Estate Planning for Cohabiting Couples UK: The Complete Guide (2026)
Unmarried couples in England and Wales have no automatic inheritance rights. If you die without a will, your partner receives nothing under intestacy law — regardless of how long you have been together. This guide covers every step to protect each other properly.
There is no such thing as a "common law marriage" in England and Wales
This myth is widespread and dangerous. An unmarried partner — however long you have lived together — is not entitled to inherit under the intestacy rules. Only a valid will, joint ownership with right of survivorship, or pension nominations protect your partner.
The 6 estate planning essentials for cohabiting couples
Mirror Wills
EssentialWithout a will, intestacy law gives your partner nothing. Mirror wills are the single most important step for every cohabiting couple.
Make your will →Health & Welfare LPA
EssentialGives your partner legal authority to make medical and care decisions if you lose mental capacity. Without it, doctors consult next of kin — not your partner.
Property & Financial Affairs LPA
EssentialLets your partner manage your accounts and property during lifetime incapacity. A will only covers death; an LPA covers incapacity while alive.
Cohabitation Agreement
Strongly recommendedDocuments who owns what during the relationship, contribution to a home, and what happens if you separate. Especially important if one partner lives in the other's property.
Life Insurance in Trust
RecommendedA policy in trust pays your partner directly on death, outside the estate. Avoids IHT on the payout and probate delays. Premiums from income may be IHT-exempt.
Pension Nominations
EssentialName your partner on every pension expression of wishes. Without it, trustees use default rules — usually legal next of kin, not your partner.
Inheritance tax: the cohabiting couples gap
Married couple / civil partners
- Spousal exemption — unlimited IHT-free transfer on death
- Unused NRB transfers to surviving spouse (up to £650,000 combined NRB)
- RNRB applies on the home passed to descendants
- Civil partnership = same rights as marriage for IHT
Cohabiting couple (unmarried)
- No spousal exemption — IHT at 40% above NRB on transfer to partner
- No NRB transfer — each partner has only their own £325,000 NRB
- RNRB not available for transfer to partner (only to descendants)
- Life insurance in trust is the main tool to cover IHT liability
Frequently asked questions
What happens if a cohabiting partner dies without a will in England and Wales?
If you die without a will in England and Wales, the intestacy rules (the Administration of Estates Act 1925 as amended) decide who inherits your estate. An unmarried partner — however long you have lived together, whether you have children together, and regardless of financial interdependence — receives nothing under intestacy. This is one of the most widely misunderstood areas of English law. The term 'common law marriage' has no legal meaning in England and Wales (unlike in some other jurisdictions). There is no such thing as a common law spouse. Your intestate estate would be distributed in the following order: (1) children (or their descendants if a child has predeceased); if no children, then (2) parents; if no parents, then (3) siblings (or their descendants); and so on through more distant relatives. If you die leaving a surviving partner and children but no will: your children inherit the entire estate. Your partner receives nothing. They are not in the inheritance hierarchy at all. The family home — if in your name alone — passes to your children, who could legally force a sale. If you die leaving a partner and no children and no parents: your estate would pass to siblings (or more distant relatives). Your partner still receives nothing. The ONLY exceptions: (1) if you jointly own property as beneficial joint tenants, the surviving co-owner takes your share automatically by right of survivorship, but this is a property law rule, not an inheritance right; (2) your partner may be able to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975, but this is a court claim with legal costs and is never guaranteed to succeed. A will is the only reliable way to protect your partner.
What estate planning documents do cohabiting couples need?
There are five core documents that cohabiting couples should consider. (1) WILL — each partner should have a separate will leaving their estate (or the relevant portion) to the other partner. Mirror wills are common for cohabiting couples: each will mirrors the other's dispositions (leave everything to partner; if partner predeceases, to named beneficiaries). A will is the single most important document. Without it, your partner inherits nothing under intestacy. COST: a professionally drafted will costs £150–£500 per person; a DIY will kit significantly less. (2) LASTING POWER OF ATTORNEY (HEALTH AND WELFARE) — if you lose mental capacity, your partner has no legal right to make medical or care decisions for you. Doctors and care providers will look to next of kin — meaning your parents or siblings, not your partner, unless they are named in an LPA. A health and welfare LPA appoints your partner as your attorney. COST: £82 per LPA to register with the Office of the Public Guardian. (3) LASTING POWER OF ATTORNEY (PROPERTY AND FINANCIAL AFFAIRS) — similarly, without an LPA, your partner cannot manage your bank accounts, pay your bills, or sell your property if you become incapacitated. This is distinct from what happens on death — it covers lifetime incapacity. (4) COHABITATION AGREEMENT — a legal agreement between cohabiting partners covering financial arrangements: who owns what, how shared expenses work, what happens to jointly acquired property if the relationship ends. Especially important if one partner financially contributed to the other's property, or if living in one partner's sole-name property. A cohabitation agreement does not replace a will — it deals with your relationship during life, not inheritance on death. (5) LIFE INSURANCE IN TRUST — a life insurance policy written in trust pays on death to named beneficiaries (your partner) without going through the estate. The proceeds are not subject to IHT and are paid directly to the beneficiary, often faster than a grant of probate.
