1   Writing a Will

One of the most critical steps in estate planning for couples is ensuring that both partners have a valid and up-to-date Will. Without a Will, intestacy rules dictate how assets are distributed, which may not align with your wishes. For unmarried couples, this is particularly crucial, as partners do not automatically inherit each other’s assets under the law.

2   Joint Ownership of Assets

Understanding how you hold property and financial assets is vital. There are two main ways couples can jointly own property:

• Joint Tenancy – The surviving partner automatically inherits the deceased’s share.
• Tenancy in Common – Each partner owns a distinct share, which can be left to beneficiaries of their choice.

Each option carries different inheritance implications, so it is worth reviewing how you own key assets.

3   Lasting Powers of Attorney (LPA)

In addition to a Will, couples should consider setting up Lasting Powers of Attorney for both financial and health-related decisions. This ensures that if one partner becomes incapacitated, the other can make critical financial and medical choices on their behalf.

4   Inheritance Tax Planning

One advantage for married couples and civil partners is that they can transfer assets to each other tax-free upon death. However, for unmarried couples, inheritance tax (IHT) can be a significant consideration. Effective planning, such as using tax-free allowances, gifts, and Trusts, can help mitigate unnecessary tax burdens.

5   Trusts for Asset Protection

Trusts can be a valuable tool for protecting assets, especially in complex family situations, such as second marriages or ensuring financial security for children from previous relationships. Trusts can also help mitigate inheritance tax and provide control over how assets are distributed.

6   Guardianship for Children

For couples with young children, nominating Guardians in your Wills ensures that their care is entrusted to the right people in the event of an untimely death. Without such provisions, the courts will decide on guardianship, which may not reflect your preferences.

7   Pension and Life Insurance Beneficiaries

Ensuring that pension plans and life insurance policies have the correct nominated beneficiaries can prevent unintended complications. Regularly reviewing and updating these details helps guarantee that the right people receive financial support.