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Gifting deposit money
pkonline
Posts: 29 Forumite
Hi
Wondered if I could seek advice.
My sister is buying a property and I am gifting her approx £10k for the deposit. Her solicitor has asked me, even though I have done a "gift letter" to also swear and sign a "declaration of solvency" and also arranged insurance. I presume to ensure if something happens to me it won't get chased to the house.
Happy to do it if needed, but wondered if essential or necessary especially as it will cost !
Wondered if I could seek advice.
My sister is buying a property and I am gifting her approx £10k for the deposit. Her solicitor has asked me, even though I have done a "gift letter" to also swear and sign a "declaration of solvency" and also arranged insurance. I presume to ensure if something happens to me it won't get chased to the house.
Happy to do it if needed, but wondered if essential or necessary especially as it will cost !
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Comments
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Read the Insolvency Act 1985. The answer is in there.0
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Since I suspect you may not have time to read the Insolvency Act I will try to help you.
If you gift the funds and later die or become bankrupt it can prove a problem for your sister as creditor on your estate may have claim against such a gift.
It is being increasingly common for solicitors to suggest that insurance is put in place to protect against this eventuality.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Seems onerous for £10k to me. I've down a few gifted deposits running into hundreds of thousands and never been asked for anything more than the standard letter.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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This gift indemnity insurance is becoming increasingly common practice.
If the solicitors (or occasionally the lender) insist on it you do not have much option other than to comply.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for help and explanations amnblog and tvfreek :T0
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