Right of residence in event of partner’s death

HaveIt

Hi all,

Not sure if this is the right forum or not - apologies if it’s incorrect. 

My partner and I live in a property that is in her name but we’re both on the mortgage - it’s joint buyer, sole proprietor. I also paid half the deposit but that’s by the by. We did it this way for reasons it’s not worth going into with regard to this topic. 

We are expecting our first child in February. 

We’re planning on transferring equity into my name as well and are just understanding our options. 

Option 1 - transfer of equity now, £3,750 stamp duty, £2.4k solicitors, etc
Option 2 - transfer of equity in 3-4 years after we’re married, no stamp duty, though still have the solicitors’ fees, etc. 

It seems a little like option 2 is a no-brainer but the thing we need to consider is what would happen to my daughter and me in the event of my fiancé’s death when it comes to the house. 

Her will has me as the beneficiary but probate takes ages and as we’re not married, ownership doesn’t just default to me. 

I’m on the mortgage so I doubt they’d turf me out if I continue to pay it and, in fact, life insurance would allow me to pay it off anyway. 

However, technically I’d have no legal right to live there. My assumption is that ownership would transfer to her next of kin (her parents) who I’m very close with so no issues there. 

So, in short, is there a risk we’d be made homeless in the event of her death before we marry?!

Thanks very much for anyone’s thoughts. 

Cairnpapple

Are you the executor of your partner's will? If not,  who is the executor?

fullyrendered

You both need to make a will.

poseidon1

Any reason why you could not address all your concerns by marrying this year rather than 3 to 4 years time?

Option 2  but marrying this year rather in the distant future, makes far more sense than Option 1 if only because of the stamp duty saving, not to mention all the other benefits the UK grants to married parties in terms of tax, estate and matrimonial law.

Why on earth off kick those benefits 3 or 4 years down the road especially with a child on the very near horizon?

HaveIt

Cairnpapple said:

Are you the executor of your partner's will? If not,  who is the executor?

I am, yes. 

HaveIt

fullyrendered said:

You both need to make a will.

Yeah, we both have one. I just thought it took months and months for wills to be processed. It’s more the time between a death and the execution of the will that I’m wondering about. Thank you. 

HaveIt

poseidon1 said:

Any reason why you could not address all your concerns by marrying this year rather than 3 to 4 years time?

Option 2  but marrying this year rather in the distant future, makes far more sense than Option 1 if only because of the stamp duty saving, not to mention all the other benefits the UK grants to married parties in terms of tax, estate and matrimonial law.

Why on earth off kick those benefits 3 or 4 years down the road especially with a child on the very near horizon?

The cost of a wedding. I know we could just do a registry office approach but whilst we’re not after anything wildly grandiose, a little bit of a ceremony is important to us. 

Keep_pedalling

The sensible thing to do would be to formalise your relationship. For around £70 you could become civil partners or could get married for a little bit more. It will save a heap of money in Stamp duty and avoid a possible IHT liability should either of you meet an untimely death. You could always have a big bash at some point in the future to celebrate your partnership.

If you are not prepared to do this you both need wills as a matter of urgency. If your partner died soon after giving birth your child would inherit your partners entire estate meaning it would go into trust for 18 years and you would be stuck paying a mortgage for a home you will never own. 

Cairnpapple

HaveIt said:

fullyrendered said:

You both need to make a will.

Yeah, we both have one. I just thought it took months and months for wills to be processed. It’s more the time between a death and the execution of the will that I’m wondering about. Thank you. 

Since there's a will and you are (sole?) executor, you would be in charge of the estate immediately after death (in your role as executor). There isn't anyone else who could throw you out. 

Do you have a reason that you are worried that your partner's family might not abide by the terms of the will?

kimwp

Get married now and save up for a ceremony. Both will be special.

HaveIt

Cairnpapple said:

HaveIt said:

fullyrendered said:

You both need to make a will.

Yeah, we both have one. I just thought it took months and months for wills to be processed. It’s more the time between a death and the execution of the will that I’m wondering about. Thank you. 

Since there's a will and you are (sole?) executor, you would be in charge of the estate immediately after death (in your role as executor). There isn't anyone else who could throw you out. 

Do you have a reason that you are worried that your partner's family might not abide by the terms of the will?

No, no worries on that front at all. 

Thank you. 

Ok, so I think we’re ok on that front. But points taken on the marriage front. If nothing else, the inheritance tax benefits of marriage make it a priority.