IHT and not married/CP'd

workinggirl32

Hi all,
With partner 20+yrs, not married or civil partnered.  I have all the major assets.  I have been told a variety of things that could happen if I died before him.  1. that he would have to pay IHT bill, which would be applicable in this instance, for the single person's allowance, as everything would come out above £325K and that he would have to sell the house to pay the IHT bill if he couldn't pay it otherwise.  Effectively this makes him homeless so have also heard, 2. that this is not allowed and all the estate could be sorted with all taxes due paid after he has passed on too.

The house and all assets are willed to him.
Thank you very much.

Keep_pedalling

If you die with assets over £325k then you are going to leave your partner with major financial problems. IHT will be due to be payed within 6 months of your death and it can’t be put off until his death, although there is an option to pay by instalments.

Not being married or in a civil partnership will also have IHT consequences on your estate if he dies first, as your estate will not be able to claim the transferable NRB from his estate.

uknick

Do what ken Dodd did, get married on your death bed and beat the taxman. 

RAS

Is the house solely in your name, joint ownership or tenants in common?

If it's in your sole name and when you die you don't gave liquid assets equivalent to 40% of (assets less single person's IHT allowance), your partner will need to re-mortgage or sell.

workinggirl32

Keep_pedalling said:

If you die with assets over £325k then you are going to leave your partner with major financial problems. IHT will be due to be payed within 6 months of your death and it can’t be put off until his death, although there is an option to pay by instalments.

Not being married or in a civil partnership will also have IHT consequences on your estate if he dies first, as your estate will not be able to claim the transferable NRB from his estate.

Thanks - he has no estate.

workinggirl32

RAS said:

Is the house solely in your name, joint ownership or tenants in common?

If it's in your sole name and when you die you don't gave liquid assets equivalent to 40% of (assets less single person's IHT allowance), your partner will need to re-mortgage or sell.

Yes, solely my name.

workinggirl32

uknick said:

Do what ken Dodd did, get married on your death bed and beat the taxman. 

Ah yes, but that doesn't allow for the proverbial bus/quick death issues  

Mojisola

Any objection to just having a legal ceremony - marriage or cp?  

No need for a fuss.  

Don't even need to tell anyone if you don't want to.

You should both write new wills after the marriage or 'in anticipation of' a marriage.

Brie

As others have implied the tax system doesn't seem to like couples that are not legally acknowledged.  So for that reason you might want to consider getting hitched in some way - doesn't need to be a big deal, registry office or quicky in Vega, whatever.  

And remember that it's not just inheritance that might be an issue.  Check out what your banks might do, pensions etc.

workinggirl32

Brie said:

As others have implied the tax system doesn't seem to like couples that are not legally acknowledged.  So for that reason you might want to consider getting hitched in some way - doesn't need to be a big deal, registry office or quicky in Vega, whatever.  

And remember that it's not just inheritance that might be an issue.  Check out what your banks might do, pensions etc.

I know; light is dawning.  It's just the IHT is the biggest issue.  CP is the only thing I would consider, not trad marriage.  thank you though.

poppystar

Is the house the bulk of the estate? If not, are there cash assets that the estate could use to pay the IHT?