Call for inheritance rules reform

The Law Commission has published recommendations for legal reforms with significant implications for cohabiting partners.

The commission, which had been looking into issues around intestacy – where a death occurs and no will exists – and provision for families, whether a will is in place or not, published its recommendations on 14 December 2011.

They include two draft Bills to put in place the necessary changes, including the Inheritance (Cohabitants) Bill.

The bill sets out provisions that would give certain cohabiting partners who have lived together for five years the right to inherit on each other’s death under the intestacy rules.

Where the couple have a child together, this entitlement would take effect after two years’ cohabitation, provided the child was living with the couple when the death occurred. At present, a cohabiting partner has no automatic right to inherit from the other’s estate if they die without a will.

The Law Commission’s draft Inheritance and Trustees’ Powers Bill includes reforms that would

• simplify the sharing of assets when someone dies without leaving a will, and they are survived by a spouse, children or other descendants
• a person dies intestate and is survived by a spouse or civil partner, but there are no children or other descendants, the whole estate should pass to the surviving partner.

Carolynn Tan, a partner at Guillaumes specialising in family law, said: “With more than two million couples in England and Wales involved in cohabiting relationships, a figure that is likely to continue to grow, the Law Commission’s recommendations are designed to reflect the way that many people choose to live their lives.

“However, even if the changes are implemented, a process that is likely to take some time, a cohabiting partner would still have no automatic right to inherit on the death of the other for up to five years.

“With that in mind, couples who live together may find it useful to take steps to protect their property and financial interests, for example by putting in place a living together agreement and wills with the assistance of a legal professional experienced in these issues.”

The Ministry of Justice is now considering the Law Commission's recommendations.

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