US inheritance - UK taxes and transfers

I'm look for some advice on how to handle a US inheritance please- I did do a search and didn't find any related posts, apologies if this has previously been addressed.

I lost my mother who lived in the US in 2014, and I have inherited her assets. The estate taxes were paid in the US and I finally sold her house in 2015, and now I'm in a position to start moving the money to my accounts here in the UK. So I have two questions:

Is there any tax implication for me transferring the money here/are there any thresholds to worry about? (it would not be cash)

What is the best way to transfer the money? Transferwise looks like a good option, but I really haven't gotten into the nuts and bolts.

First world problems, I know - but I'd far rather have her still with us and not be doing this!

I should add to this that I've been living/working in the UK for <gasp> 20 years, but had to file US taxes as a US citizen as I was in the US taking care of my mother almost as much as I was in the UK for the last 10 years. If that has any impact.

OK, I've done a bit more investigation. It looks like I would only possibly be liable for any capital gains since I inherited? But transferring any large sums may ring a lot of money laundering bells?

Sorry to hear about your loss. I went through the same exercise several years ago, and there's nothing to worry about.

No tax implications in the UK, and of course none in the US once the estate is settled. In my case, the amount was not large, but not insignificant (certainly more than $25,000). The money from the estate proceeds was in a US account and I simply wrote a US check on the account, deposited it into my UK bank (in $US). After about 6 weeks, the funds (in £'s) was deposited into the UK account.

I was lucky, over the 6 weeks, with varying exchange rates, the rate I received on the day of transfer was pretty much the rate on the day I deposited the funds. Blind luck. Transferwise has a pretty good reputation from what I've seen with the funds arriving much faster.

Once in your UK account, then interest must be declared to both the US and UK, blah, blah. The same for the time it was in the US, the interest if any must be reported to both the US and UK if the funds were yours for a period after the estate was closed.

Thank you for your kind reply, theOAP. That's really encouraging. Sorry for your loss too.

I just called my UK bank to see what the ramifications were to a not insignificant transfer, and it will probably trigger a hold and investigation; I will have to go in to a branch with documentation showing the source of the funds, to show it is legit. Money laundering regulations rear their ugly head. But I have it all, from the will to the house sale documents and bank deposit slips, it's up to them how many trees they kill with copies. It should be interesting how long they put a hold on though. From what he said, it would put a hold on ALL my accounts while I was being investigated, so it may be worth opening an account in another bank just for this purpose so it doesn't muck up my day to day banking in the interim.

I wonder if I could be preemptive and go to a branch with the docs before it arrives.

Thank you for your kind reply, theOAP. That's really encouraging. Sorry for your loss too.

I just called my UK bank to see what the ramifications were to a not insignificant transfer, and it will probably trigger a hold and investigation; I will have to go in to a branch with documentation showing the source of the funds, to show it is legit. Money laundering regulations rear their ugly head. But I have it all, from the will to the house sale documents and bank deposit slips, it's up to them how many trees they kill with copies. It should be interesting how long they put a hold on though. From what he said, it would put a hold on ALL my accounts while I was being investigated, so it may be worth opening an account in another bank just for this purpose so it doesn't muck up my day to day banking in the interim.

I wonder if I could be preemptive and go to a branch with the docs before it arrives.

You are likely to get a significantly better exchange rate using a money transfer specialist, rather than a bank. I have used TorFx and been very satisfied.

As to the source of funds you have a clear explanation and, presumably, supporting documents re the house sale, so that should not be a problem.

I just called my UK bank to see what the ramifications were to a not insignificant transfer, and it will probably trigger a hold and investigation; I will have to go in to a branch with documentation showing the source of the funds, to show it is legit. Money laundering regulations rear their ugly head. But I have it all, from the will to the house sale documents and bank deposit slips, it's up to them how many trees they kill with copies. It should be interesting how long they put a hold on though. From what he said, it would put a hold on ALL my accounts while I was being investigated,...

Most interesting, things have certainly tightened up. My transfer was in very late 2013, early 2014. The local bank in the US made a phone call to verify the withdrawal, but aside from that, no problems at my UK bank to the extent you're speaking of. I don't believe they questioned anything once I verbally explained the source. It certainly didn't impact the normal functioning of the account. Although, I could almost guess which bank you're speaking of, and I do know they are now, within the last year or so, very careful about anything to do with the US.

As Anchor has said, using one of the FX companies may result in a better rate with less questions. You have everything to verify the funds, so no worries there, just the time involved explaining if asked.

I just settled my Mum's estate in the UK and the solicitor just did a wire transfer to my US account. No tax or money laundering issue at all, but I did have to file FinCEN and the foreign beneficiary forms.

The only possible UK tax issue I see is if Sally inherited the home form her mother's estate, owned it for a bit and then sold it. In that case there could be capital gains. But if the estate sold the house and gave Sally the proceeds then the estate will have dealt with the taxes.


Sent from my iPhone using Tapatalk

Sorry for your loss. 
Transferwise is an excellent way to transfer money.  I have used it about 8 times. 
I moved inheritance money over and all I have to do is record any interest received on my taxes here in the UK.
I have moved large amounts of money and saved hundreds of dollars.  You will get the true market rate.
Create an account first as you have to show particular id's.  And then off you go.....very easy and fantastic customer support on the phone. 
Hope this is helpful.

Thanks for the advice on using FX, Anchor and theOAP.

Sorry to hear you're in the same boat, nun. Good thought on the cap gain, but unfortunately/fortunately, there isn't one.

Would that bank start with an "H", theOAP? The person I spoke with said they are required to keep and eye on all international transfers no matter the amount, but larger numbers pretty much always trigger a review. I halfway wondered if that's a way to hold onto the cash as long as possible. That could add up. Who, me, cynical?

Thank you AM Angler, it's good to hear first hand experience.

Would that bank start with an "H", theOAP?

Yes, it does. Isn't that a surprise.

The person I spoke with said they are required to keep and eye on all international transfers no matter the amount, but larger numbers pretty much always trigger a review.

As I said, it took 6 weeks. I have no doubts some review took place, but once the funds were deposited into my account I never heard another word from anyone (so far).

Personally, I have a dislike of any combination of money and internet. I have no accounts online. If anything went wrong I knew which person in the local branch I could pester, face to face, until I had an answer. 

BTW...I had a large amount go into my bank that starts with an H and there has never been a review or question. 
Transferwise do a wire transfer and it is in your bank acct in the UK within about 3 days.

Sorry you have to do this at such a sad time but Transferwise is super easy and hassle free.  No more added stress.

Does Transferwise itself get reported on an FBAR & 8938, or is not foreign?

BTW...I had a large amount go into my bank that starts with an H and there has never been a review or question. 
Transferwise do a wire transfer and it is in your bank acct in the UK within about 3 days.

Sorry you have to do this at such a sad time but Transferwise is super easy and hassle free.  No more added stress.

I've made transfers this year of $50,000 using Tranferwise to my UK bank that begins with an H and no problems at all.  The Transferwise account is new, established in January, and saved me hundreds over XE.com that I had been using prior to that.