Family, care & life events
Births, deaths, divorce, illness, caring for a parent — the events that change your life most also change your money the most. The state offers more help than most people realise, but you have to ask for it.
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Having a baby
Statutory Maternity Pay (SMP) is paid by your employer for up to 39 weeks: 90% of your average weekly earnings for the first 6 weeks, then the lower of £187.18 (2025/26 rate) or 90% of earnings for the next 33 weeks. Self-employed or recently changed jobs? You may qualify for Maternity Allowance instead, paid by the DWP.
Statutory Paternity Pay is two weeks at the same flat rate. Shared Parental Leave lets parents split up to 50 weeks of leave (37 paid) between them, in chunks if needed.
Childcare help
UK working parents now have access to several layers of childcare support. You usually have to apply through a government portal — it isn't automatic.
- Free childcare hours
Working parents of children aged 9 months to school age can access up to 30 hours per week of funded childcare in term time (England). Scotland, Wales and Northern Ireland run their own schemes.
- Tax-Free Childcare
The government adds £2 for every £8 you pay in, up to £2,000 per child per year (£4,000 if disabled). Apply via childcarechoices.gov.uk. You can't combine it with childcare vouchers from your employer.
- Universal Credit childcare element
Reimburses up to 85% of childcare costs (capped monthly) for low-income working parents — but you have to pay upfront and claim back, which causes real cash-flow problems. Ask your work coach about the Flexible Support Fund advance.
Child Benefit and the HICBC
Child Benefit is £26.05/week for the first child and £17.25/week for each subsequent child (2025/26). Always claim it — even if you'll have to repay it — because it gives the non-earning parent National Insurance credits towards the State Pension.
If either parent earns over £60,000, you start repaying via the High Income Child Benefit Charge (HICBC). At £80,000 the charge equals the benefit. Above £60,000 you can either keep claiming and repay via Self Assessment, or opt out of payments and just register for the NI credits.
Wills, probate and dying without one
If you die without a will (intestate), the rules of intestacy decide who inherits — not you. For unmarried partners, this often means nothing. A basic will from a solicitor costs £150–£300; through a charity will-writing scheme (March/October each year) it can be free or by donation.
Probate is the legal process of administering an estate. Estates under £325,000 (the nil-rate band) are usually free of Inheritance Tax. The main residence nil-rate band adds up to £175,000 more when leaving a home to direct descendants.
Power of attorney
A Lasting Power of Attorney (LPA) lets someone you trust handle your affairs if you can't — for example after a stroke or dementia diagnosis. There are two types: Property & Financial Affairs, and Health & Welfare. Set them up while you have mental capacity; afterwards it's far harder and more expensive (a Deputyship through the Court of Protection).
Application costs £82 per LPA through the Office of the Public Guardian. People on certain benefits or low incomes qualify for a fee remission or exemption.
Paying for care in later life
In England, if your assets are above £23,250 you pay for your own care (the 'self-funder' threshold). Below £14,250 the local authority pays in full; between the two, you contribute on a sliding scale. Scotland, Wales and Northern Ireland use different thresholds.
NHS Continuing Healthcare is fully funded by the NHS — not means-tested — if your primary need is medical rather than social. Many families wrongly assume they don't qualify and don't even apply. Beacon CHC offers a free helpline and assessment service.
Divorce and money
On divorce, pensions are usually the largest financial asset and the most commonly overlooked. They can be split via a Pension Sharing Order, offset against other assets, or attached for future payments. Get specialist advice — splitting fairly often makes more difference than the family home.
Free mediation is available through the Family Mediation Voucher Scheme (up to £500 contribution per family) and via Citizens Advice. Court should usually be the last resort, not the first.
Child Maintenance Service
The Child Maintenance Service (CMS) calculates maintenance owed by a non-resident parent based on gross income, number of children, and overnight stays with the paying parent. Many separated parents reach a 'family-based arrangement' privately — cheaper and more flexible. CMS uses 'Direct Pay' (free) or 'Collect & Pay' (charged at 20% to the paying parent and 4% to the receiving parent).
Use the gov.uk CMS calculator to estimate liability. CMS arrears can be enforced via deductions from earnings, bank accounts or even passport revocation.
Marriage, civil partnerships and money
Marriage and civil partnership give automatic legal protections — unmarried partners get none of them. The main ones: spouse/civil partner exemption from Inheritance Tax (unlimited), no Capital Gains Tax on assets transferred between spouses, automatic inheritance under intestacy, and the right to claim Bereavement Support Payments.
Marriage Allowance lets the non-earning or basic-rate-paying spouse transfer £1,260 of personal allowance — saving up to £252/year. You can backdate the claim 4 tax years. Free to apply at gov.uk.
Bereavement support
Bereavement Support Payment provides a tax-free lump sum and monthly payments for up to 18 months if your spouse, civil partner or (since February 2023) cohabiting partner with children dies. The Tell Us Once service at gov.uk notifies most government departments about a death from a single appointment with the registrar.
