A third of cohabiting couples do not know what their legal rights would be regarding their home if their partner passes away, new research from Direct Line has revealed.
Around one in ten cohabiting couples mistakenly believe that if they own a home together, they would inherit their partner’s share of the property should that partner pass away.
However, the law stakes that the surviving partner would only inherit that share if this was clearly set out in a will. Otherwise, it would go to the deceased’s next of kin.
Worryingly, only a quarter (26%) of cohabiting couples have a will, just half the percentage (56%) of married couples that do, exposing cohabiters to a problematic position in the event of a death.
The study also revealed just 15% of cohabiting couples have left any instructions over what should happen to their estate if they pass away, while one in twenty thinks that of their partner passes away they will have immediate access to their money, possessions and even pension.
Jane Morgan, business manager of Direct Line Life Insurance, pointed out that marriage is further down the agenda for many couples now as a result of societal changes, noting that it is very common for partners to live together for extended periods of time before getting married, if they ever tie the knot at all.
She continued: “However, the law is still somewhat behind the times in regards to cohabiting partners and worryingly, millions of Brits are under the false impression that they have the same legal and financial security as married couples.”
“Our research aims to highlight the lack of awareness around this issue and will hopefully encourage people to think about putting plans in place in case the worst should happen.”
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