Marriage to avoid inheritance tax

Malthusian

MalMonroe said:

In the 21st century people have to be married in order to inherit what should just be rightfully theirs? Medieval.

Nope. All they have to do is make a Will. If they want the Inheritance Tax freedom they can make a civil partnership.

Or they can stay unmarried and take out whole of life insurance to cover the IHT bill, allowing them to inherit "what we think should be rightfully ours" free and clear.

The spousal Inheritance Tax exemption isn't a human right, it's one of the quid pro quos that the Government offers in exchange for the social benefits of stable long-term family relationships.

And you know, I think there's far too much fuss made about wills - yes, we want things to be sorted for those we leave behind but the law has ways of sorting things out for those who die intestate. If I had anything to leave I might consider having a will but I really don't like the way that some people who have made wills feel they are superior to others because of it. 

A lot of people don't make Wills not because they have no assets to speak of and intestacy laws will do the job, but because they are lazy and/or don't care enough about their family.

Most people who visit the "Deaths, Funerals and Probate" section of MoneySavingExpert do have assets to speak of and need a Will.

gwynlas

There are a number of couples who do not wish to get married either because of first marriage failure or not wishing to rock the boat however I think solicitors should strongly advise joint purchasers to make wills and to consider POAs. Not having wills particularly in the case of second or subsequent marriages makes things difficult for spouses and children/

p00hsticks

MalMonroe said:

They just hate to be dictated to - 'if you're not married you won't have the same rights as those who are' - and I have to say that I agree with them. In the 21st century people have to be married in order to inherit what should just be rightfully theirs? Medieval.

 

Aas others have already pointed out, you can ensure that your wordly goods go to whoever you want them to by simply making a will.

The problem with relaxing rules about spousal rights to include unmarried couples is at what point you would consider them a 'common law husband or wife' - when they start dating ? when they are having sex ? when they move in together ? When they have children?. All come with their own can of worms - not all marriages are consummated, not all married couples live together, not all couples want or can have children. DWP have to pour loads of resources into deciding whether a couple are 'living together as man and wife' for benefit purposes.

Far simpler to just say that the point at which two people make the conscious decision to go out and get a piece of paper that says they are married or in a civil partnership is the point at which they legally become a couple for inheritance and tax purposes.

NorthYorkie

Just out of interest, Ken Dodd married his partner a few days before his death, for this very reason.