If you die the bank takes 25% of your money

Ailletoo


Joined: 24/01/2009
Posts: 1003

Message Posted:
27/02/2009 18:59

Can anybody confirm or deny something I heard recently. Apparently, if you hold a bank account here in the TRNC in a single named account, ie not a joint account, if you die the bank appropriates 25% of your funds. If this is the case then it would be advisable to change ones single named account to a joint account with someone you trust and hope that they don't die at the same time! Comments anybody?

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
27/02/2009 19:03

I assume if the Bank goes belly up that there are no guarantees like in other countries so they take alll your money so its a win win, anyone know any different

piggy


Joined: 15/02/2009
Posts: 132

Message Posted:
27/02/2009 21:49

Surely, if you have made a will here then this is not the case?

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
27/02/2009 21:54

piggy why do say that?? what impact or influence does a will have over the actions of a bank?? I dont understand your comment

CreditwestRep


Joined: 04/11/2008
Posts: 214

Message Posted:
27/02/2009 21:57

What you are saying is not correct rocky we have a savings insurance fund that will pay out if a bank is closed down.

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
27/02/2009 21:58

Even though I personally don't have any money 'invested' in a TRNC savings account, I am anxious for those that do. I have an uneasy feeling that the current interest rates on savings being offered by the banks on ytl accounts are unsustainable and could even be operating on the lines of the 'ponzi' schemes in the US. How can they offer rates of 15% + when across the world, interest on deposits is less than 1%? I know that loans given by the banks are under huge rates of interest but surely there are more savers than borrowers as in the UK? How many of those loans are on unsaleable properties? I have yet to be convinced that savings are secure up to a certain amount as in the UK.

I stand to be shot at but my concern is genuine and I'd hate to see expats losing their life savings.

CreditwestRep


Joined: 04/11/2008
Posts: 214

Message Posted:
27/02/2009 22:00

rocky again you state the bank takes 25% this is not correct please refrain from giving wrong information.

CreditwestRep


Joined: 04/11/2008
Posts: 214

Message Posted:
27/02/2009 22:05

Hector then the profitability of each bank should interest you, if what you are saying is right then banks making losses with be at risk and therefore have to inject further capital to keep banking operations going.

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
27/02/2009 22:16

credit west I did say it was an assumption I was just looking for information from those in the know. So how much do you know? Also in Message 7 you say incoreectly that I stated the Bank takes 25% ....get your facts right I did not say that. Also what is a Savings Insurance fund how does it work who holds the money is in trust so the Bank cannot touch it if a Bank goes Belly Up? also how much is guaranteeed is it up to a limit on each account or on each client?? sounds a little vague to me...I was in Banking in the UK so I am always nervous of foreign banks although I do support an account in NC with a Turkish Bank.. To say we have a savings insurance funds means nothing without some substantiation.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
27/02/2009 22:21

Hector

Ref: your message 6. You are right and my concerns are that nearly 10 years on from the last banking collapse in the TRNC we are heading for another one.

AJ

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
27/02/2009 22:31

Its your call credit west why have you gone quiet

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
27/02/2009 23:02

I used to get worried about misinformation on these boards but now I got used to it and actually I find it amusing.



The law about inheritance tax has been modified recently. The threshold for taxation has been reduced from roughly 35 times of minimum annual wage to 20 times but on the other hand the rate of tax has been reduced from 25% to 1%. I am giving these figures from memory, so I hope I am not far out.



As far as joint accounts are concerned the money in this account is not taken into account for taxation and this is how it is treated by most banks although the tax man thinks half of it should be taxed. It is best to check with your bank about their attitude on this matter. Worst come to worst it is only 1% after the threshold, so not much to worry about. The bank takes nothing and even when the money in an account is not claimed within so many years it is transferred to the Central bank.

ismet

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
27/02/2009 23:09

thats a sensible contribution as usual from elko we wait for further eductaion on the insurance scheme that is probably more of an issue than inheritance tax. Although so far the Bank rep has declined to respond and appears to have gone to bed or the library to do some research. Re: IHT-- as it applies to UK citizens on worldwide assets and there is no double taxation relief in NC does it mean that UK residents could get caught for two IHT bills? I guess that if someone has sold of UK assets and moved to NC may be difficult for HMRC to monitor.

