Formulate/increase equity/grant/family/bank for construction loan?

Dear readers,

we are receiving an additional increase in our equity from my parents.
The money will be available to us in a few weeks, as it is still invested.

The bank from which we are getting our loan now wants proof of our equity.
The financial advisor said we need to draft a two-liner stating that my parents are giving us money to add to the existing equity.

How is this best formulated?

Does anyone have a tip!

Thanks!

Oh, I see... the corresponding bank statement will of course be provided.

Hello,

perhaps like this:

Dear XY Bank,

we are pleased to confirm that we will support the construction of our daughter Amelie X and her husband Max Mustermann with an amount of EUR XX.

Since the funds are currently fixed until XX.XX.2014, we will transfer the amount to our daughter's account 0815/4711 only after maturity.

We have attached the bank statement as proof of the availability of the funds.

Kind regards,

the generous parents

Regards,

Dirk

Hi,

possibly depending on the amount involved, mention only the daughter. Keyword: gift tax. The exemption amount from parents to children is €400,000, to children-in-law only €20,000.

Our bank has definitely accepted a formulation similar to the one Dirk suggested. There could be problems if the availability date is only in a very advanced construction stage.

Best regards

Michael

...possibly depending on the amount involved, only mention the daughter. Keyword: gift tax. From parents to children the allowance is €400,000, to sons- or daughters-in-law only €20,000...

Correct, that’s exactly why I phrased it so that the amount is transferred to the account of the daughter.

Regards,

Dirk

The parents should document the gift in writing anyway. So not just transfer the money, but hand over a document to the daughter that is signed and dated. Then a copy of this letter and a current account balance should be sufficient.