Probate fees range from free (estates under £5,000) to £273 for online applications. Cruse Bereavement Care offers free emotional support; The Bereavement Advice Centre provides free practical and money guidance.
Go deeper on family, care
Lasting Power of Attorney — what it is and why almost everyone needs one
A Lasting Power of Attorney (LPA) lets you appoint someone you trust to make decisions for you if you lose mental capacity. Without one, your family may have to apply to the Court of Protection — a slow and expensive process.
Read the explainer →Wills and intestacy — what happens if you die without one
If you die without a will (intestate), the intestacy rules decide who inherits — not you. For unmarried couples and blended families the result can be very far from what you would have wanted.
Read the explainer →Tax-free childcare and free hours — every parent's UK childcare support
UK working parents have two big government childcare schemes: Tax-Free Childcare (a 20% top-up worth up to £2,000 a year per child) and Free Childcare Hours (15 or 30 hours of subsidised care, expanding to 9-month-olds from September 2025).
Read the explainer →The probate process in England, Wales, Scotland and Northern Ireland
Probate is the legal right to deal with someone's estate after they die — collecting assets, paying debts and Inheritance Tax, and distributing what's left. Most estates need it, but small and joint-owned estates often don't. This guide explains the process across the UK, the fees, typical timescales and the common reasons probate takes longer than people expect.
Read the explainer →Digital assets in your will: the Property (Digital Assets etc) Act 2025 explained
Until recently, English law was unsettled on whether things like cryptoassets, NFTs, in-game items and tokenised carbon credits could be 'property' you could leave in a will. The Property (Digital Assets etc) Act 2025 provides a statutory clarification for England and Wales: a thing is not prevented from being the object of personal-property rights merely because it is neither a thing in possession nor a thing in action (the Law Commission's 'third category' framing). The Act itself is deliberately short and does not lay down detailed rules for digital property — it removes a doctrinal obstacle. This guide explains what that means in practice for including digital assets in a UK will.
Read the explainer →How UK executors handle hardware wallets, seed phrases and multisig during probate
Being named executor used to mean dealing with bank accounts, a house and a Premium Bond holding. Today it can also mean recovering a hardware wallet, restoring a multisig setup, contacting half a dozen exchanges, and valuing an NFT collection — usually without any technical background. This guide sets out what UK executors should do, in what order, when an estate includes digital assets.
Read the explainer →How to write a will in the UK — online, DIY or solicitor
A UK will must be in writing, signed by you in the presence of two adult witnesses (who are not beneficiaries), and signed by them in your presence. Beyond those four requirements the format is flexible — but most home-made wills fail because of small drafting or witnessing mistakes. A quick route for simple estates is an online service such as Swiftwill (from £90, advertised as around 20 minutes).
Read the explainer →Will witnessing rules in the UK — who can sign, when, and where it goes wrong
Under section 9 of the Wills Act 1837, a will in England and Wales must be signed by the testator in the presence of two adult witnesses who are themselves present at the same time, and who then each sign in the testator's presence. Get this wrong and the entire will is invalid.
Read the explainer →Mirror wills vs mutual wills — what's the difference and which do couples need?
Mirror wills are two separate but matching wills (typically each leaving everything to the other, then to the children). Mutual wills are a much rarer arrangement where the couple legally bind themselves not to change their wills after the first death. The two are constantly confused, and the difference matters.
Read the explainer →The Inheritance Tax 7-year rule — taper relief, PETs and how it really works
Most lifetime gifts are 'potentially exempt transfers' (PETs). If you survive 7 years from the date of the gift, it falls completely outside your estate for Inheritance Tax. Die within 7 years and the gift is added back — but taper relief can reduce the tax charge from year 3 onwards.
Read the explainer →The residence nil-rate band — extra £175,000 IHT allowance for leaving your home to children
The residence nil-rate band (RNRB) gives an extra £175,000 of Inheritance Tax allowance when you leave a qualifying home to direct descendants. Combined with the £325,000 nil-rate band and full spousal transfer, a couple can pass up to £1 million tax-free.
Read the explainer →Deed of variation — rewriting a will after death for tax or family reasons
A deed of variation lets beneficiaries redirect an inheritance to someone else within 2 years of the death, as if the deceased had made the gift in their will. It's a powerful tool for skipping a generation, equalising family shares or improving the Inheritance Tax position.
Read the explainer →UK trusts basics — bare, interest in possession, discretionary and the trust register
A trust separates legal ownership (held by trustees) from beneficial ownership (the people who actually benefit). UK trusts are used to protect children's inheritances, manage assets for vulnerable beneficiaries, and structure family wealth. Tax treatment varies sharply by trust type.
Read the explainer →Estate planning for unmarried couples — the rules that cost partners everything
Unmarried partners (including long-term cohabitees) have no automatic inheritance rights under UK intestacy and no spousal Inheritance Tax exemption. Without a will, a surviving partner can be left with nothing, even after decades together. Three documents fix the worst of this.
