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Giving offspring a large early inheritance
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mad_spaniel
Posts: 220 Forumite


If I give my daughter a large lump sum to help her get on the property ladder, what would I need to do? She does not currently have any property in mind. Do I simply write a cheque? Do I get a solicitor's letter to show the money does not emanate from money laundering sources ? Can I simply write a letter and give photocopies of relevant documents- sale of my mother's house? Do I need to provide proof of who I am? Would the process be the same if I gave son an equal amount but with no designated purposes? Any advice appreciated.
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She will need you to satisfy the solicitor's money-laundering concerns, yes. That's a legal requirement.
And, no, the "purpose" is irrelevant. You're either giving her the money or you aren't giving her the money. If it's a gift, it's not got any strings attached...
And, no, it isn't an "early inheritance". You aren't dead. It's a gift.3 -
Her solicitor can advise exactly what they'll need, there aren't standard requirements. But generally they'll want your ID and a paper trail showing where the funds came from, and her mortgage lender would need confirmation from you that it's a no-strings-attached gift.
As for the method of transfer, yes a cheque would work, though BACS/Faster Payments would get there faster. Just don't do it in cash!0 -
My parents gave me an unexpected gift which I used as a deposit. As I hadn't been expecting it, by the time it had all sunk in, I'd found a house I liked and sorted the mortgage etc. it had been in my savings account for a few months and no-one asked any questions. They did do a declaration to say it was a gift (they understood they wouldn't own any part of the house, didn't expect me to repay it etc.) but I didn't need it.1
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How big a lump sum?
If mothers house was an inheritance and less than 2 years a DOV may be useful if your estate may be into IHT.
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I'm talking potentially £150,000 to each offspring. No problem with inheritance tax anticipated so deed of variation not applicable. Because it would be a large gift I want things to go smoothly with offspring.0
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Should I just see a solicitor?0
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mad_spaniel said:Should I just see a solicitor?
Your bank manager will cost you nothing to speak with. Personally I would spend a relatively little bit of money on a solicitor, to secure a large sum.
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Something that may/may not apply (as we don't know your age/health) if you need paid care/home and don't have sufficient funding the council could look over past transactions for deprivation of assets (no time limit). I think the limit for gifts (that no action can be taken on) is 3kpa. I'm not an expert though!1
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I think professional advice is essential when deciding to gift away £300K and, at the same time, saying IHT isn't likely to be a problem. If you have £1m+ in your estate then IHT has the potential to become a problem. If you have less than £1m, then deprivation of assets might be...EDIT Making a deed of variation negates the need to (immediately) worry about either of the above concerns.#2 Saving for Christmas 2024 - £1 a day challenge. £325 of £3661
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Thanks for all comments. I'll book an appointment with a solicitor.0
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