Can i bank this large sum of money without a catch ?

polymaff

Keep_pedalling wrote: »

The issue of the cheque is the minor one here, the thing that needs sorting out is getting the gifting sorted out correctly. What was said to the bank was a lie, in reality it was a loan. As an executor all I would want in the real world is a record of the gift, and to be able to cross reference that to a bank statement.

All our substantial gifts (and loans) over the past seven years are kept on a spreadsheet with a paper copy kept with our wills, and that is all the OPs parents need to do. I don't recommend the OP gets his sister to gift him the money as that would put his £175k onto both his parents and sisters estates for 7 years.

They should convert half the loan into a gift, and call in the other half and gift it to you separately. After that they should take some professional advice on estate planning. With all those assets between you, you should all have wills and LPAs in place.

Or even just repay the entire loan to the parents and then let them gift what they will. That should give a very clean record of the whole series of transactions.

Keep_pedalling

polymaff wrote: »

Or even just repay the entire loan to the parents and then let them gift what they will. That should give a very clean record of the whole series of stand-alone transactions.

The only snag with that is if the money was originally given to the sister some time ago, the the 7 year clock will need to start again. Provided bank statements show the whole £350K going out and half coming back from the recipient, it should be fine.

alternate

jonesMUFCforever wrote: »

The questions will be asked by the receiving bank not the bank who the cheque is written on.

Questions relating to money laundering and the source of funds, maybe, but banks do - and have in my experience - called to verify that I had indeed written a large cheque - for fraud prevention.