Inheritance in GBP

Bobmo123

Hello,

I am due to get 150k in inheritance in the next month and was wonder if anybody knew who charges the bank exchange rate?

It is going from Llyod's Bank in the UK to AIB here. Does the UK bank change it in to Euro before it even gets sent or is it send in GBP and AIB do the change?

Thanks for your help.

Toots

It depends on whether the sender in the UK instructs their bank to send it as GBP or convert it to Euro before sending. It's a significant amount of money, so you would need to check with whoever is organising the transfer (I assume it's a solicitor or the executor of the estate?) what way they intend to do it.

Atlantic Dawn

You should look at the likes of Transferwise to facilitate the transfer for a better rate that you receive in Euro.

kenmm

Do not allow the banks to do this at all. Use a broker like CurrencyFair, Transferwise, Moneycorp etc. For those amounts you will need to have a copy of your passport, but if you go bank to bank you could easily end up loosing 3-4k + on the transaction.

The way it works is you will be given a Sterling based account number to do the GBP to GBP transaction (Give this with a ref number to the UK Solicitor/ initiator of the transaction). Then have Moneycorp/CurrencyFair/Transferwise do the trade into EUR and from there you transfer to your own Irish EUR account. The broker will charge a fee, but it will be far, far less than the bank to bank rate. The STG Rate is pretty poor, so with CurrencyFair for example you could set up a trade and wait for it to go a little more in your favour for all or part of the full 150K - i.e. if the rate is currently 90p to the EUR you could wait until it hits 88p and get more (of course it might not.. etc).

If its allowed, PM me and I will give you are referral link and we both get another 30 quid outta the deal

Bobmo123

Yeah the money is going to my uncle who is the executor of the estate.

I was looking at Transferwise but giving a company I haven't used before the most money I have ever had is a little bit scary. But as far is I can work out they are the best option.

thanks for your help.

Kenmm ill send a PM when i'm going to do it as the link might expire?

kenmm

I have used all three I mentioned* (And for significant amounts over 20K). Double check but I think Moneycorp is UK Gov Guaranteed up to 100k at least (they definitely have segregated accounts).

Currencyfair I would recommend - they are based in Ballsbridge and they have the handy "Target a rate tool" that lets you choose - so you could chunk off X amount now and then target a better rate for the next X amount and when the rate hits it will auto convert from GBP to EUR.

https://www.currencyfair.com/trust/regulation/


*of course - I am just some randomer on the internet - do your own fact checking!!

Bobmo123

Thanks Randomer on the internet

I will look in to them. It would be nice to have a government guarantee. Also currency fair as its good to deal with someone with a base in Ireland.

kenmm

If the guarantees don't cover your full amount (I can't remember the numbers), maybe even split between (for example) moneycorp and currencyfair? All of them will be far, far cheaper than the banks. The banks will use a bad exchange rate and possibly also charge you a % on top (and maybe also a fixed foreign cash lodgement fee as well - them boys know how to charge!).

Moneycorp and Currency fair I have also dealt with on the phone - so if you are unsure of anything, give them a ring (it can be daunting when it comes time to click the big "Transfer now" button!

Jim2007

Bobmo123 wrote: »

Hello,

I am due to get 150k in inheritance in the next month and was wonder if anybody knew who charges the bank exchange rate?

It is going from Llyod's Bank in the UK to AIB here. Does the UK bank change it in to Euro before it even gets sent or is it send in GBP and AIB do the change?

Thanks for your help.

Before people get all excited about using services other than a bank....

Can you clarify who is paying this money out - a solicitor, a relative or someone else and if you are in a position to influence that transaction method.

If it is the first step in the distribution on an estate, you can expect that the solicitor involved will be very rigid in facilitating the transfer and most likely will not do other than transfer it to a bank account in your name.

In doing the transfer, the UK bank will do as instructed by the person making the payment, so they will convert it Euro, if instructed, otherwise the transfer will be in Sterling.

Bobmo123

Hi Jim.

The solicitor is sending the money in GBP to my uncle into his UK account as he is the executor of the will. I am not in a position to change that part of it.

The estate has been submitted and approved and all due taxes paid. The transfer of the funds from the sale of the house is the last step.

Jim2007 wrote: »

In doing the transfer, the UK bank will do as instructed by the person making the payment, so they will convert it Euro, if instructed, otherwise the transfer will be in Sterling.

Thanks for that information.

kenmm

There is no problem using a currency service to transfer via a UK Solicitor. You might be asked for documentation to prove the account is in your name, but unlikely if receiving money. Those sort of questions would come from other parties (like Irish revenue etc) or as part of anti-fraud measurements. But the Broker account is still in the recipients name so no issue. These facts can be double checked with the broker and the solicitor ahead of any transaction. No need to complicate matters, give them a quick ring to let them know.

coylemj

Bobmo123 wrote: »

Hi Jim.
The solicitor is sending the money in GBP to my uncle into his UK account as he is the executor of the will. I am not in a position to change that part of it.

