James Boa and Nikki Kopelman made a decision early in their relationship: they didn’t want to have children. Boa, who comes from a family that owns an IT business, says, “It’s not that I don’t like children. I get along very well with my nieces and nephews, but I just don’t want children of my own.” The couple identifies as Dinks, meaning they both work and have no kids. This term dates back to the 1980s in New York and has spawned variations like ‘sink’ for singles with no kids, ‘dinkwak’ for child-free couples with a cat, and ‘dinkwad’ for those with a dog. On social media, Dinks often share their travel experiences, sparkling clean homes, and lazy weekend mornings.
It’s a lifestyle that many parents might find enviable. However, when it comes to inheritance matters, those who remain child-free face challenges due to a tax system that prioritizes direct descendants. Upon death, the first £325,000 of an estate is exempt from inheritance tax. Yet, if the primary residence is passed on to direct descendants—like children or grandchildren—a further exemption of £175,000 applies. Spouses or civil partners benefit from a complete tax exemption. Unfortunately, this doesn’t extend to unmarried partners, despite cohabiting or raising a family together.
Nikki, 37, and James, 42, hope to bequeath their estate to extended family members like nieces, nephews, and sisters. However, they won’t get the additional £175,000 allowance for their primary residence because they don’t have children. “Why can’t we choose someone to inherit without notifying the kids?” Kopelman, a translator, wonders. The couple has owned a bungalow in Surrey for eight years. Boa comments, “We’re not wealthy, but we’re doing fine.”
A survey conducted by Killick & Company, which involved 1,501 childless people over 40, found that about 61% lacked a will, and 86% hadn’t arranged for a durable power of attorney—someone who could manage finances if they become incapable. Interestingly, roughly 18% of respondents claimed that not having kids made preparing these key documents seem pointless.
Living together without marriage leaves couples with limited rights regarding each other’s finances and assets. Dinks in such situations must arrange their estate planning carefully to secure inheritance for their partners. Unmarried couples can either be joint tenants (sharing ownership of the entire property) or tenants in common (owning separate shares). In the latter scenario, if one partner dies, the other won’t automatically inherit unless specified in a will.
The duo plans to draft a will next year, especially after Kopelman recently felt the impact of a relative’s sudden death. They know couples who have married just to navigate inheritance taxes. Both feel it’s crucial for Dinks to focus on estate planning.
A proposal to amend the 1984 Inheritance Act was introduced to the House of Lords in 2022. If successful, this change would exempt property transfers between siblings from inheritance tax in certain circumstances. Unfortunately, it did not pass its initial reading.
Britain’s fertility rate is declining, now sitting at a record low of 1.41 children per woman. This could become a more pressing matter as more people remain childless and without heirs to pass down wealth or property.
“I thought he would change his mind, but he didn’t.”
Recent data from the Office for National Statistics shows that nearly 18% of families in the UK—about 3.5 million people—are cohabiting couples. Regarding Millennials aged 35 to 41, a third surveyed expressed certainty about not wanting children, while 20% said they probably wouldn’t have them.
In her early thirties, Lizzie Cernick, now 41, found herself seeking partners who also didn’t want kids after separating from her first partner. “I never really wanted children,” Cernick recalls. “When my first friends began having kids around the age of 28, I thought, ‘Too bad I got pregnant as a teenager.'” Yet, she admits she thought she might change her mind someday, as many people say one does.
Ultimately, she didn’t, and now she’s happily living in London with her boyfriend, Bart Verweist, a PR manager, with whom she’s been in a relationship for five years. They’re currently saving to buy a house together. “We don’t have a will, which is something we’ve discussed,” she points out. “It feels important, but with everything going on—especially the cost of living crisis—it can be overwhelming to think about. Once we have our home, we’ll definitely ensure we legally share ownership.”
They’re also contemplating setting aside some money for Cernick’s brothers and godson. “When you become a parent, priorities shift dramatically; you’re constantly conditioned to protect them. But without kids, that transition isn’t nearly as immediate,” she adds.
“I’ll leave the money with a local cat rescue group.”
Mark Hooper, 47, hasn’t made a will yet, but he knows how he wants to handle his finances. He bought his first apartment in the early 2000s and now lives in a house he co-owns with his partner Karen. He’s inclined to leave most of his assets to her, along with some to a local cat rescue group where he hopes to adopt a cat. So far, he hasn’t felt a pressing need to formalize any of this in writing.
“Life is just fine as it is, you know? But I do want to support local charities and ensure my money stays in the community,” Hooper, a Gloucester resident, explains.
If someone donates over 10% of their taxable estate to charity or an amateur sports club, the estate tax rate can drop from 40% to 36%. The beneficiary is still entitled to the full amount, while the tax burden lessens.
Will Stevens, head of wealth planning at Killick & Company, noted, “Having children is no longer the standard, and many are opting not to have kids, whether by choice or circumstance. This puts us in a unique position where inheritance plans can’t follow the traditional route involving children. As a result, many individuals may hold considerable assets without a concrete strategy for transferring them.”
