Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 13.02.2021, 19:43
Karl's Avatar
Forum Veteran
 
Join Date: Sep 2008
Location: Here
Posts: 2,006
Groaned at 192 Times in 87 Posts
Thanked 2,939 Times in 958 Posts
Karl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond repute
Received inheritance from US - Should I ask for a check or wire transfer?

My mother passed away recently at the ripe old age of 88. She has left us some not-insignificant inheritance in the 6 figures. Now I get the paperwork from her US bank.. do I want a Bank Check or wire transfer?

From what I've learned, wire transfer incurs significant fees that the US bank "hides" in their exchange rate (5-7%). The other option is a bank check in USD sent by post. I don't think most banks here accept those, and if they do I have no idea what fees and charges they add on to converting it into CHFs.

Anyone with experience in this matter?
Reply With Quote
  #2  
Old 13.02.2021, 20:02
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
My mother passed away recently at the ripe old age of 88. She has left us some not-insignificant inheritance in the 6 figures. Now I get the paperwork from her US bank.. do I want a Bank Check or wire transfer?

From what I've learned, wire transfer incurs significant fees that the US bank "hides" in their exchange rate (5-7%). The other option is a bank check in USD sent by post. I don't think most banks here accept those, and if they do I have no idea what fees and charges they add on to converting it into CHFs.

Anyone with experience in this matter?
Open a USD account in CH & get the USD deposited by wire, then it's up to you if you exchange them or invest as USD. A bank check will cost a lot to negotiate.
Reply With Quote
The following 12 users would like to thank fatmanfilms for this useful post:
  #3  
Old 13.02.2021, 20:04
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 32,246
Groaned at 2,468 Times in 1,785 Posts
Thanked 39,343 Times in 18,544 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
My mother passed away recently at the ripe old age of 88. She has left us some not-insignificant inheritance in the 6 figures. Now I get the paperwork from her US bank.. do I want a Bank Check or wire transfer?

From what I've learned, wire transfer incurs significant fees that the US bank "hides" in their exchange rate (5-7%). The other option is a bank check in USD sent by post. I don't think most banks here accept those, and if they do I have no idea what fees and charges they add on to converting it into CHFs.

Anyone with experience in this matter?
Checks are about CHF 40 to process, so useless for small amounts, and insignificant when dealing with numbers over a few thousand.

This at UBS, don't know about other banks.

Go for the check.

Tom
Reply With Quote
This user would like to thank st2lemans for this useful post:
  #4  
Old 13.02.2021, 20:04
Medea Fleecestealer's Avatar
Forum Legend
 
Join Date: Jul 2011
Location: Switzerland
Posts: 22,543
Groaned at 424 Times in 327 Posts
Thanked 17,604 Times in 9,861 Posts
Medea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

UBS used to take American checks, but I don't know what the situation is now with the FATCA law in place.
Reply With Quote
  #5  
Old 13.02.2021, 21:11
ennui's Avatar
Forum Veteran
 
Join Date: Feb 2020
Location: Kt Zurich
Posts: 1,120
Groaned at 35 Times in 27 Posts
Thanked 3,434 Times in 1,198 Posts
ennui has a reputation beyond reputeennui has a reputation beyond reputeennui has a reputation beyond reputeennui has a reputation beyond reputeennui has a reputation beyond reputeennui has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

When credit Suisse processes the Check, they send the physical check back to the US bank and the US bank sends the money and CS deposits it at a really shitty rate. Takes about 6 weeks and you do loose 5 % . I had a high 5 figures deposited last year.

I no longer have any US accounts and tranferwise or Revolut would not take the Check. I should have asked fmf for advice but oh well.....

Unless you can do it differently, wire transfer is easier. You will need to give your bank details on the source of the funds - we had to give them a statement regarding an inheritance from my FIL.
Reply With Quote
The following 3 users would like to thank ennui for this useful post:
  #6  
Old 13.02.2021, 22:58
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 6,095
Groaned at 354 Times in 257 Posts
Thanked 8,406 Times in 3,931 Posts
bowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

If you have. or have access, to a an US bank account then have the money transferred there. Then use Revolut or TransferWise to get the money to Switzerland.
Reply With Quote
  #7  
Old 13.02.2021, 23:19
Forum Legend
 
Join Date: Oct 2014
Location: SG
Posts: 9,631
Groaned at 503 Times in 373 Posts
Thanked 12,819 Times in 6,647 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Using a bank for the USD -> CHF exchange will be unnecessary costly due to the usually very unattractive spread, you may want to use a middleman for the exchange instead. Depending on the details you'll probably save 1-2-3% that way.

