A focus on Discrimination

Introduction

In this section we will focuses in more depth upon the four main areas of discrimination typical to gay people.  

1. Wills
2. Life Assurance
3. Pensions
4. Inheritance Tax

Bear in mind that this is not an exhaustive list, call one of our advisors to discuss the effects specific to your situation.

Call us now freephone on 0800 074 6918

1.  Gay wills advice

The UK's Civil Partnerships Bill proposes to make changes to rules governing wills for gay couples. However, under the present rules, gay men and women still face discrimination.

• If you do not complete an official Will your partner may have no-rights to your estate.
• If you do not complete an official Will your estate will pass directly to your family. 
• If you do not complete an official Will and have no family your estate goes to the State!
• Married couples have automatic rights to each others' estates upon death, regardless of habitation status at the time.

An official, witnessed Will is one of the most important documents you will ever sign, the impact of not completing one is not felt by you, but by those loved ones you leave behind.

Unlike married couples, same sex partners are given no automatic rights following their partners' death. Can you imagine having to deal with the loss of your partner and at the same time having to fight to keep the house you live in? Without a will, this could happen.

If you own a property with your partner there are a number of issues you should be aware of in relation to your WILL.

At the time you purchased the property your Solicitor should have advised you to own the property as joint tenants or tenants in common. Most times, solicitors will assume or at least advice that same sex partners should own their property and reside as 'tenants in common ',  In this situation, when one partner dies their complete share will only pass to the person named in their WILL . 

If they do not have a will, it will pass firstly to their parents and then to brothers and sisters, aunts, uncles, cousins, etc though this list goes on quite extensively at no point does it  include a same sex partner.

If you do not make adequate legal provision for your partner in your WILL for after your death they can still apply to the courts for help. However, this can be an expensive legal battle, it can also be a difficult case to win.  Within the law you or your partner have to clearly show to the court that you were dependant upon the deceased.  If you both earned similar amounts and contributed to the expense equally then  it can be difficult to prove dependency and the claim could fail.

There are many ways that both you and your partner can be protected by making a WILL.

Call us to help you get your affairs in order.  Call us now freephone on 0800 074 6918

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2.  Discrimination in Life Assurance Products

When Harry and Pete secured the mortgage they needed to buy their dream home together, they were well advised to also purchase life and critical illness insurance to protect both the mortgage and each other in case one of them died, or suffered a serious illness, before the complete mortgage was repaid. 

They were given an application form for a well-advertised Life Assurance company and as such with the confidence in the credentials, they applied for a joint policy to cover them for the term of the mortgage. The initial quote given seemed good value at just £87 a month.

Upon receiving the application, the life company sent out to each of them 'lifestyle' questionnaire, which asked if they were gay and if so had they recently had an HIV test. Being honest people, all questions were answered truthfully and to the best of their ability.  They were also asked if they would submit to a further HIV test (both tested negative) before the assurance products were in place.  At this point, the mortgage had been secured successfully and the home was completed on.  Both concerned that they had no insurance on this loan they made numerous attempts to contact the Life Assurance company for confirmations.

Eventually, they received correspondence notifying them that the application was successful subject to an additional premium of £75 a month. The policy had been 'loaded' for no other reason than their sexuality. Insurance that would have normally cost a heterosexual couple £87 a month was going to cost Harry and Pete £162 per month.

If you find yourself in a similar situation, Call us now freephone on 0800 074 6918 to find out how InsolvencyHelpline.co.uk can assist in advising and securing UNBIAS financial products for you and your partner.

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3.  Gay Discrimination in Pensions

EXAMPLE OF HOW WE CAN HELP...!

Keith had worked for his father at the same company since leaving school at 16 but after a change in lifestyle decided also on a change in career.  He left the company aged 47 to work as a freelance graphic designer . This meant that he had to give up his company pension scheme. At age 49, Keith was diagnosed with a critical illness, with obvious concern about not just his finances but also that of his partner, he contacted InsolvencyHelpline.co.uk.

A full analytical review of Keith's situation highlighted that should Keith die before reaching 60 years of age, the only return available for his partner Richard under his occupational pension scheme was a return of his contributions. Had the pension scheme recognized Richard he would have received a pension for life of £9500 upon Keith's death.

InsolvencyHelpline.co.uk advised Keith to request a transfer value from the scheme. This he did and discovered that while the transfer value was significant, the return on death was only meager. InsolvencyHelpline.co.uk advised Keith to transfer his complete pension to a stakeholder pension. The net result of this immediately increased the death return for Richard close to the true value. 

InsolvencyHelpline.co.uk also advised Keith on further financial investment and reinvestment in order to secure the greatest return and lowest tax liability for Richard upon his death.

Find out how we can re-organise your finances to help you 0800 074 6918

Call us now freephone on 0800 074 6918

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4.  Gay Discrimination in Inheritance Tax

Michael came to this country as a European refugee in the 1930's. Lifestyles and cost of living were very different back then. In those days it was illegal to be homosexual and gay men had to be very careful to remain secure and safe in society. When Michael met Elliot on a charity fundraising committee in North London, they both knew instantly who they wanted to spend the rest of their lives with.  An almost fairy tale scenario (if you excuse the pun).  For many years they lived happily. Elliot was an artist and used his creative talent to decorate and furnish their home.

After over 45 years together, Elliot died. Michael was obviously devastated. Their solicitor informed him that there would be a significant inheritance tax bill in the offing. Elliot had left everything to Michael but the main asset in the estate was their home. Michael would be unable to pay the tax bill without selling their home. As such he sold the house and, reluctantly. If he and Elliot had been a straight married couple, this situation would not of happened.

Call us to see if the InsolvencyHelpline.co.uk can help you avoid such a distressful situation.

Call us now freephone on 0800 074 6918

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Please Note:

The information on this page is based on that provided by www.gayfinance.info - independent financial advisers serving the UK 's gay and lesbian community for over 10 years.   Gayfinance.info do not offer debt or insolvency advice but are specialists in providing personal financial advice on life insurance, pensions, investments and tax.

For further information visit the www.gayfinance.info website or call on 08000 1960 69.