CreditwestRep


Joined: 04/11/2008
Posts: 214

Message Posted:
27/02/2009 23:36

rocky I to started my 30 years banking career in the UK, the savings insurance fund is what the banks have to contribute to by law, we pay a certain percentage on the deposits we accept into a fund held at the TRNC Central Bank, this will be used if a bank is closed to pay off depositors. 20.000 Euro per account is covered by this fund unlike in the UK which is when I last checked 50.000 pounds per person.

CreditwestRep


Joined: 04/11/2008
Posts: 214

Message Posted:
27/02/2009 23:42

Apologies rocky it was someone else who thought banks take 25% of their money when someone dies. I did not go quite or to any library just not on the forum all the time.

Ailletoo


Joined: 24/01/2009
Posts: 1003

Message Posted:
27/02/2009 23:44

Re: Message 2.



Can't see how this reply is relevant to my question. I'll ask again... do the banks take 25% of your money when you die in the TRNC.. or don't they? I will enquire from my bank on Monday.



Does anyone know?



I am certainly changing my account to a jointly held account with my daughter.... just in case. In the event of my death, she can then access the account and take out any monies therein.

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
27/02/2009 23:58

rocky, the bank insurance scheme has been dealt with many times on here. creditwestrep has answered these questions many times as well. i am sure if you email cwr instead of trying to goad him, you will get the answers to your questions.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
28/02/2009 00:04

On-line it takes minutes to transfer money....about 1 hour to transfer to / from the UK.....there will be no money in my account by the time the bank finds out i'm dead!

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
28/02/2009 00:43

eager

You appear to have only been a member of this forum for 4 days and yet you seem to know what has been discussed 'many times before.'

This is a very serious subject which would have catastrophic consequences if it all goes wrong. Who would have thought that the UK banking system would be is such a dire mess today? Northern Rock nationalised, RBS 75% owned (soon to be 95%) by the UK government, other banks on the brink and being bailed out. If you'd been a betting man, which, a year or so ago, would you have put your money on going bust, UK or TRNC?

I'm still not convinced about this insurance scheme. Is it Turkey or the TRNC that holds the insurance funds? If things did go wrong, how soon would it pay out? Would it take years as it did before? How do you know that a bank has kept up the insurance? Where are these facts published? How come we still have to ask these questions? Why aren't millions of investors flooding into the TRNC to take advantage of these fantastic rates?

clarets



Joined: 08/01/2009
Posts: 752

Message Posted:
28/02/2009 02:23

Hector......I can hardly believe what you have written."Who would have thought that the UK banking system would be is such a dire mess today?"

You have got to be kiddin'.Rarely have I come across such a bunch of self-serving,greedy cretins as most senior bankers in the UK.Yes, that is a sweeping generalisation........but its bloody well true.Anyone with half a grain of intellect(including recently sacked risk managers!)could have predicted the s*** hitting the fan in the UK.

Most of the people who went into banking from my school,really weren't the sharpest tools in the box!

deecyprus4


Joined: 27/07/2008
Posts: 3452

Message Posted:
28/02/2009 06:34

Creditwestrep...Is Credit West Bank soley known in the TRNC or do you have international interests?

gates


Joined: 08/12/2008
Posts: 1096

Message Posted:
28/02/2009 08:37

if you die without making a will the goverment take the lot plus your property

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
28/02/2009 10:17

i totally agree with hector and aj.

if it sounds to good to be true it probably is!

greed will get you,lol.



the trnc central bank guarentee. is that like the exchange land guarentee?

lets face it there are no guarentees here , this is cyprus.

chezza


Joined: 12/05/2008
Posts: 12

Message Posted:
28/02/2009 10:52

Is it true that if a property owner in TRNC forgets to make a will, should yhe owner pass away, the TRNC Govt. takes all? Is this the law?

