Should we bother to Marry ?

angelinamay

Good evening, 

Both my partner and me are now divorced. Both retired, late 60s and have been together 12 years.  Is there any benefit in getting married?  Tax implications etc? think we're both a bit long in the tooth to re-marry.  Thanks for your help, 

DavidT67

Useful guide to the differences. 

https://www.citizensadvice.org.uk/family/living-together-marriage-and-civil-partnership/living-together-and-civil-partnership-legal-differences/

JGB1955

Marriage isn't the only option.  Civil Partnerships have the same status.  Do you own property? Have you made a will?  Have you made Powers of Attorney?  Who do you want to benefit when you die? Do you have occupational pensions - who have you identified as your beneficiary?

Ms_Chocaholic

Do you own a property?

Jointly?

Do you have children from previous relationships that you want to inherit your share of the property?

Do you own your house as Joint Tenants? If unsure check the LR for £3, or is it £7, not sure.

If yes to above then consider changing to Tenants in Common, do your research though to make sure it's right for you. 

angelinamay

JGB1955 said:

Marriage isn't the only option.  Civil Partnerships have the same status.  Do you own property? Have you made a will?  Have you made Powers of Attorney?  Who do you want to benefit when you die? Do you have occupational pensions - who have you identified as your beneficiary?

Thank you,  I own the property. I have made a will, but plan to change it as we've moved house in the past year. I'd like the property split between both of my sons, BUT would like my partner to live in it for the rest of his life, should I predecease.  Partner has a private pension, I have an occupational pension.  :-) 

IOWJJBTM2025

My father-in law was not married and when his partner passed it was a nightmare as she jointly owned the house.
After everything had settled down my (now) wife said we should get married just to make it simpler if anything happens to either of us.

Keep_pedalling

Depends on the assets you have, couples who are not married or in civil partnerships are at a serious disadvantage when it comes down to IHT if either or both of you have assets in excess of £325k.

spending around £70 on becoming civil partners could save your estate many tens of thousands in tax.

Have you put wills in place? Have you made lasting powers of attorney? Doy either of you have children?

If not both those things should be at the very top of you to do list. 

Ms_Chocaholic

angelinamay said:

JGB1955 said:

Marriage isn't the only option.  Civil Partnerships have the same status.  Do you own property? Have you made a will?  Have you made Powers of Attorney?  Who do you want to benefit when you die? Do you have occupational pensions - who have you identified as your beneficiary?

Thank you,  I own the property. I have made a will, but plan to change it as we've moved house in the past year. I'd like the property split between both of my sons, BUT would like my partner to live in it for the rest of his life, should I predecease.  Partner has a private pension, I have an occupational pension.  :-) 

Ah in those circumstances I'm not sure what is for the best, marriage or not if you own the house.  Maybe someone here can advise better than I can.  In terms of the will lthough, if it doesn't say what you want it to then for the time being maybe rip it up as otherwise it will be used if you happened to suddenly die (here's hoping not btw).

Keep_pedalling

angelinamay said:

JGB1955 said:

Marriage isn't the only option.  Civil Partnerships have the same status.  Do you own property? Have you made a will?  Have you made Powers of Attorney?  Who do you want to benefit when you die? Do you have occupational pensions - who have you identified as your beneficiary?

Thank you,  I own the property. I have made a will, but plan to change it as we've moved house in the past year. I'd like the property split between both of my sons, BUT would like my partner to live in it for the rest of his life, should I predecease.  Partner has a private pension, I have an occupational pension.  :-) 

Naming a specific property in a will is never a good idea as at best it requires a new will when you move but at worst it could disinherit someone is you may no longer own it at your death and may not have have had the mental capacity to have made a new will. 

The fact that you want to give your partner a life interest in the house is another reason to formalise your relationship. Doing this as a married couple or as civil partners is straight forward and tax efficient but can be problematic if you are not. Giving your partner a life interest looses your estate’s residential NRB exemption potentially leaving it with a IHT liability. You alternative leave the property to your children with a wish that your children allow him to live there, but that does not give him such safe long term security and will eventually lead to a CGT liability for the children. 

poseidon1

angelinamay said:

Good evening, 

Both my partner and me are now divorced. Both retired, late 60s and have been together 12 years.  Is there any benefit in getting married?  Tax implications etc? think we're both a bit long in the tooth to re-marry.  Thanks for your help, 

Short answer is yes, there will be IHT problems If your total personal assets on death ( assuming  you predecease your partner)  exceeds £325k. 

Given your plan to leave your house in trust for your partner for life, if the house is at or very near the NRB of £325k at that time, anything else you leave over that threshold is taxed at 40% with no scope to mitigate the charge.

Worse still the additional residence nil rate band of £175k , which would have been available to your children on partner's eventual death ( had you been married ), is completely lost by insisting on remaining single - see article below.

https://www.fjg.co.uk/the-residence-nil-rate-band-a-common-misunderstanding/#:~:text=for unmarried couples.-,Life Interest Trusts,otherwise the RNRB is lost.

The real question you should ask yourself, is if you care enough for your partner to allow him rent free occupation of your home if you predecease him, why would you  not marry/civil partnership, to benefit your children from the potentially substantial tax saving benefit of doing so?

elsien

I have seen it from the other side where a long-term partner of 28 got thrown out of the house immediately after his partner’s death by the children. He had put a lot of money into the house, but could not face or record trying to prove his beneficial interest. Never presume that anyone will do the “right” thing. 

My other question would be what would you want to happen with regards to your partner If the house he has the life interest becomes unsuitable for any reason and he needs (or wants)  to downsize? Would he be tied to a property but no longer works because he can’t afford to move anywhere else?
And who pays all the maintenance with the house while he’s living there but doesn’t own it ?
It’s these practicalities that tend to cause problems after death and that you need to be discussing as an eventuality now, which ever route you go down.