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Transferring large amounts of cash pre marriage

Transferring large amounts of cash pre marriage

Old Jul 7th 2016, 7:01 am
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Default Transferring large amounts of cash pre marriage

Hi all,

I'm wanting to transfer all of my funds into dollars and with the exchange rate deteriorating I'm not looking at waiting round.

I've already transferred $10k this financial year.

Are there any further tax implications (or otherwise) to shifting more pre marriage?

The bank account only has my fiancée listed. Legally I'm not tied to it.

My fiancée has quoted this 10k figure at me, but I'm not clued up on the US tax code.

Cheers
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Old Jul 7th 2016, 10:50 am
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by tom169
Are there any further tax implications (or otherwise) to shifting more pre marriage?
These types of questions should be posted in the general USA forum, as they're not actually related to immigration.


My fiancée has quoted this 10k figure at me, but I'm not clued up on the US tax code.
If it's your own money, there are no tax issues involved with transferring money from place to place. The $10K figure represents the threshold that the US Treasury Department uses to invoke the RICO laws concerning money laundering. Banks are obligated to report any amount of $10K or over to the Treasury Department (you don't have to do anything)... but it's a reporting requirement only. It's not a tax issue - and you can transfer as much as you want as many times as you want.

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Old Jul 7th 2016, 1:15 pm
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Default Re: Transferring large amounts of cash pre marriage

With the pound being so low against the dollar at the moment (lowest in 31 years), I would be tempted to wait until it settles before exchanging.

At today's rate, you'll get about $1.30, but even though no-one can predict the future, I'm pretty sure it'll get stronger again. Depending on the amount you're changing, that could make a pretty big difference!
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Old Jul 7th 2016, 1:18 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by tom169
Hi all,

I'm wanting to transfer all of my funds into dollars and with the exchange rate deteriorating I'm not looking at waiting round.

I've already transferred $10k this financial year.

Are there any further tax implications (or otherwise) to shifting more pre marriage?

The bank account only has my fiancée listed. Legally I'm not tied to it.

My fiancée has quoted this 10k figure at me, but I'm not clued up on the US tax code. .....
There are no tax implications, and no regulatory implications, and once you're married your wife's affairs end up on the same tax return, so you have only gifted the money to yourself, .... and gifts aren't taxed anyway.

Your fiancée should let her bank know the source of funds and reason for the transfers, and do her best to make sure that the bank records the information in her (electronic) customer file.

I agree with Guindalf, the FX rate is likely to be volatile for a while, and could slide further, or recover quickly, ..... and could slide again. There are certainly risks to moving too soon as well as too late.

The $10k figure is often bandied around by Americans, but the significance of it is very commonly, almost universally, misunderstood.

Last edited by Pulaski; Jul 7th 2016 at 1:24 pm.
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Old Jul 7th 2016, 1:34 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by tom169
Hi all,

I'm wanting to transfer all of my funds into dollars and with the exchange rate deteriorating I'm not looking at waiting round.

I've already transferred $10k this financial year.

Are there any further tax implications (or otherwise) to shifting more pre marriage?

The bank account only has my fiancée listed. Legally I'm not tied to it.

My fiancée has quoted this 10k figure at me, but I'm not clued up on the US tax code.

Cheers
Just checking that you are aware of the likely benefits of using a money transfer specialist, rather than a regular bank. ie the likes of Transferwise, World First, Torfx (which I have used several times) and there are many others.

Personally, I would not transfer everything in one go right now, given the exchange rate uncertainty, but it's a tough call.
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Old Jul 7th 2016, 1:49 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by MidAtlantic
Just checking that you are aware of the likely benefits of using a money transfer specialist, rather than a regular bank. .....
Some FX brokers/ money transfer specialists won't transfer to an account in a different name.
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Old Jul 7th 2016, 3:13 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by Pulaski
Some FX brokers/ money transfer specialists won't transfer to an account in a different name.
That is a condition of the license they hold in a particular State (Oregon is one), rather than a policy of the broker.
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Old Jul 7th 2016, 6:02 pm
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Exclamation Re: Transferring large amounts of cash pre marriage

This may come over as harsh, but DO NOT transfer money into someone else's account....fiancee or not!!!

Approach a USA bank when you can, explain your situation, & take it from there, you will probably need a temporary tax code prior to getting your green card.

Don't think for one minute l'm Mr Gloomy-Doomsday, you need to be realistic, & believe me, sh*t DOES happen!!!
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Old Jul 7th 2016, 6:09 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by britmick
This may come over as harsh, but DO NOT transfer money into someone else's account....fiancee or not!!!

Approach a USA bank when you can, explain your situation, & take it from there, you will probably need a temporary tax code prior to getting your green card.

Don't think for one minute l'm Mr Gloomy-Doomsday, you need to be realistic, & believe me, sh*t DOES happen!!!
Do you suggest he cancel his wedding plans too, in case things turn sour?

As you have no idea how long the OP has known his fiancée, nor anything else about the OP and his circumstances, don't you think that you might have jumped in with advice that is a gross overreaction?
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Old Jul 7th 2016, 6:18 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by Pulaski
Do you suggest he cancel his wedding plans too, in case things turn sour?

