Gift Money Declaration from Father to Son Outline !

[sairamchaganti]

Fair points. Even though it explicitly states 'gifted', I suppose it can't hurt to reinforce that by saying these funds need not be repaid. The bit about Mr isn't a hard rule - could be cultural differences. Having a witness makes no difference but it can't hurt having that though it will be on a plain piece of paper and I'm not sure if bank officials anywhere in the World would casually initial such a document. Showing the value of funds in Canadian dollars or the equivalent action of showcasing official currency conversion rates (sell side for the bank) as on that date would be a welcome addition though not a mandatory inclusion.

As for CIC accepting this as POF, that is anyone's guess. Some officers have been convinced with lesser evidence, some have requested for even more and I know of at least 1 officer who doesn't like this workaround enough to send a refusal instead of requesting for more evidence. Like all workarounds, it won't work for everyone but it is the best OP can do.

About the skilled income bit, CIC isn't scrutinizing tax records of foreign applicants. Technically speaking, CIC should extend PPR to an EE applicant with a score of 451+ (minimum needed so far for an ITA, April draw) who hasn't worked for a day in the past 9 years (but still satisfies the 1 year continuous NOC 0/A/B requirement in the last 10 years) but has their application perfect in all other respects including POF derived from funds that can be conclusively established to be unencumbered. Under their existing regulations, CIC cannot refuse this applicant on the grounds of not having held a job for a while or not having paid taxes or not having savings left over from their post tax income. Very exaggerated example but I wanted to make that point clear that it isn't CIC's place to question proof of skilled employment income.

Dear Asivad Anac,

Does a "NOTARIZED WHITE PAPER" suffice the need to prove that it is real? IF SO then would it give enough strength to the POF that the last 6 months statement of the principal applicant be overlooked?

 

[Asivad Anac]

Dear Asivad Anac,

Does a "NOTARIZED WHITE PAPER" suffice the need to prove that it is real? IF SO then would it give enough strength to the POF that the last 6 months statement of the principal applicant be overlooked?

It isn't about the authenticity alone. A gift letter (notarized or not) cannot stand alone - it has to be backed up by bank records showing physical transfer of funds from the donor account to the PA's account. If this is done properly AND there are no other significantly large credit transactions in the PA's account within the last 6 months that need to be explained similarly AND the PA's bank letter explicitly mentions 6 months average balance then PA wouldn't need to submit 6 month bank statements.

 

[bhatravikiran]

It isn't about the authenticity alone. A gift letter (notarized or not) cannot stand alone - it has to be backed up by bank records showing physical transfer of funds from the donor account to the PA's account. If this is done properly AND there are no other significantly large credit transactions in the PA's account within the last 6 months that need to be explained similarly AND the PA's bank letter explicitly mentions 6 months average balance then PA wouldn't need to submit 6 month bank statements.

Dear Asivad,

I am Sinp applicant and my present application status as "Waiting on Applicant". My PF account is probably not considered as PoF and hence they have requested for valid PoF. Unfortunately, I don't have any other PoF older than 3 months before the application date and hence relying on "Father to Son" concept of PoF. For 3 years, I have been transferring money to my father's account, who intern deposited that money as Fixed Deposit in his name (Reason is he earns better interest as Senior Citizen). Total amount transferred is more than the required PoF in 3 years. Once I knew that, PF is not accepted as PoF, existing FD's were broken and new FD's were created in my Name.

Now that, my father will write a declaration letter mentioning the above facts with all FD details in it. My question is, do I need to furnish all the bank statements with major transactions in last 3 years (I mean both credit & debit) ? One more problem is that, this money was transferred to TWO of my father's SB accounts. So wouldn't it be too much documentation (Atleast 25-30 Pages) ? A letter from bank mentioning the major transactions would suffice?

 

[Asivad Anac]

Dear Asivad,

I am Sinp applicant and my present application status as "Waiting on Applicant". My PF account is probably not considered as PoF and hence they have requested for valid PoF. Unfortunately, I don't have any other PoF older than 3 months before the application date and hence relying on "Father to Son" concept of PoF. For 3 years, I have been transferring money to my father's account, who intern deposited that money as Fixed Deposit in his name (Reason is he earns better interest as Senior Citizen). Total amount transferred is more than the required PoF in 3 years. Once I knew that, PF is not accepted as PoF, existing FD's were broken and new FD's were created in my Name.

