Cohabitation and inheritance in the UK

Cohabitation is where individuals live together in a romantic relationship, without being married or in a civil partnership.  This is becoming increasingly common in the UK and whilst many couples choose this arrangement for various reasons (ranging from personal preferences to financial considerations), they often overlook the legal complexities that can arise, particularly concerning  the laws governing inheritance and the difficulties often arising upon death.

What are your inheritance rights if you are cohabiting?

Unlike married couples or those in civil partnerships, cohabiting couples do not have automatic rights to inherit from each other’s estates upon death. In the absence of a valid Will explicitly stating the intentions regarding inheritance, the surviving partner may find themselves excluded from any inheritance, regardless of the length or nature of the relationship.

This lack of automatic right can lead to distressing and financially precarious situations for the surviving partner, especially if they have contributed significantly to the relationship, either financially or through other means such as caregiving or homemaking. Despite the emotional and practical aspects of their partnership, cohabiting couples are not afforded the same legal automatic protections as married couples, or those in a civil partnership, under current UK law.

Furthermore, cohabiting couples will not benefit from exemptions from Inheritance tax such as the spouse exemption which applies on transfer between married individuals on death. As such when making financial provision for a cohabitee, the potential liability to inheritance tax needs to be carefully considered.

Legal advice for cohabiting couples

To address these issues, cohabiting couples should take legal advice to safeguard their interests through the use of Wills and Cohabitation Agreements:

• a Will allows an individuals to specify how they wish their assets to be distributed upon their death, including providing for their cohabiting partner; and
• Inheritance tax advice on the liability that may arise and where this will be paid from;
• Cohabitation agreements, on the other hand, establish the rights and responsibilities of each partner during the relationship and in the event of separation or death, covering issues such as property ownership, financial arrangements, and inheritance.

Even with these measures in place, challenges may still arise. Disputes over the validity or interpretation of Wills and agreements can lead to lengthy legal battles, causing emotional strain and financial burden for the surviving partner. Moreover, the evolving nature of relationships and changing circumstances may render existing agreements outdated or inadequate, requiring regular review and updates, to ensure continued relevance and effectiveness.

Furthermore, the current legal landscape is always subject to change, driven by social or fiscal policy.  Some would argue that the current laws fail to reflect the diverse realities of modern relationships and perpetuate inequalities, particularly for vulnerable individuals such as cohabiting partners who may be economically disadvantaged or lack legal knowledge.

There is a limited right of claim provided to a surviving partner, to make a claim against the deceased’s estate where they feel they have not been provided for.  Of course any legal challenge taken against an estate will bring with it stress, strain and cost to all parties involved.  There is no guarantee of the outcome and each case will turn on its own facts.

In conclusion, cohabitation presents unique legal challenges, particularly concerning inheritance rights, for couples in the UK. To mitigate these challenges, cohabiting partners should take steps to protect their interests through Wills and Cohabitation agreements, supported by independent legal advice.

Further guidance and support

If you require any further guidance or support on the issues covered in this article including Cohabitation agreements, please get in touch with our Private Client team today.

Our team of specialists Wills and inheritance tax lawyers are based in Maidstone and Canterbury and are ready to help with any legal advice you may require so please get in touch today.

This content is correct at time of publication