Property ownership

baser999

Not sure this is in the right section . . . . . 

Our little home in SELondon is possibly worth £375k if local property sales are anything to go by. It’s in my sole name and I’m concerned that should I drop dead it’d pass to my partner as planned but she’d immediately be faced with an IHT bill. There is the real possibility (or threat 😂) of us getting married next year which would overcome that problem, but I’m wondering if there’s anything I/we might consider in the meantime? The obvious solution I suppose would be for me to transfer half of the property to her (maybe a third would be sufficient value wise) but there’d no doubt be legal costs and land registry fees to take into account. 

The property is mortgage-free and we’ve been together 17 years but not in any form of legal partnership.

 

Peterrr

Marry your partner - even if it isn't something you believe in, it has considerable inheritance tax benefits

Keep_pedalling

Gifting won’t help while you are not married or in a civil partnership as the gift remains in your estate for 7 years. You  could cover the risk with term life insurance. 

baser999

Thank you both 

RAS

While you are about, check if your pension scheme makes "death in service" payments or allows nominated partners to benefit from the pension.

Once you are married, your partner may get a survivor's pension, but meantime you can nominate them as the recipient of any other benefits and ensure those are removed from your estate. 

baser999

RAS said:

While you are about, check if your pension scheme makes "death in service" payments or allows nominated partners to benefit from the pension.

Once you are married, your partner may get a survivor's pension, but meantime you can nominate them as the recipient of any other benefits and ensure those are removed from your estate. 

She has been nominated as my survivor all the time I was employed and that has continued since I’ve been receiving my pension. Thanks any way.

RAS

Glad to hear it's sorted. Doesn't always happen; there was a recent thread where the pension payment went to the "wrong" person.