Why Cohabiting Couples Should Make a Will
Why cohabiting couples should make a will
When Tom and Pete bought their first property together, life couldn’t have been better. They both had good jobs pulling in decent salaries and were excited about spending the rest of their lives together.
They chatted about making a will a few times, but somehow life always got in the way. Until one day, 10 years after moving in together, Pete got a call that would change his life forever – Tom had been killed in a car accident.
The intestacy trap
On top of grieving for his partner, Pete found he was also facing an uncertain financial future. UK intestacy laws meant he wasn’t entitled to inherit any of Tom’s property or financial assets unless he had joint ownership. Pete knew that Tom would have wanted him to inherit everything but, without a will, that didn’t matter.
Pete and Tom had owned their property as joint tenants, meaning Tom’s share automatically passed to Pete according to the rights of survivorship. However, without children or any surviving parents or siblings, the remainder of Tom’s assets ended up being passed onto a distant uncle he had scarcely known.
Without Tom’s savings and investments, life insurance policy or even the car that Tom owned but they both used, Pete now struggles to pay his bills.
How a will could have helped
Had Tom got around to writing a will, he would have been able to specify exactly who would receive what from his estate, including his savings, investments, car and other belongings. As well as writing a will, Tom could have made his wishes known by nominating beneficiaries to his pension and writing life policies under trust. By taking these steps, he would have given Pete the extra financial support he now so desperately needs.
As it stands, Pete still has the legal right to claim against Tom’s estate as they had been cohabiting for more than two years - but this will be a costly and time-consuming process and a positive outcome isn’t guaranteed. If Tom had made a will, this added stress could have been avoided.
Don’t put it off
In the UK, the number of cohabiting-couple families is growing faster than the number of married-couple and lone-parent families. However, cohabiting couples have none of the legal protections afforded by marriage. A will is one way to ensure your partner inherits according to your wishes. Despite this, three in five UK adults do not have one.
Let us help
Any will must be drawn up accurately without ambiguities and executed correctly for it to be valid and effective. So, it makes sense to use an experienced professional.
A consultation with a will-writing expert will allow you to explore ways in which to reflect your wishes and protect the financial future of your loved ones in the most tax-efficient way possible.
If you’d like to find out more about how to arrange a will, we’re here to help.
Will writing is not part of The Openwork Partnership’s services and is offered in our own right.
The Openwork Partnership accepts no responsibility for this aspect of our business. Will writing and Trusts are not regulated by the Financial Conduct Authority.
Key takeaways:
If you’re cohabiting with your partner (but you’re not married or in a civil partnership), it’s important you both make a will. This can ensure that if one of you dies, the surviving partner inherits according to the other’s wishes.
They chatted about making a will a few times, but somehow life always got in the way. Until one day, 10 years after moving in together, Pete got a call that would change his life forever – Tom had been killed in a car accident.
The intestacy trap
On top of grieving for his partner, Pete found he was also facing an uncertain financial future. UK intestacy laws meant he wasn’t entitled to inherit any of Tom’s property or financial assets unless he had joint ownership. Pete knew that Tom would have wanted him to inherit everything but, without a will, that didn’t matter.
Pete and Tom had owned their property as joint tenants, meaning Tom’s share automatically passed to Pete according to the rights of survivorship. However, without children or any surviving parents or siblings, the remainder of Tom’s assets ended up being passed onto a distant uncle he had scarcely known.
Without Tom’s savings and investments, life insurance policy or even the car that Tom owned but they both used, Pete now struggles to pay his bills.
How a will could have helped
Had Tom got around to writing a will, he would have been able to specify exactly who would receive what from his estate, including his savings, investments, car and other belongings. As well as writing a will, Tom could have made his wishes known by nominating beneficiaries to his pension and writing life policies under trust. By taking these steps, he would have given Pete the extra financial support he now so desperately needs.
As it stands, Pete still has the legal right to claim against Tom’s estate as they had been cohabiting for more than two years - but this will be a costly and time-consuming process and a positive outcome isn’t guaranteed. If Tom had made a will, this added stress could have been avoided.
Don’t put it off
In the UK, the number of cohabiting-couple families is growing faster than the number of married-couple and lone-parent families. However, cohabiting couples have none of the legal protections afforded by marriage. A will is one way to ensure your partner inherits according to your wishes. Despite this, three in five UK adults do not have one.
Let us help
Any will must be drawn up accurately without ambiguities and executed correctly for it to be valid and effective. So, it makes sense to use an experienced professional.
A consultation with a will-writing expert will allow you to explore ways in which to reflect your wishes and protect the financial future of your loved ones in the most tax-efficient way possible.
If you’d like to find out more about how to arrange a will, we’re here to help.
Will writing is not part of The Openwork Partnership’s services and is offered in our own right.
The Openwork Partnership accepts no responsibility for this aspect of our business. Will writing and Trusts are not regulated by the Financial Conduct Authority.
Key takeaways:
If you’re cohabiting with your partner (but you’re not married or in a civil partnership), it’s important you both make a will. This can ensure that if one of you dies, the surviving partner inherits according to the other’s wishes.
An expert can help ensure your will is drawn up accurately and executed correctly so that it is valid and effective.
