[size=55:wzymimhp]Opp 29 September 2010

Overseas residents prefer to bank at home

Two thirds of British expats believe that UK banks are better than those available in their country of residence and that sterling will prove a better bet than the Euro, according to a major new survey out this week from Lloyds TSB Bank.

Four times as many responders believing that sterling is stronger for their savings than the euro and many UK overseas residents maintain ties with their homeland. 79% hold their money in sterling and over half still holding a UK current account.

Two thirds of expats believe that British banks are better than those available in their country of residence (62%). Furthermore when asked which services they still used a British provider for, 83% of the responses were financial services related including banking products, pensions and insurance. Very few respondents felt that they needed a British provider for other services for example legal (five per cent) or healthcare (five per cent) according to a new survey[1] commissioned by Lloyds TSB International. Additionally despite almost 90% of respondents having been abroad for over five years, over half (55%) still maintain a UK current account and 80% still holding money in sterling.

Jakob Pfaudler, Managing Director of Lloyds TSB International, said: “It’s good to see confidence in the British banking system is returning. Britain's economy is showing continued signs of progress, with consumer confidence returning and businesses beginning to invest again. At the same time, the British banking system has returned to profitability, which will enable it to support and underpin the economic recovery.’’

The survey of British expats, living in France, Hong Kong, Spain, South Africa, UAE and USA, also shows that confidence in sterling is high in comparison with other currencies, with four times (44% versus 11%) as many respondents believing that sterling is stronger than the euro for their savings. Only three per cent of those now living abroad cite weakness in sterling as a factor most likely to contribute to having to return home early.

Jakob Pfaudler continued, “It is also reassuring to see that so many British expats are confident in the future of sterling which, after depreciating over the past few years, has stabilised as the economic recovery has taken hold and measures to improve the public finances have been laid out. In part their behaviour has been a reflection on what has occurred in the wider financial markets with the flight from more indebted economies.’’

Its a necessity to keep your money in the uk. such a shame really as in a 3 year savings scheme i got 9% in bulgaria. but, as we are not married you cannot have a joint bank account, so if either of us die, there is no access to the partners account. forced inheritency kicks in at this point and a will makes no difference. i have investigated all avenues. the bank told us to draft a letter with the notary and they cannot do it because of the forced inheritency law.
we have informed alliance that we can no longer invest here and will be putting our money back in the uk, where i wills do stand.

Thats interesting to know starlite I didn't reaslise that there were no joint accounts in Bulgaria, so tell us what happens in a business situation where there are partners do they all have separate accounts for the same business ?????

dont fully understand the buisness account that you have to open when you set up your company, ours was shut down by our poa, so it was used soley for the purchase of our house. as we dont trade, dont need one.
the money we tranferred over and invested in a 3 year term was in my partners account. thats when we found out about fil. and there is no way round it. ask 3 lawyers get 3 different answers, so i asked the eu and its scary. keep it in the uk.

Carmen wrote:

I didn't reaslise that there were no joint accounts in Bulgaria, so tell us what happens in a business situation where there are partners

It's true ... no joint accounts!

In a business situation, the account will have been set up in the name of whichever partner was nominated as 'Manager' of the company when it was created.

However, you can then submit a form to the bank to have a second 'signatory' so that both partners can do the banking.

yes you can, but the problems arise when one dies. it will be froze like probate in england. its like poa, ceases on death here. in the uk enduring poa means you can deal with that persons monetry issues and property, but not here.

in my situation, if he dies, i own half the house, his money and half the house goes to daughter, last 2 wives and stepchildren, yes stepchildren can all have a stake in his property and money.

thats why its going back to the uk.

starlite wrote:

in my situation, if he dies, i own half the house, his money and half the house goes to daughter

This is true ... however (and I'm no lawyer, so I hope one comes in to reply) ...

The company owns the house, not you as individuals. Therefore, if your partners will 'gifts' his shares of the company to you, then you own the company and property outright.

Also, even if the 'half' went to the daughter, she then has to 'apply' for 50% share of the company, which you don't have to grant, so she can't get half.

mmm ... that's my understanding, but as I said, I'd rather a lawyer pop in and reply.

PS. This is based on French Law where 'movable' assets can be given to a partner in a will (bank accounts, cars, furniture, etc.), whereas 'unmovable' objects (ie: a house) can't be willed without dis-inheriting any children involved.

However, as you're talking about shares in a company, these are 'movable' assets, and therefore the house moves with the shares.

nope. lol. you can give, gift and give away movable assests, only after the portion of forced inheritency has been dealt with, you cannot escape it. you have no say in this. that what is so awful that you cannot decide, that part is decided by the govenment.

starlite wrote:

nope. lol. you can give, gift and give away movable assests, only after the portion of forced inheritency has been dealt with, you cannot escape it.

But ... if the assets have been transferred, prior to death by a will, then they can not be affected, even by the government?

My wife wrote an article on this some time ago and spoke to several lawyers, who assured us there was a very legal method of ensuring the house stays with the partner.

I'll try and find some more info when she gets back in this evening.

Slow down people I'm now completely lost with all this so are we still talking about joint accounts or wills either way is there a definitive answer

chris, ive tried everything i can to sort this out. as a partner, there is little or no respect for me in law, i come a long way down the pecking order with regards to forced inheritency laws.
ive had lawyers, notaries, even the bank got involved. the only option available was to buy shares off the partner, but then if i died first, he loses everything.
no win situation, thats why everything is going back to the uk. we have wills, but they are useless here. as for the property, we can only hope we get old enough but well enough to sell up and down size.

starlite wrote:

the only option available was to buy shares off the partner, but then if i died first, he loses everything.

I think the legal solution was to 'will' company shares both ways, then whoever dies first (not that we like to think of these things) the other is covered. Wife's still not back, but will try get the actual jurisdiction on this to you tomorrow.

If you like, I can send you our lawyers contact details by PM ... she sorted us out with all that stuff and she speaks perfect English!

With this bank you can have a joint account
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The joint account is a type of current, savings, deposit or trust account opened in the name of several persons for the purpose of management of common funds.

* You can use it to manage the family budget from one account only, on which your common income comes in
* To manage funds received as inheritance

Characteristics:
• Currency - BGN, EUR, USD, GBP, CHF
• Interest - according to Interest Bulletin of the Bank
• Fees - according to Terms and Conditions of the Bank

Required documents for opening of trust account of physical person

- Copy of the Identity cards of the persons to whom the joint account will be opened
- Fille in „Application for opening bank account/banking services"

you can have a joint bank account with second signature, whilst alive, the problems arise when one dies, its froze and goes to probate, this is the area that is uncertain and not clear.