We have an estate which we took over conduct from another firm of solicitors. The deceased died in September 2002, he left a number of pecuniary general legacies, some of which were paid in full, some of which were paid in part due to the funds being tied up in investments. We are now in funds and need to calculate interest on late payments. Our understanding is that interest runs from the date on which the legacy is payable (one year from the testator’s death, there was no contrary direction in the Will). The right to interest is subject to the provisions of the Limitation Act 1980, so only 6 years interest can be recovered. We have had advise from a litigator that the 6 year period will run backwards, from the moment we can pay the monies out, but we were under the believe that the 6 year period runs from the end of the executors year. There is a huge difference in the amount of interest payable as interest rates in recent years have been very small compared to the interest rates in place back in 2003 onwards.
Has anyone had a similar situation, or can anyone give me any guidance or thoughts on how to calculate the interest?
Dominic Mills & Co