Help regarding gifted deposit (gifted has recently passed).

molerat

Mswizzj said:

theartfullodger said:

Sorry for your loss (gran.. )

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

The money isn’t from the estate, her personal money is what the funds have been sourced from.

As she died within 7 years of gifting the money it is counted as part of her estate for inheritance tax purposes. 

What the solicitor thinks that has to do with your mortgage though I have no idea

Bookworm105

user1977 said:

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.

it is part of her estate, it is a gift within 7 years of her death. The fact it is not itself above IHT threshold (so triggering IHT payable on its value) does not alter the fact it uses up some of her IHT allowance and therefore the solicitor is being a bit belt and braces by drawing the executor's attention to the fact a gift was made.

kaygisiz1997

Mswizzj said:

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?

no why would it be? You simply cant use the funds in your account because your gran has passed away and cant sign paperwork. Not like its illegal funds

user1977

Bookworm105 said:

user1977 said:

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.

it is part of her estate, it is a gift within 7 years of her death. The fact it is not itself above IHT threshold (so triggering IHT payable on its value) does not alter the fact it uses up some of her IHT allowance and therefore the solicitor is being a bit belt and braces by drawing the executor's attention to the fact a gift was made.

It's a lifetime gift taken into account for IHT purposes but it is not part of the estate. I don't see that the subsequent death is relevant to the mortgage lender.

user1977

kaygisiz1997 said:

Mswizzj said:

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?

no why would it be? You simply cant use the funds in your account because your gran has passed away and cant sign paperwork.

Read the OP. She had already signed the paperwork. Like I said above, your suggestion would mean the other "gifter" falsely declaring that they're giving a no-strings-attached gift, when in reality they're making a short-term loan to the OP.

Mswizzj

user1977 said:

Bookworm105 said:

user1977 said:

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.

it is part of her estate, it is a gift within 7 years of her death. The fact it is not itself above IHT threshold (so triggering IHT payable on its value) does not alter the fact it uses up some of her IHT allowance and therefore the solicitor is being a bit belt and braces by drawing the executor's attention to the fact a gift was made.

It's a lifetime gift taken into account for IHT purposes but it is not part of the estate. I don't see that the subsequent death is relevant to the mortgage lender.

The solicitor questioned it, not the lender.

Mswizzj

kaygisiz1997 said:

Mswizzj said:

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?

no why would it be? You simply cant use the funds in your account because your gran has passed away and cant sign paperwork. Not like its illegal funds

My partners gran..but anyway, it’s misleading the lender for one, and for two misleading the solicitor.

doodling

Hi,

There is only one useful question at this point which is to the OPs solicitor and is "Will you be happy to accept the status of the executor without it being confirmed by probate?".

If the answer is yes then all is good, the solicitor can ask or tell the executor whatever they want and things may progress. 

If the answer is no then you are stuck either finding the money from elsewhere or waiting for the executors to gain probate.

user1977

Mswizzj said:

user1977 said:

Bookworm105 said:

user1977 said:

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.

it is part of her estate, it is a gift within 7 years of her death. The fact it is not itself above IHT threshold (so triggering IHT payable on its value) does not alter the fact it uses up some of her IHT allowance and therefore the solicitor is being a bit belt and braces by drawing the executor's attention to the fact a gift was made.

It's a lifetime gift taken into account for IHT purposes but it is not part of the estate. I don't see that the subsequent death is relevant to the mortgage lender.

The solicitor questioned it, not the lender.

Yes, but the solicitor is also acting for the lender and these checks are mostly for the lender's benefit.

Mswizzj

doodling said:

Hi,

There is only one useful question at this point which is to the OPs solicitor and is "Will you be happy to accept the status of the executor without it being confirmed by probate?".

If the answer is yes then all is good, the solicitor can ask or tell the executor whatever they want and things may progress. 

If the answer is no then you are stuck either finding the money from elsewhere or waiting for the executors to gain probate.

The solicitor has gone to their probate team today, and have come back and confirmed that there will be no issues with us using the funds.

The only thing the solicitor wants to do, is inform the executor of this, but they already know anyway.