To wonder why there isn’t public outrage about this?

[Blusterylimp]

If a couple isn’t married but own their property between them, the surviving one will need to pay inheritance tax on their partners half of the house (and other assets) if they die.
Effectively they will lose their home to pay the IHT unless they also have huge savings.
How can that be allowed in this day and age when so many couples cohabit without getting married?

That’s very unkind.

Then they have to pay the tax. Actions have consequences.

Yes, IHT will be due (despite many posts on here stating differently)

A large number of properties including ours are worth way more than £650k these days.

It is a simple form, just has to be done in person and say a few words. You don’t have to have a party 🤣

Hi, op I agree with you entirely. It is outrageous. Thank you for sharing though, I actually had no idea about this. So although some might be chastising you on here, I'm so grateful for you sharing this knowledge.

I genuinely don’t see what is wrong with that. I would think it fair enough to have to pay IHT on the rest of his assets but I think the joint home should be treated as outside of IHT when the couple live there and so could potentially have to sell to pay IHT when one of them dies.

You may want to look at the Burden case where two sisters took this all the way to the European Court of Human Rights. In 2007. So it's not like it's been ignored

The lifetime divorce rate is currently 35%. It's been dropping since 1986 and has never been above 44%, so no, it has never been true that "more than half of all marriages fail". Second and subsequent marriages are significantly more likely to fail, so the lifetime divorce rate for first marriages is less than 35%.

Admittedly I don’t know loads about it as I don’t have it myself… but couldn’t you take out a life insurance policy on each other? That way if either of you die then the other gets a payout that could be used to pay towards any IHT?

🤣🤣🤣🤣🤣

Jesus Christ 🤦🏼‍♀️

I've lost brain cells reading through this thread. The complete lack of common sense within society is unbelievable.

You absolutely do not need to have any kind of 'fussy' ceremony.

In England and Wales, marriage is a verbal contract, so you will need to speak to each other. But if you want the absolute no frills version, your local registration office can do it for £56 (there is also a charge for a certificate and to give notice). It will be the two of you, two witnesses and two registrars in an office. There isn't a ceremony and it isn't held in a fancy room. You can literally say the two legal declarations to each other in the presence of your witnesses and registrars and hey ho, you are legally married. No party, food or fancy clothes required.

Civil Partnership is not a verbal contract, therefore if you so desire, your local registration office can do this for you, again for £56. To form a Civil Partnership you do not even have to speak to each other. Just agree to the written statement about forming a Civil Partnership and then sign, in the presence of your witnesses and the registrar (only one for a Civil Partnership).

However, both do form legally binding contracts with responsibilities as well as rights, so if you don't want to share your assets with your partner in the event of a break up, clearly neither of these options work, but as others have said, it's all about choices. We can't have it all.

Then thems the breaks as me nan would say

Wrong! Lots of people are confused. IHT is payable whether owned as joint tenants or tenants in common. A lot of misunderstanding around this issue, clearly.

It’s simple, if you are cohabiting for a long length of time and you are not married you should always seek legal advice otherwise you are unprotected

DP and I ended up with a civil partnership for the IHT reason. Everything else we could find a legal way to deal with except that.

We are still tenants in common in unequal share (with appropriate deed in place) and have wills which allow the other to remain in the jointly owned property for their lifetime in exchange for maintenance and upkeep. This right is lost on marriage or co-habitation.

We didn't have a party. In fact nobody actually knows about our civil partnership. We did it at the register office and the registrar had two people from the back office sign as witnesses to our signatures. Like any legal document it has to be signed and witnessed. No different from a will or an LPA really.

Glad to have been of help @JammyBiscuit. It certainly is outrageous

If you want the protection that marriage offers you get married, it's that simple. We aren't married, have 2 kids, we have wills, joint tenants on the mortgage and have POA for each other it's close but when push comes to shove you need to marry if you want the full protection.

Yes because there’s an “opt in”
system to avoid this.

Marriage or civil partnership.

It isn’t an opt out system

It's literally the reason we married.

I had no interesting it before.

And changing the law would mean most people would be exempt so why would the government say no to free money?

We didn't tell anyone we got married because it wasn't a celebration, it was a purely financial decision.

Out come the smug know it alls!

I agree but then I'm against IHT - not popular on here. The kids also lose their home. So yes, marriage is a serious financial commitment with benefits and disadvantages - to be properly entered into, ( or not!)