Cash gift

jen_fpb

user1977 said:

jen_fpb said:

Would the solicitors still not need to see any proof from brother in law etc?

Sorry, I've been through gifted deposit before but not just a gift where we may get before we move

Like I said above, they'll need to verify the source of funds. So ID and bank statements. But (unlike where there's a mortgage involved) they don't need to know whether he's lent it to you or gifted it.

Thank you. This seems to make a bit more sense. 

Is there an advantage to having it in the account as a gift ahead of time of waiting until we "need" it, if we wait we would still be buying without mortgage but would pay off existing mortgage at the same time

user1977

jen_fpb said:

user1977 said:

jen_fpb said:

Would the solicitors still not need to see any proof from brother in law etc?

Sorry, I've been through gifted deposit before but not just a gift where we may get before we move

Like I said above, they'll need to verify the source of funds. So ID and bank statements. But (unlike where there's a mortgage involved) they don't need to know whether he's lent it to you or gifted it.

Thank you. This seems to make a bit more sense. 

Is there an advantage to having it in the account as a gift ahead of time of waiting until we "need" it, if we wait we would still be buying without mortgage but would pay off existing mortgage at the same time

The advantage is the obvious one of paying off your mortgage earlier (and whatever interest you earn on the money). There's no legal or conveyancing advantage.

hackneylou

I just gifted my daughter 200k to buy a property and all I had to do was send her solicitor a letter stating that it was a gift and I wouldn't be asking for any money back in the future and would have no interest in her property. Her solicitor told her exactly how I should write the letter and correct terminology to use. No questions were asked as to where I got the money, though I did have to send proof of ID (a certified copy of my passport). 

badger09

hackneylou said:

I just gifted my daughter 200k to buy a property and all I had to do was send her solicitor a letter stating that it was a gift and I wouldn't be asking for any money back in the future and would have no interest in her property. Her solicitor told her exactly how I should write the letter and correct terminology to use. No questions were asked as to where I got the money, though I did have to send proof of ID (a certified copy of my passport). 

I’m very surprised you weren’t required to provide evidence of the source of that £200k under AML provisions. 

Has your daughter’s property purchase completed?

BikingBud

jen_fpb said:

Not sure if this is the right board so please move if not the right place

Myself and my husband are looking to recieve a large gift of money from his brother in Canada (£100,000+). We understand that this is a gift and so no tax implications other than on any interest earnt or if brother passes away within 7 years. We are likely to use this to pay off our mortgage and/or use when we move house. I have been lucky enough to have a gifted deposit before and have filled in associated forms. As this gift might be given some time before we move, how can we prove its a gift? Is there any official forms to fill in?

I'm looking to win the lottery but never seems to happen

How lucky you are. 

hackneylou

badger09 said:

hackneylou said:

I just gifted my daughter 200k to buy a property and all I had to do was send her solicitor a letter stating that it was a gift and I wouldn't be asking for any money back in the future and would have no interest in her property. Her solicitor told her exactly how I should write the letter and correct terminology to use. No questions were asked as to where I got the money, though I did have to send proof of ID (a certified copy of my passport). 

I’m very surprised you weren’t required to provide evidence of the source of that £200k under AML provisions. 

Has your daughter’s property purchase completed?

No - actually I've just remembered I did send her solicitor a copy of the completion statement on a property I sold (not immediately but after a few weeks) so that did explain where I got the money from. Sorry for the mistake. 

badger09

hackneylou said:

badger09 said:

hackneylou said:

I just gifted my daughter 200k to buy a property and all I had to do was send her solicitor a letter stating that it was a gift and I wouldn't be asking for any money back in the future and would have no interest in her property. Her solicitor told her exactly how I should write the letter and correct terminology to use. No questions were asked as to where I got the money, though I did have to send proof of ID (a certified copy of my passport). 

I’m very surprised you weren’t required to provide evidence of the source of that £200k under AML provisions. 

Has your daughter’s property purchase completed?

No - actually I've just remembered I did send her solicitor a copy of the completion statement on a property I sold (not immediately but after a few weeks) so that did explain where I got the money from. Sorry for the mistake. 

No problem. 

That would clearly demonstrate to her solicitor that you had, legitimately, the required funds for your cash gift. Thanks for clarifying. 

We paid cash, ie no mortgage, for our house last year. There was no need for our solicitor to request proof of the source of funds, as she had sold our previous home several weeks earlier. If we had used a different solicitor, they would have needed proof of the (legitimate) source for AML purposes. We may not look like drug dealers,  but you never know😉

Keep_pedalling

jen_fpb said:

Not sure if this is the right board so please move if not the right place

Myself and my husband are looking to recieve a large gift of money from his brother in Canada (£100,000+). We understand that this is a gift and so no tax implications other than on any interest earnt or if brother passes away within 7 years. We are likely to use this to pay off our mortgage and/or use when we move house. I have been lucky enough to have a gifted deposit before and have filled in associated forms. As this gift might be given some time before we move, how can we prove its a gift? Is there any official forms to fill in?

The 7 year rule does not apply here as your brother is not subject to UK inheritance taxes.