Gifted deposit enquiry

Trying82

I've been gifted a sum of money from my Grandparents to put towards a deposit for a house, the solicitor wants some information from them  The usual ID and Bank Statement - they're refusing to provide the details. Is there anything I can do in this situation. It's not a large sum of money, they're just very distrusting elderly people. 

No19v87

They have to supply the documents if you want to use their gifted money. Unfortunately, anti money laundering regulations dictate so.

You’ll either have to speak to them to convince them to do so, or proceed without.

Flugelhorn

I can completely understand why they feel like this - presume it is money from savings over the years. I don't understand how you are supposed to  absolutely demonstrate where money has come from

user1977

Trying82 said:

I've been gifted a sum of money from my Grandparents to put towards a deposit for a house, the solicitor wants some information from them  The usual ID and Bank Statement - they're refusing to provide the details. Is there anything I can do in this situation. It's not a large sum of money, they're just very distrusting elderly people. 

Have you explained to them that if they don't co-operate, you won't be able to use the money as they intended, and will have to squander it on something else instead?

user1977

Flugelhorn said:

I don't understand how you are supposed to absolutely demonstrate where money has come from

Nobody's said that's what they've been asked to do. Generally all that's required is to show that it's been in your bank for a few months.

Flugelhorn

user1977 said:

Flugelhorn said:

I don't understand how you are supposed to absolutely demonstrate where money has come from

Nobody's said that's what they've been asked to do. Generally all that's required is to show that it's been in your bank for a few months.

Is that the case? Is it only when people have had the money in an account for a short period of time that there is a problem? Seriously I didn't understand this and couldn't work out why when I bought the last houses for cash no-one queried where it came from, thinking about it the money had been in the account for ages.

Was once asked back in about 2005 - single handed country solicitor clearly thought the whole thing was a  very trying new development - told her the money was from gun running and drug smuggling, she put down "savings" and that was fine with everyone

user1977

Flugelhorn said:

user1977 said:

Flugelhorn said:

I don't understand how you are supposed to absolutely demonstrate where money has come from

Nobody's said that's what they've been asked to do. Generally all that's required is to show that it's been in your bank for a few months.

Is that the case? Is it only when people have had the money in an account for a short period of time that there is a problem? Seriously I didn't understand this and couldn't work out why when I bought the last houses for cash no-one queried where it came from, thinking about it the money had been in the account for ages.

You have to draw the line somewhere when figuring out where money is "from". If there's some sort of money-laundering scheme going on, it's not considered a likely risk that somebody else would allow their money to be sitting in your account for years, they'd be moving it around as swiftly as possible. If it's been in your account for more than, say, 3/6 months, it's most likely to be assumed to be yours. Though we have heard here of various cases of solicitors probing things to ridiculous degrees.

amnblog

When dealing with a purchase the Solicitor is legally bound to take record of the source of the funds. This is also the case for the Lender and the Broker. The Lender will often rely on the Solicitor to manage this.

Solicitors have differing views on what they ask for in these circumstances. A gift letter, proof of source of funds (bank account statement) and ID is common. Whatever their policy, the buyer and donors of any gift need to comply with it or the purchase will not progress with that Solicitor.

Perhaps the Solicitor will be prepared to call your Grandparents and explain the situation personally. Or alternatively, your grandparents own Solicitor (if they have one that they already trust) may be able to act as a third party to satisfy the conveyancing Solicitor.

My own experience of these circumstances is that the Donor baulks initially and then complies once they see that is the only route forward.

You can assure your Grandparents that any confidential information handling in our world is treated with more case than most places that handle it. Sloppy data security has dire consequences for a Solicitor Firm.

Flugelhorn

@user1977 I think the digging around to ridiculous degrees was what bothered me - how you would ever prove it?- You might be able to prove that you inherited £X but may have shared it with others, spent it etc.

Totally appreciate how the OPs grandparents feel - there was a generation who would never let anyone see their "bank book" -  I was guarantor for  a rental recently and they wanted 3/12 of bank statements showing my pension amount being paid in - that is what they got, a statement just showing the payments in and none of the payments out - they accepted that 

Trying82

amnblog said:

When dealing with a purchase the Solicitor is legally bound to take record of the source of the funds. This is also the case for the Lender and the Broker. The Lender will often rely on the Solicitor to manage this.

Solicitors have differing views on what they ask for in these circumstances. A gift letter, proof of source of funds (bank account statement) and ID is common. Whatever their policy, the buyer and donors of any gift need to comply with it or the purchase will not progress with that Solicitor.

Perhaps the Solicitor will be prepared to call your Grandparents and explain the situation personally. Or alternatively, your grandparents own Solicitor (if they have one that they already trust) may be able to act as a third party to satisfy the conveyancing Solicitor.

My own experience of these circumstances is that the Donor baulks initially and then complies once they see that is the only route forward.

You can assure your Grandparents that any confidential information handling in our world is treated with more case than most places that handle it. Sloppy data security has dire consequences for a Solicitor Firm.

Thank you, I have tried to tell them what the information was for and they just didn't want to listen. They can be a little stubborn at times, I think I'll have to discount that amount from the funds I currently have. 

MWT

Trying82 said:

Thank you, I have tried to tell them what the information was for and they just didn't want to listen. They can be a little stubborn at times, I think I'll have to discount that amount from the funds I currently have. 

... also worth letting them know that you will not see the details they provide either, as sometimes that can be a concern...