What happens to my partner if I die and we're not married?

Without a will, the surviving cohabiting partner inherits NOTHING under UK intestacy rules - the estate passes to children, then parents, then siblings, then more distant relatives. The surviving partner can claim under Inheritance (Provision for Family and Dependants) Act 1975 if they've cohabited for 2+ years, but this requires court application, is uncertain, and expensive. The fix is simple: make a will explicitly leaving assets to your partner.

Can my cohabiting partner inherit my pension?

It depends on the pension type and your nominations. Workplace defined-benefit pensions often pay only to spouses, civil partners, and dependents - some schemes recognise nominated cohabitants, many don't. Workplace defined-contribution and personal pensions usually pay per the nomination form, with trustee discretion. Always nominate your cohabiting partner explicitly via the pension provider's death benefit nomination form. Without explicit nomination, your partner may receive nothing or only what trustees decide.

Cohabitation finances UK 2026/27 - unmarried couple legal + tax

Last reviewed by the UK Tax Drag editorial team · 12 May 2026 · How we review · Next review due 12 November 2026 · See what changed · Report an error

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What you need to know: Cohabitation finances - UK unmarried couples 2026/27

Quick answer: UK cohabiting couples in 2026/27 have NO automatic legal or tax recognition : no spousal IHT exemption (£325k threshold applies separately to each), no Marriage Allowance, no automatic inheritance under intestacy (the surviving partner can be left with nothing), no CGT-free transfers between partners (transfers at market value). The fix: make a…

Key points:

Property passes automatically to survivor on death (OUTSIDE the will)
Cannot be left to anyone else by will

UK cohabiting couples in 2026/27 have NO automatic legal or tax recognition: no spousal IHT exemption (£325k threshold applies separately to each), no Marriage Allowance, no automatic inheritance under intestacy (the surviving partner can be left with nothing), no CGT-free transfers between partners (transfers at market value). The fix: make a will (most important step), formalise property ownership as joint tenants or tenants-in-common, consider a cohabitation agreement for assets, take out term life insurance for IHT mitigation, and update pension nominations to include the partner.

The "common-law marriage" myth

Common-law marriage does NOT exist in UK lawAround 47% of UK adults believe cohabiting couples have similar legal rights to married couples after some period of time. This is incorrect. No matter how long you’ve lived together (5 years, 20 years, 40 years), UK law does NOT confer the legal or tax status of marriage on cohabiting couples. This affects everything from inheritance to tax allowances to pension nominations.

Married vs cohabiting - side-by-side comparison

Issue	Married / civil partners	Cohabiting unmarried
IHT on assets passing to partner on death	Unlimited spousal exemption	0%; full IHT applies above £325k NRB
Transferable nil-rate band (TNRB)	Yes - up to £325k of unused NRB	No
Residence nil-rate band (RNRB)	£175k each, transferable	£175k each, but no transfer
CGT-free transfers between partners	Yes (Section 58 TCGA)	No - transfers at market value, CGT applies
Marriage Allowance	Yes (£252/yr saving)	No
Automatic inheritance if no will	Spouse priority under intestacy rules	NOTHING - partner can be left destitute
Pension Death Benefits	Spousal pensions automatic in DB schemes	Depends on nomination; many DB schemes don’t pay to cohabitants
Tenancy / lease succession	Automatic for spouse in most cases	Conditional - typically requires 2+ year cohabitation
Child Benefit, Universal Credit	Joint claim required	Joint claim required (the only one where cohabitation is treated similar to marriage)

The single most important step: make a will

Without a will, cohabiting partners get NOTHING under intestacyUK intestacy rules pass the estate to spouse > children > parents > siblings > etc. Cohabiting partners are NOT on this list. The surviving cohabitee may need to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975 if they’ve cohabited for 2+ years - but this requires court application and is uncertain and expensive. The fix: a properly executed will leaving assets to the partner.

Cost: £200-£500 for a simple will via a solicitor; £20-£100 for a basic online will via services like Co-op Legal Services or Farewill. For couples with substantial assets, complex family situations, or children from previous relationships, professional wills are strongly recommended.

