USA EXPAT, UK Private Pension, No UK Bank Account

PDPMT wrote: »

Hi Folks,

I wonder if anyone with more knowledge than I have can offer some much needed advice.

My mother is an Expat in the USA, and is at the point of wishing to draw her private UK pension and take the initial lump sum.

The provider is from a fairly large well known UK company. They have said that they can only pay into a UK bank account in my Mothers name.

It is clear that it is now pretty much impossible for an expat to open a new UK bank account. Can anyone explain how international accounts from some of the well known UK bank brands differ to a normal UK bank account in the way that will matter to the pension provider?

Another option that the pension provider themselves suggested was opening a solicitors client bank account in my mothers name, does anyone have any experience/ understanding of how this would function?

Any steer anyone has would be very welcome.

I would persevere a bit with the UK pension company and have all the electroniv transfer data fro your Mum's account available. If they won't help you can you move to another pension provider that will?

You can always check with HSBC and other UK banks with US branches as they might be able to help. Some will open an account in the US and then one in the UK too. Also check with the IOM and Channel islands banks. Asking fro the pension administrator to send a check might work as an alternative. There will be fees and delays getting it cashed though.
You might also have your Mum come and stay with you for a few months and while she's there she could open a bank account using your address.

Make sure your mother files a US Individual 2002 from with the IRS so no UK tax is withheld

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/453063/us_individual_2002.pdf

Also be careful with the tax free lump sum as that will be US taxable when paid to a US resident or citizen. If you take it out over a number of years so that it is classed as a periodic payment then it will be US tax free too.