Top tips for engaged couples
Congratulations on your engagement. Anyone entering into a marriage or civil partnership should be mindful of legal and financial considerations involved. Seeking professional advice will ensure you enjoy protection, peace of mind and most importantly feel able to enjoy the excitement of planning your wedding. Morton Fraser’s expert lawyers are on hand to advise you and provide the following top tips for newly engaged couples:
Seek professional advice when borrowing finance
A wedding is costly so you will need to consider how to finance the big day. If borrowing, it may be worthwhile asking for advice to ensure this debt can be repaid.
Pre nups may not be romantic but they are a sensible approach for couples who have assets, children or both before getting married.
You will want to know where you stand and while a pre-nuptial agreement is not particularly romantic, it makes sense. Agreeing on certain issues at the very beginning gives peace of mind for both parties.
Parents and grandparents can give inheritance tax free cash gifts
Each parent can give inheritance tax free cash gifts of up to £5,000 on marriage and each grandparent or great-grandparent can give up to £2,500 on marriage.
Seek professional advice about ownership arrangements for property purchases before and after the wedding.
A main concern for couples is your first home together. It is vital that you are happy in your new home and at the outset a decision is required as to the basis of ownership. Whilst joint ownership is the norm this should carefully considered prior to the purchase of a property. There may be circumstances that warrant a different arrangement particularly if one party is providing all or the majority of the funding or is solely responsible for repaying the mortgage. It may be that one party already owns a property which will become the marital home and this brings it own concerns.
Wills are necessary – particularly if either or both of you have children from a previous relationship.
Couples entering into a marriage or civil partnership must consider drawing up their Wills. Too many people make false assumptions about what will happen to their estate when they die and the only way to have absolute peace of mind is to take the simple step of having a Will drawn up. If you already have a child from a previous relationship a Will is a necessity.
Seek professional advice about tax implications as this changes post wedding regarding income tax and capital gains tax allowances.
Once married you can consider transferring assets to make the most efficient use of income tax and capital gains tax allowances.
If children and or schools fees are on the cards seek advice about the most efficient way to save for these.
Moving forward there will also be the issue of children and you may wish to consider at an early date how childcare and school fees will be funded. The arrival of children will also warrant a review of your Wills to ensure that any assets passing to your children are adequately protected.
It’s never too really to plan for retirement
Getting married is also a good time to consider retirement planning and couples should consider their pension planning when Wills are put in place.
If you would like to speak to expert Julie McMahon to discuss any aspect of marital status or legal and financial matters you can contact her directly on 0141 274 1108 or julie.mcmahon@morton-fraser.com
Sign up for our regular e-bulletins here
Visit our Designed for Life website here
