Recieving funds back from parents held for safekeeping.

D

DMcD123

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Hi all,

Looking for some advice in relation to receiving funds back from my parents after them holding them for a number of years for safekeeping.

To give some context from the ages of 15-23, I received payment from a job (fully taxed etc) into my own bank account. Over this period I transferred the vast majority of these funds to my parents for safekeeping as I was a minor/in college and didn't consider myself able to manage the funds. I am now looking at transferring the funds back into my account to use as a deposit for a house (aged 25 now) and am worried there may be issues on the source of the funds and that they may be seen as a gift and liable to CAT despite the funds being originally mine and fully legitimate and having a logical reasoning behind the transfer.

I have clear evidence of the dates of transfer of the funds and amount to my parents and the money has sat in their account unused over the period. I am aware this may be considered a loan to them over the period and that interest may be due (can be waived due to small gift exception) and this could be a simple explanation for the funds moving back in forth if necessary?

Would anyone have any idea if there will be any issues on transferring the funds back to my account? or experience of a similar situation?

Thanks,
DMcD
 
Sounds legit to me. Odd. But you were young and not so foolish. What kind of figure are we talking?
 
I wouldn't use the ruse of a "loan" to your parents because that is simply untrue, lying about it and being caught in a lie could be a problem. Especially as they never used the money, there is no evidence that it is a true loan. They were holding it on your behalf, they were not recipients of a gift or a loan so they didn't benefit from it unless you could count any interest that they earned on it (I am assuming that from yours and your parent's perspective any interest would rightfully be yours unless you agreed it with your parents as a form of payment for them holding your money for you).

If it is queried and you have documentary evidence demonstrating the origin of the funds then your explanation is perfectly reasonable and rational. The money never left you, your parents are just returning what is rightfully yours.
 
There won't be any issue at all. Your parents just transfer the money into your account. The bank will have source of funds so they won't ask you any questions (you are not rocking up to the counter with cash). Unless we are talking a huge amount of money here, there is no reason for revenue to be involved and even if they suddenly became interested for whatever reason, the money has been taxed and you all documentation to prove it. Don't over complicate this by contacting revenue or raising it with banks. Just get the money back and congratulate yourself on being very very sensible with obviously good parents who must have supported you while allowing you to save your earnings!!
 
No issue at all. If you’re asked, you asked your folks to hold the money in bare trust for you. You remained the beneficial owner of the funds at all times.
 
DMcD123 said:
Would anyone have any idea if there will be any issues on transferring the funds back to my account? or experience of a similar situation?

Thanks,
DMcD
Click to expand...

Do you mean issues with Revenue or issues in terms of mortgage approval.
 
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