Is there inheritance tax on assets left to an unmarried partner?
Yes — and this is a major financial difference between married couples/civil partners and cohabiting couples. When a married person or civil partner dies, assets passing to their surviving spouse or civil partner are fully exempt from IHT (the spousal exemption under IHTA 1984 s.18). There is no IHT on any amount, however large. Cohabiting couples do NOT benefit from the spousal exemption. Assets passing from one partner to the other are treated in exactly the same way as assets passing to any other non-spouse beneficiary — IHT applies at 40% on assets above the nil-rate band (£325,000) and, if applicable, the residence nil-rate band (up to £175,000 where the family home passes to direct descendants). PRACTICAL IMPACT: if one partner dies leaving an estate of £600,000 to the surviving partner, the IHT bill is approximately (£600,000 − £325,000) × 40% = £110,000. A married couple in the same position would pay £nil. PLANNING OPTIONS FOR COHABITING COUPLES: (1) ensure both partners have made wills leaving assets to each other efficiently; (2) consider using the nil-rate band for assets to children and a trust for the residue to the partner (specialist advice needed); (3) structure property ownership to make the most of both partners' NRBs; (4) life insurance in trust to cover the IHT bill — the payout is outside the estate and not subject to IHT; (5) consider whether civil partnership or marriage would be appropriate — both provide the spousal exemption and NRB transfer on first death. RESIDENCE NIL-RATE BAND: the RNRB (up to £175,000) is only available where the family home passes to 'direct lineal descendants' (children, grandchildren). It is not available on a legacy to a partner. This means a cohabiting couple cannot use RNRB when passing the home to each other — it is only available when the home eventually passes to their children.
Should we own our home as joint tenants or tenants in common?
This is a critical decision for cohabiting couples buying or already owning a property together. JOINT TENANTS: both partners own the whole property together. On death, the surviving partner automatically inherits the deceased's share by 'right of survivorship' — no will needed, no probate required for the property transfer. This is simple and provides certainty. The joint tenancy can be severed during the relationship if either partner wants to change ownership. TENANTS IN COMMON: each partner owns a defined share (e.g., 50/50, or 60/40 to reflect unequal contributions). On death, each partner's share does NOT pass automatically to the other — it passes according to the will (or intestacy rules if no will). If a partner dies with tenants in common ownership and no will, their share passes under intestacy to their children or other relatives — not to the surviving partner. WHY TENANTS IN COMMON IS SOMETIMES PREFERRED: (1) to protect each partner's share from the other's future care home costs (if one partner later requires local authority-funded care, their share of a jointly owned property may be taken into account in the means test); (2) to protect children from a previous relationship who should inherit their parent's share of the property; (3) where partners own unequal shares, to document and protect those proportions. FOR MOST COHABITING COUPLES: joint tenants with mirror wills is the simplest protection on death. If one partner has children from a previous relationship, tenants in common with a trust in the will for the family home may be more appropriate. Both partners should understand what they own and why.
What about pension nominations for cohabiting partners?
Pension nominations (expressions of wishes) are crucial for cohabiting couples. Most DC pensions allow the pension trustees to pay the death benefit (the remaining pension pot) to whoever the member nominates — they exercise this as a discretion, guided by the expression of wishes. Nominated beneficiaries can include an unmarried partner. Because pension death benefits are paid at the trustees' discretion (not through the will), they are usually outside the estate for probate and — currently — for IHT (until the 2027 rule change takes effect). KEY POINTS FOR COHABITING COUPLES: (1) complete the expression of wishes form for every pension, naming your partner as the primary beneficiary; (2) if you do not nominate, the trustees will use their default rules — often the legal next of kin (not your cohabiting partner); (3) after the 2027 pension IHT change, pensions will be drawn into the estate for IHT, but will still pass to the nominated person (subject to IHT); (4) review nominations after any change in relationship or after a partner's death; (5) a will does not override a pension nomination — the pension is separate from the estate and passes outside the will. DB PENSIONS: defined benefit pensions typically provide a survivor's pension to a 'nominated dependant' — an unmarried partner can usually be nominated. Check with your scheme. LIFE ASSURANCE THROUGH EMPLOYER: many employers provide group life assurance (death-in-service) that pays a multiple of salary on death. This is also expression-of-wishes based and is usually outside the estate. Nominate your partner on this too.
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Protect your partner today
A will is the single most important step you can take. Our WillSafe kit guides you through making a legally valid will — naming your partner, protecting your home, and appointing guardians for any children.