The rise of cohabiting and how it could affect inheritance tax
Modern households come in all shapes and sizes these days. It is not uncommon to see a host of living arrangements and we have recently touched upon scenarios where adult children remain with their parents.
However, one of the most talked-about trends of recent years has been cohabitation. The number of people choosing to live together without getting married has been on the rise for many years. For instance, the Office for National Statistics recently revealed that the number of cohabiting couples in the UK has increased 22.9% over the past decade. This figure now stands at 3.6 million.
Rise of cohabiting
Cohabiting may work perfectly in many circumstances, but it can still create issues from a legal standpoint – including when it comes to inheritance. However, if you face issues or have concerns on the topic, Tower Street Finance may be able to help.
Dicky Davies, Director of Business Development at Tower Street Finance, explained: “Cohabitation might be increasingly common, but it remains a tricky area from a legal perspective. For instance, if one half of a cohabiting couple was to pass away, the other individual could face issues related to the property they live in.
“If the home is solely in the deceased’s name, the other partner might not have rights to it. If they are the executor of the deceased’s estate, they may also have to sort out estate issues like inheritance tax before being able to access it.
“Facing such problems can be tough, but we might be able to help. For instance, our Inheritance Tax Loan may be useful in situations when the tax needs to be paid but there are no funds available. The loan can be used to pay HMRC, with the estate then repaying the funding.
“This type of product could provide some vital support at an incredibly difficult and stressful time.”
Find out more at about our Inheritance Tax Loan product or call us on 0343 504 7100.