Parents House Sale

[EarlyDays]

Hi,

Would anyone be able to confirm or deny if it would be possible for the procedes of a parents house sale to be paid directly into their (adult) child's bank account.

The parent is a widow and this is their only child.

Both parent, who is of sound mind, and child want this to happen but the solicitor handling the sales is wanting to transfer the funds direct to the parent. However the solicitor is not giving a good reason why this can't be done.

House sale if for less than £200k and this isn't to avoid inheritance tax.

Thanks in advance.

Edited by EarlyDays on Monday 10th March 17:10

[dingg]

Because its not your money. Its your parents.

Once it's paid to them, then they can gift it to you.

[EarlyDays]

Not my parent.

The car sale procedes went direct to child, it wasn't the child's car.

Auctioned furniture sale procedes went direct to the child, it wasn't their furniture.

[TownIdiot]

The child will at least have to complete money laundering checks with the lawyer, who will then have to be satisfied as to the reasons for the request.

They'd be within their rights not to proceed if they don't feel comfortable.

[alscar]

Technically possible I imagine but no doubt the Solicitors involved have their compliance and anti money laundering policies to adhere to.
Don’t see why the money can’t be given to the parents first and then theirs to do what they want with and of course with them then being subject to any IHT / CGT rules as may be applicable.

[Countdown]

EarlyDays said:

Not my parent.

The car sale procedes went direct to child, it wasn't the child's car.

Auctioned furniture sale procedes went direct to the child, it wasn't their furniture.

Did either of those involve a Solicitor? As has been noted already they have fairly strict AML compliance processes and it's odd that the Parent can't immediately transfer the money to the Child. A cynical person might think that somebody was trying to avoid IHT

[Caddyshack]

TownIdiot said:

The child will at least have to complete money laundering checks with the lawyer, who will then have to be satisfied as to the reasons for the request.

They'd be within their rights not to proceed if they don't feel comfortable.

I agree with this answer and I think many Solicitors or Conveyancers would not take any risk.

[markiii]

surely the answer is a joint account?

[Caddyshack]

Countdown said:

EarlyDays said:

Not my parent.

The car sale procedes went direct to child, it wasn't the child's car.

Auctioned furniture sale procedes went direct to the child, it wasn't their furniture.

Did either of those involve a Solicitor? As has been noted already they have fairly strict AML compliance processes and it's odd that the Parent can't immediately transfer the money to the Child. A cynical person might think that somebody was trying to avoid IHT

Or care home fees / means testing. But, I don’t blame them.

[EarlyDays]

Countdown said:

EarlyDays said:

Not my parent.

The car sale procedes went direct to child, it wasn't the child's car.

Auctioned furniture sale procedes went direct to the child, it wasn't their furniture.

Did either of those involve a Solicitor? As has been noted already they have fairly strict AML compliance processes and it's odd that the Parent can't immediately transfer the money to the Child. A cynical person might think that somebody was trying to avoid IHT

Correct, no solicitor involved. Don't be cynical, they are windowed with less than £10k in savings. It would be nice for their child if they were subject to IHT.

[EarlyDays]

So it's not strictly not an option but the solicitor is probably just covering themselves.

Thanks for the replies.

[bennno]

Is this to avoid a loss of benefits?

[Sarnie]

EarlyDays said:

Hi,

Would anyone be able to confirm or deny if it would be possible for the procedes of a parents house sale to be paid directly into their (adult) child's bank account.

The parent is a widow and this is their only child.

Both parent, who is of sound mind, and child want this to happen but the solicitor handling the sales is wanting to transfer the funds direct to the parent. However the solicitor is not giving a good reason why this can't be done.

House sale if for less than £200k and this isn't to avoid inheritance tax.

Thanks in advance.

Edited by EarlyDays on Monday 10th March 17:10

So many red flags for the solicitor.

AML Requirements.
Vulnerable client.
Consumer Duty.
Fraud.
Future complaints.

[MB140]

markiii said:

surely the answer is a joint account?

Ive often thought this is a simple solution or if the parent trusts you have the account in the parents name and give the child power of attorney to remove the money with the bank.