Now that, my father will write a declaration letter mentioning the above facts with all FD details in it. My question is, do I need to furnish all the bank statements with major transactions in last 3 years (I mean both credit & debit) ? One more problem is that, this money was transferred to TWO of my father's SB accounts. So wouldn't it be too much documentation (Atleast 25-30 Pages) ? A letter from bank mentioning the major transactions would suffice?

You don't need to provide any other evidence except for the proof of physical transfer from their account to your account. Do not attempt to prove that this was your money which you transferred over the years to your father - that way lies documentation hell.

Make it appear as if your father is giving you a gift, get a signed declaration proving that, attach physical evidences of this transaction in the form of bank statements, attach a letter from your bank in the required format mentioning 6 months average balance and add an LOE connecting all the dots again.

 

[bhatravikiran]

You don't need to provide any other evidence except for the proof of physical transfer from their account to your account. Do not attempt to prove that this was your money which you transferred over the years to your father - that way lies documentation hell.

Make it appear as if your father is giving you a gift, get a signed declaration proving that, attach physical evidences of this transaction in the form of bank statements, attach a letter from your bank in the required format mentioning 6 months average balance and add an LOE connecting all the dots again.

Dear Asivad,

Thanks for your quickest response! My case is slightly different. All the money transferred to my father's account was taken out and deposited as FIXED DEPOSIT in his name. Now, all those Fixed deposits are broken and Cheque received after breaking the deposit is encased by Father. Finally, new FD's are created in my name. This money is nowhere reflecting in my bank account. So I will enclose all those Fixed Deposits which were broken, Cheque Received by bank, New FD Copies and declaration letter. Is that fine?

 

[Asivad Anac]

Dear Asivad,

Thanks for your quickest response! My case is slightly different. All the money transferred to my father's account was taken out and deposited as FIXED DEPOSIT in his name. Now, all those Fixed deposits are broken and Cheque received after breaking the deposit is encased by Father. Finally, new FD's are created in my name. This money is nowhere reflecting in my bank account. So I will enclose all those Fixed Deposits which were broken, Cheque Received by bank, New FD Copies and declaration letter. Is that fine?

You father doesn't have to prove the funds were unencumbered for them. Only you have to prove this. The money trail needs to go back only till the time FDs were created in your name. And whether that happened through the proceeds from your father closing earlier FDs or winning a lottery doesn't matter to CIC. No harm in submitting additional documentation but it is strictly unnecessary.

Get a gift letter which mentions the amount for which FDs were created in your name. Attach physical proof of bank transfers from their account to FDs in your name.

 

[bhatravikiran]

You father doesn't have to prove the funds were unencumbered for them. Only you have to prove this. The money trail needs to go back only till the time FDs were created in your name. And whether that happened through the proceeds from your father closing earlier FDs or winning a lottery doesn't matter to CIC. No harm in submitting additional documentation but it is strictly unnecessary.

Get a gift letter which mentions the amount for which FDs were created in your name. Attach physical proof of bank transfers from their account to FDs in your name.

Thanks Asivad!

 

[Asivad Anac]

Hi champ asivad,

I have a gift declaration from my mom but the money came from her own pocket (old folks keep their savings inside that cabinet!) so I don't have any documentary proof like bank transfer to show. the money came from family owned businesses like some stores and agricultural lands. can i show these source of funds as proof instead?? thanks thanks.

CIC isn't likely to question your mother about the source of her funds. They are only keen on knowing the sources of your funds and conclusive proof that those funds aren't encumbered.

Recommend that you showcase evidence of these funds being deposited into your bank account along with a signed self-declaration gift letter from your mother in addition to a bank letter which mentions all details as required by CIC including 6 months average balance and an LOE wherein you connect the dots once again.

