The government has launched a consultation with a view to giving unmarried couples the right to inherit if one of them dies without a Will.
The proposed changes aim to give cohabiting partners similar rights to spouses or civil partners, who are able to inherit under the Rules of Intestacy.
What are the current rules for cohabitees where one dies without a Will>
If someone dies without making a Will, the Rules of Intestacy set out who will inherit. For example, if someone had a spouse and children, the rules state that the spouse will inherit the first £322,000 of the net estate, along with all of the deceased’s personal possessions.
The remainder of the estate is split in half. The spouse inherits one-half, and the children will share the other half equally.
However, the Rules of Intestacy do not leave anything to a cohabiting partner, no matter how long the relationship was.
This means that if a cohabiting partner needs financial support, they would need to make a claim against the estate under the Inheritance (Provision for Family and Dependants) Act 1975. This allows certain individuals to make a claim if they are left out of a Will or if they do not receive sufficient support.
If a cohabiting partner makes a successful claim, they would only be entitled to ‘reasonable financial provision’. This is less than a spouse or civil partner could claim, as they can claim a sum that would be similar to that which they would have received in a divorce.
Making a legal claim is also a lengthy, stressful and potentially expensive process.
The government’s consultation
The government’s consultation, ‘A fairer end to relationships’, seeks views on proposals to modernise the law affecting cohabitants on intestacy and access to financial provision from a deceased partner’s estate.
The paper states that patterns of family life have changed significantly over recent decades and cohabitation is now common. It notes that:
“Despite this, the legal framework governing intestacy has not kept pace. When a person dies without a will, a cohabitant has no automatic entitlement to inherit, regardless of the length or stability of the relationship. In practice, this can leave bereaved partners without financial security, require them to bring a claim under the I(PFD)A 1975, and create uncertainty for wider families at an already difficult time.”
As well as giving a cohabiting partner the right to inherit the same amount as a spouse or civil partner, it is also suggested that they be given priority to apply for a Grant of Letters of Administration. This is the document that gives someone the legal authority to wind up a deceased’s estate when they have died without a Will. Currently, only a spouse, civil partner or relative of the deceased is entitled to make the application.
By giving a cohabiting partner priority over relatives to make the application, the government aims to avoid a situation where a family member is unwilling or slow to deal with the estate administration, or difficulties where they have a contentious relationship with the surviving cohabitant.
The government is considering requiring a cohabiting period of five years before giving the cohabitee the right to inherit, or two years if the couple had a child.
Avoiding conflict
The best way of planning for the future and avoiding disagreements between a cohabiting partner and relatives remains making a clear Will. Knowing what someone wanted to happen always goes a long way to reducing the risk of conflict.
It will give you the opportunity to decide what provisions you want to make for loved ones and give them the reassurance of understanding your wishes.
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If you would like to speak to one of our expert estate planners, ring us on 01634 353 658 or email us at rob@pembrokewillwriters.com.