Gay Wills: Giving You The Choice

By Kathy Plumley
November 3, 2005

Under current legislation, if you don’t make a Will your gay partner has no automatic right to your estate. Instead, your family will benefit. If you have no family, the State will benefit, leaving your gay partner with nothing.

If you don’t make provision for your partner in your Will, they can apply to the court for help after your death, but they have to prove that they were dependant on you. If you both work or have similar salaries, this may prove very difficult, lengthy and traumatic, with no guaranteed success.

Whilst dealing with the loss of your partner, having to go to court to fight for what you believe is rightly yours, is not a position any of us want to be in.

The Civil Partnership Act will change things and give gay couples more choices:

Why this makes a difference

If you register a Civil Partnership, you can leave everything to your partner free of inheritance tax, even if your estate is worth millions. This is because you get the ‘inter-spousal exemption’ in the same way as married couples. If you are not Civil Partners, but live together, there is the normal £275,000 inheritance tax threshold.

However, if you don't have a Will, there are further complications and your Civil Partner is only entitled to some of your estate.

A tax efficient Will

Whilst both partners are still alive, it is essential to have a tax efficient Will that will ensure further savings of up to £110,000 after the death of the second partner. This is the most effective for Civil Partners who leave everything to each other.

On the death of the second partner there is the normal £275,000 inheritance tax threshold. But, if you arrange for a discretionary trust to be set up that takes you to the threshold level, you can have an estate of £550k before any inheritance tax is paid.

Why write a Will?

Writing a Will ensures that you leave your possessions to the person or people you choose. It also ensures your estate is handled exactly as you wish and can considerably reduce or even eliminate the amount of inheritance tax due on your estate.

Your Will can also include or exclude specific people, according to your wishes.

If you already have a Will, it will be revoked when you register your civil partnership (unless it was made in contemplation of Civil Partnership) and you will need to write a new one.

Writing a Will could be one of the most important things you do.

If you want to know more, or are interested in a free consultation, then please e-mail Kathy Plumley at: feedback@rainbownetwork.com (please put Kathy Plumley in the subject line).

Whilst making your Will, you may wish to consider the following, to give you complete peace of mind. Their benefits far outweigh the nominal costs involved.

Enduring Power of Attorney

This is a document that is drawn up whilst you are mentally sound. It allows you to choose the people you want to look after your affairs in the event of you becoming incapable of doing so. This may occur as a result of accident or illness.

Without an Enduring Power of Attorney if you become mentally incapable, the Court of Protection will appoint someone to look after your affairs. This may be someone you know, but it may not. It may be costly and very intrusive.

An Enduring Power of Attorney again gives you the choice to appoint someone you personally trust to look after your affairs if the need arises.

Advanced Directive (Living Will)

This is a document that requests your life is not artificially prolonged if you become so ill that you are unable to have a dignified quality of life. It is not a legally recognised document at the moment (although it is being debated in parliament). However, the medical profession are obliged to acknowledge its existence and take account of your wishes.

For more information, e-mail Kathy Plumley at: kathy@gaywillsuk.co.uk.