Estate planning for unmarried couples: why a will is even more important

Unmarried couples face a significant legal gap that married couples do not. If you are cohabiting or in a committed relationship but not married, the law treats you as legal strangers for inheritance purposes.

This means that if your partner dies, you have no automatic right to their estate, regardless of how long you have been together or how committed the relationship is.

The inheritance rights gap

If your partner dies without a will, their estate is divided under the intestacy rules. These rules follow a strict legal order that ignores unmarried partners entirely.

• A spouse inherits automatically; an unmarried partner inherits nothing unless explicitly named in a will
• Children inherit ahead of unmarried partners, even if the partner was the primary carer
• If there are no children and the partner dies without a will, the estate goes to parents, then siblings, then more distant relatives
• An unmarried partner can make a claim under the Inheritance Act, but this is slow, expensive, and uncertain

Why wills matter more for unmarried couples

A will is the only way to ensure your partner inherits what you intend them to have. Without a will, your partner has no legal claim unless they can prove a financial dependency and that the intestacy rules have treated them unfairly.

A clear, properly drafted will can also name your partner as a guardian for minor children, control who has access to your digital assets, and appoint an executor you trust to handle your estate fairly.

Pensions and life insurance

Your pension death benefits do not pass under your will. Instead, the pension scheme trustees decide who receives the money based on the beneficiary nomination form. If your nomination is out of date or names someone else, your partner will not receive the funds, regardless of what your will says.

The same applies to life insurance policies. A policy that names the wrong beneficiary does not pass to your estate; it passes directly to the named person.

Reviewing who is named on your pension and life insurance is as important as reviewing your will, and the documents must be kept in step with each other.

Lasting powers of attorney

An unmarried partner cannot automatically make decisions on your behalf if you lose capacity. If you do not have a Lasting Power of Attorney in place naming your partner, your family must apply to the Court of Protection, which is slow, costly, and distressing at a time of crisis.

Inheritance tax and unmarried couples

An unmarried partner has no inheritance tax relief when you leave them money in your will. A spouse or civil partner can inherit your entire estate free of inheritance tax. An unmarried partner must pay 40% on any inheritance above their individual nil-rate band.

This creates a specific planning problem: if one partner has built up significant assets and dies first, the survivor could face a substantial inheritance tax bill that a married couple would avoid entirely.

What unmarried couples need to do

• Create separate wills that clearly name each other as beneficiary and guardian for any children
• Update pension and life insurance beneficiary nominations to reflect current intentions
• Set up a Lasting Power of Attorney naming each other for both property/financial and health/welfare decisions
• Ensure beneficiary nominations are kept in step with your will as circumstances change
• Consider whether you want to own your home jointly and on what terms (joint tenancy vs tenancy in common)

The earlier you do this, the simpler it is. Delaying creates risk for the person left behind and potential disputes between children and a surviving partner.

Simply Estate is an estate planning firm. Our own team can help unmarried couples create a clear, legally robust plan that protects each other. Visit our estate planning page to book your free review.