Gift from Grandparents - need to declare?

hedgeflapjacks

Hi,

My Grandparents are going to give me a cash gift of £10,000. I am not going to use it immediately, but put it into savings. Eventually it'll make up part of a property deposit, maybe in a few years time. My question is, do they, or I need to declare this gift? And if so, can I fill out some forms myself or do I have to go through a Solicitor?

Thanks!

Wh05apk

If in a couple of years time, then there should be no issue, if in the next few months, it is likely the lender would just need a gifted deposit letter from them at the time of application.

cevans65

Hi there, this is exactly what happened to me. Granddad gave me 10k gift for deposit. The bank asked where the money came from when we deposited into account, which we had set up for the money/ deposit, and all they asked for was a letter from him to say it was a gift and not a loan that we had to pay back, thus extra outgoing expenditure. The only other thing to think about and more importantly is to ask your grand parents about the tax implications their end as cash gifts to parents/ grand kids have inheritance tax implications. (to get round this my granddad withdrew the money over a few months so no 'paper' transfer trail and the mortgage women said the letter was never used beyond her eyes)

CLAPTON

there is no problem with your gift and no tax payable by you

when you apply for a mortgage, they may ask where the deposit money came from; you can deal with that at the time

any IHT implications will be for the executors of your grandparents' will to sort out should they not survive for 7 years.