- Your partner dies suddenly, and you're faced with complex paperwork and rocketing legal costs.
- Despite being a long-term stepmum to your stepchildren, you are unable to make decisions about their care and have no legal say in their welfare.
- Your parents or an elderly relative lose the ability - either mentally or physiclly - to manage their money and you're left to unravel their finances.
- Your recent marriage fails and someone you knew for just a few years is entitled to half your assets.
- Your children don't inherit anything - the tax man takes it all instead.
False: My partner will automatically inherit my estate when I die. Intestacy rules are the legal rules that apply if someone dies without a will. They divide up an estate without taking into account need or anything other than blood or legal relationships, such as being married. If you are not married, your partner won't automatically receive anything other than assets you already hold as joint beneficial owners.
False: I am liable for my parents' tax if I take on power of attorney. Fortunately, the attorney is not personally liable if the donor cannot pay. However, the person with power of attorney could be responsible for paying debts and taxes on behalf of the donor - but only from the donor's own funds.
True: I can't make any decisions about my stepchildren without my partner's permission. In the case of a separated couple, where Mum moves in with someone else who the kids treat to as a father figure. If anything happened to Mum, the biological dad could simply remove the children, regardless of their best interests or Mum's final wishes. Stepdad would need to go to court to prevent this hapening. This applies to married and unmarried couples.
False: Common law rights apply to unmarried couples after a certain period of time. There is no such thing as a 'common law wife'. An unmarried partner living in property soley owned by the other partner would have no automatic claim over it.
Make a Will. Whether married or unmarried, there are important reasons to make a will. (a) Those you leave behind face large legal bills and lengthy court procedures. (b) The State allocates your estate to your next of kin - an unmarried surviving partner would lose out, and potentially, estranged family members could have a claim to part of your estate. (c) Writing a will ensures than children are provided for, plus bequests to charities, friends and others, and you can also record details such as funeral arrangements. (d) As well as large financial decisions, include your last wishes - such as where you would like your ashes scattered and who receives which keepsake. (e) Don't forget to update your will if your circumstances change. Existing wills are revoked (made void) automatically when you remarry, so updating wills is essential.
Taking on Step-parental responsibility. You need this to have a legal (though not automatic) right to look after your partner's children. A solicitor will prepare forms for about £200. Everybody with parental responsibility (mothers and fathers named on birth certificate) has to give written consent, witnessed by a magistrate or justice of the peace. All parties need to sign the document.
Organising Your Parents' Affairs. To fully manage their financial affairs, you need to be named in a legal document called a lasting power of attorney (LPA). There are two types of LPA: financial & property and health & welfare. You cannot do this - your parents must apply while they still have the proven mental capacity to do so. Without a LPA, every time a decision is needed on their finances or welfare, you as next of kin would have to apply through a court of protection to be apppointed their deputy (£400 per application plus cost of potential legal advice).
Feature in Good Housekeeping November 2014
