Protecting your inheritance when transferring money overseas

Protecting Overseas Inheritance When Transferring Money Abroad

Millions of people have family or friends who own property abroad or have other foreign assets such as bank accounts, shares or other investments overseas. It is therefore becoming increasingly common for people to inherit assets from abroad when loved ones pass away. The best way to protect overseas inheritance funds when transferring them abroad is however often not properly considered.

Receiving an inheritance from an estate overseas can result in mixed feelings and it can leave financial and currency issues for those dealing with their affairs after they have gone.

Dealing with the estate of someone who dies owning foreign assets or with beneficiaries abroad can be difficult with many complicated details to be sorted out, however the question of how best to repatriate money if a relative has died, leaving assets abroad, is one that also has to be considered.

If you are an executor of an estate with overseas assets or beneficiaries living abroad, you should ensure that estate money (including the proceeds of the sale of any assets) is transferred to the beneficiaries or the Executor Account in a way that maximises the estate assets and so that as much of the inheritance funds are protected for the beneficiaries as possible.

Beneficiaries receiving money from abroad will no doubt want to ensure that any adverse effects of currency fluctuations or unnecessary additional transfer charges are avoided to ensure that none of their loved one’s money is unnecessarily wasted.

The most cost effective way of moving money overseas is to use a recommended foreign exchange specialist to assist with transferring the money and exchanging the currency rather than receiving or transferring the funds directly with a high street bank.

The reason for this is because currency exchange specialists typically offer currency exchange rates that are 3-5% better than high street banks meaning 3-5% more of the inheritance will be preserved. So, for example, if you were transferring the equivalent of £50,000 you could lose up to £2,500 of the estate assets by transferring the funds directly with the bank and allowing the bank to convert the currency.

In addition to this, high street banks usually charge fees of between £20 to £40 every time you move money overseas. If there are several family members to be paid in a different currency or the inheritance is held in a foreign currency, transfer fees can quickly add up. Some banks may also add commission charges. Most currency specialists do not charge these fees or commissions. The service of a good, recommended foreign exchange specialist is free.

Currency specialists can also advise you about the timing of the currency transfer to help beneficiaries make the most of the inheritance money. They can arrange to receive the funds in whatever currency is required and arrange to convert it or any part of it at a time which makes sense for the beneficiary to maximise the value of any inheritance funds by taking into account currency fluctuations.

A recommended foreign exchange specialist can not only help when receiving the inheritance funds but can help reduce the costs of the estate administration too, for example if there are legal fees, inheritance taxes or other payments to be made abroad.

By using a currency specialist to assist you with this you can ensure you get superior exchange rates, avoid banking and transfer fees and avoid the adverse effects of currency fluctuations. This will prevent unnecessary currency exchange costs and protect your loved one’s hard earned and hard saved money.

For further information about the most efficient way to transfer inheritance money overseas, contact Worldwide Lawyers on 01244 470339 or at info@worldwidelawyers.co.uk. Worldwide Lawyers will also be happy to recommend a good, regulated currency specialist who can advise you of the process and how to prevent unnecessary charges when receiving inheritance money from abroad.  We can also assist should you require details of a recommended lawyer to help you with the administration of an estate with assets abroad.

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