In an increasingly global world, more of us than ever have loved ones living abroad. Should the worst happen, navigating the process of transferring inheritance from one country to another can become an added stress at an emotional time.

To add to the complexity, transferring large amounts comes with its own set of challenges. So, when dealing with the sensitivity of receiving an inheritance, the expertise of an international money transfer specialist can provide the guidance and peace of mind that you need. At Moneycorp, our service offers a way to transfer inheritance payments overseas quickly and efficiently while assuring you that your money is in safe hands.

Inheriting money from overseas

Inheritance can come from property or bank accounts and in the form of savings, retirement funds or other financial products. What's important is to ensure you know the costs involved with currency exchange so you can make an informed decision about what to do when you receive inheritance money.

It can be tempting to rely on your local bank account, but high-street banks are comparatively expensive when you consider the relatively poor exchange rates and transfer fees you can incur on sending and receiving money. It can be quite a shock when you realise moving currency across borders is more expensive than you first thought!

The first thing to consider is what you want to do with your inheritance. Do you urgently need to transfer it home to cover any outstanding medical bills or other expenses? Or if it has come in the form of overseas shares, you might consider leaving it where it is, providing you with a regular income. There are many things to consider with an inherited property, too – from selling it, drawing a rental income, to choosing to live there.

If you don’t have an imminent need for it, you might want to bring your inheritance home but wait until the right time to transfer it to ensure they make the most of a favourable exchange rate. Whatever the circumstances, it's helpful to be aware of all available options.

Inheriting a foreign property

Inheriting an overseas property or foreign estate can come with additional maintenance fees and other costs. These can also include existing mortgage payments that require you to send regular payments abroad.

With an international payments account, you can set up payments and pay bills 24/7 through our secure online platform. This account also allows you to set up weekly and/or monthly payments with our Regular Payment Plan and explore combining that with a forward contract* to secure a rate for your international payments for up to two years.

Alternatively, if you have inherited a foreign property that you no longer want to keep, Moneycorp can help you with the currency exchange requirements after selling it - ensuring you maximise the funds when bringing your money back home.

Inheriting stocks and shares overseas

Inheriting stocks and shares can be complex, even if it's not an inheritance from abroad.

• First, the executor needs to inform you that you’ve been left an investment. This is usually done over the phone or in writing.
• Your solicitor will then need to notify the company where the assets are held that they’re dealing with the deceased's estate to obtain probate.
• Once this has happened, the ownership of the shares can be transferred to you.

The process can take time, giving you a chance to decide what to do. If you want to sell your new assets and bring the money back to the UK, this is an excellent opportunity to explore a forward contract* to secure a rate ahead of the inheritance transfer. If you want to keep the investments, using a Regular Payment Plan in conjunction with a forward contract could be a suitable option if you’re looking for security and visibility over any income you might receive from the shares.

What are the inheritance tax implications?

An overseas inheritance and its tax consequences will largely depend on where the inheritance has come from. If the benefactor was domiciled overseas, it doesn't necessarily mean their assets were also overseas, and that will impact your tax obligations.

As a rule of thumb, assets held in the UK are subject to UK inheritance tax. So, if you inherited a house in Spain from someone living in Spain, it is not taxable in the UK, but if you inherited a house in the UK from someone living in Spain, it is taxable here. These are what are called excluded assets.

Other excluded foreign assets include:

• Overseas pensions
• Holdings in authorised unit trusts and open-ended investment companies
• Foreign currency accounts

It’s important to remember even if you don't need to pay tax in the UK, you could still be liable to pay tax in the country where you’ve received the inheritance. However, inheritance tax rules are often covered in double taxation treaties. These help to prevent individuals from paying double taxation on income tax, capital gains tax, as well as inheritance.

Get guidance from the experts.

The volatility of the currency market means the rate can move significantly in seconds. This makes timing integral. Even small changes in exchange rates can make a big difference to your money, particularly with large sums of money from abroad.

There is also a lot of variance in the market. Rates can differ significantly between service providers, and banks are often bound by a single rate with a fixed percentage fee attached. Moneycorp, on the other hand, can source the most competitive rate from its panel of 16 liquidity providers for over 120 currencies.

Our service also provides access to a dedicated account manager who can give you expert guidance on managing your risk. We offer a range of tools that can help you protect yourself against volatility or take advantage of opportunities – depending on your risk appetite.

When repatriating funds or paying any expenses associated with a foreign inheritance, our team is committed to handling your requirements sensitively and professionally. Your account manager will be available by phone or email for any questions and to help guide you through the transfer process, ensuring you have more time to focus on what's important to you.

*Forward Contracts may require a deposit

Be aware of currency risk