Gifting a house deposit to daughter who will be getting a mortgage

I just slipped some dosh to each DD when a grandparent died - they used it for house deposit but that was simply their choice. No bits of paper signed.

I cannot see a problem if you simply give them the money.

We did gave , doh, that should be 'we gave'

We did gave money to our daughter for a house deposit. An accountant advised us draw up a little note ourselves which my husband and I signed and dated, stating that we gifted her the money. She signed and dated it, saying she had received it. We kept it with our tax papers for that year. She had a copy to keep with her papers. It was just to prove when we gave the money.

Yes as others have said pretty straight forward. The only difference is that I also live in the property with my daughter and son in law .

I lent DS &DDiL money when they bought their second home, we agreed I would take an equivalent share of the equity if they ever moved, which knowing them, I knew would be unlikeley in my lifetime.

No paperwork, I just wrote them a cheque from my bank account. Later on, the loan was over 15 years ago, when I came into some money, I turned the loan into a gift. It wasn't a huge amount, less than 10% of the value of the house, but it enabled them to buy a house they couldn't quite manage on their own.

I gifted the deposit to my daughter and am relieved that 7 years has elapsed so there will be no repercussions.

I didn't have any problem with this. The only thing the solicitor said to me was that if I needed to go into a care home within the next 7 years and giving this amount of money left me short of funds it could be seen that I had deliberately done to avoid care home fees.

I gifted to my daughter for her deposit but I sent it to her and she transferred to the solicitor. I had to provide the paper trail… the money visible in my savings account, the transfer to my cure account, the transfer to my daughter and there were forms to sign.

We did this for our daughter. The process is exactly as others have described, you sign a declaration that it is a gift, show proof of identity and source of funds to a solicitor. In my opinion it's a great use of some money, helping out the younger generation.

Chewbacca

I did it for my DC too. As others have said, I had to sign a legal declaration that it was a gift and not a loan and in no way was "to be considered as a whole, or partial. claim on the property".

I also had to do this when I gave my son £5k when he was buying his first house, not towards the deposit but towards the cost of renovations and furniture. But the money was in his bank account prior to him actually completing the mortgage paperwork so we were affected by these rules.

The problem was he lives over a hundred miles away and I either had to go to the mortgage broker in person, armed with proof of my identity or get the evidence notarised near me and posted to them. Initially I thought this meant using a solicitor who is also a Notary, I knew many solicitors were not so I was getting annoyed at the fuss. Fortunately I found out that certain post offices can also notarise up to three documents for a much smaller fee.

I do wish though that I had delayed giving him the money until after he completed on the mortgage as it was a bit of a faff due to my restricted mobility.

I did it for my DC too. As others have said, I had to sign a legal declaration that it was a gift and not a loan and in no way was "to be considered as a whole, or partial. claim on the property".

Thanks everyone, I understand I will have to live for seven more years once the gift is given for it to be outside the estate when I die.

@Witzend good tip to transfer a small amount first and have receipt acknowledged, I did this when transferring purchase funds to my solicitor. The time delay with transferring my purchase equity balance to NS&I was a bit nerve wracking!

We did for our DS and DIL, as they had to pay outer London price. When the paperwork for their flat was being sorted we had to just sign a document that stated it was a gift.
It was not a problem.

We’ve done it for both dds.
We had to sign something to say it was a gift, not a loan, and verify where the funds had come from. Not in detail - IIRC we just said savings plus an inheritance.

One thing I’d just say - given the number of scams about - when transferring any large sum to anyone else’s account, including the solicitor - or perhaps especially the solicitor! - transfer just £10 first, and check that it’s arrived in the correct account before transferring any more.

Someone I know evidently had his email hacked when he was away and out of contact. The fraudster who hacked it, got his dopey financial adviser to transfer a lot of money to a completely new account.
You can’t be too careful nowadays.

Her solicitor will get you to sign a form saying you have no interest in the property and the deposit is a gift. You will need proof of identity and be able to show where the money has come from.

Yes, I did. My daughter got divorced and could have lost half the money but her ex had inherited money from his father so they decided to leave parents' money out of it.

Don’t know if it is the same as here but if we did this we would be deemed to have an interest in the property which would impact on out tax obligation and our pension entitlement.

No experience but you do have to be careful of deprivation of assets. I know that you are allowed to give away a certain amount per year but not sure of the amount.

My Dad contributed some to our deposit on our first house.
I may be able to help a bit.