For instance Revolut, though others on here may know better agents, I'm not really up-to-date on that.
Reply With Quote
  #8  
Old 13.02.2021, 23:23
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 32,246
Groaned at 2,468 Times in 1,785 Posts
Thanked 39,343 Times in 18,544 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
UBS used to take American checks, but I don't know what the situation is now with the FATCA law in place.
Done it no problem since FATCA (which is already 12 years old).

Tom
Reply With Quote
  #9  
Old 13.02.2021, 23:53
Jim2007's Avatar
Forum Legend
 
Join Date: Jun 2006
Location: Kt. Bern
Posts: 4,786
Groaned at 247 Times in 196 Posts
Thanked 7,867 Times in 3,470 Posts
Jim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
When credit Suisse processes the Check, they send the physical check back to the US bank and the US bank sends the money and CS deposits it at a really shitty rate. Takes about 6 weeks and you do loose 5 % . I had a high 5 figures deposited last year. .
All cheques must be physically present for payment, regardless of the banks involved. Accordingly, banks batch cheques for processing and as the number decreases the lapsed time increases.
Reply With Quote
  #10  
Old 14.02.2021, 08:50
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 6,095
Groaned at 354 Times in 257 Posts
Thanked 8,406 Times in 3,931 Posts
bowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

The USB used to charge me CHF20 to cash a government cheque issued by USB Zurich. And I had to sign a disclaimer every time.
Reply With Quote
  #11  
Old 14.02.2021, 09:03
bossybaby's Avatar
Forum Veteran
 
Join Date: Feb 2021
Location: Western Austria
Posts: 633
Groaned at 6 Times in 5 Posts
Thanked 1,130 Times in 480 Posts
bossybaby has a reputation beyond reputebossybaby has a reputation beyond reputebossybaby has a reputation beyond reputebossybaby has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

You really want to trust the mails with a check?? I notified all my providers (insurance, SS, etc.) of my European address last summer. Some idiot read Austria as Australia (you know, the old Sweden problem), and I just received a 1095 that was mailed 2 months ago. Plus they all get one's address from one source (usually SS), so they all have it wrong!
Reply With Quote
  #12  
Old 14.02.2021, 09:13
Forum Legend
 
Join Date: May 2007
Location: Lugano
Posts: 6,512
Groaned at 129 Times in 95 Posts
Thanked 7,895 Times in 3,680 Posts
Mrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
My mother passed away recently at the ripe old age of 88.
Sorry for your loss.

Quote:
View Post
Open a USD account in CH & get the USD deposited by wire, then it's up to you if you exchange them or invest as USD. A bank check will cost a lot to negotiate.
Do look around for the best place to open a foreign currency account in USD. Some banks have much higher fees for this than others. Absolutely do a wire transfer, and you can specify the fees are to be paid by the outgoing bank. There will then only be a small fee here. AFAIK, no one pays interest on foreign currency accounts but still I think it makes sense to keep the funds in USD until you decide if you want to invest them.

You will need to demonstrate source of the funds, with either a copy of a will or a letter from the lawyer or the executor handling the estate. You will will need this anyways as supporting documentation for your taxes in Switzerland.
__________________

Reply With Quote
  #13  
Old 14.02.2021, 09:42
robBob's Avatar
Forum Legend
 
Join Date: Mar 2012
Location: Zurich
Posts: 3,100
Groaned at 67 Times in 52 Posts
Thanked 2,981 Times in 1,588 Posts
robBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond reputerobBob has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

If you're American and dont need the money here you can open an account in the States.
https://www.americansabroad.org/sdfcu-account/
Reply With Quote
The following 2 users would like to thank robBob for this useful post:
  #14  
Old 14.02.2021, 10:57
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
All cheques must be physically present for payment, regardless of the banks involved. Accordingly, banks batch cheques for processing and as the number decreases the lapsed time increases.
Not correct, it's quite possible to send a scan of a US check for clearance, I do it with Charles Schwab from their App, same with Barclays in the UK.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #15  
Old 14.02.2021, 11:27
Mica's Avatar
Forum Veteran
 
Join Date: Oct 2007
Location: Zurich
Posts: 936
Groaned at 1 Time in 1 Post
Thanked 1,199 Times in 534 Posts
Mica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

The US bank can send USD by wire transfer and it simply gets converted by your bank here in Switzerland on the receiving side (at your Bank's rates).

