More families at risk of paying Inheritance Tax13th August 2019 10:52 am Comments Off on More families at risk of paying Inheritance Tax
The number of unmarried couples living together has risen by 25% over the last ten years, to 3.4 million, according to a study just published by the Office of National Statistics.
“Unmarried couples with children risk leaving their children an unnecessary Inheritance Tax bill” warns Colemans’ senior partner Michael Cutler.
“For a couple who are married or in a Civil Partnership, there is no Inheritance Tax charged when the first one of you dies and the survivor inherits, only when the last one of you dies, and your children inherit.
“If you are living together as a couple, and you are not married or in a Civil Partnership, Inheritance Tax will be charged when the first of you dies and the survivor inherits, and then again when the last one of you dies, before your children inherit.
“You will be hit by this double taxation because tax law does not recognise a ‘common law spouse’” explains Cutler.
Cutler advises “This double taxation can be reduced or eliminated by properly-written Wills and Trusts.”
To find out more about Inheritance Tax and cohabitation, contact Michael Cutler or Kiran Panaich on 01628 631051 or at firstname.lastname@example.org.
Categorised in: Wills, Probate and Trusts
This post was written by Colemans Solicitors LLP