 

[JonesM]

It isn't about the authenticity alone. A gift letter (notarized or not) cannot stand alone - it has to be backed up by bank records showing physical transfer of funds from the donor account to the PA's account. If this is done properly AND there are no other significantly large credit transactions in the PA's account within the last 6 months that need to be explained similarly AND the PA's bank letter explicitly mentions 6 months average balance then PA wouldn't need to submit 6 month bank statements.

Hi champ asivad,

I have a gift declaration from my mom but the money came from her own pocket (old folks keep their savings inside that cabinet!) so I don't have any documentary proof like bank transfer to show. the money came from family owned businesses like some stores and agricultural lands. can i show these source of funds as proof instead?? thanks thanks.

 

[JonesM]

CIC isn't likely to question your mother about the source of her funds. They are only keen on knowing the sources of your funds and conclusive proof that those funds aren't encumbered.

Recommend that you showcase evidence of these funds being deposited into your bank account along with a signed self-declaration gift letter from your mother in addition to a bank letter which mentions all details as required by CIC including 6 months average balance and an LOE wherein you connect the dots once again.

thanks champ. i already have the gift letter but no doc evidences of the transfer. If there is, that will only be the deposit slip which I am not sure yet where to find or got lost somewhere in the house. My bank only gave me a balance certificate (not 6 month averages). Is it ok to explain this in LOE instead and show family businesses as proof?

 

[Asivad Anac]

thanks champ. i already have the gift letter but no doc evidences of the transfer. If there is, that will only be the deposit slip which I am not sure yet where to find or got lost somewhere in the house. My bank only gave me a balance certificate (not 6 month averages). Is it ok to explain this in LOE instead and show family businesses as proof?

If your bank cannot provide 6 months average balance, attach 6 months bank statements clearly highlighting the credit of this gift amount.

 

[me2canada]

Asivad,

Can I draft the gift deed on a plain paper with my dad's, witness and my signature. and highlight the transfer of money by dad (although he transferred in instalments) in my bank statement. because it may not be possible for us to get the bank statements of my dad to show the other side of the transaction. Could you pls suggest.

 

[Asivad Anac]

Asivad,

Can I draft the gift deed on a plain paper with my dad's, witness and my signature. and highlight the transfer of money by dad (although he transferred in instalments) in my bank statement. because it may not be possible for us to get the bank statements of my dad to show the other side of the transaction. Could you pls suggest.

That should suffice. Make sure you highlight the transactions in the bank statements. Also, in addition to adding your father's account details in the gift letter, there is no harm if you can provide any documentation to prove that particular account belongs to them, if possible.

 

[_ryersonfs]

I've been digging old threads regarding POF lately, found a template by anujgupta84 looks pretty good to me:

I, _________________ (name of donor), S/o _________________ (father's name), R/o _____________________ (address), do hereby on dated __________ make a gift-deed for a gift made on dated of ___________, Rs. ______/- (Rupees in word) out of love and affection to my ____________ (mention the relationship & name of receiver), S/o or W/o _______________, R/o _________________________. I confirm that I am a resident Indian. I, further confirm that this gift is being made out of my own funds standing to the credit of my A/c No.- __________ in
____________(mention the Bank name & address).
I, further confirm that the consideration for this gift is the love and affection for my ____________________ (mention the relationship & name of receiver) and no other consideration.
I am an Income Tax assessee having PAN/GIR # A-984 / N and assessed with Income Tax ward 1, Noida and this gift is made out of my past savings from profession in India. Strictly Confidential 2 P A R Y & Co.
I further confirm that the gift has been made by Cheque No ___________ dated _______ drawn on ___________________________ (mention the Bank name & address). This gift is irrevocable and I have no claim left whatsoever on the said gifted amount and he/she is free to utilise it in any manner.

PLACE:
DATED: _______________________
(Donor name)


Witness:
The gift as stated above is accepted




______________________
(Name of receiver)

hope this helps

 

[madattray90]

Is the proof in the form of an affidavit necessary to show that money was gifted? Or the copy of the fixed-deposit receipt will do? I was initially preparing this but my agent said it is not necessary!!! Pls suggest..I'm on the verge of submission of my application post ITA..