Client Account

Kassie60

I started a thread regarding solicitor client accounts some time ago and received some helpful replies. I was asking whether or not the monies accumulated in the client account while the estate is being dealt with would accrue interest. From the replies I received it seemed that interest would be paid but not a huge amount as interest rates are quite low. The estate has now been completed and no interest been paid. This has been queried with the solicitors and their answer was that as the interest rate is very low and because they charge a £30 admin fee they tend not to bother paying interest. This sounds outrageous to me. If this hadn't been queried they would just hang on to the money without even mentioning it. Is this normal?

Yorkshireman99

Kassie60 wrote: »

I started a thread regarding solicitor client accounts some time ago and received some helpful replies. I was asking whether or not the monies accumulated in the client account while the estate is being dealt with would accrue interest. From the replies I received it seemed that interest would be paid but not a huge amount as interest rates are quite low. The estate has now been completed and no interest been paid. This has been queried with the solicitors and their answer was that as the interest rate is very low and because they charge a £30 admin fee they tend not to bother paying interest. This sounds outrageous to me. If this hadn't been queried they would just hang on to the money without even mentioning it. Is this normal?

It is more than cheeky to charge an admin fee in the circumstances. You might lodge a complaint under their internal complaints procedure to see what happens. If you do please let us know the outcome.

Kassie60

Thanks Yorkshireman. If we complain I will definitely post the outcome on here. Do you have any idea what a realistic interest rate would be for a client account?

Yorkshireman99

Kassie60 wrote: »

Thanks Yorkshireman. If we complain I will definitely post the outcome on here. Do you have any idea what a realistic interest rate would be for a client account?

Not really but it might be shown in the client terms

getmore4less

There is additional work in dealing with this if done properly.

The tax return for the period of administration will need doing or updating.

Keep_pedalling

Kassie60 wrote: »

I started a thread regarding solicitor client accounts some time ago and received some helpful replies. I was asking whether or not the monies accumulated in the client account while the estate is being dealt with would accrue interest. From the replies I received it seemed that interest would be paid but not a huge amount as interest rates are quite low. The estate has now been completed and no interest been paid. This has been queried with the solicitors and their answer was that as the interest rate is very low and because they charge a £30 admin fee they tend not to bother paying interest. This sounds outrageous to me. If this hadn't been queried they would just hang on to the money without even mentioning it. Is this normal?

I think you may have misunderstood what they have said. Solicitors do charge an administration fee, and if the interest earned is less the administration fee then you would not be paid any, although it should reduce the admin fee.

With interest rates the way they are, any interest on client accounts is going to be significantly lower than you get with a personal account so it is going to be a small fraction of 1%, so in a year £1M might only earn you £100 in interest.

Yorkshireman99

getmore4less wrote: »

There is additional work in dealing with this if done properly.

The tax return for the period of administration will need doing or updating.

Not above that already done apart from paying the funds that should have already been accounted for. The firm are trying it on.