** Funds Messed UP **

difficultguy

How to delete a thread?

Hammath

The bank and solicitor have to confirm the source of the money for money laundering purposes. So if it's transferred to you and then used straight away for a purchase then you'll have to show it was tours and not a gift. Not sure if this could even be done by maybe showing the transferred to your brother?

However if the money is in your savings account for 3 months or more you don't have to how were it came from, so maybe best to transfer it sooner rather than closer to the purchase?

Someone may correct me...

G_M

One has to ask:why have you been using your brother's accounts? Maybe to avoid tax?


Bottom line is, depending on what you and bro agreed, that money could well be his now. Is he willing to give it back?


Assuming he is in agreement that this was a loan from you to him, and he's now willing to repay the loan, surely a bank transfer back to your account is the easiest repayment method? He could use cash of course- how much are we talking about?


Why wouldyou 'have to' put his nameon the property Title, unless you want to, or unless he claims the money is his and he'll only allow it to be used for a house purchase if it's a joint purchase.

davidmcn

If it's a cash purchase then at least you don't need to satisfy a lender about it - but you'll need enough evidence about the source of funds to satisfy your solicitor, which means ID and bank statements for your brother as well as you. As above, this assumes brother is happy to give you the money back!

Lungboy

G_M wrote: »

One has to ask:why have you been using your brother's accounts? Maybe to avoid tax?

My first thought was means tested benefits.

Would a simple letter from the brother stating the money was always the OP's and he's just returning it be ok?

difficultguy

G_M wrote: »

One has to ask:why have you been using your brother's accounts? Maybe to avoid tax?


Bottom line is, depending on what you and bro agreed, that money could well be his now. Is he willing to give it back?


Assuming he is in agreement that this was a loan from you to him, and he's now willing to repay the loan, surely a bank transfer back to your account is the easiest repayment method? He could use cash of course- how much are we talking about?


Why wouldyou 'have to' put his nameon the property Title, unless you want to, or unless he claims the money is his and he'll only allow it to be used for a house purchase if it's a joint purchase.

Thanks for your reply.
Its all legi money. I just managed to save through my job in UK. I am terrible with money. That's I slowly start transferring into my brother's saving account.

difficultguy

davidmcn wrote: »

If it's a cash purchase then at least you don't need to satisfy a lender about it - but you'll need enough evidence about the source of funds to satisfy your solicitor, which means ID and bank statements for your brother as well as you. As above, this assumes brother is happy to give you the money back!

Since everything is legitimate

difficultguy

I dont want to risk my investment.

hazyjo

difficultguy wrote: »

I want to clarify that I and my brother both work full times. This money was my from wage and transferred into my brother's saving account over period of 5 years. Its around £50k + 30k my own saving AC

I just have been redundant from my job. I am looking to invest my money in property. Otherwise it is loosing its value in bank accounts.


I have recently got some issues with my partner. I dont want to risk my investment.

What sort of area? Only £80k doesn't get you very much so I'm not sure why you think property would be the best way to invest that money. There are lots of other options rather than letting it sit in a bank account.


Do you have a job lined up? Might you actually need that money to live on? (PS Actually, just re-read your last post and not sure if you are now redundant or if you're still working full time? Was it redundancy money from a while ago?)

Cynical_Monkey

I'm calling dodgy on this one difficultguy.

In 2012, you wanted to know if you could buy a property in either your Neice or mum's name to prevent it being part of any potential divorce settlement in the future.

In 2014, you said "I bought a detached broken property which I fully renovated it and I am moving into my house"

This sounds to me that you bought a property, renovated it, sold it and then didn't have any capital gains tax to pay because there was no profit, i.e you "repayed a loan" to your brother.

I may be mis-judging massively but the tone of this thread combined with the "hiding" of 50k so that it isn't in your name seems very very dodgy.

For example, you says you're terrible with money and therefore saved in your brothers account - This makes sense up until the point that you said you have 50k in his account and 30k in yours. If you're so bad with money, why not have 80k in his account?

You then went on to say "I have recently got some issues with my partner. I dont want to risk my investment." - This makes it sound like your partner doesn't know about the 50k and as part of a divorce or something, you want to make sure he/she doesn't get any of it.

What I'm getting at here is that if you've avoided capital gains originally by "repaying a loan", the money isn't yours and will need to be gifted back to you before you can use it. Equally, if you're married and are potentially getting divorced, you will likely lose a big chunk of that cash anyway plus a little more for deliberately trying to hide it from your partner without a pre-nuptual agreement.

I hope for your sake that all of the savings can be tracked and there's no tax avoidance in play as HMRC will likely find out about it sooner rather than later.

As I said, I may have misjudged massively and I'm sorry if I've offended you with anything in this post - 1 plus 1 doesn't always equal 2

G_M

You keep repeating that it is 'legitimate' - but you don't explain why you put it in your brother's account and not your own.


There must be a reason.........