• This topic has 35 replies, 26 voices, and was last updated 5 months ago by hugo.
Viewing 36 posts - 1 through 36 (of 36 total)
  • Where to put a bit of inheritance money…
  • Premier Icon bob_summers
    Full Member

    Right, so I’m due to inherit some money* in the UK (half of Dad’s estate, plus eventually half the proceeds of his house if we ever manage to sell it). I am an EU resident and don’t have a UK address. This money needs to go somewhere so AFAICS I’ve got two choices – open a basic bank account in the UK (which they are obliged to give me I think), or get it transferred to my Spanish account in EUR.
    I prefer the first option atm as I don’t need the money for anything immediately, and I guess moving it to EUR will be quite expensive.
    Third option might be to open an multi currency account (eg Transferwise) and get it sent there but I know nothing about them.
    The Spanish taxman will want a slice too – I need to look into that. I’m also aware that come the end of the year, the B-word might complicate things.

    Any words of wisdom? I am utterly crap with anything money related.

    *Don’t know exactly how much, but I’d imagine around 100k after it gets divvied up

    Premier Icon mrmonkfinger
    Free Member

    Spain taxes something that UK already taxed?

    yeowchio

    edit:

    looks like,

    uk tax might not be that bad, depending on how big the estate is:

    https://www.gov.uk/inheritance-tax

    £325k is tax free; if it’s involving a house being gifted to children, that goes up to £500k tax free

    then 40% on the remainder.

    Premier Icon csb
    Full Member

    Won’t be taxed as income in the UK. The estate would be taxed before it gets to you (if over the nil rate band). If you keep it here interest on it over an amount would be taxed (but you won’t be broaching that any time soon).

    Exchange rate into Euro is shit, and there may be teouble for tbe Euro ahead, so I’d suggest keeping it in pounds as a hedge against euro tanking.

    Premier Icon P-Jay
    Full Member

    I’m not sure the obligation for Banks to offer free basic accounts includes non-doms.

    Premier Icon duncancallum
    Full Member

    If you’re in Spain sure euros are better.

    I cant see the pound being a better bet?

    Premier Icon mogrim
    Full Member

    The Spanish taxman will want a slice too

    He hasn’t taxed the inheritence I got when my mother died, and I moved a fair chunk over here a few years ago to buy a flat. To facilitate the transfer I opened an account in the UK as a non-resident, but it was a bit of a faff and you need to be there to present your passport etc. Mine’s with Lloyds FWIW, but that was more to convenience rather than any particular preference.

    Premier Icon finbar
    Free Member

    Exchange rate into Euro is shit, and there may be teouble for tbe Euro ahead, so I’d suggest keeping it in pounds as a hedge against euro tanking.

    Not sure what you’ve been smoking to make you think prospects for the Euro are worse than the pound with a no-deal Brexs*it looming.

    Premier Icon bob_summers
    Full Member

    We were comfortably under the inheritance tax threshold, so Spain *shouldn’t* tax it… we’ll see. I’ve just sent my accountant a mail, see what she reckons.

    Re banks, I’d like to avoid having to open a UK account if I can. Does something like transferwise look like a legit way of doing that? Might be better in the long term if either the pound or the euro tanks…

    Premier Icon poolman
    Free Member

    What about buying the other half share of the house and letting it. Returns on cash are next to nothing. Or max out on premium bonds but the prizes are taxed as income in Spain.

    Long term rents in Spain attract a 70% income tax allowance.

    I wouldn’t transfer a load of GBP into euros at the current rate, 1.12, maybe 1.2 plus is ok ish.

    Premier Icon csb
    Full Member

    Not sure what you’ve been smoking to make you think prospects for the Euro are worse than the pound with a no-deal Brexs*it looming.

    Pound has already lost a lot of its value. Covid and its impact in Eurozone has thrown a total curve ball on what was expected to happen to wxchange rates this year so some sentiment that Euro isn’t the currency to run to that it was previously thought to be.

    But i accept, if you never have any intention of spending pounds get it transferred for simplicity.

    Premier Icon CaptainFlashheart
    Free Member

    C&H

    Premier Icon maxtorque
    Full Member

    If you don’t “need” the money, then now is a really good time to start a long term investment plan (>10 years) as you get a lot of stocks n shares for your money!

    Premier Icon warrenwil3
    Free Member

    I agree with the previous commentator, if you do not need this money, then put it on a deposit for several years.

    Premier Icon bob_summers
    Full Member

    I think that’s the way forward.
    Coincidentally, the solicitor just told me that we need to sell the house first before the estate is ‘complete’ (didn’t know that, told you I was crap with these things) so it’ll be a while before we start divvying it up. Probate is granted, can put the house up for sale but I can’t see there being much demand at the moment.

    Premier Icon perchypanther
    Free Member

    Given the current state of the world and the impending collapse of society, i’d invest it all in steel.

    Ideally, you’d want the steel to be in the shape of guns and machetes and the like.
    Also razor wire. Losts of razor wire.

    Premier Icon teethgrinder
    Full Member

    Buy crossbows.

    Buy shares in crossbows.

    Premier Icon NJA
    Full Member

    Re the Inheritance Tax thing.

    The estate is subject to UK inheritance tax so it has already been ‘Taxed’. It is just that it was taxed at 0% because it fell beneath the Inheritance Tax personal allowances. Therefore the Spanish won’t have any call on the money.

