Help regarding gifted deposit (gifted has recently passed).

Mswizzj

Hi all.

Wondering if someone can give me some info here.

myself and partner are in the middle of purchasing a property (the mortgage offer has been issues, so it’s now with the solicitor).

my partners gran gifted us £10000, she signed a declaration with the mortgage company about the funds having no interest to her, or no interest in the property.

as I say, unfortunately , 4 months after this was gifted, we lost her, very unexpectedly.

We were waiting for the solicitor to send my partners gran a form for her to sign to also state the money was gifted.

our solicitor has been instructed around 6 weeks ago to take over the transaction and searches etc, but never sent her the documents they said they were going to.

i informed our solicitor yesterday regarding the situation, they have come back to me today saying it will now be passed to will and probate as they don’t know if they can use the funds that were gifted..

This has now put us on the back foot, as this has already been verified by our mortgage company, and was gifted a while back.

it is also nothing to do with the will/estate, as this was a completely separate transaction to us, as it was a gift from her personal funds.

am I right in saying that this has already been legitimised due to the mortgage company signing it off as being proven/legit, and am I getting wrong info from my solicitor?

thanks.

kaygisiz1997

Solicitors are abit funny nowadays they dont make it make sense...

my advise worse comes to worse case try to get somebody else to gift you the same ammount of funds perhaps to your other bank account and use that as deposit and get them to sign relevant gift paperwork and after you completed send the original 10k u recieved from gran back to your gifter (not 100% sure it will work but why not?)

theartfullodger

Sorry for your loss (gran.. )

As she died so shortly after gifting there'll probably be IHT to pay on it,

user1977

Mswizzj said:

i informed our solicitor yesterday regarding the situation, they have come back to me today saying it will now be passed to will and probate as they don’t know if they can use the funds that were gifted.

Why don't they know? If you already had confirmation that it was a no-strings-attached gift I can't see that the death makes a difference. It's no longer part of her estate.

Keep_pedalling

Who is the executor of her estate?

born_again

Get mortgage co to send you a copy of their form & give that to solicitor...

lisyloo

theartfullodger said:

Sorry for your loss (gran.. )

As she died so shortly after gifting there'll probably be IHT to pay on it,

just to clarify.
Is it the estate that is liable for the IHT?

Hoenir

Your solicitor is also the lenders. The mortage company have accepted the gift in principle but haven't signed it off. 

newsgroupmonkey_

theartfullodger said:

Sorry for your loss (gran.. )

As she died so shortly after gifting there'll probably be IHT to pay on it,

To make an assumption makes an !!!!!! of u and me

FlorayG

lisyloo said:

theartfullodger said:

Sorry for your loss (gran.. )

As she died so shortly after gifting there'll probably be IHT to pay on it,

just to clarify.
Is it the estate that is liable for the IHT?

Yes. You don't have to pay it out of the gift you received

Mswizzj

kaygisiz1997 said:

Solicitors are abit funny nowadays they dont make it make sense...

my advise worse comes to worse case try to get somebody else to gift you the same ammount of funds perhaps to your other bank account and use that as deposit and get them to sign relevant gift paperwork and after you completed send the original 10k u recieved from gran back to your gifter (not 100% sure it will work but why not?)

Wouldn’t this be money laundering, though?