Opposite-sex couples entering into register civil partnerships should consider how this will affect their existing Wills.
The Civil Partnership (Opposite-sex Couples) Regulations 2019, passed by Lords late last year, allows millions of opposite-sex couples to enjoy the financial benefits of marriage without getting traditionally hitched.
Breda Cashell, director in the Private Client team at Wake Smith Solicitors in Sheffield, looks at the
the effect that forming a civil partnership has on your estate when you die.
She said: “A civil partnership automatically revokes a Will unless it is made specifically in contemplation of the civil partnership, as per section 18(B) of the Wills Act 1837.
“This means couples, who enter into a civil partnership, will not have valid Wills following the formation of their civil partnership.
“If they were to die prior to putting a new Will in place, their estate would pass in accordance with the rules of intestacy, which may not necessarily reflect the wishes of the parties to the civil partnership.
“If you are thinking of entering into a civil partnership, a solicitor can advise you to ensure that your Will is either made ahead of a civil partnership or following the formation of the civil partnership, ensuring your Will accurately reflects your wishes.”
What is a civil partnership?
A civil partnership is a legal relationship which can be registered by two people who aren't related to each other. If you are in a same-sex or an opposite-sex relationship, registering a civil partnership will give your relationship legal recognition. This will give you added legal rights, as well as responsibilities.
Once a civil partnership is registered, it can only be ended if one of you dies, or by applying to court to bring the partnership legally to an end. It cannot be brought to an end in the first year.
The biggest advantage of entering into a civil partnership is the inheritance tax benefits.
Everyone can pass on £325,000 free of IHT, assets above that threshold are charged at 40 per cent (there is an extra £150,000 allowance where a family home is involved for 2019/20 rising to £175,000 in 2020/21). Surviving civil partners will inherit their partner’s unused allowance on their death, meaning a couple can pass on £950,000 in 2019/20 free of tax. This will rise to £1m in April 2020.
Wake Smith’s private client team can advise on estate planning and inheritance matters and also work closely with the firm’s Family team on pre-nuptial agreements and pre-civil partnership agreements and cohabitation.
For legal advice on estate planning contact Breda Cashell on 0114 266 6660 or email at [email protected]
