UK adults over 55 have a will. This oversight can lead to significant complications, particularly for unmarried couples who lack the automatic inheritance rights that married couples enjoy under intestacy rules. When someone dies without a will in England and Wales, their estate is distributed according to the rules of intestacy. These rules prioritise spouses and civil partners, followed by children, parents, and other blood relatives. Unmarried partners, regardless of how long they’ve been together, have no automatic legal right to inherit anything from their deceased partner’s estate. This legal reality can result in painful situations where long-term partners lose their homes or are financially devastated because they had no legal claim to shared assets that were technically owned by their deceased partner.
- Protecting unmarried partners
For the 3.6 million cohabiting couples in the UK, writing a will is essential. Without this formal document, unmarried partners may find themselves without legal rights to property, possessions, or financial assets they shared during their relationship. Consulting with family law experts can give clarity on legal rights and assist in drafting wills that safeguard your partner’s interests. Professional guidance is valuable for going through complex situations such as blended families or significant assets. A properly drafted will allows you to explicitly state what you want your partner to receive, giving you control over how your assets are distributed and guaranteeing your partner isn’t left vulnerable.
- Guardianship arrangements for children
For couples with children, wills have another function: appointing legal guardians. This provision makes sure that if both parents die before their children reach adulthood, the children will be cared for by people the parents have chosen and trust. Without specified guardianship arrangements, the courts will decide who raises your children, potentially selecting someone you wouldn’t have chosen. But if you name your guardians in your will, you maintain influence over your children’s upbringing even after your death.
- Tax implications and planning
Strategic estate planning can lower the inheritance tax burden on your beneficiaries. Currently, there is no inheritance tax on estates valued below £325,000, though this threshold can increase to £500,000 if your home is left to your children or grandchildren. For married couples and civil partners, assets can typically be passed between spouses free from inheritance tax, and unused threshold allowances can be transferred to the surviving spouse. However, unmarried couples don’t benefit from these provisions, making tax planning even more crucial.
- Regular review and updates of estate plans
Life doesn’t stand still, and neither should your estate plan. Marriage, civil partnership, divorce, the birth of children, property purchases, or significant financial changes all warrant a review of your will.
Estate planning might feel overwhelming, but the security it provides for your partner and family makes it an essential aspect of responsible financial planning for every couple.
