When does money given to someone just become their money?

Keep_pedalling

The money is yours the instant it is given to you, is just that for house purchases you need to prove it.

user1977

MaryNB said:

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?? 

Seems OPs relative doesn't want to disclose the details of their house purchase to the person who gifted them the money.

Though it does seem a bit odd, if you're getting £45k from an uncle, that you wouldn't be telling the uncle that you're buying a house.

steampowered

The conveyancer is under a legal obligation to satisfy themselves that the money does not come from criminal sources, i.e. money laundering.

There is no problem with the money being gifted. But the conveyancer may need to ask for proof as to where Uncle David got the money.

Billie1007

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 

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position. No mortgage involved. What do you suspect is happening? 

AdrianC

Billie1007 said:

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position.

How is "Uncle David from Chichester? It's X's solicitor. Did you give £45k to X? Can you satisfy us as to the legitimacy of its source?" having the whole family know her finances?

I presume Uncle David from Chichester is already aware that he gave £45k to her...

Billie1007

AdrianC said:

Billie1007 said:

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position.

How is "Uncle David from Chichester? It's X's solicitor. Did you give £45k to X? Can you satisfy us as to the legitimacy of its source?" having the whole family know her finances?

I presume Uncle David from Chichester is already aware that he gave £45k to her...

He is. You are probably right. I think that she would just rather keep it as a private matter. So, is the conclusion that this money is not savings? 

user1977

Billie1007 said:

AdrianC said:

Billie1007 said:

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position.

How is "Uncle David from Chichester? It's X's solicitor. Did you give £45k to X? Can you satisfy us as to the legitimacy of its source?" having the whole family know her finances?

I presume Uncle David from Chichester is already aware that he gave £45k to her...

He is. You are probably right. I think that she would just rather keep it as a private matter. So, is the conclusion that this money is not savings? 

It's her money. Whether it's "savings" or not is irrelevant in a cash purchase. Like we've said, solicitors will vary in their policies about the evidence they need. And at most, Uncle David's involvement is going to be limited to providing ID and his bank statements showing it was really his money.

Still not sure how "private" she's wanting to keep things - presumably Uncle David is going to know that she's bought a house anyway?

MaryNB

Billie1007 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 

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position. No mortgage involved. What do you suspect is happening? 

It's not unnecessary paperwork, it's for anti money laundering regs. It's standard for all house purchases.  The solicitor may be happy if it's in her account for a year but if not your relative cannot avoid it if the solicitor asks for it. If she refuses then the solicitor cannot say they are comfortable that the money is from a legit source. The seller's solicitor won't accept the funds if there are concerns over the source of the money because they are bound by the same laws.

The onus is on your relative to prove the money is legit. The solicitor knows nothing about her income or the income of her uncle so may need to ask for further proof.

Scotbot

Billie1007 said:

AdrianC said:

Billie1007 said:

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position.

How is "Uncle David from Chichester? It's X's solicitor. Did you give £45k to X? Can you satisfy us as to the legitimacy of its source?" having the whole family know her finances?

I presume Uncle David from Chichester is already aware that he gave £45k to her...

He is. You are probably right. I think that she would just rather keep it as a private matter. So, is the conclusion that this money is not savings? 

Conveyancer will ask for proof of funds. If your relative provides 3, 6 or even 12 months of bank statements the conveyancer  may accept that or they may ask her to show where the money in her account came from.  If Uncle David has literally transferred 45k to her account that could get tricky. If Uncle David has died and it is an inheritance with documentation from the executor no problem 

If it is a gift from Uncle David then he needs to write a letter declaring that. Google gifted deposit declaration and you will find a number of standard formats.  Tax could be an issue if it has not been declared to HMRC

Billie1007

Scotbot said:

Billie1007 said:

AdrianC said:

Billie1007 said:

She's simply trying to avoid unnecessary paperwork and avoid the whole family knowing her financial position.

How is "Uncle David from Chichester? It's X's solicitor. Did you give £45k to X? Can you satisfy us as to the legitimacy of its source?" having the whole family know her finances?

I presume Uncle David from Chichester is already aware that he gave £45k to her...

He is. You are probably right. I think that she would just rather keep it as a private matter. So, is the conclusion that this money is not savings? 

Conveyancer will ask for proof of funds. If your relative provides 3, 6 or even 12 months of bank statements the conveyancer  may accept that or they may ask her to show where the money in her account came from.  If Uncle David has literally transferred 45k to her account that could get tricky. If Uncle David has died and it is an inheritance with documentation from the executor no problem 

If it is a gift from Uncle David then he needs to write a letter declaring that. Google gifted deposit declaration and you will find a number of standard formats.  Tax could be an issue if it has not been declared to HMRC

It's just accumulated earnings from a salary that has been gifted so tax already paid and yes, it was just a straight transfer as he is very much alive.