chawkins99

My mother-in-law passed away earlier this year and my wife is due to receive a sizable sum from her estate (currently in probate).
I have been trying to find out how the solicitor will transfer the money to the US and their advice (via my brother-in-law) is to open a UK bank account Doesn't inspire confidence!!!
I wanted them to use TorFX (or similar) but they don't seem to know about of are uncomfortable with that.
I will be in the UK next week (but not my wife) but don't think there's much I can do while there.

Any suggestions?

Noorah101

Would it be a problem to open a UK account and then transfer the funds yourself?

Rene

sir_eccles

Depending on the size of the inheritance there are likely to be a variety of IRS forms to fill in too.

rpjs

I'm in a similar situation, being the executor of my late father's estate and awaiting sale of his house to be able to settle the estate and disburse it to the inheritors (myself and my brother). Both of us have UK bank accounts but my solicitor said that it ought to be possible to remit the proceeds directly to a US bank account so long as a SWIFT account number can be provided. That said, it may well be cheaper to remit to our UK bank accounts and then transfer the monies through a factor. Of course then that would take our UK bank balances into FBAR reporting territory but probably not form 8938 territory.

robin1234

Isle of Man current account. Then transfer the sum at your convenience, by your preferred method. That avoids the (minor but still to be considered) risk that the solicitor would somehow screw up a foreign transfer, if they're not used to doing them.

Marc_ely

If you use TorFX or similar they give you an account number and sort code that are the same as a UK bank anyway.
I have this job to do once my Mums estate is sorted. I will tell the solicitor where to stick the money (so to speak)!
I have no idea what needs to be declared etc. I will email my CPA and see what she says.

chawkins99

They require proof of UK address in the form of a utility bill, mortgage, etc. in mine (or wife's) name.

Nutmegger

Here is one of the prior threads about this topic, which has links to more info that might be of assistance to you:

http://britishexpats.com/forum/usa-5...-agent-832144/

chawkins99

I wasn't aware of this. I thought you needed an existing UK account to transfer from.
So, does every TorFX user have a unique account number or is it a single account for ALL users?
The amount is around 30,000 sterling which I believe falls below inheritance limits on both sides of the pond.

Nutmegger

The executor of my mother's estate just wired the money directly into my investment account, at the cost of a $15 wire fee. I had to file the paperwork with the IRS, but it was purely informational. The only amount that had to be declared on my tax return was the interest that had accrued while the estate was in probate, and the executor provided the UK form that evidenced that.

chawkins99

The problem with a direct wire transfer is unfavorable exchange rates. We had 500 pounds wired earlier this year and lost about 10% in the process.
The money will be distributed by the solicitor and they are unwilling to use an international transfer service.

A potential problem highlighted in the thread mentioned above is that the sender and recipient are not the same person.

Marc_ely

For TorFX it's a single account. You use a customer number in the transfer, and they look out for the specific transfer amount.
I've used them several times including the sales of a UK house.
30k is a long way under UK limit (325k). I am not sure of USA. It looks like over $5Million, but I could be wrong.

robin1234

That's why I suggested an IoM account. They operate exactly like domestic UK accounts, but are designed for folks in the USA etc.

chawkins99

Do you have any recommendations? (PM if necessary).

All the big name banks require minimum balances of £50k or £100k or £100k+ salaries.

Any problems with opening an account and closing it again within weeks?

Wintersong

Is the solicitor also the executor?

I'd have thought it would be just as easy for them to transfer through a currency broker as it would be to pay it into a UK bank account, but if they refuse, do you have family in the UK who would be willing to have the money paid into their account and then transfer it to you?

I received an inheritance a few years back. My situation was slightly different, as I still had a UK bank account so I had it paid into that and then transferred it myself through xe.com. If you can avoid the hassle of FBAR, it's best to do so - we struggled to find someone who was familiar with it when it came time to file taxes.

FYI - there will be no taxes payable on either side of the pond unless the rules have changed significantly in the last 5 years, so long as you declare it.