Mixed Sex Civil Partnerships and Your Estate
On Monday 2nd December 2019, a new form of legal relationship was passed in England and Wales. For the first time ever, mixed-sex couples can choose to register their relationship as a civil partnership as an alternative to marriage under The Civil Partnership (Opposite-sex Couples) Regulations 2019. An option that was previously only available for same-sex couples.
Civil partnership registrations can take place from 31st December 2019. But, what are the benefits from entering into a mixed sex civil partnership in relation to Wills, Inheritance Tax and Pensions?
If you enter into a civil partnership it is important to make a will to ensure your last wishes are successfully fulfilled, your partner is provided for after your death and to avoid any potential disputes. As is the case with a marriage any existing will is revoked automatically upon entering a civil partnership and it is therefore advised to review any will you have in place or start the process of creating a new one.
One of the biggest advantages of entering into a civil partnership however, is the inheritance tax benefits.
Everyone can pass on £325,000 free of Inheritance Tax (IHT),
which is currently charged at 40% on assets exceeding that threshold. Surviving civil partners can inherit their partner’s allowances on their death, and can obtain other exemptions and allowances as those who are married. Co-habiting couples with no legally binding and recognised relationship status are waived of this benefit. They also miss out on other assets which can be automatically inherited including their partner’s pension. A civil partnership will entitle those involved to their other half’s pension when they are no longer here, where as co-habiting couples miss out on this right.
Here at Willsons, we understand and appreciate the equality values that the new Act has given to mixed sex couples. Willsons can assist in any change in your circumstances and can talk you through all the options available to you and guarantee that your matter will be a quick and stress free process from start to finish, with detailed advice explained to you every step of the way.
If you would like more information or advice on civil partnerships or wills in contemplation of marriage or civil partnership. Please contact us on 02476 387821.