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.

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