Civil partnership queries

sandybeach12

Is there anyone savvy out there on the legalities of civil partnerships?

If so, can you tell me please: If you're living with a long term partner whose Will leaves everything to you after their death, what additional benefits would there be by entering into a civil partnership instead of staying just living together?

Thanks in advance.

Alderbank

sandybeach12 said:

Is there anyone savvy out there on the legalities of civil partnerships?

If so, can you tell me please: If you're living with a long term partner whose Will leaves everything to you after their death, what additional benefits would there be by entering into a civil partnership instead of staying just living together?

Thanks in advance.

Welcome to the forum.

Firstly, you don't need to say 'after their death'. Wills mean nothing while the testator is alive. They only have any meaning after the testator has died.

You don't give enough information to give a comprehensive answer. But just one example here in Scotland would be if the long term partner has children. In Scotland you can't just disinherit your children by writing a will which says 'I leave everything to my friend. My children get nothing.'

If you both are in a civil partnership your partner's children get a third of the moveable assets even if the will says 'everything to my friend'. If no civil partnership the children get half of those assets.

Emmia

sandybeach12 said:

Is there anyone savvy out there on the legalities of civil partnerships?

If so, can you tell me please: If you're living with a long term partner whose Will leaves everything to you after their death, what additional benefits would there be by entering into a civil partnership instead of staying just living together?

Thanks in advance.

Inheritance Tax (IHT) allowances is the big benefit over the will alone, as the IHT needs to be paid on the death of the first person if not married, which could for example force the sale of the home they live in... If you're married/CP it's on the death of the second.

Plus there are rules around intestacy which in England & Wales means the surviving spouse / CP inherits first.

You might want to peruse this recent thread as an example of someone who wasn't married to or in a civil partnership with the deceased but had been in a relationship with them for 40 years. They had DIY'd their wills thinking (a)they knew what they were doing, and (b) it would have the same effect as marriage.

The DIY of the will is the bigger issue, but as they weren't married/CP they also don't have the laws of intestacy to fall back on - which would give the OP on that thread an outcome that they / the deceased were seeking vs. a reality where people inherit who weren't intended to...

https://forums.moneysavingexpert.com/discussion/6572478/mirror-wills-or-mutual-wills

In short if you're in a long stable relationship... There's a good rationale to get married/CP for the benefits.

You should have wills too, but you need to do this AFTER you're married to confirm all the details, as marriage normally invalidates a will made prior to marriage.

Keep_pedalling

Having spousal exception from IHT is a major advantage if either of you have assets in excess of £325k. If for example you jointly own a house worth £800k and have savings of £125k each on the first death there would be a IHT liability of £80k but as civil partners there would be none. Not being in a formal relationship may also impact inherited pensions some of which will be falling under IHT rules in 2026.

Do you have children? Have you both made LPAs? 

If you do decide to formalise your relationship you will both need to make new wills. These can be done in advance of marrying of forming a CP to avoid an intestacy gap.

Emmia

Keep_pedalling said:

Having spousal exception from IHT is a major advantage if either of you have assets in excess of £325k. If for example you jointly own a house worth £800k and have savings of £125k each on the first death there would be a IHT liability of £80k but as civil partners there would be none. Not being in a formal relationship may also impact inherited pensions some of which will be falling under IHT rules in 2026.

Do you have children? Have you both made LPAs? 

If you do decide to formalise your relationship you will both need to make new wills. These can be done in advance of marrying of forming a CP to avoid an intestacy gap.

But, ensure the solicitor drafting the will is aware of the impending marriage/CP when you instruct them.

p00hsticks

Another potential benefit of marriage / civil partnership is if either of the two have Defined Benefit pension schemes, as some of these will only pay out a survivors pension to spouses of civil partners, not informal relationships however long they have been together. 

In my experience, some schemes (e.g. the civil service) will recognise long term partnership, but only if the employee has completed some paperwork to declare that this is how they want them to be treated .

bunnygo

to repeat the most important thing; both marriage and civil partnership invalidate wills, so make sure you have organised a replacement will in advance, made in contemption of the new arrangement.