Lodging a Dollar Cheque

BnB

Hi all. A friend of mine is bringing in about $350k from America to be given to 5 people (It is part of an inheritance) .

His preferred option is to have 5 cheques written separately in America and then given to each of the 5 people. His other option is to have one cheque written to him which he lodges and then subsequently he writes 5 cheques to the 5 people from his own account here in Ireland. But I think he will go with the first option.

2 Questions on it....

1) If you just go a lodge a Dollar Cheque into your local (BOI for example) account, will you get screwed in the rate they give you or are the high stree banks actually competitive for this ? Would you save much by trying to convert it to Euro somewhere else first... without making it too complicated for the people concerned.

2) We have checked with an international tax accountant and there is no tax payable on the money, either in the US or in Ireland. However, if one of the people lodges the money in their account, will the bank have to inform revenue because of the amount. And will they then come asking questions. I have no problems with the questions as it is all 100% above board but I just want to avoid hassle for the people involved. So, if lodging the cheque is going to trigger Revenue being contacted, can I (or should I) pre-empt it and contact them in advance to answer the questions they may have.

Thanks in Advance

GerardKeating

BnB wrote: »

Hi all. A friend of mine is bringing in about $350k from America to be given to 5 people (It is part of an inheritance) .

His preferred option is to have 5 cheques written separately in America and then given to each of the 5 people. His other option is to have one cheque written to him which he lodges and then subsequently he writes 5 cheques to the 5 people from his own account here in Ireland. But I think he will go with the first option.

2 Questions on it....

1) If you just go a lodge a Dollar Cheque into your local (BOI for example) account, will you get screwed in the rate they give you or are the high stree banks actually competitive for this ? Would you save much by trying to convert it to Euro somewhere else first... without making it too complicated for the people concerned.

2) We have checked with an international tax accountant and there is no tax payable on the money, either in the US or in Ireland. However, if one of the people lodges the money in their account, will the bank have to inform revenue because of the amount. And will they then come asking questions. I have no problems with the questions as it is all 100% above board but I just want to avoid hassle for the people involved. So, if lodging the cheque is going to trigger Revenue being contacted, can I (or should I) pre-empt it and contact them in advance to answer the questions they may have.

Thanks in Advance

Is using one of the services like TransferMate or Oanda not an option.

dobsdave

For 2) why don't you get the people receiving the money to contact revenue and/or their bank? not sure why you are getting involved?
for 1) as per previous, use a fx broker or currency exchanger?

Yggr of Asgard

Also remember that he needs to fill out a CBP Currency Reporting Form (FinCen 105) when he leave the US with a check that size.

And when entering Ireland he also needs to declare it at customs.

Now there are specific ways he can have the check issued so that he does not need to report it but if they find it out (and they will with a check that size due to Patriots fools act) he might be better prepared.

Also I strongly suggest that your friend and each receiver contact Revenue/their tax accountant because that simple advise might not be correct for the circumstances of each individual.

Also using an fx broker is way better with amounts like that, yes it will require paperwork too but it will give you better rates and quicker access that a check.

antoinolachtnai

Bank of Ireland will be unwilling to cash this cheque at all in my experience. They could be convinced, I would say, but their opening position is going to be to refuse to deal with it. Your friend should get some local advice before he moves forward with this plan.

BorneTobyWilde

Electronic transfer though a company that does not give you a crap rate would be way to go Shirley

BnB

Thanks for the replies.

He is going to do as generally advised here.

He'll make a direct transfer (no more cheques) to an FX broker and make 5 transfers out from there.

Thanks for the advice