I am acting for the surviving spouse of an estate in which the husband died in 2012 intestate.
For various reasons (including a caveat), the spouse did not obtain LOA, and a son of the deceased (not her son) obtained LOA in 2017. In the intervening years, the main asset in the estate, the house owed by the deceased, increased in value substantially. The total estate was valued at £363,000 at death, but the house was sold in 2018 for £475,000.
The spouse has received the fixed net sum of £250,000 but now wants to claim interest on her unpaid fixed net sum of £250,000, at the statutory rate of 6%. The son is offering to pay her 4%.
She is also entitled to a life interest in half of the remainder or its capitalised value if so elected. However, I am unclear whether the calculation for half of the remainder should be:
a. based on the original probate value of £363,000 and not include any interest (i.e £363k-£250k)?
b. based on the original probate value of £363,000 and should include any interest (i.e. £363k - (£250k + interest)?
c. based on the value of assets realised after sale and not include interest (i.e. £475k - £250k)?
d. based on the value of assets realised after sale and should include interest (i.e. £475k - (£250k + interest)?