When does money given to someone just become their money?

AdrianC

Lots of yachts in Chichester. Yachts can be used for... importation...

Billie1007

AdrianC said:

Lots of yachts in Chichester. Yachts can be used for... importation...

Don't! I m going to send her a link to this thread 😂

lucypilates

Billie1007 said:

lucypilates said:

Cash buyers have to provide proof of where their funds come from … it’s got nothing to do with whether you have a mortgage or not.

Thank you. So when does it become just your own money? 

It depends on how thorough you solicitor wants to be.

Some will want to see evidence of ‘savings’ with bank statements showing a regular underspend and perhaps a monthly payment into a savings account. 

But if this money was a gift, then the solicitor could ask for proof of that payment into the account, even up to a few years ago … there’s nothing wrong with receiving a gift and I don’t think the solicitor will dob anyone in to HMRC about it. If the gifter didn’t declare it, I don’t think the solicitor is concerned with that, they’re just covering their own !!!!!! that they’ve made sure the funds are legit.

i think best thing to do is to be honest and ask the solicitor what evidence they require … they’re not there to try and stop the transaction going ahead, they’re just doing their own box ticking 

getmore4less

lucypilates said:

Billie1007 said:

lucypilates said:

Cash buyers have to provide proof of where their funds come from … it’s got nothing to do with whether you have a mortgage or not.

Thank you. So when does it become just your own money? 

It depends on how thorough you solicitor wants to be.

Some will want to see evidence of ‘savings’ with bank statements showing a regular underspend and perhaps a monthly payment into a savings account. 

But if this money was a gift, then the solicitor could ask for proof of that payment into the account, even up to a few years ago … there’s nothing wrong with receiving a gift and I don’t think the solicitor will dob anyone in to HMRC about it. If the gifter didn’t declare it, I don’t think the solicitor is concerned with that, they’re just covering their own !!!!!! that they’ve made sure the funds are legit.

i think best thing to do is to be honest and ask the solicitor what evidence they require … they’re not there to try and stop the transaction going ahead, they’re just doing their own box ticking 

There is no requirement to declare cash lifetime gifts to anyone including HMRC.

Once dead there can be obligations on the estate administrator of the doner..

lucypilates

getmore4less said:

lucypilates said:

Billie1007 said:

lucypilates said:

Cash buyers have to provide proof of where their funds come from … it’s got nothing to do with whether you have a mortgage or not.

Thank you. So when does it become just your own money? 

It depends on how thorough you solicitor wants to be.

Some will want to see evidence of ‘savings’ with bank statements showing a regular underspend and perhaps a monthly payment into a savings account. 

But if this money was a gift, then the solicitor could ask for proof of that payment into the account, even up to a few years ago … there’s nothing wrong with receiving a gift and I don’t think the solicitor will dob anyone in to HMRC about it. If the gifter didn’t declare it, I don’t think the solicitor is concerned with that, they’re just covering their own !!!!!! that they’ve made sure the funds are legit.

i think best thing to do is to be honest and ask the solicitor what evidence they require … they’re not there to try and stop the transaction going ahead, they’re just doing their own box ticking 

There is no requirement to declare cash lifetime gifts to anyone including HMRC.

Once dead there can be obligations on the estate administrator of the doner..

Yes that’s more accurate than how I put it 

The_Real_Cheddar_Bob

I see what is trying to happen here and you may get away with it, but you may fall down at a key stage. 

Even though mrs T_R_C_Bob had an equal amount of money, in cash, in her current account, through saving, it was painstaking trying to prove this money came from this situation. I had to send a spreadsheet with the calculations showing underspend to account for the money, backed up with her bank statements.

So OP you have a gamble to take, you do not want to be marked for mortgage fraud, which can happen if this goes wrong, but you need to calculate whether you feel you can get through without it being noticed.

By the way, asking your solicitor about this is a red flag 

user1977

The_Real_Cheddar_Bob said:

So OP you have a gamble to take, you do not want to be marked for mortgage fraud 

That would seem unlikely, given their relative isn't buying with a mortgage.

lucypilates

The_Real_Cheddar_Bob said:

I see what is trying to happen here and you may get away with it, but you may fall down at a key stage. 

Even though mrs T_R_C_Bob had an equal amount of money, in cash, in her current account, through saving, it was painstaking trying to prove this money came from this situation. I had to send a spreadsheet with the calculations showing underspend to account for the money, backed up with her bank statements.

So OP you have a gamble to take, you do not want to be marked for mortgage fraud, which can happen if this goes wrong, but you need to calculate whether you feel you can get through without it being noticed.

By the way, asking your solicitor about this is a red flag 

I can only think about it being potential IHT avoidance and if not that, and I’m being a bit thick, but what do you think they’re trying to get away with?? 

user1977

lucypilates said:

The_Real_Cheddar_Bob said:

I see what is trying to happen here and you may get away with it, but you may fall down at a key stage. 

Even though mrs T_R_C_Bob had an equal amount of money, in cash, in her current account, through saving, it was painstaking trying to prove this money came from this situation. I had to send a spreadsheet with the calculations showing underspend to account for the money, backed up with her bank statements.

So OP you have a gamble to take, you do not want to be marked for mortgage fraud, which can happen if this goes wrong, but you need to calculate whether you feel you can get through without it being noticed.

By the way, asking your solicitor about this is a red flag 

I can only think about it being potential IHT avoidance and if not that, and I’m being a bit thick, but what do you think they’re trying to get away with?? 

I think Bob just means not having to produce further evidence of the source of the funds.

MaryNB

lucypilates said:

The_Real_Cheddar_Bob said:

I see what is trying to happen here and you may get away with it, but you may fall down at a key stage. 

Even though mrs T_R_C_Bob had an equal amount of money, in cash, in her current account, through saving, it was painstaking trying to prove this money came from this situation. I had to send a spreadsheet with the calculations showing underspend to account for the money, backed up with her bank statements.

So OP you have a gamble to take, you do not want to be marked for mortgage fraud, which can happen if this goes wrong, but you need to calculate whether you feel you can get through without it being noticed.

By the way, asking your solicitor about this is a red flag 

I can only think about it being potential IHT avoidance and if not that, and I’m being a bit thick, but what do you think they’re trying to get away with?? 

It wouldn't be seen as IHT avoidance since the conveyancing solicitor doesn't care about IHT. They only care about anti money laundering. The solicitor's concern would be that the money isn't from a legitimate source. The OP's relative could be doing some dodgy dealing and is trying to wash the money by getting the OP to buy a house.

Seems OPs relative doesn't want to disclose the details of their house purchase to the person who gifted them the money. This kinda thing comes up a lot of this forum. The money is legit but someone doesn't want to disclose personal information.