Gay couples have been advised to look into the financial implications of marriage
Money and marriage
Thursday, 11 Aug 2005 09:02
With same sex couples in the UK able to enter civil partnerships in the UK from December, Clerical Medical is urging couples to look into their money before they marry.
The financial firm is advising the UK's 3.2 million gay adults to consult a financial advisor if they are thinking about getting hitched.
The Civil Partnerships Act will give same-sex couples access to a series of rights previously denied them under UK law.
But these changes to the law have implications reaching beyond the love lives of Britain's gay population, with everything from pensions to gifts subject to different financial rules.
"The new legislation that comes into play in December 2005 has huge implications on the rights of same sex couples. Therefore, it’s important that those who are considering entering into a civil partnership find out more about how the changes will affect them," said Neil Edwards, Clerical Medical senior tax and financial planning adviser.
"As well as planning carefully for the big day, we would also suggest that couples seek the advice of a professional financial adviser to get their financial and legal affairs in order, so that their future together gets off to a flying start."
Under the Civil Partnerships Act same-sex couples will gain:
Occupancy and tenancy rights
Recognition of a civil partner as the next-of-kin
Employment protection
Rights under the rules of intestacy if a civil partner dies without a valid will
Adoption rights similar to married couples
Clerical Medical advises couples considering entering into a civil partnership to get expert advice on:
Will planning – entering a civil partnership will void an existing will, unless it has been written in anticipation of the civil partnership
Inheritance tax – although in most circumstances the transfer of assets to a civil partner will be exempt for inheritance tax purposes, civil partners will now need to consider "nil rate band planning"
Capital gains tax – civil partners are only entitled to one main residence between them, as opposed to same sex couples who can have one main residence each
Transferring assets – same sex couples may want to consider transferring assets before entering into a civil partnership for capital gains tax purposes
Partners in life & business – those in business together may want to consider certain tax planning tips
Pension saving – providing for a partner’s retirement