If something happened to you tomorrow, would your partner be financially secure?
It’s not the easiest question to sit with. But it’s one of the most important.
Sorting your will now means your partner won’t have to untangle finances while they’re grieving. It keeps decisions clear and protects more of what you’ve built together.
Here’s what you need to know.
(This article is for general information only and does not constitute personal financial advice. Tax rules and allowances can change and depend on your individual circumstances. If you’re unsure what applies to you, speak to a qualified financial adviser.)
Put a will in place
If you die without a will, the law decides who gets what. Those rules are strict, and they don’t always reflect modern families:
- Unmarried partners don’t automatically inherit.
- Stepchildren aren’t guaranteed anything.
- Your partner could end up sharing assets with other relatives.
- The process can take longer and cost more.
A will puts you back in control. You decide who inherits, who manages your estate and who looks after any children. It makes things clearer and faster for the people left behind.
Already have one? Review it after major life events such as marriage, divorce, children, buying property or building wealth.
Marriage, civil partnership and cohabiting
The rules change depending on your relationship status.
If you’re married or in a civil partnership, your partner can usually inherit tax-free thanks to the spouse exemption. Any unused inheritance tax allowance can also transfer to them. This can double the tax-free threshold when the second partner passes away.
However, if you live together but aren’t married, the situation is very different:
- Your partner has no automatic right to inherit
- The spouse inheritance tax exemption doesn’t apply
- They could face an inheritance tax bill on assets passed to them
If you’re cohabiting, a will is essential. Tax planning often is too.
Understanding inheritance tax
Inheritance tax is charged at 40% on the value of your estate above the available allowances.
Most people have:
- A £325,000 nil rate band
- Up to£175,000 residence nil rate band if passing a home to direct descendants
Married couples and civil partners can combine allowances, meaning up to £1 million can potentially pass tax-free in the right circumstances.
Without planning, more of your wealth could go to HMRC than you expect. Practical steps that can help:
- Use lifetime gifting allowances
- Placing certain assets in trust
- Reviewing pension nominations
- Structuring investments tax-efficiently
The right mix depends on your wealth, family set-up and long-term goals.
Don’t overlook pensions
Pensions have long sat outside your estate for inheritance tax. From April 2027, most unused pension pots will count towards your estate. That could increase the tax bill if your wealth exceeds the thresholds.
Providers rely on your nomination form to decide who receives your pension. If it’s out of date, the wrong person could benefit or payments could be delayed.
Things to review:
- Who you’ve nominated to receive your pension
- Whether nominations align with your will
- Updates after any major life change
- How the 2027 rules affect your wider plan
Check how your home is owned
The way your property is held affects what happens next:
- If you own as joint tenants, your share usually passes automatically to your partner.
- If you own as tenants in common, your share passes under your will.
Each option has advantages, especially where children from previous relationships are involved. It’s worth checking the title deeds and making sure ownership supports your wider plan.
A simple plan is better than no plan
You don’t need anything overly complicated, but you do need a plan that’s considered and properly joined up. That means having a clear will, up-to-date nominations and a solid understanding of your tax position, all aligned with your real life and the people you want to protect.
When inheritance planning sits alongside your wider financial strategy, it becomes far more effective. It reduces uncertainty, avoids unnecessary tax where possible and helps ensure more of your wealth ends up with your partner and family.
Want to talk it through?
A quick review with one of our financial experts can help you fine-tune your set-up and make sure your plan fully protects your partner. We’ll review your position and help you build a clear, practical plan around it.