My dad is getting in now and doesn’t do internet banking. Barely uses his debit card. Takes cash out at the branch and goes to the post office to pay the bills. Cracks me up.

On the few occasions where he can’t do this (garden rubbish collection from the council) then he got fed up of having to draw cash out for me so has given me power to withdraw money out (£1000 a day limit).

Surely this is the easiest way to do it. Joint or give the bank permission for the person to withdraw from the account.

[98elise]

Sarnie said:

EarlyDays said:

Hi,

Would anyone be able to confirm or deny if it would be possible for the procedes of a parents house sale to be paid directly into their (adult) child's bank account.

The parent is a widow and this is their only child.

Both parent, who is of sound mind, and child want this to happen but the solicitor handling the sales is wanting to transfer the funds direct to the parent. However the solicitor is not giving a good reason why this can't be done.

House sale if for less than £200k and this isn't to avoid inheritance tax.

Thanks in advance.

Edited by EarlyDays on Monday 10th March 17:10

So many red flags for the solicitor.

AML Requirements.
Vulnerable client.
Consumer Duty.
Fraud.
Future complaints.

Agreed.

I've recent bought a property at auction. The contract was in my name but the money was coming from mine and my partners ISA's. The solicitors made my partner formally gift the cash to me, and they wanted to see proof of where the money had come from over the years.

They are very cautious these days vs say 10 years ago.

[2fa]

bennno said:

Is this to avoid a loss of benefits?

Probably.

Or some other type of fraud.

Oh and abusing a LPOA by not acting specifically and solely in the interests of the donor will land you a nice spell inside.

Quite rightly so too.

[VeeReihenmotor6]

bennno said:

Is this to avoid a loss of benefits?

Or avoid paying care home fees. The council will fund if you have less than £16k in savings.

A solution for OP might be to put the property into Trust, where the child is the beneficiary on the death of the parent. You'll need legal advice to set it all up.

[anonymous-user]

VeeReihenmotor6 said:

bennno said:

Is this to avoid a loss of benefits?

Or avoid paying care home fees. The council will fund if you have less than £16k in savings.

A solution for OP might be to put the property into Trust, where the child is the beneficiary on the death of the parent. You'll need legal advice to set it all up.

If was that easy wouldn't everybody do it to avoid seeing their inheritance go in care fees?

If it is this easy how do I get in on it?

Either way it does on the face of it sound like the OP is trying to avoid care fees by selling the house and being gifted all the money. I assume it isn't that easy.

My ex wife works in a solicitor and has seen it all, even down to someone else trying to impersonate the mother. People seem to think solicitors are stupid, and that possession is 9/10th of the law so once they have the money that is it.

[TownIdiot]

ThingsBehindTheSun said:

If was that easy wouldn't everybody do it to avoid seeing their inheritance go in care fees?

If it is this easy how do I get in on it?

Either way it does on the face of it sound like the OP is trying to avoid care fees by selling the house and being gifted all the money. I assume it isn't that easy.

My ex wife works in a solicitor and has seen it all, even down to someone else trying to impersonate the mother. People seem to think solicitors are stupid, and that possession is 9/10th of the law so once they have the money that is it.

It's not that simple and wouldn't work if discovered

[VeeReihenmotor6]

ThingsBehindTheSun said:

If was that easy wouldn't everybody do it to avoid seeing their inheritance go in care fees?

If it is this easy how do I get in on it?

Either way it does on the face of it sound like the OP is trying to avoid care fees by selling the house and being gifted all the money. I assume it isn't that easy.

My ex wife works in a solicitor and has seen it all, even down to someone else trying to impersonate the mother. People seem to think solicitors are stupid, and that possession is 9/10th of the law so once they have the money that is it.

Possibly, or not aware. My parents and my Wife's parents have used Trusts but are not all dead yet or in need of care. My Mum's Mum (my Nan) has used a Trust with my Uncle who bought her council house (himself, nothing to do with my Mum, all done behind her back) at a discount, they put it into Trust. My Nan is currently in a care home and it is fully funded by the council. It seems to somehow work, none of us are close to My Mum's brother to ask (estranged family) but we know my Nan had less than the required amount in savings and have seen the Trust paperwork as Mum has the rights to see her Mum's financial affairs.