IHT and not married/CP'd

RAS

Or a pay out from your pension scheme, life insurance, preferably with your partner as nominee?

p00hsticks

workinggirl32 said:

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.

If you have any defined benefit pensions, it's also worth checking the circumstances in which they'd pay a pension to your partner if you die first. Some will only pay a 'spouses pension' to a legal spouse (or civil partner), others(e.g parts of the civil service) will pay out to an unmarried partner providing that the deceased has completed and registered a form while living  to confirm that they wish their partner to be treated as if married.  

FYI my long term partner and I got married a few years ago without telling anyone simply because we realised it would be very advantageous to us financially to do so. 
For background here are a couple of my posts on the subject from another thread 
Legally marry and not inform anyone - official or family - Page 2 — MoneySavingExpert Forum
Legally marry and not inform anyone - official or family - Page 2 — MoneySavingExpert Forum

Marcon

workinggirl32 said:

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.

If you love him enough to leave him all your worldly goods, why saddle him with a hefty IHT bill which is easy enough to avoid by becoming civil partners?

workinggirl32

ha, yes, good point, but you know human beings aren't necessarily rational or logical ....

Keep_pedalling

workinggirl32 said:

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.

But he still has a transferable NRB that can be transferred to your estate. If your assets are over £325k and you have no children then your estate pays IHT, if you were in a civil partnership transferable NRB would mean your estate would have double that exemption.

bobster2

Maybe others might know - would becoming joint tenants on the house at this stage constitute a gift (of half the value of the house)?

Keep_pedalling

bobster2 said:

Maybe others might know - would becoming joint tenants on the house at this stage constitute a gift (of half the value of the house)?

It would be a gift but for IHT purposes it would not be effective for the next 7 years. This really is a no brainier just form a civil partnership and the problem is solved instantly.