There's no reason why you'd want to change any part of that transaction, the money will transfer pound for pound to your uncle. So it appears that the final leg is where your uncle (as executor) transfer the money to you in Ireland. That's when the conversion will happen.

Which means you will have to discuss with him if he's prepared to go outside the regular banks to transfer the money. If he's the conservative type and/or he asks a solicitor if it's ok to do so, you can expect a certain amount of resistence. It will come down to the uncle saying: 'why should I risk becoming liable for 150K of money which disappears into the ether?'

kenmm

Therefore again, to be clear, the process is:

1 - Solicitor transfers from UK bank in Solicitors name to currency converters UK Bank account.
2 - Funds appear in online Currency Converter account (it looks like any other online banking system).
3 - Use online currency converter to set up the transaction (From GBP to EUR) - either all at once or however you want.
4 - Use online converter to transfer the money out from their EU Euro account into your own EUR account (which will be the same as any other euro to euro transaction)

When you create the Currency account you will need to be verified with photo ID( Normally a scan) and you may be asked additional questions when transferring more than 10k - so there may be some small delays along the way. This is normal anti fraud/money laundering measures.

This process in not unusual - lots of people buy property/ inherit money between UK and EU all the time.. If you are unsure of any part of this, give moneycorp or currencyfair a quick ring and double check facts etc.

Bobmo123

Thanks everyone for you help this information will help me a lot with the process .

ken is right with the having to supply ID and I also have to send a copy of the will.

thanks again.

quokula

I transferred a similar amount of money in the past through Transferwise. I already had a UK bank account with Santander bank from when I lived in the UK previously - I'd advise seeing if you can get a real sterling bank account and receive the money that way, maybe you can do this with a Northern Irish bank? Bank accounts are backed by government so your money is guaranteed if anything goes wrong. Other financial services don't necessarily have such protection and if the company were to go bust while they have your money you may not see it again.

So what I did was take the full amount into Santander, and then transferred 5k daily through Transferwise over the space of a couple of weeks - transfers from Santander to Transferwise were usually pretty much instant, currency conversion within Transferwise was instant, and then Transferwise to Permanent TSB tended to take a day or so.

Doing it that way meant that only a relatively small amount was exposed if anything went wrong with Transferwise. Nothing did though, it was all fairly smooth and easy.

kenmm

quokula wrote: »

I transferred a similar amount of money in the past through Transferwise. I already had a UK bank account with Santander bank from when I lived in the UK previously - I'd advise seeing if you can get a real sterling bank account and receive the money that way, maybe you can do this with a Northern Irish bank? Bank accounts are backed by government so your money is guaranteed if anything goes wrong. Other financial services don't necessarily have such protection and if the company were to go bust while they have your money you may not see it again.

So what I did was take the full amount into Santander, and then transferred 5k daily through Transferwise over the space of a couple of weeks - transfers from Santander to Transferwise were usually pretty much instant, currency conversion within Transferwise was instant, and then Transferwise to Permanent TSB tended to take a day or so.

Doing it that way meant that only a relatively small amount was exposed if anything went wrong with Transferwise. Nothing did though, it was all fairly smooth and easy.

It's going to be nearly impossible to get a UK account without a UK address and is entirely unnecessary and adding a level of worry into the OPs situation that is uncalled for.

Moneycorp (for example) are very clearly regulated (https://www.moneycorp.com/en-gb/help-support/personal-faq/#safe) and use segregated accounts. I am sure Currencyfair is the same.

Also - going 5k at a time (over 30 days?) - not only is this an unnecessary complication, but it will be sure to trigger all sorts of fraud alerts and introduce further delay.

Also - UK banks aren't covered beyond 85K anyway (and probably only for UK residents) and Its not like UK banks are particularly safe from going under?...

Bobmo123

Thanks Quokula,

I was thinking of doing the smaller amounts but I was worried it would cost a lot to do that as you would get charged per transaction.

I will probably will do 1 smaller amount to test it.

kenmm

Bobmo123 wrote: »

Thanks Quokula,

I was thinking of doing the smaller amounts but I was worried it would cost a lot to do that as you would get charged per transaction.

I will probably will do 1 smaller amount to test it.

Definitely test the process end to end with a smaller amount (I remember doing the same) to see how smooth (hopefully!) it will go - if you do end up doing many transactions, there will be more fees, but it will be far, far less than bank to bank.

coylemj

kenmm wrote: »

Therefore again, to be clear, the process is:

1 - Solicitor transfers from UK bank in Solicitors name to currency converters UK Bank account.

The solicitor will have no involvement with the currency conversion. See post #10....

Bobmo123 wrote: »

The solicitor is sending the money in GBP to my uncle into his UK account as he is the executor of the will.

