I have to calculate the interest on a number of legacies which have been paid over a year after the date of death, However, they have been paid in 2 tranches, but both payments were after Executor's Year. I'm just getting my head around how to work out the interest. So, for eg, a £50,000 legacy was paid as to £25,000 a year and a half after the date of death, and the final half was paid 2 a further 6 months later (so, 2 years after death). I note the rate change to 0.1% in June 2016.
I suspect it is a case of working out the interest on £50k over the full 1 year (ie, from a year after date of death) and then reducing it by the fact that they had £25k already, so deduct the interest earned on £25k?
Or do we not deduct the interest on the first payment and just pay the full interest for the 12months on the full £50k?
Thanking you in advance.
KRS Estate Planning