Costs/complications of liquidating foreign bank accounts (US, or non-EU) during probate

P

patfert1

Registered User
Messages
36
I have a sizeable chunk of money in a US bank account which is occasionally useful.
But I am wondering how much that will complicate things when I shuffle off this mortal coil.
I imagine there would be sizeable effort/delay/cost involved for the solicitor (or executor...?) to liquidate a bank account in a foreign juristiction, and in my experience US banks can charge a sizeable fee to transfer money outside the US - understandably, they are very "insular" in their operations compared to within the EU where there are interoperability rules and systems.
I've had complications dealing with US entities in the past. For example they insist on an SSN during communication threads, despite I managed to open the account many years ago without an SSN. I can imagine the possible complications if I'm not even alive anymore.
What if my wife survives me, but it's not a joint account? Can the bank account skip the probate process and she simply "takes over" the account in some way? Or I tell no-one but my wife about the account and ensure she has the password to transfer the money on the sly, if I'm no longer alive or able to do so myself?
Any advice welcome. It's a long term question, but I've held the account for a long time and I'm not getting younger.
 
You have potentially 3 issues here
  • Firstly, the exchange rate risk which you currently have (which could go either way) and also any fees for repartriation
  • Secondly, as you rightly call out, the joys of dealing with US institutions. They are utterly painful in my experience and one of the reasons I sold a lot of US shares a few years back
  • Thirdly, and probably the biggest one, the tax implications. The last step after probate will be a tax clearance cert from Revenue. They will ask where did the money come from, have you declared any revenue (interest) in the past etc?. Not sure if there is a US tax implication as well.

Personally, I'd look to bring it home now.
 
@TomEdison @Peanuts20 thanks for the advice. Indeed I hadn't considered possible tax implications. Nothing to hide here, but there would be more administration. In regard to estate planning, the "where did the money come from" question is a good one to prepare for when keeping a list of assets, since the family and executors won't likely be able to answer such a question if the deceased didn't tell them explicitly.
 
patfert1 said:
understandably, they are very "insular" in their operations compared to within the EU where there are interoperability rules and systems.
Click to expand...
I would recommend a fintech with euro and dollar wallets with low fees for FX.

This is what I do the very odd time I need to access the US banking system.
 
You must log in or register to reply here.
Back
Top