Inheritance: do I need to tell the bank where the money has come from?

Cloth_of_Gold

I am about to receive the first tranche of an inheritance, which will be a substantial 5 figure sum. The money will be paid into my current account by the executor, who is a solicitor, so it will come form his firm's account. Is it likely that receiving this money into my account will raise any red flags at the bank? I have nothing to hide, obviously, so should I tell them in advance that this money will be credited to my account and where it has come from?

Bigwheels1111

I had the cash from my house sale deposit into my account, never told them.
They never asked.
If you decide to open and fund any savings accounts, I would talk to your bank as they would probably stop the payments thinking fraud is afoot.

Cloth_of_Gold

Bigwheels1111 said:

I had the cash from my house sale deposit into my account, never told them.
They never asked.
If you decide to open and fund any savings accounts, I would talk to your bank as they would probably stop the payments thinking fraud is afoot.

I will put some of the money into an ISA and some in a savings account, both with my own bank probably. 

The trouble with talking to your bank these days is that you can't speak to your local friendly bank manager any more, you just have to ring a call centre and speak to someone working from a script. Maybe I'm being unfair but I just have a feeling that I wouldn't really get anywhere or they would misunderstand. I don't want to set any unnecessary hares running but neither do I want any problems for want of giving them an explanation in advance.

 It must happen all the time so you wouldn't think it would be that big a deal but I know that they are much more cautious these days about unusually large sums of money going into an account, although given that it will be a bank transfer from a firm of solicitors you would think it would be ok.

xylophone

I will put some of the money into an ISA and some in a savings account, both with my own bank probably. 

Does your bank offer the best rates for your circumstances?

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html might be worth a look.

With regard to the receipt of the legacy, my only recent indirect experience is through a relation of mine who sold his property before buying another and in consequence had a substantial six figure sum paid into his account by his solicitor.

He did advise his bank (Barclays) that he was expecting the money - there were no "money laundering" checks - indeed he was able to make some fairly large transfers out almost immediately on receipt.

He was also able to make a six figure CHAPS payment in due course to the solicitor of the person from whom he was purchasing his new property.

All that said, other posters have reported blocks being placed on their accounts after receipt of an unaccustomed  high payment, even one from HMRC.

george4064

I wouldn't pre-notify your bank, but instead make sure you have the necessary paperwork to hand that proves the source of funds. So if they do ask, it can be resolved quickly.

WMH2001

I had no problem whatsoever when my inheritance from mum reached my Halifax current account, it was a six figure sum and I hadn’t told them anything. I invested it in several accounts, some with them, some another bank, again no problems at all. 

Devongardener

When I was about to receive a high value inheritance from my mother’s estate, I asked Santander if I needed to advise them of the source.  They said no, but would need to know if I moved it!  

I quickly moved it into other banks high interest accounts, but did that In branch, in one of their one-to-one appointment rooms.   I could have done it at the counter but there’s absolutely no privacy in my local branch and everyone can hear everyone else’s transactions.

wjr4

Cloth_of_Gold said:

The trouble with talking to your bank these days is that you can't speak to your local friendly bank manager any more, you just have to ring a call centre and speak to someone working from a script. Maybe I'm being unfair but I just have a feeling that I wouldn't really get anywhere or they would misunderstand. I don't want to set any unnecessary hares running but neither do I want any problems for want of giving them an explanation in advance.

Your bank may not be the best place to put it, I’d do some research on this website. A bank manager is a salesperson for the bank and they can only offer their own products, which may not be the best. 

Albermarle

wjr4 said:

Cloth_of_Gold said:

The trouble with talking to your bank these days is that you can't speak to your local friendly bank manager any more, you just have to ring a call centre and speak to someone working from a script. Maybe I'm being unfair but I just have a feeling that I wouldn't really get anywhere or they would misunderstand. I don't want to set any unnecessary hares running but neither do I want any problems for want of giving them an explanation in advance.

Your bank may not be the best place to put it, I’d do some research on this website. A bank manager is a salesperson for the bank and they can only offer their own products, which may not be the best. 

As above.
Compare The Best UK Savings Accounts (moneyfactscompare.co.uk)

BooJewels

I've had several inheritance payments in the last couple of years and didn't bother telling the banks about any of them and have moved that money around several times without any query.  But I suspect it's only a matter of time before something trips up, so I have kept an accurate list of each amount, with date and where it was paid to - with a corresponding folder on my hard drive with a copy of all the necessary proof documents - so it's all to hand, should I be asked.

I was put off ringing, after a conversation with one overseas call centre where I said I was ringing about 'my late father's account' and she said I'd have to get him to ring himself once he arrived home.

Section62

Cloth_of_Gold said:

I am about to receive the first tranche of an inheritance, which will be a substantial 5 figure sum. The money will be paid into my current account by the executor, who is a solicitor, so it will come form his firm's account. Is it likely that receiving this money into my account will raise any red flags at the bank? I have nothing to hide, obviously, so should I tell them in advance that this money will be credited to my account and where it has come from?

Personally if it was me I'd pay the money into a smallish local building society - at least initially - as they seem to be better at handling larger one-off payments, and being smaller may be more agile than a faceless big bank if it comes to querying the legitimacy of the deposit.

Secondly, unless they wanted to charge an unreasonable fee, I'd ask the solicitor to make the payment by cheque (if possible with me collecting it in person).  A cheque with the solicitor's details printed on it is possibly less likely to trip the AML/anti-fraud systems.  I'd also keep a photocopy of the original cheque (and paying-in receipt) as evidence in case anyone asks for source of funds proof in the future.

Edit:

BooJewels said:

I was put off ringing, after a conversation with one overseas call centre where I said I was ringing about 'my late father's account' and she said I'd have to get him to ring himself once he arrived home.

...a good example of how dealing with a local building society might be easier than a big bank.