Don’t lose money from an over­seas in­her­i­tance

Us­ing an in­ter­na­tional money trans­fer ex­pert could save you £££s

Daily Mail - - Mail Finance -

Ac­cord­ing to UN anal­y­sis of in­ter­na­tional cen­sus re­ports, more than 5 mil­lion Brits live abroad and as long as this trend con­tin­ues, it is likely that, at some point, you may be in re­ceipt of an in­her­i­tance which orig­i­nates in an­other coun­try.

When re­ceiv­ing this gift from over­seas, the emo­tional chal­lenges are com­pounded by the prac­ti­cal re­quire­ments of repa­tri­at­ing the funds; this may re­quire trans­fer­ring money back into the UK from a rel­a­tive who has been liv­ing abroad or from the UK to your coun­try of res­i­dence. In both cases, a por­tion of the legacy could be lost in trans­fer fees and may be­come sub­ject to the fluc­tu­a­tions of the ex­change rate. It makes fi­nan­cial sense to en­sure you re­ceive as much of the fund as had been in­tended, but it can be a lot to man­age alone. That is just one of the rea­sons why we have part­nered with ex­change ex­perts mon­ey­corp to cre­ate Mail Fi­nance Money Trans­fers, pro­vid­ing great ser­vice and ex­pert guid­ance to help you through the process of trans­fer­ring money across bor­ders.

If you do need to move money in­ter­na­tion­ally, a com­pet­i­tive ex­change rate is vi­tal in or­der to pro­tect the value of the orig­i­nal sum, whether that is an in­her­i­tance or any other source of cap­i­tal. Cur­rency mar­kets do fluc­tu­ate daily and this may have a sig­nif­i­cant im­pact on your in­her­ited wealth.

The typ­i­cal in­her­i­tance amount, ac­cord­ing to a re­port com­piled by VouchedFor, is around £70,000. The Mail Fi­nance Money Trans­fers ser­vice of­fers our read­ers rates that can be more favourable than high street banks by up to 4 per cent*, which on that £70,000 be­quest could add up to a dif­fer­ence of £2,800. Tim­ing also plays a part; if you in­herit €200,000 from a rel­a­tive in the Euro­zone, you would re­ceive around £170,000 based on the ex­change rate at the time of writ­ing. How­ever, if you had trans­ferred that same in­her­i­tance back into the UK to­wards the end of 2015, when the ster­ling was stronger against the euro, you could have ended up with ap­prox­i­mately £30,000 less from the con­ver­sion.

You may not be able to con­trol the cur­rency ex­change market, but there are ways to plan for ex­change rate volatil­ity. For ex­am­ple, you could lock in a pre­vail­ing ex­change rate by us­ing what is com­monly called a ‘for­ward con­tract.’ (A for­ward con­tract may re­quire a de­posit.) Rates can be locked in for up to two years, and given that the av­er­age over­seas pro­bate process takes be­tween 12 and 24 months , you will be able to set up a con­tract with a fixed rate, ready for when the funds are re­leased.

Al­though tim­ing plays a cru­cial role, it is not the only fac­tor; choos­ing the right provider can also make a sig­nif­i­cant dif­fer­ence be­cause you will find vary­ing rates be­tween providers. A spe­cial­ist provider can also of­fer ad­di­tional ser­vices, in­clud­ing email and SMS alerts for cus­tomers who wish to be kept in­formed of the move­ments in the market or to track a par­tic­u­lar tar­get rate.

“You may not be able to con­trol the cur­rency market, but there are ways to plan for ex­change rate volatil­ity”

The ex­change rates are not the only costs to con­sider; high street banks may charge fees of be­tween £20 and £40 ev­ery time you move money over­seas. In con­trast, our fees start at £5 for an on­line trans­fer and up to £15 over the tele­phone. If there are nu­mer­ous ben­e­fi­cia­ries, th­ese fees can soon add up and th­ese costs will be sub­tracted from the to­tal re­ceived. This is par­tic­u­larly im­por­tant if you are the ex­ecu­tor of an es­tate with over­seas assets or ben­e­fi­cia­ries liv­ing abroad and may be re­quired to man­age mul­ti­ple trans­fers to dif­fer­ent ben­e­fi­cia­ries.

The tim­ing and the provider are the two im­por­tant fac­tors to con­sider when mak­ing a cur­rency ex­change and be­tween them could make a big dif­fer­ence to your fi­nal be­quest.

mon­ey­corp is a trad­ing name of TTT mon­ey­corp Ltd which is authorised and reg­u­lated by the Fi­nan­cial Con­duct Author­ity for the pro­vi­sion of pay­ment ser­vices. All cus­tomer funds are safe­guarded in seg­re­gated client bank ac­counts.

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