Insolvency Indemnity Insurance

markalanious

Hello

I have just moved into my new house (my first), and after a few days received a letter from my solicitor saying that because my father gifted part of my deposit that I would need to take out Insolvency Indemnity insurance. It's not expensive at just over £50, but I'm a little annoyed that I wasn't told about this previously.

I have tried to get a quote for this insurance but looking online can't find anything or anywhere to get it.

Does anyone have any experience or knowledge of this that can help me before i give up and pay the man.

kingstreet

It may be a product only distributed by solicitors. I've never seen it available elsewhere.

Yorkie1

I wasn't asked to get this when my parents gifted me part of my deposit 2 years ago.

DVardysShadow

It all depends which hat your solicitor is wearing when telling you to take out this insurance. If he is telling you as your solicitor, then he is recommending and you are free to ignore. If he is writing as the Lender's solicitor, then he is insisting and you need to work very hard to overturn the requirement, to the point that it is not worth bothering.

His letter should make it clear in what capacity he is writing

Thrugelmir

Falls under the Insolvency Act.

When a parent gifts money to a child. If the parent then becomes insolvent in the next 7 years then the gift is considered part of the parent's estate.

So will depend on the amount gifted and the financial position of your parents. As to whether you consider this an issue. Along with IHT and depraviation of assets that need to be considered depending upon your parents ages.

A monetary gift is not as straight forward as many imagine.