In modern society, personal relationships take many forms. Partnerships and friendships often exist outside traditional frameworks such as marriage or civil partnership. As a result, individuals may form deep, enduring bonds with friends they live with, even if they are not romantically or legally partnered. As end-of-life planning becomes more inclusive of various types of relationships, a growing number of people are considering how to ensure that cohabiting friends are remembered and supported as part of their legacy. This consideration involves financial, legal, and emotional dimensions, highlighting the importance of structured estate planning.
While the notion of leaving part of an estate to a close friend might appear straightforward, such decisions carry a number of legal and practical considerations. Understanding the challenges and approaches is essential for those who wish to provide for a non-familial cohabitant as part of their testamentary intentions.
One of the first hurdles in this discussion is defining what constitutes a ‘cohabiting friend’. Legally speaking, someone who shares a home with you but is not a spouse or civil partner falls outside the automatic rights and protections afforded to family members or legally recognised partners. While cohabitants who are in a romantic relationship may have some protections under cohabitation laws, these are limited. For platonic friends sharing a household, the law does not offer default mechanisms for inheritance.
In the United Kingdom, the rules of intestacy govern what happens to an estate if someone dies without a valid will. Under these rules, only spouses, civil partners and blood relatives are entitled to a share of the estate. Cohabiting friends, regardless of the closeness of the relationship or the financial interdependence, are excluded. This means that unless a friend is specifically included in a will, they stand to inherit nothing from the deceased’s estate.
Because of the lack of automatic legal rights for cohabiting friends, it is crucial to write a clear and legally binding will if you wish to include them in your estate. A will ensures that your wishes are carried out and provides protection for those who might not otherwise be recognised by the law.
A will must be properly drafted, signed and witnessed in accordance with the Wills Act 1837 to be legally valid. Engaging the services of a solicitor with expertise in estate planning can be particularly helpful in these situations. They can ensure not only that the will is valid and enforceable but also that it clearly expresses your intentions without ambiguity. This is particularly important if your decision might be controversial among other potential beneficiaries, such as family members.
When naming a friend in your will, it is advisable to be specific. State their full name, address, and the nature of the gift to avoid confusion. If the friend is also the executor or a witness, this may complicate or invalidate the gift, so guidance from a legal professional is essential.
There are several types of bequests that can be included in a will, and it is important to know which kind best suits your intentions.
A pecuniary gift is a fixed sum of money. For example, you might leave your cohabiting friend £10,000 as a straightforward, predetermined bequest.
A specific gift involves a particular asset, such as a car, piece of jewellery, or artwork. If both friends live in a shared home, this might include furniture or other shared belongings, though care must be taken to legally establish ownership.
A residuary gift refers to a percentage or the entirety of what remains of your estate after all expenses, taxes and other gifts have been distributed. This is often the most flexible way of leaving a legacy and can be a meaningful way to include a cohabiting friend in your plans.
In some instances, particularly when two people share a home and contribute jointly to the running costs but whereby ownership is solely in one person’s name, it may make sense to leave the property or a life interest in the property to the cohabiting friend. This can offer them stability by allowing them to remain in the property for life or until a specified event.
Including a cohabiting friend in your estate may raise eyebrows among family members, particularly if the gift appears larger or more generous than those made to blood relatives. In such cases, family members may challenge your will under the Inheritance (Provision for Family and Dependants) Act 1975. This legislation allows specific people, such as spouses, children, or financial dependants, to claim for ‘reasonable financial provision’ from an estate if they believe they were unfairly left out or inadequately provided for.
Friends, unless financially dependent on the deceased, are generally not entitled to make such claims. However, disputes may still arise, often on the grounds of testamentary capacity or undue influence. For this reason, it is often wise to document the reasons behind your decisions, particularly if your cohabiting friend’s inheritance significantly departs from what might be traditionally expected.
Solicitors may recommend creating a letter of wishes to accompany the will. Though not legally binding, this document can offer insight to executors and the courts alike, making your intentions clearer and potentially deterring legal battles.
