According to the Office for National Statistics, cohabiting but unmarried couples are now the fastest growing family type in the UK, making up around a quarter of couples living together. However, research from Will Aid last autumn found that 68% of cohabitees were unaware of what happens to their estate if they died without a Will. In fact, 32% mistakenly believed that their assets would pass to their partner, and 11% admitted to never having considered the issue!
The rights of people in what some call “common law marriages” are often misunderstood, leaving cohabitees vulnerable. While legally married couples and civil partners have specific rights and responsibilities in law, the same protections and mechanisms do not extend to cohabitees.
Below we explore some of the most common pitfalls through our example couple: Alex and Sam.
– The scenario
Like many couples, Alex and Sam had been together for some time and, when they decided to live together, Sam moved into Alex’s property, which Alex owned solely.
Alex and Sam remained together for many years and were happy not to get married or enter a civil partnership. Tragically, Alex later died in an accident and, like an estimated half of UK adults (according to Canada Life research), Alex had not made a Will.
– What happens to the property?
As above, it is a common misconception that Alex’s property would pass to Sam as Alex’s “common law spouse”. However, in reality, Alex’s assets would pass in line with the legislation known as the “intestacy rules”. Under these rules, spouses / civil partners and blood relatives are prioritised, and surviving cohabitees inherit nothing regardless of the duration of their relationship or whether they had children together. Sam could be left with no right to continue living in the property.
This stands in stark contrast to:
if Alex had made a Will, leaving the property (or certain rights in it) to Sam;
if Alex and Sam were married or in a civil partnership, where the intestacy rules would have entitled Sam to some or all of Alex’s estate; or
if Alex and Sam owned the property jointly (although there are different ways property can be jointly owned, with different outcomes on death).
– What can Sam do?
– Would the worst be over?
– What should cohabiting couples do?
This information is provided by www.edwincoe.com