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  • FIRST POST
    • seven-day-weekend
    • By seven-day-weekend 10th Aug 18, 2:07 PM
    • 31,262Posts
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    seven-day-weekend
    Proving Paper Trail
    • #1
    • 10th Aug 18, 2:07 PM
    Proving Paper Trail 10th Aug 18 at 2:07 PM
    I am funding the cost of my son's lease extension. I have shown the solicitor's secretary a statement showing money in my bank account.

    They will not accept this, they re wanting a 'paper trail' back to when I received my inheritance in 2015.

    I can prove it (the inheritance) went into a current account, and that 14.5k (the cost of the lease extension) came out of a different bank account into the one it is in now. But I am missing the bit in between because I don't know when the money was transferred to the second account (somewhere between June 2015 and April 2016) and my online banking does not go back that far.

    Because it was quite a lot of money, I divvied it up between various savings accounts and only put it into a current account when I needed it.

    I can prove the paper trail back to April 2016. They say it has to go all the way back to the inheritance?

    Surely there is a limit as to how far you have to go back? I would have thought April 2016 would be far enough back. What if I'd had my inheritance 20 years ago?

    Any suggestions?
    Member #10 of 2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
Page 1
    • NewShadow
    • By NewShadow 10th Aug 18, 2:13 PM
    • 3,280 Posts
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    NewShadow
    • #2
    • 10th Aug 18, 2:13 PM
    • #2
    • 10th Aug 18, 2:13 PM
    I find it really odd that you need to prove the 14k you inherited is the same 14k as you're gifting to your son...

    I'm slowly pulling together funds from a variety of sources - luckily no inheritances as yet - and I've been relying on this guide when thinking about the evidence I might need in the next 3-7 years when I get around to buying: https://www.samconveyancing.co.uk/news/conveyancing/how-to-prove-source-of-funds-1614#sources
    That sounds like a classic case of premature extrapolation.

    House deposit: 26% = 26,000 + 800pm * 9 months = 33,000

    Goal: Keep the bigger picture in mind...
    • seven-day-weekend
    • By seven-day-weekend 10th Aug 18, 2:33 PM
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    seven-day-weekend
    • #3
    • 10th Aug 18, 2:33 PM
    • #3
    • 10th Aug 18, 2:33 PM
    I find it really odd that you need to prove the 14k you inherited is the same 14k as you're gifting to your son...

    I'm slowly pulling together funds from a variety of sources - luckily no inheritances as yet - and I've been relying on this guide when thinking about the evidence I might need in the next 3-7 years when I get around to buying: https://www.samconveyancing.co.uk/news/conveyancing/how-to-prove-source-of-funds-1614#sources
    Originally posted by NewShadow
    Funnily enough, I have just downloaded this link! I have the documents it mentions and that is all I am taking the solicitors. It is ridiculous to expect me to find the paper trail from receiving a sizeable inheritance to funding a (in comparison) small amount from a different bank account, especially when it goes back three years.
    Member #10 of 2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • humptydumptybits
    • By humptydumptybits 11th Aug 18, 11:38 AM
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    humptydumptybits
    • #4
    • 11th Aug 18, 11:38 AM
    • #4
    • 11th Aug 18, 11:38 AM
    I think they are being over zealous about money laundering. I gave one of my children a similar sum towards a house purchase last year I produced 3 bank statements showing my income and expenditure. At the time my income wasn't huge just my pension from an old job, SRP hadn't kicked in and if they had thought could I live on my income they would have probably thought no and the lump sum was just transferred in from another account. I do have another income from 2 BTL properties but they go through another account, makes tax returns easy as incomings and outgoing are all in one place.
    • IanManc
    • By IanManc 11th Aug 18, 12:09 PM
    • 686 Posts
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    IanManc
    • #5
    • 11th Aug 18, 12:09 PM
    • #5
    • 11th Aug 18, 12:09 PM
    The purpose of the money laundering provisions is to stop the laundering of the proceeds of crime.

    You can show the source of the funds, and it is a legitimate source.

    That is sufficient to discharge the obligations of the solicitors under the law and their professional rules. You do not need to provide a paper trail.

    If the solicitors will not back down after you tell them that they are asking the impossible - and the unnecessary - then I'd suggest that you find a new solicitor who understands the regulations on money laundering.
    • seven-day-weekend
    • By seven-day-weekend 11th Aug 18, 12:35 PM
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    seven-day-weekend
    • #6
    • 11th Aug 18, 12:35 PM
    • #6
    • 11th Aug 18, 12:35 PM
    The purpose of the money laundering provisions is to stop the laundering of the proceeds of crime.

    You can show the source of the funds, and it is a legitimate source.

    That is sufficient to discharge the obligations of the solicitors under the law and their professional rules. You do not need to provide a paper trail.

    If the solicitors will not back down after you tell them that they are asking the impossible - and the unnecessary - then I'd suggest that you find a new solicitor who understands the regulations on money laundering.
    Originally posted by IanManc
    It was actually the solicitor's secretary who told me I had to have a paper trail all the way back. The solicitor is on holiday until Tuesday. Iwill ring her then. I have proof of receiving the inheritance.
    Member #10 of 2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • seven-day-weekend
    • By seven-day-weekend 12th Aug 18, 11:21 AM
    • 31,262 Posts
    • 59,940 Thanks
    seven-day-weekend
    • #7
    • 12th Aug 18, 11:21 AM
    • #7
    • 12th Aug 18, 11:21 AM
    Thanks all for your input. I felt that what I had been asked was unreasonable, if not impossible. I will talk to the solicitor on Tuesday and keep the thread updated with the outcome.
    Member #10 of 2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • seven-day-weekend
    • By seven-day-weekend 3rd Sep 18, 8:19 AM
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    • 59,940 Thanks
    seven-day-weekend
    • #8
    • 3rd Sep 18, 8:19 AM
    • #8
    • 3rd Sep 18, 8:19 AM
    UPDATE:

    I took proof of receiving my inheritance, and also proof of opening a Bank Account which still has the funds for the lease extension in it. The solicitor (not the secretary) said that this was sufficient.

    Then the Receptionist would not accept my Council Tax Bill as proof of address since it was issued more than three months ago and I could have moved in the interim period (sigh!).

    Eventually she used the same Bank Account details that I had submitted as proof of funds.

    What a palaver! However, it got sorted eventually

    Thanks all for your input, most reassuring and helpful.
    Last edited by seven-day-weekend; 03-09-2018 at 8:21 AM.
    Member #10 of 2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • dunstonh
    • By dunstonh 3rd Sep 18, 8:39 AM
    • 95,341 Posts
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    dunstonh
    • #9
    • 3rd Sep 18, 8:39 AM
    • #9
    • 3rd Sep 18, 8:39 AM
    They are being correct but also wrong at the same time.

    Source of funds means where the wealth came from. So, asking for the source (inheritance) is correct. However, 14k is a relatively small amount and could easily have been handled better than it was.

    It is common that Utility bills and bank statement copies need to be issued within the last 3 months. However, Council tax bills are only issued once a year and the normal requirement is to have a copy of the latest one. Even if it was 11 months ago. So, they have either misinterpreted or are taking it a bit too far.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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