What are the benefits of getting married?

Jaguar_Skills

Thanks all. I have tried to respond as fully as possible:

As regards the flat the default position for married owners is 50/50 share. That can only be altered if a) the flat is owned as tenants in common and b) there is a declaration of trust registering the actual owner shares (%) and c) a Form 17 has been submitted to HMRC. then a married couple could take real advantage of a basic/non taxpayer status v a HR payer and pump the profit thought the lower rate taxpayer whilst still having co-ownership for CGT purposes.

Can we get our solicitor to draw something up like a decalration of trust (which we had previously when one of us owed each other money) to reduce tax implications. We have an accountant and a solicitor who we can call upon fairly freely, I just need to know the correct questions to ask.

We do not have a will yet but we are planning to have it drawn up. I know it is no excuse but we are only 30 and 33 respectively and just have had a lot of things going on, house purchase, baby etc, transfer of flat etc.

xylophone

we are only 30 and 33 respectively

Sadly, the Grim Reaper can call at any time.

I recall some acquaintances, young married couple with toddler and infant- the husband was killed in a freak accident while at work - mercifully he was an LGPS member.

And while what happened here is very rare....

http://www.dailymail.co.uk/health/article-2507907/Teacher-died-labour-reluctantly-persuaded-change-C-section-birth-plan-natural-delivery.html

and the link is not meant as a "scare tactic", the fact remains that tragedy happens and the sensible and considerate make provision.

TheCyclingProgrammer

We do not have a will yet but we are planning to have it drawn up. I know it is no excuse but we are only 30 and 33 respectively and just have had a lot of things going on, house purchase, baby etc, transfer of flat etc.

We were of a similar age when we had ours done. We were due to get married in 6 months anyway but we still got it done - things can happen at any time. I needed to know that my soon to be wife would inherit everything (it would have gone to our daughter but in trust as she was only 2, not much help to my partner).

It cost about £150 to have mirror wills drawn up and it takes about an hour of your time.

Jaguar_Skills

Thats fine the cost isn't an issue as solicitor will do this for us for free. I think as soon as the birth happens we will do it.

I was more thinking of ways to save tax while OH doesn't work but doesnt appear possible.

Mojisola

getmore4less wrote: »

One of the most significant benefits of marriage is the transferable nil rate band.

it may not look like much today with kids on the way and a mortgage but the transition from not much asset to over £325k can happen quite quickly.

If we weren't already married, this would get me to the Register Office.

agrinnall

booksurr wrote: »

yes, but OP states he is HR taxpayer..

Ah, yes, I missed that - I may have taken HRT to mean something else .

p00hsticks

TheCyclingProgrammer wrote: »

We were of a similar age when we had ours done. We were due to get married in 6 months anyway but we still got it done - things can happen at any time. I needed to know that my soon to be wife would inherit everything (it would have gone to our daughter but in trust as she was only 2, not much help to my partner).

Bear in mind that if you do this you need to ensure that the will specifies that it is made 'in contemplation of marriage' (I think that is the wording) - if not then I believe the later marriage would automatically make the will invalid.

POPPYOSCAR

Jaguar_Skills wrote: »

Thanks all. I have tried to respond as fully as possible:

As regards the flat the default position for married owners is 50/50 share. That can only be altered if a) the flat is owned as tenants in common and b) there is a declaration of trust registering the actual owner shares (%) and c) a Form 17 has been submitted to HMRC. then a married couple could take real advantage of a basic/non taxpayer status v a HR payer and pump the profit thought the lower rate taxpayer whilst still having co-ownership for CGT purposes.

Can we get our solicitor to draw something up like a decalration of trust (which we had previously when one of us owed each other money) to reduce tax implications. We have an accountant and a solicitor who we can call upon fairly freely, I just need to know the correct questions to ask.

We do not have a will yet but we are planning to have it drawn up. I know it is no excuse but we are only 30 and 33 respectively and just have had a lot of things going on, house purchase, baby etc, transfer of flat etc.

My nephew collapsed and died suddenly at 39 with two young children.

Making a will is not just for old age.

booksurr

Jaguar_Skills wrote: »

Can we get our solicitor to draw something up like a decalration of trust (which we had previously when one of us owed each other money) to reduce tax implications. We have an accountant and a solicitor who we can call upon fairly freely, I just need to know the correct questions to ask.

bread and butter work for a solicitor so if you are happy to pay their fees rather than try and DIY it should not cost much at all to do a DoT

Can I please re-emphasise that you cannot do that if you own the flat as Joint Tenants, its ownership will need to be changed to Tenants in Common. Doubtless a solicitor will charge you a conveyancing fee for such activity, so make sure they include the DoT as part of a package price?

The Form 17 you certainly can (and must) do yourself since if you are both HRT you are both capable of filling in a few boxes on a form which you do online anyway, see here:
https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

GwylimT

Mojisola wrote: »

Not relevant to the money side of things but, as you are holding off marriage until after you've had children, you won't automatically have parental responsibility for your children.

You will have to go with your GF to register the births in order to get your name on the certificates.

Incorrect, fathers named on the birth certificate automatically have PR.