Any currency conversion will have to be arranged between the uncle and the OP, the solicitor is out of the loop at that stage.

The J Stands for Jay

Wouldn't opening a revolut or monese account or similar be the way to go? You'll get a GBP IBAN for the uncle to transfer to and you can move the money out straight away if you're worried about them going bust. No need to go trying to time the EUR/GBP FX rate, the savings you'll be making by not involving the legacy banks will make up for that.

Jim2007

Bobmo123 wrote: »

Hi Jim.

The solicitor is sending the money in GBP to my uncle into his UK account as he is the executor of the will. I am not in a position to change that part of it.

The estate has been submitted and approved and all due taxes paid. The transfer of the funds from the sale of the house is the last step.



Thanks for that information.

Good so then you are free to use which ever method suits you best to move the money to Ireland, so shop around.

Tabby McTat

OP I'd recommend you talk to your own bank as well. Depending on who you bank with, some will be happy to give a quote on an amount of that size and will generally match a broker rate once they know they are in competition. You also have the option of opening a £ account in Ireland with your bank and exchange at a later date. By all means check out the providers mentioned above but don't write off your own bank.

kenmm

barrac wrote: »

OP I'd recommend you talk to your own bank as well. Depending on who you bank with, some will be happy to give a quote on an amount of that size and will generally match a broker rate once they know they are in competition. You also have the option of opening a £ account in Ireland with your bank and exchange at a later date. By all means check out the providers mentioned above but don't write off your own bank.

Good point - if that works out it would be interesting to know how well they perform.

kenmm

kenmm wrote: »

It's going to be nearly impossible to get a UK account without a UK address and is entirely unnecessary and adding a level of worry into the OPs situation that is uncalled for.

Moneycorp (for example) are very clearly regulated (https://www.moneycorp.com/en-gb/help-support/personal-faq/#safe) and use segregated accounts. I am sure Currencyfair is the same.

Also - going 5k at a time (over 30 days?) - not only is this an unnecessary complication, but it will be sure to trigger all sorts of fraud alerts and introduce further delay.

Also - UK banks aren't covered beyond 85K anyway (and probably only for UK residents) and Its not like UK banks are particularly safe from going under?...

It’s very easy to get a UK account, just open a Revolut account.

Can then decide how is best to transfer over the money - either using Revolut premium, doing it in stages, directly by trasnferwise or currency fair etc.

kenmm

Heidi Hundreds Trail wrote: »

It’s very easy to get a UK account, just open a Revolut account.

Can then decide how is best to transfer over the money - either using Revolut premium, doing it in stages, directly by trasnferwise or currency fair etc.

yep - didn't think about Revolut - not really a UK bank account in the same sense as the poster stated, I was talking about traditional banks (as was the poster who first mentioned this).

A Revolut account will give you a UK Iban/account number. You can also do the transfer inside the Revolut app. Why do you say premium tho? Can you elaborate a bit - is it a better rate (I remember they had better cash withdrawal limits, but don't remember the conversion charge).

@OP - Revolut rate will also be far, far better than traditional bank to bank transfers (But maybe not quite as good as currency converter service).

kenmm

kenmm wrote: »

yep - didn't think about Revolut - not really a UK bank account in the same sense as the poster stated, I was talking about traditional banks (as was the poster who first mentioned this).

A Revolut account will give you a UK Iban/account number. You can also do the transfer inside the Revolut app. Why do you say premium tho? Can you elaborate a bit - is it a better rate (I remember they had better cash withdrawal limits, but don't remember the conversion charge).

@OP - Revolut rate will also be far, far better than traditional bank to bank transfers (But maybe not quite as good as currency converter service).

There is a limit of 5k currently but due to reduce to 1k soon on free monthly currency exchanges. So anything about 5k in the month will have an small exchange fee, which is not capped so will be significant on the sums the op is dealing with.

Premium has no exchange limits so it’s worth signing up for a month and then cancelling again after all is done as the 8 euro for premium will be far less than the exchange fee.

adam88

Just ring your bank and ask to open a sterling account. Lodge the money in there and pray that the rates will come back up somebit.

Downsey77

I use Transferwise for my personal & business currency conversation have sent >€200k with them over the years and it's a fantastic service, never had an issue with them at all.

My advice would be to get multiple quotations from the big currency players and then see how much you're going to save over the using the banks, it will be up to €3k cheaper with one of the specialist companies.

Your biggest problem will be deciding when to hit the button on the transfer as sterling rate is not great currently.

Yyhhuuu

Heidi Hundreds Trail wrote: »

It’s very easy to get a UK account, just open a Revolut account.

Can then decide how is best to transfer over the money - either using Revolut premium, doing it in stages, directly by trasnferwise or currency fair etc.

I understand Revolout is NOT a Bank and offer no Government- backed deposit guarantee scheme like Stg£85k in UK or €100 K in Ireland. Therefore I personally would not place large sums of money to Revolut accounts.