Imagine this: you’ve built a life with your partner, raised children together, and shared everything—except a marriage certificate. Now, you’re worried about the financial fallout if one of you passes away. Inheritance tax could leave your surviving partner with a hefty bill, simply because you’re not married. It’s a stark reality for many cohabiting couples, and it’s time to explore how you can protect your family’s future.
My partner and I have been together for 17 years, raising two children, and we recently bought a house together. We’re planning to create a joint will, but the lack of a marriage certificate has us concerned. Our goal is simple: the surviving partner should inherit the other’s assets, and if we both pass away simultaneously, our children should inherit everything. But here’s where it gets tricky—without the legal protections of marriage, the surviving partner could face a significant tax burden.
Our assets are straightforward: a jointly owned house valued at €575,000 and my pension, worth €415,000. We own no other properties. But here’s where it gets controversial: Irish tax law, while evolving to recognize modern family structures, still leaves cohabiting couples at a disadvantage. For instance, married couples can be taxed jointly and inherit unlimited assets tax-free, but cohabiting partners are treated as strangers under the capital acquisitions tax (CAT) code, with a mere €20,000 tax-free allowance.
Now, let’s dive into the specifics. You’ve likely heard of the dwelling house exemption—a clause that allows a surviving partner to inherit the family home tax-free if they’ve lived together for at least three years. But this is the part most people miss: Does the three-year clock start when you began living together, or when you took out the joint mortgage in July 2025? The answer matters, especially since you’ve only recently purchased the home. According to the legislation, if you’ve moved homes, the beneficiary must have lived with the deceased for at least three of the past four years. However, since you were renting before, the three years likely begin when you started living in this property.
Another critical point: the surviving partner cannot own any other property. Fortunately, the law specifies that the beneficiary cannot have an interest in any other dwelling—meaning your jointly owned home shouldn’t disqualify your partner from the exemption, whether you own it as joint tenants or tenants in common. This is a subtle but crucial detail often overlooked.
Now, let’s talk pensions. If I leave my pension to my partner, will they face a massive tax bill? And this is where it gets even more complex: While a court could potentially intervene under Section 194 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, it’s not a guaranteed solution. This section allows a surviving cohabitant to apply for provision from the estate, but it’s at the court’s discretion and depends on their financial circumstances. The upside? Transfers under this section are tax-free. However, it’s a lengthy and uncertain process.
Alternatively, you could leave assets directly to your children, up to €400,000 each. But there’s a catch: your partner wouldn’t directly benefit, and if your children tried to gift the money to them, it would fall under Category B, limiting their tax-free allowance to €40,000.
Here’s the bigger question: In a society where one in seven families cohabitates without marrying, isn’t it time for tax laws to catch up? While this won’t solve your immediate concerns, it’s a conversation worth having. As you draft your wills, consult a lawyer to ensure the dwelling house exemption applies and explore all options to minimize tax exposure.
What do you think? Should cohabiting couples have the same tax protections as married couples? Share your thoughts in the comments—let’s spark a discussion that could shape the future of family law.
If you have similar questions, send them to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or email dominic.coyle@irishtimes.com with a contact phone number. Remember, this column is a reader service and not a substitute for professional advice.