Property ownership - the critical structural choice

Cohabiting couples buying property together face a choice that has major consequences on death and separation:

Joint tenants

Equal ownership (50/50)
Property passes automatically to survivor on death (OUTSIDE the will)
Cannot be left to anyone else by will
Simple but inflexible

Tenants in common

Defined shares - can be 50/50 or any other split
Property passes per the will (not automatically to co-owner)
Each owner can leave their share to anyone they choose
Recommended for: unequal contributions; second relationships; estate planning

Most cohabiting couples should use Tenants in CommonIt allows the share to be left to children from a previous relationship, or to be ring-fenced if one partner has children and the other doesn’t. Joint tenants is simpler but removes flexibility. Most solicitors default to joint tenants unless instructed otherwise - specify Tenants in Common at purchase.

Cohabitation agreements - the underused tool

A cohabitation agreement (Living Together Agreement) is a written contract between cohabiting partners covering financial and property arrangements. Topics typically include:

How household bills are split
Ownership of property and contents
What happens if the relationship ends
How any joint debts are handled
Inheritance intentions
Provision for any children

Cost: £400-£1,500 from a family solicitor. Not strictly necessary if both partners have aligned intentions, but significantly reduces ambiguity in disputes. Particularly important when:

One partner contributed materially more to the deposit or mortgage
One partner has children from a previous relationship
The partners are unmarried specifically to preserve separate finances
Substantial pre-existing wealth differences

IHT planning for unmarried partners

Without the spousal exemption, unmarried partners with substantial assets face significant IHT exposure. Strategies:

Strategy 1: Use individual NRBs effectivelyEach partner has £325k NRB + £175k RNRB if the home passes to direct descendants. With careful estate planning (e.g. via discretionary trusts), both can sometimes be fully utilised. Specialist advice required.

Strategy 2: Term life insurance written in trustPay the IHT bill via life insurance proceeds - particularly important on the first death. A £400,000 cover term policy in trust, with the cohabiting partner as beneficiary, provides immediate liquidity to pay any IHT due. The policy is written in trust so the payout is OUTSIDE the IHT estate.

Strategy 3: Lifetime gifts under the 7-year ruleSubstantial gifts during life fall outside the IHT estate if the donor survives 7 years. For older unmarried couples, this is a common planning approach.

Strategy 4: Consider marriage or civil partnershipIf preserving "common-law" or unmarried status is purely a matter of preference rather than substance, the unlimited spousal IHT exemption alone can be worth £100,000+ on death of the wealthier partner. This is the single biggest financial argument for marriage among older cohabiting couples.

Pension nominations - urgent action

Pension Death Benefit nominations are NOT automatically inferred for cohabiting partners. Each pension provider has its own rules:

Workplace DB pensions: often paid only to spouse, civil partner, and dependents. Some schemes recognise nominated cohabitants; many don’t. Check scheme rules.
Workplace DC pensions: usually paid per nomination form; trustees can use discretion. Nominate cohabiting partner explicitly.
Personal pensions / SIPPs: nominate cohabiting partner explicitly on the provider’s death benefit form.

Without explicit nomination, cohabiting partners may receive nothing or only what the scheme trustees decide.

Common cohabitation finance mistakes

Mistake 1: Assuming "we’re basically married" provides any protection.It doesn’t in UK law. Make wills, formalise property, nominate pensions.

Mistake 2: Buying property as Joint Tenants by default.Tenants in Common gives much more estate planning flexibility, particularly when there are children from previous relationships.

Mistake 3: Forgetting IHT exposure on substantial joint wealth.An unmarried couple with combined £1.2m assets - one partner with £900k, one with £300k - faces ~£230k IHT on the first death if everything passes to the partner. Compare to married couples where this is zero.

Mistake 4: Not updating wills after major changes.New child, new home, new business - all should trigger will review. Particularly important for cohabitating couples where intestacy provides no fallback.

Mistake 5: Skipping pension nominations.The partner may receive nothing from your pension without explicit nomination. 5-minute fix that protects them.

Estimate IHT exposure

The IHT calculator shows your estate exposure - particularly stark for unmarried partners without spousal exemption.

Open the IHT calculator

Sources and references

Cohabitation legal position from gov.uk relationships and civil partnerships. Inheritance (Provision for Family and Dependants) Act 1975 from legislation.gov.uk Act 1975. UK intestacy rules from gov.uk intestacy. ONS data on UK cohabitation 2025.

UK Tax Drag is educational and not regulated financial, tax, legal or family advice - see the disclaimer for the full position. For decisions with material legal or family consequences (divorce, probate, separation), specialist advice from a solicitor and/or financial adviser is strongly recommended.

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