Inheritance
tax benefits enjoyed by married couples could soon be extended to co-habitués
under proposals drawn up by the Law Commission.
For a
childless unmarried couple in a relationship for between two and five years the
bereaved partner should inherit half the estate with the rest going to parents
or siblings, says Professor Elizabeth Cooke in her consultation paper
Current
inheritance tax guidelines say a surviving partner in a marriage can inherit
their deceased spouse's entire estate tax-free, but unmarried couples have no
automatic rights to a partner's estate.
The paper
Intestacy
and Family Provision Claims on Death argues change in the law is
needed to keep up with social changes, in particular the introduction of civil
partnerships, the increased acceptance of cohabitation, and the prevalence of
divorce and of subsequent marriages, civil partnerships and cohabitations.
It says:
"These changes mean that law which most people found to be an appropriate
response, 100 or even 20 years ago, to the problems of intestacy and the
dilemmas that arise over family provision, may today be unacceptable."
Up to two
thirds of the population have not made a will according to Finding the will:
a report on will writing behaviour in England and Wales by the National
Consumer Council in 2007.
IFAonline| 02 Nov 2009 | 11:00
Author:
Laura Miller