Sending £50K to USA

msallen

Hi all
I am acting as an executor and will need to send about £50K-£55K to one of the beneficiaries in the USA sometime in the next month or so. Any suggestions on the best way to do this, both in terms of security and best FX rate?
A quick search would seem to imply Starling for optimum security via FSCS cover (with whom I already have a current a/c), or Transferwise for best rate (with whom I've never dealt before).
Thanks

colsten

I wouldn't expect the difference in USD between Starling and Transferwise to be very big. I have used both but I would use Starling for such a large sum. That is, if you are allowed to go from the Executor account to your own account. 

msallen

Thanks colsten, looks like Starling it is then.

Alex9384

Btw, if the amount is above 10k, do you need to pay extra for the transaction (is it CHAPS or something)? AFAIK, the limit for free FasterPayments is 10k per transaction?

colsten

Alex9384 said:

Btw, if the amount is above 10k, do you need to pay extra for the transaction (is it CHAPS or something)? AFAIK, the limit for free FasterPayments is 10k per transaction?

There won‘t be any FP or CHAPS for international payments but there are likely to be limits and controls, so it is best to talk to the bank rather than just try an online transaction

jonesMUFCforever

As an Executor you have a legal duty to pay out the estate in accordance with the Grant of Probate  - I take it that it is a family member that is receiving the money?
If you have an Executor account it would make your life much easier if you just used the bank account to make this transfer.You are worried about exchange rates - why> It is not your problem. Your duty is to send them the money - it is theirs if you need to send it in a different currency. Perhaps they could open an offshore account with a UK account for you to send the money there - then they can transfer it when they want.
Just my opinion - seen hundreds of payments over the years made from solicitors office when asked what about the exchange rate - they always said - not our problem - we have been instructed to send etc.

msallen

Its going to one of my brothers (from our mother's estate) so my instinct is to ensure he gets the maximum possible. A 2% difference in exchange rate wouldn't be unheard of, which would be a grand less he'd get.
I don't have an executor account as that is not a requirement nowadays and just adds unnecessary hassle, I am having the moneys all transferred into one of my old Tesco accounts (one of a number of accounts I don't use any more either as I only opened them for switching incentives or have emptied since the interest disappeared) and then spreading it across other old accounts to keep them all below £85K until its all in and ready to be distributed amongst all my siblings. My Starling account isn't strictly unused but as I only use it when abroad it's been dormant with less than a quid in it for 6 months now so I'll utilise that one too and then transfer his share from there.
Just NS&I left to settle up and waiting on a final bill from BT and then I'm good to go...

jonesMUFCforever

Wow you are taking one hell of a risk! Big amounts paid into an unused account then attempted to send out again could get the account frozen until Tesco are happy the money is legitimate.
Up to you of course.

msallen

Well it had only been unused for a month or two, so perhaps not flagged as such in their systems yet. There's eight lots of money gone in, and mostly out again, so far without them raising any concern - possibly helped by the fact that one of them was from her Tesco account - and its easy enough to prove the source of the funds if I need to.

Only very slight hassle I've had was with Santander as one of mum's accounts insisted on issuing a cheque instead of doing a transfer, so I paid it into my (regularly used) Santander account and then tried to move it all out again via 3 faster payments (to fall under their £25K limit per FP) on one day and the third one triggered their attention, but a quick phone call sorted it, again possibly helped by the fact that she'd had an account with them which they had already transferred to me.

Cook_County

Your brother will record the Estate on IRS Form 8938 as it is a specified foreign financial asset. If he receives over $100,000 he'll also file IRS Form 3520. He may - or may not - need to file an FBAR. His reporting obligations are strict and tough.  Make sure you provide him adequate information so he can report.

jonesMUFCforever

Cook_County said:

Your brother will record the Estate on IRS Form 8938 as it is a specified foreign financial asset. If he receives over $100,000 he'll also file IRS Form 3520. He may - or may not - need to file an FBAR. His reporting obligations are strict and tough.  Make sure you provide him adequate information so he can report.

Surely the OP who is British will have no knowledge of U.S. tax legislation and as an Executor has no liability to advise him on this. It is the brother in USA that has the liability to inform.