statutory interest rate on gift in will

marco501

I understand that after the first year, someone receiving a cash gift in a will is entitled to 'statutory interest' on it.

Can any legal experts tell me what the rate of interest currently is please?

Many thanks.

travelgran

I'm not sure I understand this. Do you mean that if the 'gift' isn't received within a tear the recipient should receive the gift plus interest? Or do you mean that having received the gift the recipient has to pay interest?

4nnabella

I'm not a legal expert but work in Finance and regularly refer to the Bank of England who set the base interest rate, it is currently 0.5%, and can be checked here http://www.bankofengland.co.uk/, in the box halfway down on the right hand side.

olbas_oil

Nothing to get too excited about: 0.3%

http://www.justice.gov.uk/downloads/guidance/protecting-the-vulnerable/court-funds-office/payments-in/cfo-interest-rates-faq.pdf

The rate is the basic rate for funds in court.
The rule is that executors get a year to sort things out. Assume a will that said £1000 to Mr Smith and all the rest to Mr Jones. If the executor takes a few years to pay Mr Smith, then all the interest which has built up in the meantime would end up going to Mr Jones. That is unfair so the rule tries to balance out their interests.