Hindsight is not a wonderful thing in estate planning

Family life has changed dramatically. It’s common for people to separate and remarry, while many people decide against
tying the knot.

The number of opposite-sex cohabiting couple families in the UK reached 2.9 million last year, an increase of 700,000 in the last ten years, according to the Office for National Statistics figures. Other research shows that six
in ten people do not have a
will and that more than half
the UK population do not know what will happen to their assets when they die.

The implications of these combined trends are massive. Many unmarried couples are failing to put plans in place to ensure loved ones will be provided for in the event of
their death.

Sadly, we’ve seen numerous cases where people have been through emotionally draining and costly legal battles as
a result.

Double shock

One client, Kevin, was devastated when his partner, Helen, died in her late 30s. Another shock was to follow when he discovered that he
had to fight for his home following her death.

The pair lived together in a property, bought in 2008, which was registered in their names as tenants in common. However, as Helen died intestate, both her
50 per cent share of the property and her life insurance policy was paid out to her estate, which passed to her mother.

Kevin, therefore, was responsible for paying the mortgage for the property, although he only owned half
of it. Fortunately, he settled a claim for reasonable financial provision from Helen’s estate, with the estate’s share of the property being passed back
to him.

Problems can also occur
when a partner has made a will. Another client, Margaret, was in a relationship with Graham for more than 14 years. She lived in his house for more than four years and contributed to refurbishments and paying
off his credit card.

When Graham died, Margaret was shocked when his estate was handled in line with a will prepared in 1994 prior to their relationship. All his assets went to his two children from a previous marriage, meaning
she lost the place that she had called home and invested in
for several years.

Margaret made a claim with Graham’s estate to ensure that her financial contributions to the house were recognised.

Emotional state

These examples demonstrate how this trend has developed in recent years. Probably one-third of all claims we are contacted about now relate to such issues.

In addition, it has highlighted how incredibly difficult and emotional it is when clients are trying to come to terms with their loss and then risk losing homes or assets that they
hold dear.

When people are in a happy and loving relationship, it can
be immensely difficult or seen
as morbid to discuss what would happen to a surviving partner. The only way people can currently ensure that their
loved ones are provided for in the event of their death, however, is to prepare a clearly, concise will with professional support and ensure that such documents are updated.

This has to be the message that the legal industry promotes and pushes if this increase in the number of inheritance disputes arising from cohabiting couples is to be tackled.

Despite the Law Commission reviewing the issue of the rights of cohabiting couples several years ago, the government said it was not planning to look at amending legislation.

Until then, solicitors must
do all they can to ensure that unmarried couples recognise what they need to do if they
are going to spare their loved ones future heartache. SJ

Adam Draper is a partner at Irwin Mitchell