Could inheritance rights be changing for cohabiting couples?

Data from the Office for National Statistics (ONS) suggests a notable increase in unmarried partners living together over the last few years.

Yet, long-term cohabiting couples still face significant hurdles when it comes to inheritance and fair financial splits.

This could soon change.

From 5 June until 14 August 2026, the government is consulting on the financial options available to unmarried partners at the end of their relationships, whether the cause is separation or death. 

This could help strengthen the rights of cohabiting couples and help provide more financial security for all involved. 

Here’s what you need to know about the current landscape for cohabiting couples, what might change, and how it could affect you.

Without a valid will, cohabiting couples have no automatic inheritance rights to each other’s estates

Even if you have been together for years and essentially live as a married couple, the concept of “common law marriage” has no legal standing. 

So, cohabiting couples have no automatic right to inherit from each other’s estates if their partner passes away without a valid will. 

This means that the deceased’s estate will be distributed according to the rules of intestacy. Here is the usual order of inheritance: 

1. Married or civil partners
2. Children, grandchildren, or other descendants
3. Parents, siblings, and other blood relatives 
4. The Crown 

As an unmarried partner, you would be excluded from any inheritance, which could have a significant effect on your life.

Notably, you will have no rights to your partner’s property or savings if you separate or they die. 

You may also have no claim over their assets or pension. 

Furthermore, while married partners are protected in case of divorce, unmarried partners are not. This can be challenging if one partner has been financially reliant on the other. As it stands, there is no legal obligation for one partner to support the other after a breakup.

Note: Any changes to inheritance for cohabiting couples could come with Inheritance Tax (IHT) implications, but we don’t know enough at this stage to speculate further. 

The government’s consultation is designed to better reflect modern society 

The proportion of people who are choosing to live together as unmarried couples is on the rise.

Indeed, research from the ONS notes that this number has increased from 11.9% in 2014 to 12.9% in 2024.

This equates to around 5.5 million people in 2014 and 6.5 million people in 2024. 

Under these proposals, if one partner dies, the other could inherit their assets under certain circumstances. Though the road ahead could be lengthy, if these proposals become a reality, they could provide significantly more financial security for cohabiting couples. 

Plans could include: 

• Enhanced legal rights. Cohabiting partners could gain new legal rights if they have lived together for more than three years or share a child or children. 
• Automatic inheritance rules. As we’ve noted, if your partner passes away without a will, you are not treated as next of kin. Automatic inheritance could change that or offer greater protection.

While these reforms are unlikely to mirror the protections of marriage, they could still offer improved financial protection and fairness for couples who choose not to marry.

Until legislation is ratified, nothing is set in stone

Remember, while future developments could help support cohabiting couples, protecting yourself and your partner now could be incredibly valuable.

Fortunately, there are a few things you can do. 

• You could write a formal will. Writing a will and keeping it up to date is the most straightforward way to ensure your partner is taken care of. 
• Consider joint ownership when buying property. If you buy a property as joint tenants, your partner will automatically inherit your share of the home if you die, bypassing intestacy rules.
• Create a cohabitation agreement with a solicitor. While it may not solve inheritance concerns directly, a written cohabitation agreement can outline who owns what, such as furniture and savings. This could help avoid disputes with the deceased’s family.

Ultimately, we can only speculate at this stage as to the government’s next steps, but being prepared is key. In the months to come, we may learn more about what is being planned, how it could affect families, and how IHT could come into play.

Get in touch

Together, we can balance your needs with those of your partner and find a solution that suits your combined circumstances. Whether that’s writing a will or helping you understand your joint financial situation, we’re here to help.

To find out more about how we can work together, get in touch. 

• Marnel Stafford: email Marnel.Stafford@fosterdenovo.com or call 07305 970959
• Ryan Edwards: email Ryan.Edwards@fosterdenovo.com or call 07591 758136 

Alternatively, you can call our office on 0207 469 2800.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning or will writing.