Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Gift Deposit help

9 replies

Asian · 10/05/2023 17:17

Hello All, Needed your advice. We are buying a property and my sister is generously giving me a gift deposit of 8000 for the same. The solicitors have come back asking source if each transaction over the last 6 months. Some of the deposits in her account are from the consultant salary and she doesn't have salary slip for the same. She was paid weekly and doesn't have the salary slips for the same. Couple of the deposits are made by her husband and he is not comfortable sharing his statement. Can someone advise how can we sort this out. Also, if I decide not to use her gift deposit due to abuse reasons and use that money for our personal expenses, would that be acceptable. The money lies in our deposit account. Please advise.

OP posts:
Original poster
Asian · 10/05/2023 17:18

Asian · 10/05/2023 17:17

Hello All, Needed your advice. We are buying a property and my sister is generously giving me a gift deposit of 8000 for the same. The solicitors have come back asking source if each transaction over the last 6 months. Some of the deposits in her account are from the consultant salary and she doesn't have salary slip for the same. She was paid weekly and doesn't have the salary slips for the same. Couple of the deposits are made by her husband and he is not comfortable sharing his statement. Can someone advise how can we sort this out. Also, if I decide not to use her gift deposit due to abuse reasons and use that money for our personal expenses, would that be acceptable. The money lies in our deposit account. Please advise.

Please read due to above reasons and not abuse reasons.

OP posts:
Eqdb · 10/05/2023 18:52

Are you suggesting that you currently have an alternative 8k available from funds that you earned yourself? Because if that is the case, surely you could account for the origins of that £8k and then reimburse yourself with the 8k your sister has kindly given you.

Housecar · 10/05/2023 18:59

Your solicitor has a duty under the anti money laundering act to verify the source of the funds, so if your sister and her husband can’t provide what he needs then it sounds like the solicitor can’t proceed. You could probably use the money for expenses, although gifts over £3000 have some tax implication I think but not sure how that works.

CatOnTheChair · 10/05/2023 19:25

If you can prove the source of enough funds to pay the deposit without using your sisters money, do that.
If your brother in law won't share his statements, you can't use the money, as the solicitor can't prove it's legitimately earnt.

If your sisters earnings are all coming into her account as coming from "Company Name" she possibly doesn't need the salary slips.

GasPanic · 10/05/2023 20:05

CatOnTheChair · 10/05/2023 19:25

If you can prove the source of enough funds to pay the deposit without using your sisters money, do that.
If your brother in law won't share his statements, you can't use the money, as the solicitor can't prove it's legitimately earnt.

If your sisters earnings are all coming into her account as coming from "Company Name" she possibly doesn't need the salary slips.

You would have a P60 though which could be used as backing along with invoices / contract agreement with the company.

Original poster
Asian · 10/05/2023 20:05

Eqdb · 10/05/2023 18:52

Are you suggesting that you currently have an alternative 8k available from funds that you earned yourself? Because if that is the case, surely you could account for the origins of that £8k and then reimburse yourself with the 8k your sister has kindly given you.

My brother wanted to gift me 5K, but I had politely refused since I don't need it before. He has once again offered to gift me 5K. I was wondering of using his 5K and 3K of my personal savings for the mortgage deposit instead of my sisters 8K. But how would I prove that I am not using my sisters gift and using my brothers gift as the deposit.

OP posts:
Original poster
Asian · 10/05/2023 20:06

Housecar · 10/05/2023 18:59

Your solicitor has a duty under the anti money laundering act to verify the source of the funds, so if your sister and her husband can’t provide what he needs then it sounds like the solicitor can’t proceed. You could probably use the money for expenses, although gifts over £3000 have some tax implication I think but not sure how that works.

Yes was thinking of using her gift money for furnishings and other expenses. Using my brothers gift of 5K and some of my savings in lieu of my sister's deposit. Hope this won't be an issue with the solicitor?

OP posts:
Invisimamma · 10/05/2023 20:12

Are the giving you the money to avoid paying tax on it themselves? Or to reduce their assets for benefit reasons?

The solicitor is right to need to know the source of the money for anti-laundering.

Original poster
Asian · 10/05/2023 20:16

Invisimamma · 10/05/2023 20:12

Are the giving you the money to avoid paying tax on it themselves? Or to reduce their assets for benefit reasons?

The solicitor is right to need to know the source of the money for anti-laundering.

It is part of family tradition, it is a gift since I am buying my first home.

OP posts:
New posts on this thread. Refresh page