When does money given to someone just become their money?

Thrugelmir

Billie1007 said:

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. 

So what's the issue if the solicitor simply requires confirmation of the source of the funds if this information is already known. Many people would have no idea as to the actual source of a gift. 

Billie1007

Thrugelmir said:

Billie1007 said:

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. 

So what's the issue if the solicitor simply requires confirmation of the source of the funds if this information is already known. Many people would have no idea as to the actual source of a gift. 

Simply that she didn't want family to know about her purchase and so we wanted to know if this money can be legitimately referred to as her savings. 

AdrianC

Billie1007 said:

Thrugelmir said:

Billie1007 said:

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. 

So what's the issue if the solicitor simply requires confirmation of the source of the funds if this information is already known. Many people would have no idea as to the actual source of a gift. 

Simply that she didn't want family to know about her purchase and so we wanted to know if this money can be legitimately referred to as her savings. 

She is overthinking it.

Why doesn't she want "family" to know? Isn't she going to tell them she's moved?
Does this "family" include the donor? Because they're the only person that's going to be contacted by the solicitor.

Scotbot

Billie1007 said:

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. 

Not sure I understand what you mean by gifted salary, as well as Uncle David paying tax on his salary tax has to be paid on the gift. You can only give away 3k tax free. It's complicated and you are better off asking on the tax board

user1977

Scotbot said:

Billie1007 said:

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. 

tax has to be paid on the gift. You can only give away 3k tax free. It's complicated 

No, it's quite simple - tax doesn't have to be paid on the gift. If Uncle David dies within seven years of the gift then it will be taken into account when calculating the amount of his estate for Inheritance Tax purposes (subject to the limit you mentioned, plus some other allowances). But that's not something which anybody has to worry about for the purposes of the OP's query.

Ramouth

Assuming the £45k is not the whole value of the property.  If a small mortgage was taken out without an ERC, and then paid off with the gifted money after completion, does this avoid questions about where this portion if money has come from?

user1977

Ramouth said:

Assuming the £45k is not the whole value of the property.  If a small mortgage was taken out without an ERC, and then paid off with the gifted money after completion, does this avoid questions about where this portion if money has come from?

It just means any potential questions would come from the lender when they receive the redemption funds (I would guess somebody paying off a mortgage unusually swiftly is the sort of thing which may attract adverse attention). It hardly seems a money-saving solution anyway!

Billie1007

AdrianC said:

Billie1007 said:

Thrugelmir said:

Billie1007 said:

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. 

So what's the issue if the solicitor simply requires confirmation of the source of the funds if this information is already known. Many people would have no idea as to the actual source of a gift. 

Simply that she didn't want family to know about her purchase and so we wanted to know if this money can be legitimately referred to as her savings. 

She is overthinking it.

Why doesn't she want "family" to know? Isn't she going to tell them she's moved?
Does this "family" include the donor? Because they're the only person that's going to be contacted by the solicitor.

It'd be a second property. It's not ridiculous that someone wouldn't want anyone to know their financial position surely? 

Ramouth

user1977 said:

Ramouth said:

Assuming the £45k is not the whole value of the property.  If a small mortgage was taken out without an ERC, and then paid off with the gifted money after completion, does this avoid questions about where this portion if money has come from?

It just means any potential questions would come from the lender when they receive the redemption funds (I would guess somebody paying off a mortgage unusually swiftly is the sort of thing which may attract adverse attention). It hardly seems a money-saving solution anyway!

Ah yes that makes sense.  I think buying a house in the current market is eroding all my MSE ways!

AdrianC

Billie1007 said:

AdrianC said:

Billie1007 said:

Thrugelmir said:

Billie1007 said:

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. 

So what's the issue if the solicitor simply requires confirmation of the source of the funds if this information is already known. Many people would have no idea as to the actual source of a gift. 

Simply that she didn't want family to know about her purchase and so we wanted to know if this money can be legitimately referred to as her savings. 

She is overthinking it.

Why doesn't she want "family" to know? Isn't she going to tell them she's moved?
Does this "family" include the donor? Because they're the only person that's going to be contacted by the solicitor.

It'd be a second property. It's not ridiculous that someone wouldn't want anyone to know their financial position surely? 

They won't be telling anybody about her financial position. They will be asking Uncle David about his. Nobody else will know.

Unless she thinks that Uncle David would not have given her the £45k if he was aware of her true situation, and wishes to continue that delusion... Which would be a very ungrateful position, would it not?