Any benefits to a civil partnership?

Miss_Riot

Now that bereavement benefits have been equalised for cohabitating as well as civil partnered and married couples, asides from a tax break, is there actually any pragmatic benefits to getting civil partnered? We do have children, but also have wills in place. 

Keep_pedalling

Well the main one is tax, with no spousal exemption the surviving partner could be left with funding a major IHT bill on the first death, something not facing married couples or CPs. If either of you have assets exceeding £325k, including your share of the house, then you would be foolish not to consider it. 

p00hsticks

The other is potentially pensions, if either of you have defined benefit pensions.
You'd need to look into the details of the particular scheme , but some will only pay a survivors pension to a formal spouse / civil partner, while others - such as some civil service ones - will pay to cohabitees providing the deceased had made a declaration to the employer that they wanted their partner to be treated as if married in this repsect. 

Miss_Riot

Keep_pedalling said:

Well the main one is tax, with no spousal exemption the surviving partner could be left with funding a major IHT bill on the first death, something not facing married couples or CPs. If either of you have assets exceeding £325k, including your share of the house, then you would be foolish not to consider it. 

I highly doubt we will ever be in that position but it's worth baring in mind. 

Mojisola

Miss_Riot said:

Now that bereavement benefits have been equalised for cohabitating as well as civil partnered and married couples, asides from a tax break, is there actually any pragmatic benefits to getting civil partnered? We do have children, but also have wills in place. 

Do you also have power of attorney for each other?

Are you listed with your GP and local hospital as each other's next of kin?  It's worth carrying one of these - https://s3-eu-west-1.amazonaws.com/files.royalfree.nhs.uk/next_of_kin002.pdf

TBagpuss

The biggest advantage / benefit is if the relationship breaks down, as it means that assets are then divided taking all factors into account - e.g. needs of the two of you, needs of the children, contributions you've both made including non-financial ones such as child care, rather than the much more limited 'whose name is on the paperwork' approach where an unmarried / cohabiting couple separates.
if you have broadly similar incomes, savings, pensions etc. this is less of an issue, otherwise, remaining unmarried / outside a civil partnership benefits the financially stronger party but can leave the financially weaker party (often the one who is / has been the main carer for children) vulnerable. 

Miss_Riot

Mojisola said:

Miss_Riot said:

Now that bereavement benefits have been equalised for cohabitating as well as civil partnered and married couples, asides from a tax break, is there actually any pragmatic benefits to getting civil partnered? We do have children, but also have wills in place. 

Do you also have power of attorney for each other?

Are you listed with your GP and local hospital as each other's next of kin?  It's worth carrying one of these - https://s3-eu-west-1.amazonaws.com/files.royalfree.nhs.uk/next_of_kin002.pdf

POA - no, it's something I was trying to get sorted but it's not simple or quick or cheap even without a solicitor. 

Next of kin - have been each others for year's with GP and have permission to talk to doctor about each others medical records. 

Miss_Riot

TBagpuss said:

The biggest advantage / benefit is if the relationship breaks down, as it means that assets are then divided taking all factors into account - e.g. needs of the two of you, needs of the children, contributions you've both made including non-financial ones such as child care, rather than the much more limited 'whose name is on the paperwork' approach where an unmarried / cohabiting couple separates.
if you have broadly similar incomes, savings, pensions etc. this is less of an issue, otherwise, remaining unmarried / outside a civil partnership benefits the financially stronger party but can leave the financially weaker party (often the one who is / has been the main carer for children) vulnerable. 

We'll likely always have very different incomes because of disability. I guess this can't something anyone wants to think about but it is something to factor.