    The difference between UK and Spanish (most European countries) Inheritance Tax is that in the UK the tax is levied on the estate before it goes to the beneficiaries, whereas in Spain the tax is levied on the beneficiaries.

    Premier Icon bob_summers
    Full Member

    that’s what I was hoping @nja , thanks

    Premier Icon cynic-al
    Full Member

    Anyone thinking about gold?

    Premier Icon fatmountain
    Free Member

    Gold is an at all time high recently.

    What’s the deal with buying gold? You can get it from the Royal Mint and store it there – is it easy to sell without getting fleeced?

    I bought some crypto recently, but it’s quite a gamble. Don’t want large amounts of cash in there as it can lose 50% of its value overnight.

    Premier Icon DickBarton
    Full Member

    Was going to say Gold…
    If a bank account, then something Starling where you don’t get charged for using it in different currency…so if Euro improves and you have it in a starling account, you could transfer at current exchange rate without additional charges (as far as I know – and I also have no idea about tax on that, if any).

    Premier Icon bentandbroken
    Full Member

    @CaptainFlashheart I see that CandH has a website now, you should probably have added the link for the OP

    Premier Icon perchypanther
    Free Member

    Anyone thinking about gold?

    Thorin Oakenshield.

    Premier Icon convert
    Full Member

    NS&I whilst you get a better plan

    Premier Icon aide
    Full Member

    Anyone else disappointed with bentandbroken’s link?

    Premier Icon timbo46
    Full Member

    I was in the same position as you and live in France. I opened a Transferwise account and the solicitor transferred the money into it.
    Very easy to access and change to euros at bank rate, everything is virtually instant.

    Premier Icon Rockape63
    Free Member

    Seriously you don’t want to be thinking about transferring pounds to euros any time soon. Far better to invest in the Uk for the medium term Ideally in safe stocks and shares.

    The market is recovering from its massive falls , but there’s a long way to go to get back to pre covid levels. So whilst there will be ups and downs ahead….history suggests you’ll make great returns if you are patient.

    Premier Icon bob_summers
    Full Member

    @timbo46 can I ask, which TransferWise account? The multicurrency one?
    Investing, I dunno. I literally have no idea, I’d have to go to an advisor.

    Premier Icon Wally
    Full Member

    WCA meeds a start up fund for his online poker launch or Campaign trail.

    Premier Icon timbo46
    Full Member

    Just the standard Transferwise account, they send you a debit card to use if you want to, and can move part or all of your money into different currencies and back again instantly.
    For example I transferred some pounds into euros just before the election at 1.20, and back to pounds again a few weeks later at 1.10.

    Premier Icon skooby39
    Free Member

    I’d be cautious about leaving a large balance with transferwise long term. As far as I understand it’s not covered by the UK FSCS, or any other EU deposit protection scheme. We are entering uncertain territory economy wise, but it’s true at any time. If suggest splitting an inheritance across multiple banks with ensuring no one account exceeds the deposit protection limit a golden rule. Anything in unprotected utility accounts should be limited to reasonably foreseeable spending.

    Premier Icon hugo
    Free Member

    Lots of experts on commodities and foreign exchange on here!

    Unless you think you have a competitive advantage over the professional financial analysts of this world then don’t worry about speculating here. No one knows what gold and forex is going to do. The price has been set by the market with half thinking it’s too high and half too low.

    Best thing to do if looking at 5-10 years plus is invest in something that produces a return. This would be shares in companies, bonds or property.

    My first advice, as a fellow expat, would be to read “millionaire expat” by Andrew Hallam.

    I’d then invest it all in a two fund portfolio of:

    80% shares index tracker:

    VWCE Vanguard FTSE All-World UCITS ETF Accumulation

    20% global bonds EUR hedged

    IGLE iShares Global Govt Bond UCITS ETF

    This would be diversified across 3600+ companies globally and all the major stable government bonds. All for two funds.

    I’d then not touch it for 10 years.

    Premier Icon mariner
    Free Member

    Consensus on city wire is pound is due to tank, this year, next year, sometime because of Brexit plus virus recession. Portfolio is currently 2% off original cost after several years mainly propped up by SSON. Might pull the whole lot in early mid June and exit my ISA before they start taxing that.
    Euro is also suspect so I was looking at Swiss bank deposit account.
    All declared and legal but the best I can come up with as ‘safe’.

    Premier Icon hugo
    Free Member

    Consensus on city wire is pound is due to tank, this year, next year, sometime because of Brexit plus virus recession.

    Love a bit of random speculation!

    1 Euro = 89.93p as of today. Let’s see what happens!

    Premier Icon mariner
    Free Member

    Love a bit of random speculation!

    I have called seven of the last two crashes so happy to say I know I don’t know what will happen but I choose not to sit on my hands.
    https://citywire.co.uk/funds-insider/news/david-stevenson-nine-nutty-policies-politicians-have-up-their-sleeves-after-covid-19/a1362113?re=74958&ea=1118695&utm_source=BulkEmail_FundsInsider+Weekend&utm_medium=BulkEmail_FundsInsider+Weekend&utm_campaign=BulkEmail_FundsInsider+Weekend

    Premier Icon hugo
    Free Member

    Seven out of two is a hell of ratio. Can’t argue with that.

Viewing 36 posts - 1 through 36 (of 36 total)

You must be logged in to reply to this topic.