Global equities ease amid concerns surrounding geopolitical tensions and the independence of the U.S. Federal Reserve. Chinese equities were again the standout performer for the week, rallying another 2.71%. Last week’s performance – major stock markets Commentary US: STOCKS ENDED THE WEEK MODESTLY LOWER AS MARKETS HEADED INTO A HOLIDAY WEEKEND Small-cap stocks performed best, with the Russell 2000 Index posting moderate gains and outperforming the S&P 500 Index for the third week in a row. Much of the attention was focused on chipmaker, NVIDIA’s, earnings release after the market closed on Wednesday. NVIDIA posted earnings that were better than expected and while the stock pulled back, the numbers appeared strong enough to ease recent concerns around the artificial intelligence-driven rally. Concerns about the potential erosion of the Federal Reserve’s independence also garnered attention during the week following President Donald Trump’s announcement that he would be firing Fed Governor Lisa Cook, citing allegations that she committed mortgage fraud. Cook filed a lawsuit seeking to block the firing on Thursday, and a spokesperson for the Fed said the central bank will abide by any court decision. Inflation held steady month over month in July, according to the Bureau of Economic Analysis’s (BEA) core personal consumption expenditures (PCE) price index—which excludes food and energy costs and is the Fed’s preferred measure of inflation. JAPAN: PROFIT TAKING BY INSTITUTIONS SAW STOCK PERFORMANCE AS MIXED Japan’s stock markets ended the week mixed, with the Nikkei 225 Index gaining 0.20% and the broader TOPIX Index down 0.83%. Profit taking tied to month-end portfolio rebalancing by institutions that seemed to favour bonds more than equities was cited as a major reason, although equity markets also steadied ahead of a U.S. inflation report. In addition, trade talks with the U.S. were further delayed after chief trade negotiator Ryosei Akazawa cancelled a trip to Washington at the last minute, apparently due to unresolved issues that stand in the way of finalising an agreement. CHINA: STRONG DOMESTIC LIQUIDITY UNDERPINNED FURTHER EQUITY MARKET STRENGTH Mainland Chinese stock markets advanced, extending the recent rally, with the onshore benchmark CSI 300 Index rising 2.71%. China’s stock markets have been on a tear in recent weeks. The CSI 300 gained almost 10% in August, ranking among the best-performing major indexes, and average daily turnover volume so far this month is on track for a record high, according to Bloomberg. Many analysts believe that ample domestic liquidity, rather than a strong economy, is fuelling the rally as cash-rich households in China seek higher returns amid low interest rates and a lack of compelling investment options. The amount of margin debt taken out to buy stocks climbed to its highest level since 2015, according to Bloomberg, suggesting elevated retail interest in the stock market. On the economics front, China reported that industrial profits fell a less-than-expected 1.5% in July, as strong tech sector earnings outweighed weakness in industries straining under weak demand and deflationary pressures. EUROPE: EUROPEAN STOCKS PULLBACK AMID ONGOING GEOPOLITICAL INSTABILITY European equities fell for the week amid worries about the independence of the U.S. Federal Reserve. Renewed tariff uncertainty, political instability in France, and fading hopes of peace between Russia and Ukraine also weighed on sentiment. Major countries’ stock indexes fell as well. France’s CAC 40 Index dropped 3.33%, Italy’s FTSE MIB lost 2.57%, and Germany’s DAX declined 1.89%. European Central Bank (ECB) policymakers kept the deposit facility rate at 2.0% in July but were split over the outlook for inflation. Several rate setters argued that risks were tilted to the downside at least for the next two years, citing weaker growth prospects, the impact of U.S. tariffs, and a strong euro. A few members warned that inflation risks could still be tilted to the upside, especially over the longer term, given uncertainties around energy prices and currency movements. UK: EQUITIES EASE FROM ALL-TIME HIGHS ON THE BACK OF SHARE PRICE WEAKNESS IN THE BANKING SECTOR UK equities slid for the week, largely driven by selling in the banking sector. This was on the back of the Institute for Public Policy Research recommending a new tax on lenders. NatWest and Lloyds fell -4.8% and -3.4%, respectively, while Barclays pulled back -2.2%. Retail sales volumes weakened for an 11th consecutive month in August. Meanwhile, shops raised prices by the most since the end of 2023, according to the Confederation of British Industry distributive trades survey.
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The cost-of-living crisis and inflationary pressures has put pressure on people’s finances and made it harder for people to get on the housing ladder due to affordability constraints and more people having a less than perfect credit history. How important is your credit history for mortgage lenders? Looking into your credit history is one of the ways in which a mortgage lender will gain information on how reliable you have been at paying back debts and loans in the past. A mortgage lender needs to be confident that you’ll be able to keep up with your repayments across the whole lifetime of the loan. What if your credit history isn’t perfect? Don’t worry, if your credit history isn’t perfect, you're not alone! Many people experience minor setbacks in their credit history at some point. Such as missing a credit card payment, neglecting to pay utility bills on time, or going into an unarranged overdraft. These types of “credit blips” can leave a mark on your credit history but this doesn’t mean you aren’t eligible for a mortgage. Specialist mortgage support An expert adviser can assess your financial situation, including your credit history, guide you through the application process and increase your chances of getting approved for a mortgage by finding the most suitable mortgage deal for your circumstances. We have access to lenders who specialise in working with people with varying credit, whether you've had late payments, past debts, or no credit history at all, there are options available for you. Don’t let a credit blip throw you off track! Get in touch today. Call Richard Chamberlain on 01455 817477 or drop them an email on clientservices@planguardfinance.co.uk
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