I recently read a newspaper article featuring a woman whose partner died 13 years ago, resulting in serious financial consequences for her because they were not married. The couple had been together for decades, owned a house for over 20 years and had two children. However, not being married has led to financial loss in her lifetime (she wasn't entitled to a widow's pension under her partner's pension scheme) and could cause more financial loss on her death as her children will not be able to transfer any unused inheritance tax nil rate bands of their father to their mother's estate which could mean a higher inheritance tax bill.

The couple had made Wills, which is essential for unmarried couples who do not have any rights to inherit their partner's estate under the intestacy laws (which govern what happens when somebody dies without a Will). However, Wills don't normally determine what happens to a pension and there are significant inheritance tax advantages to being married or being civil partners. (Civil partnership confers the same legal advantages as marriage and is now available to heterosexual couples. As it does not involve a ceremony, it may be attractive to couples who want to tick off an administrative task rather than to have a celebration of their relationship.)

Apparently, short notice marriages (commonly known as deathbed marriages) are on the rise in the UK, which probably shows that more couples are becoming aware of the detrimental financial effects of not being married. However, it is risky to assume that the dying partner will be well enough to go through with a last-minute wedding.  Also, getting married or becoming civil partners automatically revokes an existing Will unless that Will is made in contemplation of marriage so a marriage and a new Will may be needed.

Tying the knot as soon as possible for financial reasons may not sound romantic, but it could be the most loving thing you can do.

If you'd like any help or guidance with making a Will or personal planning, please contact me.