Over the past week I have had three separate conversations with individuals who want to buy a property or a home with their partner, so I will write a little bit about that today.
Buying a property or home is one of the biggest purchases that most of us will make, and there’s plenty of insurance is around that, such as home insurance and mortgage protection, which will pay a lump sum to the bank, which should cover most of the mortgage if one person passes or one of the homeowners passed.
For partners or for cohabiting couples, in that scenario, if one person passes, their surviving partner goes from being the joint owner of the property to the seller of the property and that can trigger a capital acquisitions tax liability.
Depending on circumstances, that can be a significant sum.
So it’s just something to be mindful of when buying a property with a partner.
There are life insurance policies called life for another, which can provide a payment to provide some protection for surviving partner in that instance.