Unmarried co-habiting

kickingker

Hello, first post here!

I am 46. I have been in a 20 year relationship (ongoing). We have a joint mortgage. We have a joint bank account for bills. We have a child under 18. I work for NHS.
I feel I need to be as legally safe as can be for future planning should one of us no longer be here but no idea where to start, totally overwhelmed.
We haven't got wills, POA, and we are unmarried.
Is it better to be married? Is that cheaper than making a will? 

DullGreyGuy

Are you tenants in common or joint tenants on the property?

If you are joint then they automatically get the rest of the property, if its in common it will go to your estate. A child would naturally go to the other surviving parent. Your Death In Service and Pension will be subject to your nominations and normally is outside of the estate. 

So really comes down to what other assets you have and what you'd want to happen if you were both to die simultaneously/in quick succession. Marriage may make things more tax efficient but would still leave a need for a will for each of you that also deals with the issue of the death of the both of you. 

RAS

A lot depends on the value of the house and how you hold it?

If it's a joint tenancy and the survivor gets it and remarries, your child may not inherit anything from either of you. This applies whether you are married or not. 

You need POAs to cover yourselves as there is no guarantee otherwise that you would be the person to decide on your partner's care or funeral. That would be helped somewhat by marriage but you'd be wise to do POAs anyway. You can do them on-line.

For wills, check your union or professional body, as many offer discounts at times.

Mojisola

This is a comprehensive comparison -

www.citizensadvice.org.uk/family/living-together-marriage-and-civil-partnership/living-together-and-marriage-legal-differences/

If you take into account the extra benefits of being married or in a civil partnership regarding inheritance tax and bereavement benefits, those practical issues might push you into a legal relationship.  However long-term a relationship has been, it's not recognised as such by the state (unless you need to claim benefits).

www.citizensadvice.org.uk/benefits/claiming-bereavement-support-payment/

A legal ceremony can be done for very little money - it's only the celebration that costs a lot and that's optional.

sheramber

 You should specify who would assume responsibility for the child in the event you  both die.

it is also saves the hassle  involved if you die  without leaving a will.

Watty1

for goodness sake get married.  We didn't and having separated it is a minefield after 25 years together.   I'm sad to say this but "put a ring on it" or the more expensive option of drawing up a very detailed plan of who has what and what goes where while you still like each other.  Oh and make a will too!  

goater78

You definitely need at the very least to get a will. 

Hopefully nothing will happen but if something tragic did happen the last thing you want to go through when grieving is a complicated inheritance situation due to no will being present. 

Brie

if you are married there are legal things and there are assumptions.  If one of you has an accident and is in hospital the staff will look to the other in the couple to make decisions.  Legally it's only if you have POA but they will still talk to you and possibly decide things based on what you say the other would want.  Not sure that would happen if you are not married.  

So cheapo - get married.  Expensive - get a will, POA, etc etc and potentially you will still lose out if something sudden and unexpected happens.  (pension rights spring to mind.....)

Keep_pedalling

Yes you need wills and LPAs (especially for finance). If either of you died or was incapacitated by illness or accident, the other could be in a deep financial mess without those in place.

Not being married ( or in a civil partnership) could have serious consequences as far as inheritance tax is concerned as you don’t have spousal exemptions or the ability to transfer NRBs. If either of you have assets exceeding £325k then IHT will apply on the first death which it would not do with a spouse or civil partner.

If formalising your relationship makes sense then any wills you make should be made in contemplation of marriage / civil partnership.

Lifematters

Watty1 said:

for goodness sake get married.  We didn't and having separated it is a minefield after 25 years together.   I'm sad to say this but "put a ring on it" or the more expensive option of drawing up a very detailed plan of who has what and what goes where while you still like each other.  Oh and make a will too!  

Surely it would be more of a ‘minefield’ being married and going through the legalities and costs of a divorce? 

Savvy_Sue

Lifematters said:

Watty1 said:

for goodness sake get married.  We didn't and having separated it is a minefield after 25 years together.   I'm sad to say this but "put a ring on it" or the more expensive option of drawing up a very detailed plan of who has what and what goes where while you still like each other.  Oh and make a will too!  

Surely it would be more of a ‘minefield’ being married and going through the legalities and costs of a divorce? 

No. There are laws and rights in divorce. Nothing for living together. You paid equally to buy a house but only one name on the mortgage / deeds? No laws, sue each other for what you think you're entitled to.