Does My Estate Automatically Pass to My Partner When I Die?

Note: The following article is part of our Complimentary Articles Series, designed to provide additional insights and detailed information on specific topics within estate planning.

Alongside this article, we suggest exploring our pillar articles for a comprehensive understanding of general estate planning issues.

• When Should I Consider an Estate Plan?
• What's Included in an Estate Plan?
• Why is it Important to Write a Will?
• What Are the Benefits of an Estate Plan?
• How Often Should I Update My Estate Plan?

INTRODUCTION

In estate planning, the most fundamental question of all is what will happen to your Estate when you pass away.

Inheritance matters are full of myths and misconceptions, such as the common belief that an individual's spouse will inherit everything automatically. In reality, truth is more nuanced and dependent on many variables, such as the couple's marital status, whether a Will is in place, and current English legislation.

This article highlights the impact of your marital status on your Estate, explains whether your Estate automatically passes to your partner, and offers guidance on securing your Estate for your loved ones, all of which are aspects of estate planning and Will writing.

FOR CLARITY – CIVIL PARTNERS AND MARRIED COUPLES

Your spouse or civil partner may inherit from your Estate in England if you are legally married or in a civil partnership. However, the extent of their inheritance will depend on whether they have a Will in place and what the Will stipulates.

The laws of intestacy dictate that your spouse or civil partner will automatically inherit all or part of your Estate if you pass away intestate (without a Will). According to these guidelines, your civil partner or spouse will inherit:

• All your personal belongings.

• The Estate's first £270,000.

• Half of the residual Estate, with the other half going to your children (if you have any).

UNMARRIED PARTNERS

Regardless of the length of your relationship or your children's existence, your partner does not automatically have the right to inherit if you are NOT married or in a civil partnership.

If you do not have a Will and are in such circumstances, your Estate may be divided among your living relatives, such as parents, siblings, or children, and your partner may receive nothing, regardless of your wishes.

Why Making a Will Is So Important

It is essential to have a Will, particularly if you wish to make specific provisions that deviate from the rules of intestacy or are single. With a Will, you can:

• Specify who will receive what from your Estate: friends, unmarried partners, or charitable organisations.

• Appoint guardians for your children.

• Give your loved ones special gifts or make specific financial arrangements for them.

• Potentially reduce your Inheritance Tax (IHT) liabilities. 

OTHER ESTATE PLANNING CONSIDERATIONS

To make sure your wishes are honoured when planning your Estate, you should take into the following aspects:

• Ownership of Property: If you jointly own a property as joint tenants, the property will automatically pass to your co-owner on your passing. However, by transferring ownership from Joint Tenants to Tenants in Common, you can prevent this automatic transfer to the joint owner and stipulate who it should go to instead.

• Financial Products: Pay particular attention to the Beneficiary nominations on any financial products such as life insurance policies and pensions. These are not governed by the rules of intestacy or your Will and, as such, may pass outside of your Estate.

REVIEW AND CONSULT

Life is full of change, and our circumstances change frequently.

That's why we advise you to review your Will periodically or after any significant life events such as marriage, divorce, the birth of children, or the death of a Beneficiary.

Need to know more?

If you do not have a Will in place or wish to check whether your documentation is legally valid, feel free to contact us for a free, no-obligation initial phone call.

Because estate planning is not a one-size-fits-all procedure, as estate planning professionals, we can discuss your options. Where specialist legal or tax advice is required, we'd be happy to put you in contact with one of our specialist partners.

Book a callback, and we'd be happy to arrange a no-cost, no-obligation discussion with you to lay out the options available.

Alternatively, call us on 01233 659 796.

Or reach out to us here.