erolz


Joined: 17/11/2008
Posts: 3456

Message Posted:
28/02/2009 11:10

Chezza no it is not true. I believe (but am not an expert and may be wrong) that estates of non citizens that die intestate (without a local will) will be subject to a large % of the estate going to the state (40% I thik?). Maybe Elko can post a bit more infor but really you should do more research about this issue if it affects you than just asking on forum boards. It is not a good idea to not worry about a will in the TRNC if you have TRNC assets but neither do I think it is true that the state takes the entire property assets in the North of those who die without wills.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
28/02/2009 11:31

Oh dear dear dear, I don't really know why I bother. Actually it is in my interest to keep quiet and let people think that such rumours are true. The lawyers will benefit from such false information.



The truth is this (in a nutshell):

If you die without a will, your estate will be subject to the same laws as the Turkish Cypriots: i.e. your estate is shared amongst your heirs. the inheritance tax is minimal as I stated in my message above (msg. 12). That means that if you have a child or children, the spouse gets only one sixth of your estate and the child or children gets the rest.



If you are British, you can do what you like with your estate if you leave a will.



If you are a foreigner but not British, you can leave a will and do what you like with your movables (bank account, cars, yatchs etc) but you can only bequeath only a certain portion of your immovables (house, villa etc).



If you are a Turkish Cypriot, you can bequeath only a certain portion of your es

erolz


Joined: 17/11/2008
Posts: 3456

Message Posted:
28/02/2009 11:50

Thanks once again Elko for clearing the muddy waters and applogies to all for having myself added to the muddiness.

chezza


Joined: 12/05/2008
Posts: 12

Message Posted:
28/02/2009 13:02

Thanks very much Elko most helpful member, much appreciated.

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
02/03/2009 12:14

Hector==think you owe Eager an appology. He has been a member for 2 years and 4 days!



Rocky, CWR is the most unpretentious banker I have ever met and probably the most helpful by far. Not everyone can sit on C44 and wait for a message, me for onr!

Macha


Joined: 18/01/2009
Posts: 650

Message Posted:
02/03/2009 12:31

rocky: "I guess that if someone has sold of UK assets and moved to NC may be difficult for HMRC to monitor."



Unless or until north Cyprus is unified with the south or becomes a recognised country. One or the other will be happening in the not too distant future and a condition of either scenario is bound to involve a crackdown on financial crime and tax evasion.

mackerel


Joined: 22/06/2008
Posts: 117

Message Posted:
03/03/2009 10:44

Elko

For a Britisher does the will have to be made in TRNC or would a will made offshore referring to a property in TRNC be valid.

Many Thanks

Ailletoo


Joined: 24/01/2009
Posts: 1003

Message Posted:
03/03/2009 15:01

Your will has to be made and lodged in the TRNC. In fact tf you own property here in TRNC then a will made in TRNC is a legal requirement. Solicitors will charge you around £100 sterling to do this. However, a friend of mine has just made her will and had it stamped and lodged in a safety deposit box with a notary in Girne. She was charged somewhere in the region of 35 TL. She downloaded the will form from the internet.



Aille

Marlene


Joined: 23/03/2009
Posts: 13

Message Posted:
23/03/2009 20:00

My mother recently passed away and had a considerable amount of money in accounts here in TRNC (she was a resident). The funds have been transferred today as her will stated (TRNC one of course) to me and no money was deducted in fact the bank advised waiting until today so interest could be added.

HSBC very helpful and professional in dealing with matter.

piggy


Joined: 15/02/2009
Posts: 132

Message Posted:
23/03/2009 20:31

Marlene, my deepest sympathy to you and your family on your recent loss. I am pleased to hear that the bank acted in a very professional manor in respect of the accounts held in her name.

mrjim



Joined: 26/04/2008
Posts: 78

Message Posted:
24/03/2009 07:10

message 33 sorry to hear about your mother,my smpathy goes to you and your family.how I wish you could of put that in message 2 would of saved a number of irrevalant post