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?

Wrong! IHT is still payable whether joint tenants or tenants in common.

Changing the rules opens up a big loophole for tax avoidance. You could own a house with anyone to avoid inheritance tax.
Marriage or civil partnership allows you to pass on property to your partner without inheritance tax being applied. It’s protects the surviving partner from being made homeless.

I would happily have entered a civil partnership with DH if it had been legal at the time we were married. It would have been easier, and given us the same legal benefits without having to do the wedding part. It’s no different to a legal partnership in business. But it protects your partner and children from future financial problems and confers the benefits if you split up.

Legal marriage has always been a legal contract, fortunately we no longer sign over everything to our partner and are entitled to a 50/50 split if we separate. Without that contract you can spend years building a home and life and end up with nothing.
I think you need to spend time studying the implications of being in a longterm relationship with your partner without any legal contract and make sure you have up to date wills.

Even if you do own the house with them, without a will you are only entitled to to a small proportion of their estate and the rest goes to your children.
It is much simpler when you are married if your partner dies without a will.

Why would you lose your home? You know in advance what your IHT liability is, so plan ahead. You have options.

I was never told this when my mum died. To be honest I was too young to think about getting a mortgage on it to stay in the house (21) but I am surprised I had never ever heard that you can add interest and pay it off over 10 years.

Who is liable for it with tenants in common?

From what you have said, there would be no benefit in that situation.

IHT won't be a problem and it seems unlikely that they will have any assets where they may need to worry about capital gains tax.

Not quite true...... if they own a house together as joint tenants then survivorship applies and the surviving partner will then own the house and this won't have any tax payable or form part of the deceased partners estate. Any other assets would pass as per their will, they would benefit from the IHT free allowance however there is no presumption that the partner will get anything.

If they own the house as tenants in common then they own distinct shares 50/50 or as they otherwise determine. The will of the deceased person will determine what happens to their share - IHT payable on anything above the IHT free allowance.

Demonstrates the importance of taking legal advice and planning appropriately.

I don't think I'm clever, but I'm smart enough to know that when I make big decisions I take professional advice.

This is wrong

Why do so many people make the huge commitment of ownership or having kids without the security of marriage? Especially when you can just pop to a registry office.

This thread is like someone who doesn't want a vaccination being outraged that the best way to not get polio is to have a vaccination.

Funnily enough my comment has a typo 😂

If your house is vastly out of whack with his savings (you would use them to pay the tax), insurance is def an option.

This ⬆️

Why is it outrageous that you need a contract in order to inherit from someone you live with in order to avoid IHT? It would be outrageous if it didn't need a contract and random people who you choose to live with could have a claim on your property or pay no tax when tax is due - when the rest of us have to pay those taxes.
Or do you not understand that marriage/civil partnerships are public contracts which exactly state the nature of commitment and the nature of the financial arrangements?

I made a Will last year and was never told about the 10 years... I honestly don't think solicitors do openly explain that as an option in many cases. I know I am not the only person to have made a Will that has worried about how the kids will be paying for IHT, not realising this.

It can be.

NoK has no legal definition - if you specify that you want your partner to be NoK, they are!

Everyone should have a Will and set up LPA. You can specify in both who you regard as NoK, and give LPA to your partner rather than blood family.

Oh my god this even SOUNDS convincing! Please for the love of god stop and check the facts

What if you are joint tenants on your owned property? As the property never forms part of an estate so surely it can't be subject to iht?

Sometimes one person is resistant. Short of forcibly dragging them to the altar there’s not much you can do other than split up or put up. But I agree that marriage should be on the cards for both parties if you've committed to a house and children. I have never bought into that ‘it’s only a piece of paper’ guff.

Actually agree, I said something similar earlier, but I suppose some people can’t always afford legal advice or maybe time slips by and it’s put on the long finger and then actually never happens

well the devil is in the detail here so the 10 year rule is for illiquid assets, not all estates. There is also interest

Emojis don't stop your daftness. If you have only just discovered that marriage is a thing, a legal contract, then you are not as bright as you think you are. I don't have an IQ of 157 (at least I don't know) but I understand what marriage or a civil partnership are.

Yes, I get there would be interest but from the website it suggests houses are privvy to this rule. I understand the probate solicitor I saw may have been thinking there was no point in going over values as the market may change, but really that should be done by them when a Will is made to ensure full planning of assets can be made, surely?

Joint tenants, property goes to the surviving joint owner, regardless.
Joint accounts, same thing
Life assurance, nominate your partner to get it. It's outside the will.

I'm not sure that's true. Some have discovered that their partner cannot visit in hospital, have any say in what is happening, because they are not next of kin and there is no legal arrangement.