Losing a partner is a devastating experience, and it can also bring financial changes that may feel overwhelming, especially with everything else going on. But know that you are not alone, and there is plenty of support available to help you manage this transition.
It is also important to note that there are some ways which tax, benefits, and pension might change after your partner’s death, but there are lots of things you can do to help the practical process run smoothly, and some steps you can take gradually to help move things along.
Navigating financial changes after losing a partner can be complex. Make sure to inform the relevant authorities about your situation and seek professional advice if needed. For money-saving tips, sign up to our Money newsletter here.
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Tax and National Insurance
How your tax may change
Your income is likely to change after your partner’s death. If you receive additional income from pensions, benefits, or an inheritance, you might need to pay more tax. On the other hand, if your income decreases, you may owe less tax.
Your personal allowance
The income you don’t pay tax on may also be adjusted based on your new financial situation. You must inform HMRC if you receive interest from bank accounts or investments, income from renting out property, foreign pension payments, carer’s allowance or certain bereavement benefits.
You don’t need to report income that is already taxed through PAYE, private pensions, or non-taxable sources like ISAs.
Notifying HMRC
You can use your next Self Assessment tax return if registered or alternatively you can call HMRC directly for assistance.
Some of the tax allowances you should check include:
•Married couple’s allowance: If your partner was born before 6 April 1935, this allowance stops after the current tax year
•Blind person’s allowance: If your partner claimed this, you can ask HMRC to transfer any unused amount to you for the rest of the tax year
•Reduced national insurance: If you’re a widow and married before April 1977, you might continue paying a lower rate. Contact HMRC for advice
You may qualify for support such as the Funeral Expenses Payment to help with funeral costs if you’re on a low income or the bereavement Support Payment for those whose partner died within the last 21 months.
You may also be entitled to the Widowed Parent’s Allowance if your partner died before April 6, 2017 and you have dependent children. You can call the DWP Bereavement Service at 0800 151 2012 to check eligibility and report the death.
Child Benefit and tax credits
If your partner was the named claimant, you’ll need to make a new claim for Child Benefit and notify the Tax Credit Office about the death within a month. If your income is lower, you might be eligible for additional help such as the winter fuel payment or the cold weather payment for heating costs. You may also be eligible for the warm home discount scheme if you are on a low income.
You can use an online benefits calculator like this one to see what you can claim.
Pension changes
State pension
If you are over State Pension age, you might be entitled to extra payments based on your partner’s National Insurance contributions. What you receive depends on whether you reached State Pension age:
•Before April 6 2016: You can claim a portion of your partner’s State Pension unless you remarry or form a new civil partnership before reaching pension age.
•After April 6 2016: You may inherit additional payments under the new State Pension scheme.
You can contact the pension service to check your entitlement.
Private pensions
You could receive payments from your partner’s workplace or personal pension, depending on their pension scheme. Contact the provider to find out what’s available. Be aware that you may need to pay tax on these payments.
War widow’s or widower’s pension
If your partner’s death was due to Armed Forces service or a war, you might qualify for this pension.