Financial arrangements for same-sex couples
- AuthorJoe McArdle
With Essex Pride well underway, we remember the fantastic changes that have been achieved for same-sex couples in recent years, who can now enter into a marriage or civil partnerships. This includes being able to leave your estate to each other on death and transfer any or all of your unused nil rate band to your respective spouse or partner.
However, if you are unmarried or cohabiting with your partner without naming them as a beneficiary under your will, they will receive nothing unless they decide to bring a claim against your estate. This will potentially incur high legal costs if a will is contested.
It is also important to keep your financial arrangements up to date. Many individuals take out life insurance to cover the cost of large debts, for example, a mortgage.
If you are not married or in a civil partnership and do not have a valid will or your partner is not nominated under your will, on your death, your life assurance policy payout will follow the rules of intestacy. This could leave your partner unable to repay the mortgage debt and possibly unable to cope financially at an already very emotional and difficult time.
It is just as important to make sure that your death benefit nominations are up to date. Consider your pension plan arrangements, so that the benefit can then pass to your beneficiary for their own financial benefit. This may also apply to anyone who has a death-in-service benefit through employment.
It is vital that you review your financial arrangements regularly. Make sure they are up to date and that financial planning opportunities are not missed for the benefit of not only you but also for your loved ones. If you wish to discuss any of the topics above in more detail please contact Joe McArdle on 01206 217309.