Proof of funds for Solicitors

Richard_Webster

Solicitors need to see a) you have the money and b) where it came from.

a) is generally easy to satisfy with up to date bank/BS statements.

b) is more difficult and depends on the circumstances. A letter from a solicitor about a legacy from an estate or the proceeds of the sale of property you owned would suffice. A letter from an insurance company about the maturity of an endowment policy or a lump sum payment related to a personal pension would do.

The common problem is showing savings over a long period. Seeing bank statements over a period should show a consistent level of income and money being effectively set aside so that the total amount grows over time. It has to be believable. If you say you have saved £25,000 over 4 years then over the past year, then the balances on your combined accounts would have increased by around £6,000 in the past year. If they didn't then there must have been a lump sum put in somewhere. If that hasn't otherwise been explained as in the examples above, then I would want to see bank statements going back further to show how you managed to save the amount in question.

Moving money into one account doesn't really help because we would still need to see where it had come from and you just make the trail more complicated.

All this may seem over the top, but at the end of the day a solicitor has to be reasonably satisfied that none of the money in the account has been obtained illegally.

brenda10

Richard_Webster wrote: »

Solicitors need to see a) you have the money and b) where it came from.

a) is generally easy to satisfy with up to date bank/BS statements.

b) is more difficult and depends on the circumstances. A letter from a solicitor about a legacy from an estate or the proceeds of the sale of property you owned would suffice. A letter from an insurance company about the maturity of an endowment policy or a lump sum payment related to a personal pension would do.

The common problem is showing savings over a long period. Seeing bank statements over a period should show a consistent level of income and money being effectively set aside so that the total amount grows over time. It has to be believable. If you say you have saved £25,000 over 4 years then over the past year, then the balances on your combined accounts would have increased by around £6,000 in the past year. If they didn't then there must have been a lump sum put in somewhere. If that hasn't otherwise been explained as in the examples above, then I would want to see bank statements going back further to show how you managed to save the amount in question.

Moving money into one account doesn't really help because we would still need to see where it had come from and you just make the trail more complicated.

All this may seem over the top, but at the end of the day a solicitor has to be reasonably satisfied that none of the money in the account has been obtained illegally.

My daughter is taking out a 75% mortgage, the 25% has been given to her over some years in small amounts from my bank account and adds up to 15k with most recent 5k for b'day jan & 2k few days ago, I have to fill in a gifted form to say other monies will be given by me to her, question is , is the other 2 latest monies ok as only in recently in her account transferred from my account?
She has had accounts with this building soc for a year with Isas for 6 months and one for nearly a year now, would I be better transferring her money out of accounts and into mine and then sending whole amount to her bank account, part of this money was from husbands retirement last year, do I need to show evidence of this?
1. should she transfer all monies out of her 2nd savings bank acc to mine that has only been put in short time ago by me, ie 3-4 months ago and then she keep isas in that 2nd account account until she needs the money to transfer the 2 isas over to her main current acc
2. Will I then transfer my monies to her main current account as all money needs to be in one account
3. I don't want any hiccups, please advise best way, don't want xtra stress
4. I have always tried to help my only child financially so is there a problem with that.
5. stressfull time, any advice is v welcome. THANKS.