As you have no idea how long the OP has known his fiancée, nor anything else about the OP and his circumstances, don't you think that you might have jumped in with advice that is a gross overreaction?
Throw all the pathetic rhetoric at me that you feel necessary Puli, but opening people's eyes & talking about such a risk is only meant with good intentions!
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Old Jul 7th 2016, 6:25 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by britmick
Approach a USA bank when you can, explain your situation, & take it from there, you will probably need a temporary tax code prior to getting your green card.
What are you talking about??
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Old Jul 7th 2016, 6:28 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by MidAtlantic
What are you talking about??
Well for starters l'm not replying to anything that you've asked, so get off my case......................isn't it time for your afternoon nap?
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Old Jul 7th 2016, 6:37 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by britmick
Well for starters l'm not replying to anything that you've asked, so get off my case......................isn't it time for your afternoon nap?
But your advice makes no sense unless you know more about the OP than he has posted. Is he even getting a green card? He certainly didn't post anything about it in this thread. .... For all we know he might already be a USC just looking for advice on transferring money.

And what is a "temporary tax code" - that isn't terminology used by the IRS, and I am not aware of any social security or tax number that is "temporary".

Last edited by Pulaski; Jul 7th 2016 at 6:42 pm.
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Old Jul 7th 2016, 6:56 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by ian-mstm
If it's your own money, there are no tax issues involved with transferring money from place to place. The $10K figure represents the threshold that the US Treasury Department uses to invoke the RICO laws concerning money laundering. Banks are obligated to report any amount of $10K or over to the Treasury Department (you don't have to do anything)... but it's a reporting requirement only. It's not a tax issue - and you can transfer as much as you want as many times as you want.
Originally Posted by Pulaski
There are no tax implications, and no regulatory implications, and once you're married your wife's affairs end up on the same tax return, so you have only gifted the money to yourself, .... and gifts aren't taxed anyway.

Your fiancée should let her bank know the source of funds and reason for the transfers, and do her best to make sure that the bank records the information in her (electronic) customer file.

I agree with Guindalf, the FX rate is likely to be volatile for a while, and could slide further, or recover quickly, ..... and could slide again. There are certainly risks to moving too soon as well as too late.

The $10k figure is often bandied around by Americans, but the significance of it is very commonly, almost universally, misunderstood.
Appreciate the advice. That's that problem sorted then



Originally Posted by Guindalf
With the pound being so low against the dollar at the moment (lowest in 31 years), I would be tempted to wait until it settles before exchanging.

At today's rate, you'll get about $1.30, but even though no-one can predict the future, I'm pretty sure it'll get stronger again. Depending on the amount you're changing, that could make a pretty big difference!
I know it's shocking at the moment. But i'm starting to contemplate cutting any losses and just biting the bullet. I've read some economists that have mentioned it dropping nearer $1.10. I'm sure I can find economists saying the opposite. But given i'm moving over November with no plan to return (for a long time anyway), i'm opting to draw a line under my GBP funds.



Originally Posted by MidAtlantic
Just checking that you are aware of the likely benefits of using a money transfer specialist, rather than a regular bank. ie the likes of Transferwise, World First, Torfx (which I have used several times) and there are many others.

Personally, I would not transfer everything in one go right now, given the exchange rate uncertainty, but it's a tough call.
Previously, I've used xe.com which has been quick and fine to my fiancee's bank account.


Originally Posted by britmick
This may come over as harsh, but DO NOT transfer money into someone else's account....fiancee or not!!!

Approach a USA bank when you can, explain your situation, & take it from there, you will probably need a temporary tax code prior to getting your green card.

Don't think for one minute l'm Mr Gloomy-Doomsday, you need to be realistic, & believe me, sh*t DOES happen!!!
Originally Posted by Pulaski
But your advice makes no sense unless you know more about the OP than he has posted. Is he even getting a green card? He certainly didn't post anything about it in this thread. .... For all we know he might already be a USC just looking for advice on transferring money.

And what is a "temporary tax code" - that isn't terminology used by the IRS, and I am not aware of any social security or tax number that is "temporary".
Thanks for the advice, but respectfully after many years of happy dating and countless visits, the amount of risk is minimal. I'm already giving up a fantastic job and moving thousands of miles away from family and friends.

If it all goes tits up, I've got more to worry about than my savings.

As for my intended US status, i'm K1 pending (interview booked for August).
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Old Jul 7th 2016, 8:02 pm
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Default Re: Transferring large amounts of cash pre marriage

Originally Posted by tom169

I know it's shocking at the moment. But i'm starting to contemplate cutting any losses and just biting the bullet. I've read some economists that have mentioned it dropping nearer $1.10. I'm sure I can find economists saying the opposite. But given i'm moving over November with no plan to return (for a long time anyway), i'm opting to draw a line under my GBP funds.

I've seen several saying anything between $1.20 to $1.10 until the end of 2017. Haven't seen any say it's going up. How long can you leave the money in the UK before you need it. Can you wait it out?


Previously, I've used xe.com which has been quick and fine to my fiancee's bank account.
Shop around. XE are no longer as good as they were from a rate perspective. Compare the rate less fees and see who will send the most dollars to the US. If you have a large sum to transfer sometimes a lower rate with no fees is better than a higher rate and large percentage fee as well.
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