Transferring money to long-term partner

Archergirl

I notice no answer to my question,

Archergirl said:

It may also depend on your reason for doing so, ie depravation of assets.....

pphillips

Archergirl said:

I notice no answer to my question,

Archergirl said:

It may also depend on your reason for doing so, ie depravation of assets.....

The OP's was only asking about tax consequences.

Malthusian

If the OP's estate would have an Inheritance Tax bill if they go under a bus before managing to get married, and the IHT bill would make a difference to the survivor's lifestyle, they should take out life insurance, say for a term of 2-3 years. Life insurance over a very short term should be cheap as chips, assuming they don't have major health issues, and when the marriage contract is signed they can stop paying the Direct Debit.

pphillips said:

The money will still be considered part of your estate for Inheritance Tax purposes if you die within 7 years of making the gift (some relief is available if you die between 3-7 years of the gift) .

That relief (i.e. taper relief) is only available if the gift the OP is considering (and other gifts made in the relevant period) exceed £325,000, and then only on the excess.

Otherwise the gift falls in the Nil Rate Band, so there is no IHT to pay on the gift, and there is no relief for the extra IHT on the rest of the estate that results from the Nil Rate Band being used up.

Emmia

Keep_pedalling said:

This would be a sensible time to marry. If you can afford to gift 6 figures then you probable should be concerned about IHT planning, and for a couple being married (or in a civil partnership) is the simplest way and most effective way of avoiding a large tax bill on the first death.  I hope you both have will in place, if not that should be a priority.

And if you do get wills, and then marry shortly after (for practical, if not romantic reasons) make sure that the will is drafted "in contemplation of marriage" as otherwise marrying will invalidate it. 

Slinky

Emmia said:

Keep_pedalling said:

This would be a sensible time to marry. If you can afford to gift 6 figures then you probable should be concerned about IHT planning, and for a couple being married (or in a civil partnership) is the simplest way and most effective way of avoiding a large tax bill on the first death.  I hope you both have will in place, if not that should be a priority.

And if you do get wills, and then marry shortly after (for practical, if not romantic reasons) make sure that the will is drafted "in contemplation of marriage" as otherwise marrying will invalidate it. 

Just a thought on this, what is the situation with a will made in contemplation of marriage and then the marriage not taking place, is the will still valid?

Mojisola

Slinky said:

Just a thought on this, what is the situation with a will made in contemplation of marriage and then the marriage not taking place, is the will still valid?

No, the marriage has to take place within a 'reasonable timeframe'.