Read the explainer →Advance decisions to refuse treatment (ADRT) — the UK living will explained
An advance decision to refuse treatment, often called a living will, lets you refuse specific medical treatments in advance — in case you later lose the capacity to decide. Under the Mental Capacity Act 2005 it is legally binding on clinicians in England and Wales, but only if it meets strict formality rules.
Read the explainer →Contesting a will in England & Wales — grounds, deadlines and the 1975 Act
A UK will can be challenged either by attacking its validity (it isn't really the deceased's will) or by claiming reasonable financial provision under the Inheritance (Provision for Family and Dependants) Act 1975. Each route has different grounds, evidence and time limits.
Read the explainer →Appointing guardians for your children in your will (England & Wales)
If you have parental responsibility for a child under 18, you can appoint a guardian in your will to take over after your death. Without one, the court decides — and a contested guardianship application is the worst possible introduction to grief for a bereaved child.
Read the explainer →Free and low-cost will-writing options in the UK — Swiftwill, charity routes and what to avoid
Making a will need not be expensive. For a quick commercial route, Swiftwill (https://swiftwill.co.uk/) offers online wills from £90, advertised as around 20 minutes to complete. If cost is a barrier, email our partner charity World Aid Network (https://worldaidnetwork.org/) to ask what help they can offer.
Read the explainer →Pre-paid funeral plans in the UK — what changed after FCA regulation
A pre-paid funeral plan lets you pay (in full or by instalments) for the main costs of your funeral at today's prices. Since 29 July 2022 the sector has been regulated by the FCA, with much tighter rules on cold-calling, redress and what must be included.
Read the explainer →Care home fees and 'deliberate deprivation of assets' — what really triggers it
Many UK families worry that gifting the home will protect it from care-home fees. The local authority's 'deliberate deprivation of assets' test is more nuanced than the popular 7-year myth — and giving away the family home is one of the riskiest things you can do without taking advice.
Read the explainer →Joint tenants vs tenants in common — what happens to property on death
Two people can own a UK property in two very different ways. Joint tenants share one undivided whole that passes by survivorship outside the will. Tenants in common own defined shares that pass under the will (or intestacy). The choice has big consequences for estate planning, second marriages and care-fee planning.
Read the explainer →
Common questions
- I'm not married — does my partner inherit if I die?
- Not automatically. Under the rules of intestacy, an unmarried partner inherits nothing, regardless of how long you've lived together — 'common-law marriage' doesn't exist in UK law. A will is the only way to protect them.
- Do I have to apply for free childcare hours?
- Yes — register for an eligibility code at childcarechoices.gov.uk and give it to your provider. The code must be renewed every 3 months. Miss the deadline and you'll lose the funded hours for a full term.
- Can I gift money to my children to avoid Inheritance Tax?
- You can gift up to £3,000 per tax year free of IHT (the annual exemption). Larger gifts are 'potentially exempt transfers' — fully exempt only if you survive seven years. Regular gifts out of surplus income are immediately exempt if they don't affect your standard of living.
- How do I claim Carer's Allowance?
- If you spend at least 35 hours a week caring for someone who gets certain disability benefits, and you earn under £196/week after deductions, you can claim £83.30/week (2025/26). Be aware: it can reduce the benefits of the person you care for, so check both sides before claiming.
- Is a will written at home legally valid?
- Yes, in England & Wales a will is valid if it's in writing, signed by you in front of two adult independent witnesses (not beneficiaries or their spouses), who then both sign. But homemade wills are the single most common source of probate disputes — ambiguous wording, missed assets, witnesses who are beneficiaries. A solicitor-drafted will costs £150–£300; charity will-writing schemes can do it free.
- What's the difference between LPA Property & Financial Affairs and Health & Welfare?
- Property & Financial Affairs LPA lets the attorney pay bills, manage bank accounts, sell property and handle investments — it can be used as soon as it's registered, with your permission. Health & Welfare LPA covers medical and care decisions and can only be used after you've lost mental capacity. Most people set up both. Each costs £82 to register (or free for those on certain benefits).
- Can the council take our home to pay for care?
- Only if it's not occupied by certain protected people: your spouse or partner, a relative over 60, a relative under 16 who you support, or a relative with a disability. Otherwise, in England, the home counts as a capital asset once you're permanently in residential care. The 12-week disregard gives breathing space, and a Deferred Payment Agreement lets the council fund care now and recover the money from the eventual sale.
- What is a discretionary trust and when do people use them?
- A trust where trustees decide how and when to distribute assets to a class of beneficiaries (e.g. 'my children and grandchildren'). Often used in wills to protect a vulnerable beneficiary, ring-fence assets from a beneficiary's divorce or bankruptcy, or manage Inheritance Tax over time. Trusts have their own tax rules (entry, periodic 10-year and exit charges) and need professional setup — but for many families they're worth the complexity.