If you do not want any conversion it should be a simple matter of opening a USD account (as other posters have mentioned).

In either case it may make sense to talk with your bank, since I they may have some questions about you receiving a six figure amount from the US (but possibly not).

I am still astonished that checks are still a thing... but on the other hand I am also astonished whenever I get purple post office reimbursement slip and I still need to get rid of/use up some "REKA" checks.
__________________
Liability for any statements hereinabove excluded! - Need a Swiss lawyer PM me.
Reply With Quote
This user would like to thank Mica for this useful post:
  #16  
Old 14.02.2021, 11:33
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
The US bank can send USD by wire transfer and it simply gets converted by your bank here in Switzerland on the receiving side (at your Bank's rates).

If you do not want any conversion it should be a simple matter of opening a USD account (as other posters have mentioned).

In either case it may make sense to talk with your bank, since I they may have some questions about you receiving a six figure amount from the US (but possibly not).

I am still astonished that checks are still a thing... but on the other hand I am also astonished whenever I get purple post office reimbursement slip and I still need to get rid of/use up some "REKA" checks.
The last thing you want is the USD converted by your bank at 'their' rates.
Hold the money as USD in any Swiss Bank (Post finance for example) then convert using currency fair or similar if you need to transfer the money. In all likelihood it can be invested as USD.
Reply With Quote
The following 3 users would like to thank fatmanfilms for this useful post:
  #17  
Old 14.02.2021, 16:03
Village Idiot's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Basel
Posts: 3,701
Groaned at 35 Times in 32 Posts
Thanked 6,966 Times in 2,251 Posts
Village Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

If you don't mind a little hassle, the way I would get the money over here would be to open an Interactive Brokers account. Have the bank wire the USD funds to IB, then exchange them at one of the most competitive rates on the market.
Reply With Quote
  #18  
Old 14.02.2021, 17:04
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
If you don't mind a little hassle, the way I would get the money over here would be to open an Interactive Brokers account. Have the bank wire the USD funds to IB, then exchange them at one of the most competitive rates on the market.
Will IB except a third party transfer? Most brokers will not as they don't have to worry so much about the about the funds if they came from a Bank in your name.
Reply With Quote
  #19  
Old 15.02.2021, 17:23
Forum Legend
 
Join Date: Oct 2014
Location: SG
Posts: 9,631
Groaned at 503 Times in 373 Posts
Thanked 12,819 Times in 6,647 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
Will IB except a third party transfer? Most brokers will not as they don't have to worry so much about the about the funds if they came from a Bank in your name.
Broadly speaking, yes. They may require documentation to ensure you're not laundering money though.

Ideally the sending account is in the identical name as the receiving IB account.

You can advise IB in advance of an incoming payment (IIRC part of the payments section). You could then enquire with support whether they need proof of the source, and how. That won't eliminate their checking, but reduce/avoid a delay in getting the payment booked into your account. IIRC the time limit for the advance notice is something like 3 months, check the small print in their online form to be certain.
Reply With Quote
  #20  
Old 15.02.2021, 18:00
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,778
Groaned at 99 Times in 88 Posts
Thanked 19,576 Times in 8,681 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Received inheritance from US - Should I ask for a check or wire transfer?

Quote:
View Post
and I still need to get rid of/use up some "REKA" checks.
Can be used to fill up your gas tank.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
UBS: wire transfer praktikant_in_der_schweiz Finance/banking/taxation 10 03.03.2021 23:35
rejected wire transfer yello Finance/banking/taxation 12 10.11.2019 14:27
German car received from Inheritance michaeljohnston Insurance 1 01.11.2017 12:51
Taxation on wire transfer Booyah Finance/banking/taxation 4 26.01.2017 08:44


All times are GMT +2. The time now is 03:14.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0