How being married can save you money in the long run

With Valentines fast approaching here are some financial advantages to tying the knot. Although the average cost in the UK of weddings is now over £30,000 there are some financial benefits following the big day.

Marriage Allowance

Marriage Allowance allows spouses to transfer up to a maximum of £1,250 of their personal allowance to their partner. To be eligible the spouse who is transferring their personal allowance must have earnings under the personal allowance, currently £12,500 and the spouse who will be the receipt must be a basic-rate payer (earning between 12,500 and £50,000). The marriage allowance can be backdated up to four years and you could get back the following amounts for each year:

• 2020 / 21 - £250
• 2019 / 20 - £250
• 2018 / 19 - £238
• 2017 / 18 - £230

Inheritance Tax

Inheritance Tax is a tax on the estate of someone who has passed away. There is usually no Inheritance Tax to pay if the estate is below the £325,000 threshold or it has been left to a spouse. The standard Inheritance Tax rate is 40% and is only charged on part of the estate that is above the threshold. If you are married the threshold becomes £650,000 and could offer substantial savings.

Bereavement Support

Bereavement Support Payment is a benefit paid to a surviving spouse, if their wife, husband or civil partner has died in the last 21 months.The surviving spouse must claim within 3 months of the partner’s death to receive the full amount. The surviving spouse can claim up to 21 months after a partner’s death but will receive fewer monthly payments.The surviving spouse could receive a maximum of up to £9,800 if they are in receipt Child Benefit. If they do not receive Child Benefit, the maximum pay-out could be up to £4,300. Please visit www.gov.uk to check your eligibility.

Something to consider: Wills. It is important to know that in England and Wales once you are married, your previous Will automatically becomes invalid. If you do not make a new one, it will be up to the discretion of the law of intestacy. It is not guaranteed everything will go to your spouse and making a new Will should be prioritised.