Marriage – is it just a piece of paper?

Back in the 1970s, 70% of adults in the UK were married. Today, that figure has fallen dramatically to only 40%.

Many reasons account for this trend, and plenty of people might describe the fall in marriage rates as a good thing. So, is the natural conclusion that being unmarried is now the way to go?

I couldn't possibly answer that question. Despite being a happily married man for almost 30 years, I still wouldn't tell anyone else how to live their lives.

But I can refute the claim that marriage is only a piece of paper when it comes to inheritance tax.

Inheritance tax remains the most unpopular tax in the UK, but married couples have significant advantages over cohabiting couples when the tax authorities review their estates.

Couples who have entered into a marriage or civil partnership can transfer any unused nil rate band on inheritance tax to their surviving spouse. However, unmarried couples have no such right to save on tax in this way.

Unmarried couples could find themselves paying a six-figure inheritance tax bill from their estates when their married neighbours or friends might pay nothing at all.

The rules are complex and it would be wrong for anyone to get married solely to avoid tax. Nevertheless, the fact remains that the tax rules can seem unfair and people should know how these rules can affect them personally.

I don't tell people what to do. That's not my job.

Undoubtedly, how various circumstances might impact the money you ultimately leave to your loved ones is very important to most of us.

Due to the current rules, my wife and I can leave up to £1m - tax-free - when we die.

Neither of us considered this back in 1996, but you can bet your life we keep ourselves updated on the rules three decades on.

I recommend that you do too, and we can help with that.