If your clients hold funds in GBP or a foreign currency, they may turn to you for guidance when they need to transfer that currency – particularly given the volatility caused by Brexit and the coronavirus pandemic.
This month we are looking at the 5th most popular reason that advisers’ clients transfer funds with TorFX – inheritance payments.
Either the client or the solicitor can register to use TorFX’s service to send or receive an international inheritance payment. (Read our legal guide for more information about how TorFX can assist legal firms with repatriating international assets or remitting inheritance payments overseas.
When your client is due to receive an inheritance payment they may feel tempted to provide the probate administrator with their GBP bank account for them to direct funds to. However, doing this could affect them adversely in two ways:
- The senders’ banks’ exchange rates – banks are notoriously expensive when it comes to international transactions, with uncompetitive exchange rates and added fees. Companies like TorFX exist to offer more competitive rates and conduct transfers without applying a fee.
- The time/date the sender makes the payment – the probate administrator is not responsible for making sure the exchange rate is favourable when sending the funds to the recipient. TorFX, on the other hand, can help clients move their money at the right time with expert insights, specialist services and tailored support.
A client made their financial adviser aware that they were due to be receiving a €54,000 inheritance from The Netherlands.
They were planning to instruct the sender to remit the funds directly into their GBP bank account, but their advisor suggested that they have a quick chat with TorFX first to determine how much more GBP they could receive by directing the EUR to TorFX to do the conversion.
The adviser submitted the client’s name, phone number and e-mail address through the TorFX Partners Portal and TorFX got in touch with the client within 20 minutes to discuss their requirements.
The client registered with TorFX the same day, enabling TorFX to provide them the EUR account details and a payment reference code.
The client then instructed the solicitors to send the inheritance to TorFX. When the funds arrived the client waited a few days for the exchange rate to improve before making their transfer.
TorFX then sent the GBP to the clients GBP account.
- Secured a better exchange rate than available through the senders’ bank
- Gained an even better exchange rate again by trading when the market moved into their favour
Note – the transfer process is the same when legal firms register with TorFX to send funds to heirs.
TorFX is a free, non-advisory service and has won the Moneyfacts Consumer ‘Best International Money Transfer Provider of the Year’ award for 5 years running (2016-2020). Their dedication to a personalised, client-centric service enables them to work seamlessly with the wealth management industry to assist adviser’s clients with their foreign currency requirements.
For each month of 2020 we will be showcasing the top 12 reasons that advisers’ clients make international transfers to help you identify which of your clients could benefit from their services.
January – Buying property overseas
February – Selling property overseas
March – International investments
April – Business requirements
May – Working overseas
If you’d like to discuss a client case or to speak to your Partnership Manager call +44-(0)1736 335740 or e-mail [email protected]
IFA Magazine is for professional advisers only. For full terms and conditions click here