Providing for a spouse or civil partner

Produced by Tolley in association with

Trusts and Inheritance Tax

Guidance

Outright gifts

In their Wills, many married couples and civil partners (collectively referred to here as ‘spouses’) wish to leave the bulk of their estates to each other. The main reason for this is to ensure that after the first death, the survivor can continue to enjoy the same sort of lifestyle they enjoyed together. The survivor usually wants to remain in the couple’s home, at least initially.

The other main reason for one spouse to leave his assets to the other is that there is generally no inheritance tax to pay on his death because of the spouse exemption. Provided that the surviving spouse is UK domiciled or both spouses share the same domicile (whether UK or not), there is no inheritance tax to pay on gifts between spouses, whether during lifetime or on death. Note, however, that the spouse exemption is currently capped at the same level as the prevailing nil

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Emma Haley

Associate at Boodle Hatfield LLP

Emma Haley is a senior associate solicitor at leading private client firm, Boodle Hatfield LLP, renowned for providing first-class and practical legal advice to wealthy clients around the world. Emma has many years experience in dealing with all aspects of wills, probate, capital taxation and succession planning as well as UK and offshore trusts. Emma currently heads up a technical know-how team and is a regular writer and lecturer on estate planning and inheritance tax and also a member of the Society of Trust and Estate Practitioners.

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