Many young couples these days are choosing to hold off on marriage ceremony until finances allow and are cohabiting first. Whether the decision to cohabit is based on economical or emotional reasons, it’s a sensible choice for those who aren’t ready for marriage or fear the fallout of divorce.
However, without proper estate planning, cohabiting couples could be putting their finances at risk. Unlike their married counterparts, unmarried couples have no automatic right to inherit from each other. However, with careful estate planning, you can ensure your cohabiting partner is protected should you pass away.
This blog shall specifically explore some of the most important factors that cohabiting couples should consider when thinking about estate planning.
WRITE YOUR WILL
The simplest and most straightforward way to protect your partner should you pass away is to write your Will. It is important to note that it does not matter how long you and your partner have lived together, without a Will in place, you will not have an assurance that your partner will receive a share of your estate when you die.
IF YOU DO NOT WRITE A WILL
If a person dies without a Will, normally their estate shall be distributed in accordance with the intestacy rules. This can have serious consequences for cohabiting couples. For example, in some cases this can mean that the surviving cohabitee may lose their home and a source of income. The only way a surviving cohabitee may be able to obtain a relief is by making an application to the Court to get a share of the family home. This could mean that they end up in a notorious legal battle with any children from previous relationships or other family members who may claim a right as next of kin.
Therefore, it is essential that you should discuss these issues with your partner during your lifetime and what you wish to happen to your assets after you pass away. It is most beneficial to instruct a
solicitor that specialises in drafting Wills.
WHAT ARE THE MOST IMPORTANT FACTORS TO INCLUDE IN YOUR WILL AS A COHABITING COUPLE?
As a cohabiting couple there are several factors that are important for you to consider, which we shall set out below. However, often what you should include in your Will is determined by your personal circumstances and whether you have any children, either from previous relationships or together. If you or your partner have children together or from a previous relationship, then the advice would differ significantly. At
Ash Hill Solicitors
we urge that you should seek legal advice on your specific circumstances.
As a general guidance and on the basis that you wish to ensure that your partner is provided for after you pass away, we recommend that you should include:
1. INHERITANCE
- Details of who should inherit from your estate.
2. EXECUTORS - You may consider appointing your partner as an executor of your estate so that they can be involved in the dealing of your estate after you pass away.
3. PROPERTY
– if you own a property or properties, you may set out in your Will whom the title to the property should pass and what should happen in the interim period. For example, you may wish to set out in your Will that you want your partner to continue living in the property after you pass away. This is normally by way of a lifetime interest for your partner.
4. MONEY
– You may set out a specified amount you wish to pass to your partner to ensure that they have enough money to live on.
5. POSSESSIONS
– If you have valuable possessions you may wish to include details about these in your Will and then specifically pass them to your partner. These might be a ring, a car or even sentimental items.
Above are some of the very basic matters a
cohabiting couple should consider when estate planning
and, in our view, there are many more complex issues that may be more relevant depending on your specific circumstances. We suggest that the first step in protecting your loved ones is to ensure that you have a properly drafted Will by a professional.