According to the Office of National Statistics as of 2014 cohabiting couple families were the fastest growing type of family in the UK with the numbers increasing by 29.7% between 2004 and 2014.
Unfortunately the treatment of co-habiting couples compared with their married or Civil partner counterparts in the eyes of the law is still vastly different.
This has recently been highlighted with the availability of bereavement benefits. On the death of a spouse or Civil partner before pensionable age there are various financial benefits available to assist the surviving spouse or Civil partner. These include a one off payment of £2,000 together with an allowance of between £33 to £112 per week for one year depending on your age and the deceased’s national insurance contributions. This allowance may be extended if you have dependent children.
However for unmarried couples these benefits are not available regardless of the duration of their relationship or whether they have children together.
At present the Government has no plans to change these rules and extend these benefits to unmarried couples due to the complexities involved with assessing what would qualify someone to receive these benefits.
Many couples believe that because they have been in a relationship for a certain number of years they are treated as having a “common law” marriage. Unfortunately, as this situation demonstrates, this is just not true.
Married couples and Civil partners have extensive rights granted to them by virtue of their marital state. These include being recognised as one of the primary beneficiaries of their spouses’ estate, even if no valid Will has been left, together with tax benefits such as spousal exemption from inheritance tax. None of these benefits apply to unmarried couples.
To demonstrate this if you pass away without leaving a valid Will under the current Intestacy rules your partner will not receive anything from your estate even if you have children together.
Although you cannot qualify for the bereavement benefits without being married or in a Civil partnership, couples can take steps to protect each other’s interests by preparing valid Wills and seeking proper legal advice regarding the options available to them to ensure that sufficient provision is made for the surviving person.
Sarah Mansbridge is a member of the private client team based in our Exeter office. To contact Sarah, please call 01392 210700 or email private.client.exeter@stephens-scown.co.uk.