Gifted deposits

OldMouse

If you sign a gifted deposit letter can you change your mind before you pay the money.
Is a gifted deposit letter valid if the person it is written to knows and admits that the money is not intended for them but for their partner.

Hoenir

A gifted deposit letter is deemed to be a legal document should the need arise to use it as evidence in court. 

Emmia

I think if you're not comfortable with giving the gift without reservation, then perhaps you should reconsider giving it.

But, if someone is relying on it for a property purchase, then withdrawing the money is likely to mean they won't be able to proceed. Are you ok with any fall out this might (will) create?

silvercar

OldMouse said:

If you sign a gifted deposit letter can you change your mind before you pay the money.
Is a gifted deposit letter valid if the person it is written to knows and admits that the money is not intended for them but for their partner.

You can change your mind. A gifted deposit letter is confirmation to a solicitor that you are gifting the money with no repayment expected. If you change your mind, I would do a follow up letter to the solicitor. A gifted deposit letter isn’t a promise letter to the recipient.

The letter would still be valid providing you made it of free will. I don’t see why you would make a gift to anyone other than the person it is intended for. If you want to gift to someone’s partner then do so directly.

user1977

It might help if you explained to us what's going on. 

Grumpy_chap

OldMouse said:

If you sign a gifted deposit letter can you change your mind before you pay the money.
Is a gifted deposit letter valid if the person it is written to knows and admits that the money is not intended for them but for their partner.

This is a bit confusing and further information on the situation would be helpful.  For a start, which position are you (OP) in this arrangement?

There are two questions and they may not be linked.

First, change of mind.  A gift should be done of free will and with no expectation of return.  A donor can change their mind up until the gift is given.  Once given, the gift is the sole property of the recipient and the donor cannot change their mind.
In the case of a gifted deposit, that is a legal document and will be used by the recipient to obtain mortgage lending and by the recipient's Solicitor to verify to the mortgage lender that the gift does not need to be repaid.  The consequences of donor change of mind will vary depending how far along the process the recipient is - has the mortgage offer been received?  Has exchange of contracts taken place?

Second, the question about the gift not being for the recipient but for the recipient's partner.  
In reality, if the recipient and the partner are buying property together, are their finances sufficiently combined that a gift to one is in reality a gift to both?
If A is giving the money to B and B will then gift the money to C, why wouldn't A simply make the gift direct to C?

saajan_12

Do you mean that A and B are jointly buying a property but you want the gifted deposit to form part of B's share, not split? If so, then clarify that and suggest to B that they set it up as tenants in common with such a split, BEFORE you transfer the money. However remember if B subsequently gives all or part of it to A, there's nothing you can do. 

OldMouse

Ok. Let me clarify. My mum who is 86 , partially blind and didn’t want to live on her own because she didn’t think she could cope on her own. Her son who had been living with her wanted to move 200 miles away to live with his remote girl friend who he had known for a year and suggested Mum should come too. He told her she should keep it secret from the rest of the family as he felt it would be distressing to the children of his ex-wife if they found out before he moved.
She was persuaded to sign a gift deposit for £200,000 to the girlfriend with the view that they could all buy a house together and the girlfriend would raise a mortgage for her half .  ( Mum had £3000 in her bank account at the time and had to sell her only residence. )
The solicitor selling her house was appointed 200 miles away and her son said he would handle everything.
The girlfriend’s solicitor handled the purchase of the new property and the deed of trust.
Mum was taken to get legal advice on the day of exchange and whilst her instruction to the solicitor was to give her advice on investing in a property and the declaration of trust all she managed to get was a letter saying she understood everything, that the deed of trust gave her a lot of different rights including the right to live in the property and that it was fine to sign it. The Deed of trust did not give any of these rights but did say that on Sale the property would be divided equally between her son and his girlfriend and that she should pay 1/3 of the costs of Maintaining and improving the property. Her Son accompanied her to this meeting.
Mum wrote a will at the same time leaving the property on her death to her son provided he paid an amount of money he had borrowed back to the estate.
Mum has sadly passed away. As executor of her will is there any way I can recover the loan.
She wanted it to go to her grandchildren on her other son’s side. I benefit from this in no way and have no children. I just want to fulfill her last request.
There was a restriction put on the property protecting Mums ‘interest and investment’.
I want to keep the restriction to be passed in her will. The deed of trust mentions her as one of the beneficial tenants in common just with no benefits. Do I stand any hope of keeping the restriction and getting the loan back?
The son says she retained no right to the property so can’t leave it in her will and put a condition on it if repayment of the loan.

Emmia

Wow! That's a bigger mess than the post originally outlined. 

Have you sought legal advice on this matter, as that's where I would be going in these circumstances.

Olinda99

agree - see a solicitor.

GDB2222

It is possible that this is a case of undue influence. A solicitor may be able to help. One issue is that the cost of fighting this in court could be really significant.