UK Law and Practice Contributed by: Roger Gherson, Alfred Gherson, Lisa Uttley and David Tipping, Gherson Solicitors
a combined 67% effective tax rate (40% IHT plus 45% income tax). This is prompting a reassessment of spending sequences, lifetime gifting from pension income and the use of spousal bypass trusts. Social care remains means-tested and uncapped in practice, requiring dedicated care reserves and plan - ning around trust structures and property ownership. Equity release products provide access to property wealth without sale. ISAs offer tax-free growth and flexible access through - out retirement. Wills and estate plans require regular review, par - ticularly following the April 2027 pension changes. Wealthy families increasingly adopt a whole-family planning approach, coordinating care funding, gifting and succession across multiple generations through family offices and professional advisers. 9. Planning for Non-Traditional Families 9.1 Children English law has moved decisively towards equal treat - ment of all children for succession and inheritance purposes, regardless of the circumstances of their birth. The legal framework is built on three principal statutes, which together determine the legal parent- child relationship for all purposes, including intestacy, class gifts in wills and trusts and entitlement to inherit - ance claims. The key principle is that inheritance rights follow legal parentage, not biological parentage and legal parent - age is determined by the applicable statute rather than by genetics alone. The Family Law Reform Act 1987 abolished the dis - tinction between children born in and out of wedlock, applying the equality principle to intestacy and statu - tory relationship references. Adopted children are treated as children of the adop - tive parents and not of the birth parents.
For assisted reproduction, legislation determines legal parenthood: the birth mother is always the legal moth - er and the identity of the father or second parent is determined by statutory rules based on marriage, civil partnership or agreed conditions. Posthumously conceived children are treated as the deceased’s child for birth registration only (not for inheritance), creating a gap that requires express tes - tamentary provision. Surrogacy is permitted in the UK, but surrogacy agree - ments are not legally enforceable. At birth, the surro - gate is recognised as the legal mother. Legal parent - hood transfers to the intended parents only through a parental order, which requires: • a genetic link; • the surrogate’s consent; and • a court application within six months of birth. Until the parental order is granted, the child cannot legally inherit from the intended parents. For all non- traditional family arrangements, it is crucial to draft wills with clear and explicit definitions. 9.2 Same-Sex Marriage The UK has recognised same-sex marriage since 2014 (with the exception of Northern Ireland, where same-sex marriage was recognised in 2020). Further, the UK permits couples (whether same-sex or not) to enter into a civil partnership as an alternative to marriage. For tax purposes, there is no distinction drawn between marriage and civil partnerships. 9.3 Cohabitation and Unmarried Couples For tax purposes, unmarried couples are treated as entirely independent individuals. Such couples do not receive any particular treatment, even if they are cohabiting. This means that any disposals of assets from one partner to another will be subject to CGT and there is no IHT exemption for transfers between an unmarried couple.
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