A crucial element in leaving any part of an estate to someone who is not a family member or spouse is the potential impact of inheritance tax (IHT). In the UK, the IHT threshold is currently £325,000 (as of 2024), above which tax becomes payable at a rate of 40%. Surviving spouses or civil partners can inherit without incurring IHT, but the same is not true for friends.
Gifts left to a cohabiting friend, unless under the exempt threshold, will likely attract inheritance tax. This could significantly reduce the net amount received. For property in particular, this can become complex. If a cohabitating friend is bequeathed the house but has no means of paying the IHT due, they may be forced to sell the property to cover the tax bill.
There are ways to mitigate this issue with careful planning. Life insurance policies written in trust can be used to provide funds for the IHT bill, ensuring that friends inherit the full value of the bequest. Additionally, gifting during your lifetime—known as ‘potentially exempt transfers’—may allow you to pass on assets free from IHT if you survive for seven years after the gift is made. Professional advice is invaluable in creating tax-efficient arrangements that meet your goals.
For many cohabiting friends, particularly those who have lived together long-term, shared property ownership becomes a central component of estate planning. There are two primary ways to hold property jointly: as joint tenants or tenants in common. The distinction is crucial when planning an estate.
In a joint tenancy, both parties own the property equally, and upon the death of one, the other automatically inherits their share, irrespective of any provisions in the will. This method avoids probate but may have unintended consequences—particularly if the deceased intended other beneficiaries to inherit their share.
With tenants in common, each party owns a specified portion of the property, which can be passed on via a will. For cohabiting friends this is often a more practical choice, as it allows each party to retain autonomy over their share of the property and choose their own beneficiaries. If the goal is to ensure the friend can continue living in the home, a life interest trust may also be used, allowing the friend occupancy for life without transferring full ownership.
Ensuring correct registration of the property title with HM Land Registry and confirming joint ownership arrangements is essential. Mistakes or misunderstandings can unravel even the most well-intentioned plans.
The process of including a cohabiting friend in your estate planning requires a deliberate and thoughtful approach. Begin by evaluating the nature of your relationship and the contributions each party makes to your shared life. Legal ownership and financial interdependence will play a role in how best to structure any gifts.
Next, consult a solicitor specialising in wills, trusts, and estate management. They can assist you in drafting a legally binding will, exploring trusts where appropriate, and mitigating inheritance tax liabilities. It is equally important to ensure all documents are kept up-to-date, especially in cases of significant life changes such as property purchases, changes in relationships, or new financial circumstances.
Continue by having open conversations with your cohabiting friend and your family. Transparent communication can reduce the risk of future disputes and allow you to share your motivations and intentions.
Finally, keep all documentation—your will, property deeds, financial records, and any letters of wishes—secure and accessible. Regularly review your plan, ideally every few years or following major life events, to make sure it continues to reflect your values and goals.
Beyond legal and financial considerations, the decision to include a cohabiting friend in your estate often touches on deep emotional obligations. Friends who cohabit for extended periods often provide one another with emotional support, companionship, and even care during illness or vulnerability. Recognising these contributions through a will can be both a compassionate and just choice.
However, it also requires navigating societal expectations. While public attitudes are shifting, family structures remain powerful symbols. Disinheriting family members, even partially, in favour of a friend can be controversial. Ethical estate planning asks individuals to balance fairness, gratitude, love, and legacy.
Appreciating each person’s role in your life—and expressing that appreciation legally and financially—can lead to a more authentic estate plan, even if it challenges conventions.
As relationships evolve and living arrangements diversify, estate planning must also adapt. For individuals who share their lives with cohabiting friends outside traditional romantic or familial bonds, ensuring those friendships are acknowledged and protected in end-of-life planning is both an act of care and legal necessity.
Without a valid and thoughtfully constructed will, even the closest friend may be left with nothing — regardless of years of shared life, support, or contribution. By seeking legal advice, clearly expressing your intentions, and taking proactive steps to include your friend in your estate, you ensure that your legacy reflects the full spectrum of meaningful relationships in your life.
In today’s society, where chosen families often matter just as much as biological ones, inclusive estate planning is a powerful way to honour those bonds.
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