Martin Lewis On The Benefits Of Being Married Or In A Civil Partnership

Inheritance Tax (IHT) is often overlooked, but it's crucial to understand how it affects your spouse after you pass away.

Financial expert, Martin Lewis, stresses that marriage or being in a civil partnership offers significant IHT benefits, especially when one spouse/civil partner dies.

The Benefits

Martin Lewis states, “Look where marriage really counts is when you die. That's the truth of it. This is where the really big benefit comes from” and he proceeds to explain that anything you leave to your spouse is exempt from IHT, meaning no tax is due on those assets—provided you are both UK residents.

Unused IHT Allowance

Martin has highlighted an even bigger advantage and has explained that “any unused inheritance tax allowance passes on to your spouse... That is by far the biggest benefit of marriage for those who have assets”. This means that if one spouse does not ‘use up’ all of their £325,000 IHT allowance, it automatically passes to the surviving spouse, potentially saving them a substantial tax bill.

Why You Need a Will

Even with marriage/civil partner benefits, a Will is essential. Without one, your estate will be divided according to intestacy laws, which may not align with your wishes and could create complications for your spouse. A Will ensures your assets go to your spouse as intended and helps you make the most of unused IHT allowances.