Martin Lewis issues warning to couples to ‘act now’ or could risk losing their home --[Reported by Umva mag]

MARTIN Lewis has warned unmarried cohabiting couples that they could risk losing their home because of a mysterious inheritance rule. The rule deals with the division of your estate upon death, a subject that many people avoid discussing, but the financial guru urged them to “act now”. RexMartin Lewis has issued a warning for couples that they could risk losing their home[/caption] RexThe financial guru urged people to ‘act now’ to avoid trouble later on[/caption] That is because couples could be evicted from their home should one of them pass away unless the deceased partner has written a will. On his latest podcast episode, the Money Saving Expert said: “For unmarried couples, and by unmarried, I mean you’re not married and you don’t have a civil partnership which is legally akin to marriage. “If you are unmarried, in law it basically means diddly squat. That’s the best way to think about it. “It’s irrelevant. You may have been together for decades, everybody may know you’re a couple, you may have 35 children, in law it means diddly squat.” Martin stressed the need of having a will in order to make sure your partner is taken care of when you pass away. He added:  “So you need if you want to look after your inheritance either make a will or do some form of contract or do a civil partnership or get married.” The benefit of being married or in a civil partnership is that you will be exempt from paying inheritance if your partner dies. Unfortunately, if you’re unmarried, your partner will still be liable to pay inheritance tax if the amount passed on is more than the available nil rate band. The warning was sent out because certain regions of the UK are currently celebrating Free Wills Month. It gives anyone 55 years of age or older the opportunity to have a basic will prepared or amended by a participating solicitor for free. People are encouraged to take advantage of the initiative by Age UK. It said: “Free Wills Month takes place in March and October. From 1 – 31 October, Age UK supporters who are 55 or over can have a simple will written or updated free of charge by a participating solicitor. “If you choose to write your will through Free Wills Month we hope you’ll consider leaving a gift in your will to Age UK, although there’s no obligation to do so.” What is inheritance tax? INHERITANCE tax is a tax on the estate (the property, money and possessions) of someone who's died. There’s normally no Inheritance Tax to pay if either: The value of your estate is below the £325,000 threshold You leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club Funds from your estate are used to pay inheritance tax to HMRC. This is done by the person dealing with the estate (called the “executor”, if there’s a will). If your estate’s value is below the £325,000 limit, you will still need to report it to HMRC. If you give away your home to your children – including adopted, foster or stepchildren – or grandchildren when you die, your inheritance tax threshold can increase to £500,000. This is called the “main residence” band. If you’re married or in a civil partnership and your estate is worth less than the upper limit, any unused threshold can be added to your partner’s when you die. This means their threshold can be as much as £1million. The standard inheritance tax rate is 40% – but it is only charged on the part of your estate that’s above the threshold. For example, if your estate is worth £500,000 and your tax-free threshold is £325,000. The inheritance tax charged will be 40% of £175,000 (£500,000 minus £325,000). Martin Lewis also issued a warning to anyone under 22 who could have £2,000 sitting in a forgotten account. Child Trust Funds are long-term, tax-free savings accounts which were set up for every child born between September 2002 and January 2 2011. The Money Saving Expert said on X that those aged 22 and under could have the Child Trust Fund set up and access it for free. But he also warned that some firms are attempting to charge individuals to “get your own money” – but Lewis says “don’t pay.” The Government deposited £250 for every child during that time period, or £500 if they came from a low income family earning around £16,000 a year or below. An extra £250 or £500, depending on their families’ economic status, was deposited when the child turned seven. In 2010, this was reduced to £50 for better off households and £100 for those on a lower income. The scheme was eventually scrapped in 2011 as part of cost-cutting measures following the 2009 financial crisis and was later replaced with Junior ISAs. Currently, parents or friends can deposit up to £9,000 into the child’s account tax-free, with the money usually invested into shares. The youngest children across Britian to have these accounts

MARTIN Lewis has warned unmarried cohabiting couples that they could risk losing their home because of a mysterious inheritance rule.

The rule deals with the division of your estate upon death, a subject that many people avoid discussing, but the financial guru urged them to “act now”.

