Legal News | 27.08.26
Is Inheritance Tax the ultimate matchmaker
After 44 years together, comedian Ricky Gervais has suggested there may finally be a reason for him to marry his long-term partner, author Jane Fallon: inheritance tax.
Having shared their lives and finances for over 40 years, Gervais asks “how more married can you be?” Well, it seems the potential inheritance tax advantages for married couples and civil partners may have persuaded Ricky to consider popping the question.
These remarks have sparked wider discussion about the legal and tax position of cohabiting couples. Whilst many assume that living together for a significant period creates a “common law marriage”, no such legal status exists in the UK, and unmarried couples do not benefit from the same inheritance tax exemptions as those who are married or in civil partnerships.
Currently, assets that pass between spouses or civil partners on death are generally exempt from inheritance tax, regardless of value. In addition, any unused nil-rate band can be transferred to the surviving spouse or civil partner, potentially increasing the amount that can pass free of inheritance tax on the second death.
For unmarried couples, the position is very different. There is no equivalent spouse exemption, meaning assets passing on death may be subject to inheritance tax depending on the value of the estate. This often comes as a surprise to long-term partners who assume that their relationship will be recognised in the same way as a marriage or civil partners, as Ricky Gervais has highlighted.
Whilst Mr Gervais’ comments draw attention to the potential tax benefits of marriage, they also serve as a timely reminder of the importance of estate planning. Whether married, in a civil partnership, or cohabiting, it is essential to ensure that your Will reflects your wishes, and that any potential inheritance tax implications have been considered as part of a wider estate planning process.
If you would like advice on preparing or updating your Will, or would like to discuss inheritance tax planning, please contact the Private Client Team at Wansbroughs on wealth@wansbroughs.com
