Unmarried couples in the UK do not have the same legal rights, nor do they enjoy the same protection as married couples, particularly when it comes to property and finances. There are many steps that unmarried couples can take to protect their assets.
Make a will to protect interests
It’s important for unmarried couples to think about creating wills to ensure that their assets are distributed according to their wishes in the event of death. Without having a will drawn up, the rules of intestacy would apply, which may not reflect the couple’s intentions. Wills allow partners to leave assets to each other and nominate beneficiaries, including any children from the current relationship or previous relationships.
What about property ownership?
When purchasing a home together, unmarried couples should consider how they want to hold ownership. There are different options for them.
Options include joint tenancy, where both partners own the property equally. In the event of death, the property automatically passes to the surviving partner.
There is also tenancy in common, where each partner owns a specific share of the property which they can pass on in their will. Tenancy in common can be useful for protecting each partner’s financial interest, especially if they are contributing unequally to the home purchase.
What is a Deed of Trust?
A couple, or any two unmarried adults, are one of the groups of people who consistently make house purchases in the UK. A Deed of Trust, also known as a Declaration of Trust, is useful.
These are legal documents that can protect a person’s property rights and ownership in a kind of contract. They can be adapted to suit the people involved. For a Declaration of Trust cost, professionals such as https://www.samconveyancing.co.uk/news/conveyancing/declaration-of-trust-definition-294 can advise.
Life insurance is a good option
Unmarried couples may also consider taking out life insurance policies to provide financial protection for their partner and any dependents in the event of their death. Life insurance can help cover mortgage payments, debts, and daily living expenses. This makes sure that the surviving partner is not financially disadvantaged in any way. Which outlines details on inheritance tax which will affect those who plan to pass on money when they die.
Seek legal advice from a professional
Seeking legal advice from a solicitor who specialises in family law can help unmarried couples understand their rights and choices. A solicitor can provide good advice based on the couple’s circumstances and help them create legal documents, such as cohabitation agreements and wills.
By taking these important steps, unmarried couples can protect their assets and financial interests, providing security and peace of mind for themselves and their families.
