Cohabitation’s growth and how the issue can impact on inheritance tax

Cohabitation’s growth and how the issue can impact on inheritance tax

Is there any such thing as a typical household these days? A whole host of living arrangements have become common across the UK, from married couples buying homes to friends sharing flats. Some adult children go on to live with their parents for a number of years as well. However, another thoroughly modern way of living is cohabitation.

The issue has been a big talking point across recent years, as the number of people living together without getting married is on the rise. The issue was put in the spotlight by recent figures from the Office for National Statistics, which found that the number of cohabiting couples in the UK has increased 22.9% in the past decade. The total number is now thought to be around 3.6 million.

There are many reasons why people might choose to embrace cohabitation and the chances are that it works perfectly in many circumstances. However, it remains a topic that creates discussion and debate in the legal world, as it can raise questions in relation to issues like inheritance.

But, if you are cohabiting and have concerns about what the future might hold, it is worth bearing in mind that some financial support may be at hand. For instance, Tower Street Finance’s products can prove useful in relation to a host of inheritance issues.

Examining the area, Dicky Davies, Director of Business Development at Tower Street Finance, said:

“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 continue to live in 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. Also, if they were financially dependent on their partner, they may not have enough money to live on.”

So, if such issues arise, what help is available? Dicky went on to outline how Tower Street Finance could help. He explained:

“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.”

In addition to the IHT loan, Tower Street Finance also offers products including an Inheritance Advance, Estate Expense Funding and Inheritance Dispute Funding.

This article was submitted to be published by Tower Street Finance as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.

Tower Street Finance










Tower Street Finance (TSF) was set up by an experienced management team who saw a need for relevant, accessible financial products which benefit administrators of estates, executors and beneficiaries.

We are passionate about using insight, data and our considerable experience to help customers with innovative products and services, including those who may be in financial difficulty.

We currently have four products which are aimed at the inheritance market and they all have a common DNA. There are:

  • No credit checks
  • No risk or personal liability
  • No charge over property
  • No monthly repayments
  • No requirement for a Will

IHT Loan

The IHT Loan can help when estates are effectively ‘locked’ because the executor needs to pay the IHT to get the Grant, but needs the Grant to realise the assets to pay the IHT.

It’s taken out by the executor/personal representative and can solve the problem. The money is used to pay HMRC and it’s a way of meeting the IHT liability to unlock the estate with no risk or need to take out a personal loan/bridging loan.

Inheritance Advance (winner of Innovation of the Year, British Wills and Probate Awards 2020)

An Inheritance Advance allows beneficiaries to access a proportion of their inheritance sooner, with the Advance repaid out of the proceeds of their inheritance. This solves the problem of beneficiaries asking when they’ll be able to get their money and you having to explain that the process is complicated and lengthy.

Again, there’s no risk – if another Will emerges or assets take longer to sell or sell for less than anticipated, or another debt is discovered, we take the risk.

Inheritance Dispute Funding (IDF)

Inheritance Dispute Funding helps people who want to dispute a will but don’t have the money to fund the legal bills. We know that one in four people would dispute an inheritance if they felt it was unfairly distributed.

Contesting a will can cost up to £5k in upfront costs and there’s no guarantee your case will be taken on – with IDF the solicitor gives their opinion on the case and win or lose – we take the risk.

We pay the costs and then they’re repaid from the estate proceeds.

Estate Expense Funding (EEF)

Estate Expense Funding is for executors who face costs while they’re dealing with their responsibilities of administering an estate. These can be unexpected but we can help cover the costs until the inheritance is released

Executors could be liable for expenses such as funeral costs, professional fees, house and garden maintenance and more.

We pay the costs and then they’re repaid from the estate proceeds

Key Services

Key Contact

Richard (Dicky) Davies, Business Development Director
Tel: 07702 559051
Email: [email protected]
LinkedIn Acc: Dicky Davies
Facebook: Tower Street Finance
Instagram: Tower Street Finance


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North Yorkshire