Moving deposit money over

nemoh88

Hi guys. I'm getting a large sum as a gifted deposit from my parents. I'm just curious, because Google doesn't show any results for this question, does it matter when abouts/if I transfer the money for the deposit from my parents account to mine? Like, are there any pros and cons to doing it at a certain point or at all? Thank you guys. 

Meh123

Not really. The most important thing is that it can be traced, your solicitors will want approx 6 months of your bank statements and then the same amount of statements from the person gifting the money so they can do their laundering checks and trace where the money originated from.

In short there aren’t really any pros/cons of doing it earlier, but once it’s done don’t move it around your accounts as any account the money touches the solicitors will need statements for that account for laundering compliance, so do it in one clean transfer and leave it there. 
Hope that helps.

K_S

nemoh88 said:

Hi guys. I'm getting a large sum as a gifted deposit from my parents. I'm just curious, because Google doesn't show any results for this question, does it matter when abouts/if I transfer the money for the deposit from my parents account to mine? Like, are there any pros and cons to doing it at a certain point or at all? Thank you guys. 

@nemoh88 From what I've seen, the longer it's been in your account, the less likely it is to be subject to onerous due diligence processes.

Gem_M90

I've just completed my missives (Scotland) and completion isn't until February. I'm in the same situation as yourself with deposit and my solicitor advised to move the funds into my account now so it will be sitting there for a few months prior to completion and makes the general due diligence checks much easier. 
If you're due to complete soon though I'm not sure it'll make much difference now. 

Thrugelmir

For a large gift. Make sure that the documentation to evidence the source is available. 

nemoh88

Thank you for all your replies guys.

Thrugelmir said:

For a large gift. Make sure that the documentation to evidence the source is available. 

I always worry with respect to the documentation. My parents basically saved loads many decades ago and put it aside for help with houses for me and my siblings so are they expecting them to find Statements for that long ago or...? Seems like a big ask to me. 

Thrugelmir

nemoh88 said:

Thank you for all your replies guys.

Thrugelmir said:

For a large gift. Make sure that the documentation to evidence the source is available. 

I always worry with respect to the documentation. My parents basically saved loads many decades ago and put it aside for help with houses for me and my siblings so are they expecting them to find Statements for that long ago or...? Seems like a big ask to me. 

If you want to obtain a mortgage then you need to abide by the rules and what the solicitor requests. In order that they can comply with money laundering regulations and check that the money has come from the people you say it has.  Nothing new so shouldn't come as any surprise. 

nemoh88

I wasn't stating that it's wrong or a new thing. I am just wondering whether they would be expecting people to pull up statements from 20 years ago to prove that money was saved into an account or whether they will just take statements from months before in order to check my parents didn't just gain the money overnight. 

K_S

nemoh88 said:

I wasn't stating that it's wrong or a new thing. I am just wondering whether they would be expecting people to pull up statements from 20 years ago to prove that money was saved into an account or whether they will just take statements from months before in order to check my parents didn't just gain the money overnight. 

The latter. 

Meh123

nemoh88 said:

I wasn't stating that it's wrong or a new thing. I am just wondering whether they would be expecting people to pull up statements from 20 years ago to prove that money was saved into an account or whether they will just take statements from months before in order to check my parents didn't just gain the money overnight. 

It’s literally to check that the money wasn’t paid in as cash with the reference ‘LAUNDRY’ or ‘DRUGS’ 😂 or that 2x a week a large cash deposit is paid in with no explanation. I’ve checked many a statement for compliance and it’s not uncommon for people to have funds which have been established for many many years. It’s normally the last 6 months worth of statements that’ll be asked for.  

I’ve been there myself with a gift deposit, they asked for my dads last 6 months of statements, as it happened due to the account it was in it was a yearly statement with absolutely no movement, they didn’t ask why he had such a large sum of money just sat there. 

Maurice8

Suppose the gifted money is all documented as IHT-exempt gifts (out of income or on the occasion of a marriage) over a few years. Would you then need further evidence that the money had been legitimately the giver's? And would the mortgagee (lending bank) need a guarantee that the money is not a loan, given that such gifts are by definition not loans?