Rex

Martin Lewis has issued a warning for couples that they could risk losing their home[/caption]

Rex

The financial guru urged people to ‘act now’ to avoid trouble later on[/caption]

That is because couples could be evicted from their home should one of them pass away unless the deceased partner has written a will.

On his latest podcast episode, the Money Saving Expert said: “For unmarried couples, and by unmarried, I mean you’re not married and you don’t have a civil partnership which is legally akin to marriage.

“If you are unmarried, in law it basically means diddly squat. That’s the best way to think about it.

“It’s irrelevant. You may have been together for decades, everybody may know you’re a couple, you may have 35 children, in law it means diddly squat.”

Martin stressed the need of having a will in order to make sure your partner is taken care of when you pass away.

He added:  “So you need if you want to look after your inheritance either make a will or do some form of contract or do a civil partnership or get married.”

The benefit of being married or in a civil partnership is that you will be exempt from paying inheritance if your partner dies.

Unfortunately, if you’re unmarried, your partner will still be liable to pay inheritance tax if the amount passed on is more than the available nil rate band.

The warning was sent out because certain regions of the UK are currently celebrating Free Wills Month.

It gives anyone 55 years of age or older the opportunity to have a basic will prepared or amended by a participating solicitor for free.

People are encouraged to take advantage of the initiative by Age UK.

It said: “Free Wills Month takes place in March and October. From 1 – 31 October, Age UK supporters who are 55 or over can have a simple will written or updated free of charge by a participating solicitor.

“If you choose to write your will through Free Wills Month we hope you’ll consider leaving a gift in your will to Age UK, although there’s no obligation to do so.”

What is inheritance tax?

INHERITANCE tax is a tax on the estate (the property, money and possessions) of someone who's died.

There’s normally no Inheritance Tax to pay if either:

• The value of your estate is below the £325,000 threshold
• You leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club

Funds from your estate are used to pay inheritance tax to HMRC.

This is done by the person dealing with the estate (called the “executor”, if there’s a will).

If your estate’s value is below the £325,000 limit, you will still need to report it to HMRC.

If you give away your home to your children – including adopted, foster or stepchildren – or grandchildren when you die, your inheritance tax threshold can increase to £500,000.

This is called the “main residence” band.

If you’re married or in a civil partnership and your estate is worth less than the upper limit, any unused threshold can be added to your partner’s when you die.

This means their threshold can be as much as £1million.

The standard inheritance tax rate is 40% – but it is only charged on the part of your estate that’s above the threshold.

For example, if your estate is worth £500,000 and your tax-free threshold is £325,000.

The inheritance tax charged will be 40% of £175,000 (£500,000 minus £325,000).

Martin Lewis also issued a warning to anyone under 22 who could have £2,000 sitting in a forgotten account.

Child Trust Funds are long-term, tax-free savings accounts which were set up for every child born between September 2002 and January 2 2011.

The Money Saving Expert said on X that those aged 22 and under could have the Child Trust Fund set up and access it for free.

But he also warned that some firms are attempting to charge individuals to “get your own money” – but Lewis says “don’t pay.”

The Government deposited £250 for every child during that time period, or £500 if they came from a low income family earning around £16,000 a year or below.

An extra £250 or £500, depending on their families’ economic status, was deposited when the child turned seven.

In 2010, this was reduced to £50 for better off households and £100 for those on a lower income.

The scheme was eventually scrapped in 2011 as part of cost-cutting measures following the 2009 financial crisis and was later replaced with Junior ISAs.

Currently, parents or friends can deposit up to £9,000 into the child’s account tax-free, with the money usually invested into shares.

The youngest children across Britian to have these accounts are about 13 years old, so have around five years before they can access the cash.

The following news has been carefully analyzed, curated, and compiled by Umva Mag from a diverse range of people, sources, and reputable platforms. Our editorial team strives to ensure the accuracy and reliability of the information we provide. By combining insights from multiple perspectives, we aim to offer a well-rounded and comprehensive understanding of the events and stories that shape our world. Umva Mag values transparency, accountability, and journalistic integrity, ensuring that each piece of content is delivered with the utmost professionalism.

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