Cohabiting Couples: What Happens if One of You Dies?

Many couples assume that if they live together, their partner will automatically inherit if one of them dies. Unfortunately, that is not always the case.

There is a common misconception that cohabiting couples acquire the same legal rights as married couples or civil partners. In reality, if you are not married or in a civil partnership and do not have a valid Will, your partner has no automatic right to inherit your assets and may, in some circumstances, have no entitlement to your share of jointly owned assets, depending on how they are held.

In this article, we explain what happens under the intestacy rules if you die without a valid Will, and the steps cohabiting couples can take to protect each other and avoid unnecessary stress for their families.

Where a married person or civil partner dies without a valid Will, their estate will be distributed in accordance with the rules of intestacy. The provisions that apply depend on whether they leave a surviving spouse or civil partner, children, or both.

• If there are no children: your spouse/civil partner will usually inherit your entire estate under the rules of intestacy.
• If there are children: your spouse/civil partner will inherit your personal possessions, a statutory legacy (a fixed sum set by law), and half of what remains. The other half is shared between the children.

Your partner does not automatically inherit anything under the rules of intestacy if you are not married or in a civil partnership. This can create significant practical and financial difficulties, particularly where the family home is owned in one person’s sole name or held as tenants in common.

• If you have children: your estate will be shared between them under the intestacy rules. If the children are minors, this can further complicate matters.
• If you have no children: your estate passes to relatives in a set order (usually parents, then siblings, then wider family).
• If there are no eligible relatives: your estate passes to the Crown (sometimes referred to as “bona vacantia”).

There are several steps cohabiting couples can take to protect each other financially and provide greater certainty should anything happen to either of you.

Make a Will

This is the most reliable way to ensure your partner can inherit, remain in the home (where appropriate), and that any children are properly provided for. It can also reduce the risk of fallout during an already stressful time, and in some instances, prevent costly litigation resulting from claims against an estate for adequate financial provision.

Check how you own your home

If you own the property together, seek advice on whether you hold it as joint tenants or tenants in common. A Declaration of Trust can record each person’s beneficial interest, particularly where contributions are unequal.

Consider a Cohabitation Agreement

This can set out how living costs will be shared and what should happen to assets if you separate or if one of you dies.

Review pensions and life insurance

Many pensions allow you to complete an “expression of wish” form to nominate who should receive any death benefits. Life insurance written in trust can also be an effective way to provide financial security.

Put Lasting Powers of Attorney in place

Having a Lasting Power of Attorney (LPA) in place ensures that trusted decisions can be made on your behalf should you become ill or lose mental capacity, helping to protect one another if the unexpected happens and avoiding the stress, delay, and expense of a Court of Protection application.

Making a Will is often far simpler than people expect. In contrast, if you die without one, the intestacy rules decide who inherits and for cohabiting couples, that can lead to outcomes you never intended. If you live with a partner, have children, own property or have savings, a properly drafted Will gives you control and can significantly reduce stress for your family later on.

If you would like advice on Wills, Lasting Powers of Attorney or help to put a Declaration of Trust in place, our friendly experts can guide you through the process. Book a free 30-minute consultation to discuss your options.

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