Solicitor asking about transfer of Inheritance

user1977

Marcon said:

msb1234 said:

Marcon said:

Ccn2623 said:

BoGoF said:

The solicitor is rightly asking for evidence of where the funds come from as part of Anti money laundering regulations.

You either comply with the request or the gifted amount won't be accepted.

I’m happy to show my details, my mother is not.
what does it mean when you say not allowable?

This sounds a bit heavy handed. You were the person who gave your son the money and £5K isn't in the same league as £500K!

Suggest to your son that he goes back to the solicitor (if necessary speaking to a more senior individual within the firm) and explains that his 84 year old grandmother is of a generation which doesn't disclose personal financial affairs, but his mother is perfectly happy to provide the documentation relating to her gift to him.

This won’t get you anywhere. Money laundering regs now mean that when people purchase property, any deposit used has to have a clear paper trail of where it came from. If that can’t be done to the satisfaction of the regs, then the money won’t be acceptable to use as a deposit. 

There is going to be a clear paper trail - bank of mum and dad!

But the trail ends at whatever date mum and dad received the funds - not necessarily unreasonable for the solicitors to be checking the source beyond that. Simply passing money through somebody's account doesn't make it "clean".

bobster2

Ccn2623 said:

My son and his partner are purchasing a property, he mentioned to the solicitor acting on his behalf that I gave him a 5k gift from money my mother had given me from the sale of her house (and downsized).

I received a letter from the solicitor asking to confirm where my son had gotten the money from which I replied it was an early inheritance from my mother which I then gifted some to him. 

As a previous poster mentioned - there is no such thing as an "early inheritance".

The fact that you described it as an "inheritance"to the solicitor - when it wasn't - it was a simple gift - may have got the solicitor more concerned about seeing a paper trail

msb1234

Sea_Shell said:

msb1234 said:

Sea_Shell said:

Keep_pedalling said:

No such thing as an early inheritance it was a gift from your mother to you and then you made a gift to your son. Depending on how long ago your mother made the gift her involvement may not be required. When did she gift to you and where has that money been residing since then?

On this point, is there a standard timescale as to when a gift becomes "yours" and doesn't require a further backdated audit trail?

When I gifted my daughter money towards her house deposit I had to show that the money had been in my account for 12 months. I provided redacted account statements.

So, if your daughter had had this money in HER account for 12 months, would she not have had to provide YOUR details ?

I do t know because she didn’t!

Sea_Shell

msb1234 said:

Sea_Shell said:

msb1234 said:

Sea_Shell said:

Keep_pedalling said:

No such thing as an early inheritance it was a gift from your mother to you and then you made a gift to your son. Depending on how long ago your mother made the gift her involvement may not be required. When did she gift to you and where has that money been residing since then?

On this point, is there a standard timescale as to when a gift becomes "yours" and doesn't require a further backdated audit trail?

When I gifted my daughter money towards her house deposit I had to show that the money had been in my account for 12 months. I provided redacted account statements.

So, if your daughter had had this money in HER account for 12 months, would she not have had to provide YOUR details ?

I do t know because she didn’t!

Sorry, it was more a general question to everyone, not just you.    

I was just wondering, from my own perspective, that if I were to gift £5000 to a Nibling, for "whatever", when they were 18, then if in x years time they wanted to use that as a part of their deposit, would it still have to be declared as a gift, and I'd have to provide MY details?

Is there a specific cut-off timescale after which the money is deemed theirs theirs, and no further proof of "where" it came from, other than their "savings" is required?    12 months?   5 years?  etc.

user1977

Sea_Shell said:

msb1234 said:

Sea_Shell said:

msb1234 said:

Sea_Shell said:

Keep_pedalling said:

No such thing as an early inheritance it was a gift from your mother to you and then you made a gift to your son. Depending on how long ago your mother made the gift her involvement may not be required. When did she gift to you and where has that money been residing since then?

On this point, is there a standard timescale as to when a gift becomes "yours" and doesn't require a further backdated audit trail?

When I gifted my daughter money towards her house deposit I had to show that the money had been in my account for 12 months. I provided redacted account statements.

So, if your daughter had had this money in HER account for 12 months, would she not have had to provide YOUR details ?

I do t know because she didn’t!

Sorry, it was more a general question to everyone, not just you.    

I was just wondering, from my own perspective, that if I were to gift £5000 to a Nibling, for "whatever", when they were 18, then if in x years time they wanted to use that as a part of their deposit, would it still have to be declared as a gift, and I'd have to provide MY details?

Is there a specific cut-off timescale after which the money is deemed theirs theirs, and no further proof of "where" it came from, other than their "savings" is required?    12 months?   5 years?  etc.

In short, no, there are no general rules. From a money-laundering point of view, solicitors etc will have different ideas of how far back they ought to go to check source of funds. Often it’s only a matter of months.

As for whether it’s a gifted deposit at all, I think that’s up to the lender. But if it wasn’t a chunky amount given shortly before house-buying started, I’d be inclined to treat it as “normal” savings of the recipient. You don’t need to ask questions about every Christmas etc present or “early inheritance” gift.

Keep_pedalling

user1977 said:

Sea_Shell said:

msb1234 said:

Sea_Shell said:

msb1234 said:

Sea_Shell said:

Keep_pedalling said:

No such thing as an early inheritance it was a gift from your mother to you and then you made a gift to your son. Depending on how long ago your mother made the gift her involvement may not be required. When did she gift to you and where has that money been residing since then?

On this point, is there a standard timescale as to when a gift becomes "yours" and doesn't require a further backdated audit trail?

When I gifted my daughter money towards her house deposit I had to show that the money had been in my account for 12 months. I provided redacted account statements.

So, if your daughter had had this money in HER account for 12 months, would she not have had to provide YOUR details ?

I do t know because she didn’t!

Sorry, it was more a general question to everyone, not just you.    

I was just wondering, from my own perspective, that if I were to gift £5000 to a Nibling, for "whatever", when they were 18, then if in x years time they wanted to use that as a part of their deposit, would it still have to be declared as a gift, and I'd have to provide MY details?

Is there a specific cut-off timescale after which the money is deemed theirs theirs, and no further proof of "where" it came from, other than their "savings" is required?    12 months?   5 years?  etc.

In short, no, there are no general rules. From a money-laundering point of view, solicitors etc will have different ideas of how far back they ought to go to check source of funds. Often it’s only a matter of months.

As for whether it’s a gifted deposit at all, I think that’s up to the lender. But if it wasn’t a chunky amount given shortly before house-buying started, I’d be inclined to treat it as “normal” savings of the recipient. You don’t need to ask questions about every Christmas etc present or “early inheritance” gift.

It seems to vary from solicitor to solicitor. We had given our daughter a substantial sum to help with finding a larger home which she eventually did some 18 months later and we still ended up having to provide proof of funds to her solicitor.

Keep_pedalling

bobster2 said:

Ccn2623 said:

My son and his partner are purchasing a property, he mentioned to the solicitor acting on his behalf that I gave him a 5k gift from money my mother had given me from the sale of her house (and downsized).

I received a letter from the solicitor asking to confirm where my son had gotten the money from which I replied it was an early inheritance from my mother which I then gifted some to him. 

As a previous poster mentioned - there is no such thing as an "early inheritance".

The fact that you described it as an "inheritance"to the solicitor - when it wasn't - it was a simple gift - may have got the solicitor more concerned about seeing a paper trail

Yes I think the OP has made a right hash of this and may have created unnecessary complications for their daughter. 

They also need to come back and say how long ago they received the original gift.