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gift for deposit for mortgage.

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  • 11-02-2015 10:56pm
    #1
    Little Bubbles
    Registered Users Posts: 268 ✭✭


    my dad wants to give me a few grand to help with deposit for mortgage. how do we go about doing this. do we need a letter. do we have to show his account as well as mine.


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    #2
    The Niece
    Registered Users Posts: 102 ✭✭The Niece


    A parent can give a gift of up to 3k without having to get Revenue involved as far as I know - you and your parent will have to sign a gift form from the mortgage provider stating that they won't be looking for the money back

    You'll just have to explain your accounts


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    #3
    Little Bubbles
    Registered Users Posts: 268 ✭✭Little Bubbles


    What you mean explain our accounts


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    #4
    The Niece
    Registered Users Posts: 102 ✭✭The Niece


    Little Bubbles wrote: »
    What you mean explain our accounts

    You need to hand up a few months bank statements for your current a/c and savings when you apply for a mortgage - if your parent deposits a large sum of cash, it might be questioned - which is where the gift form comes in


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    #5
    Little Bubbles
    Registered Users Posts: 268 ✭✭Little Bubbles


    parents need to show there account also


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    #6
    The Niece
    Registered Users Posts: 102 ✭✭The Niece


    Mine didn't, just signed the form


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    #7
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Little Bubbles wrote: »
    my dad wants to give me a few grand to help with deposit for mortgage. how do we go about doing this. do we need a letter. do we have to show his account as well as mine.

    Parent signs a form to state they are gifting you x amount towards the purchase of your new home and confirm it is non repayable and that the person making the gift will have no interest in the property now or in the future. Some lenders have a standard gift form others just ask for a letter stating the above.

    I have never heard of a lender looking for parents bank accounts showing transfer.


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    #8
    maggiepip
    Registered Users Posts: 1,099 ✭✭✭maggiepip


    The Niece wrote: »
    A parent can give a gift of up to 3k without having to get Revenue involved as far as I know - you and your parent will have to sign a gift form from the mortgage provider stating that they won't be looking for the money back

    You'll just have to explain your accounts

    You can recieve up to 225,000 from your parents before you're liable for tax.


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    #9
    TrishSimon
    Closed Accounts Posts: 206 ✭✭TrishSimon


    maggiepip wrote: »
    You can recieve up to 225,000 from your parents before you're liable for tax.

    I was just about to say that too maggiepip, as my in laws are gifting us 10-15K and already gifted my husbands sisters 100K in some previous years.
    My father in law just did up a letter stating he was gifting us the money and would not be looking for any repayments on it or any claim to the property when purchased he also gave a bit of background to himself as in age, employment etc but I dont think that was neccessary.


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    #10
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    maggiepip wrote: »
    You can recieve up to 225,000 from your parents before you're liable for tax.
    I think that applies only if your parents die.


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    #11
    LeinsterDub
    Registered Users Posts: 8,229 ✭✭✭LeinsterDub


    Trish56 wrote: »

    I have never heard of a lender looking for parents bank accounts showing transfer.

    Banks are looking for a proven ability to save not magic up the deposit . If you have lump sums in your savings you'll be asked to explain them


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    #12
    TrishSimon
    Closed Accounts Posts: 206 ✭✭TrishSimon


    P. Breathnach wrote: »
    I think that applies only if your parents die.

    No its for when they are alive, it was cleared up by a tax expert on Today FM some weeks back and I also asked the accountant in my job about it.
    So lets say you are gifted 50K next week for a deposit on a house and then your parents leave you 275K in their will ( just an example I know not all parents are that comfortable ).

    225K - 50K = 175K and you receive 275K the balance remaining will be taxed ie. 100K


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    #13
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    TrishSimon wrote: »
    No its for when they are alive, it was cleared up by a tax expert on Today FM some weeks back and I also asked the accountant in my job about it.
    So lets say you are gifted 50K next week for a deposit on a house and then your parents leave you 275K in their will ( just an example I know not all parents are that comfortable ).

    225K - 50K = 175K and you receive 275K the balance remaining will be taxed ie. 100K
    You're right, and I was mistaken.

    The €3k figure mentioned further up the thread is an annual limit which Revenue disregard (it does not cut into your lifetime CAT exemption for inheritance from your parents).


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    #14
    The Niece
    Registered Users Posts: 102 ✭✭The Niece


    P. Breathnach wrote: »
    You're right, and I was mistaken.

    The €3k figure mentioned further up the thread is an annual limit which Revenue disregard (it does not cut into your lifetime CAT exemption for inheritance from your parents).

    This is what I meant by the 3k before Revenue get involved....a gift over 3k will be included in the overall assessment of the 225k - sorry if I wasn't clear


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    #15
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    The Niece wrote: »
    ... sorry if I wasn't clear
    You were clear enough: I accept responsibility for the confusion!


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