Why silver marriages are important for inheritance tax planning and pensions
We hear much about silver splitters – couples who reach retirement age and realise that they don’t wish to spend their remaining years together.
For some of those splitters, the new future involves a new partner. But while the original couple may have been planning pension provisions for most of their working lives, the change in circumstances may require different thinking.
The challenge is in re-thinking how to approach inheritance tax planning when one or both of the partners are in new relationships, especially if they have not remarried.
Recent figures from the Office for National Statistics show just how common cohabitation has become. In 2022, around 22.7% of couples in England and Wales were living together without being married or in a civil partnership, up from 19.7% a decade earlier. At the same time, fewer than half of adults are now married or in a civil partnership.
For the adult children of older parents, this trend raises important – and often overlooked – questions about inheritance and tax. Many couples choose to live together later in life without realising that the law treats cohabiting partners very differently from spouses, particularly when one partner dies.
Andrea Bolter, a senior associate in family law at Hart Brown solicitors, has written on her blog about this situation and how it needs to be addressed.
Inheritance tax pitfalls
Andrea says it’s a common misconception is that long-term partners are treated like married couples. In reality, there is no such thing as a ‘common law spouse’ for inheritance tax purposes. This distinction can have serious financial consequences, not just for the surviving partner, but also for the wider family.
Under current rules, assets passing to a husband, wife or civil partner are exempt from inheritance tax, regardless of value. By contrast, anything left to an unmarried partner above the £325,000 nil-rate band may be taxed at 40%. For families where an older parent owns a home or has built up savings, this can result in a substantial and unexpected tax bill, potentially reducing what is ultimately available to support the survivor or pass on to children.
Loss of pension scheme benefits
There can also be implications beyond inheritance tax. Some pension schemes only pay survivor benefits to a spouse or civil partner, which may affect income security after death and, indirectly, the financial stability of the family.
Last-minute weddings
These issues often only surface very late — sometimes when a parent is seriously ill — leaving little time to plan. This helps explain the sharp rise in so-called ‘deathbed marriages’, with the General Register Office recording 836 special marriage licences in the 12 months to June 2025, a 49% increase on a decade earlier.
While marriage is not the right choice for everyone, understanding the legal and tax consequences of cohabitation is particularly important in later life, especially where there are children from previous relationships and expectations around inheritance on all sides.
For families, the key message is planning, says Andrea. Encouraging early conversations and professional advice around wills, estate planning, and financial protection can help avoid distress, unexpected tax liabilities, and difficult decisions at a time when families are already under emotional strain.
This article is for information only. Please talk to a solicitor or financial expert for the latest information and advice.
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