Does an estate accrue interest whilst it's being settled?

chickpie

Hi

I lost my Dad very suddenly Jan 2020. He left his estate in good order with multiple bank accounts and investments all well detailed. We provided this to his solicitor in full.  We felt that the process of handling the estate was slow but we were of course aware of the impact of Covid. In autumn we were informed the solicitor we were dealing with had left and a paralegal was assigned, the paralegal almost had to start again and she shared information that some figures had to be reworked as the had either go so out of date or were wrong.

By Christmas last year we complained to the practice as we felt there was a real lack of communication from them, we understand these things take time but there was almost no communication.

The estate is still not settled, we're told it's in the final stages so 3-4 weeks. My question is, does an estate accrue interest whilst it's being settled? We are in Scotland.

Thanks

Flugelhorn

if money is invested it may well accrue interest, I think this is treated as income to estate

naedanger

chickpie said:

Hi

I lost my Dad very suddenly Jan 2020. He left his estate in good order with multiple bank accounts and investments all well detailed. We provided this to his solicitor in full.  We felt that the process of handling the estate was slow but we were of course aware of the impact of Covid. In autumn we were informed the solicitor we were dealing with had left and a paralegal was assigned, the paralegal almost had to start again and she shared information that some figures had to be reworked as the had either go so out of date or were wrong.

By Christmas last year we complained to the practice as we felt there was a real lack of communication from them, we understand these things take time but there was almost no communication.

The estate is still not settled, we're told it's in the final stages so 3-4 weeks. My question is, does an estate accrue interest whilst it's being settled? We are in Scotland.

Thanks

The estate is due any money earned net of tax during the administration period so any interest, dividends, capital growth on the estate assets. But it is usual for money to be gathered in from existing accounts during the administration period in order to be ready to distribute it to beneficiaries and pay any debts and expenses. Accounts suitable for that purpose often pay no, or next to no, interest at the moment.

That does sound a long time to administer a simple estate even allowing for Covid. 

chickpie

naedanger said:

chickpie said:

Hi

I lost my Dad very suddenly Jan 2020. He left his estate in good order with multiple bank accounts and investments all well detailed. We provided this to his solicitor in full.  We felt that the process of handling the estate was slow but we were of course aware of the impact of Covid. In autumn we were informed the solicitor we were dealing with had left and a paralegal was assigned, the paralegal almost had to start again and she shared information that some figures had to be reworked as the had either go so out of date or were wrong.

By Christmas last year we complained to the practice as we felt there was a real lack of communication from them, we understand these things take time but there was almost no communication.

The estate is still not settled, we're told it's in the final stages so 3-4 weeks. My question is, does an estate accrue interest whilst it's being settled? We are in Scotland.

Thanks

The estate is due any money earned net of tax during the administration period so any interest, dividends, capital growth on the estate assets. But it is usual for money to be gathered in from existing accounts during the administration period in order to be ready to distribute it to beneficiaries and pay any debts and expenses. Accounts suitable for that purpose often pay no, or next to no, interest at the moment.

That does sound a long time to administer a simple estate even allowing for Covid. 

Thank you. We are quite frustrated but more so at their lack of communication, it's always us (my sister and I) asking for updates.  We also had a shocking lack of empathy at our initial meeting which we wrote off at the time - we included it in the complaint at Christmas time which went to the senior partner, but the reply was not worth reading.  My dad was old fashioned and used this firm for all his dealings for many years so it's really quite disappointing.  Hoepfully it will be complete soon and i'll look into the interest. 

naedanger

chickpie said:

naedanger said:

chickpie said:

Hi

I lost my Dad very suddenly Jan 2020. He left his estate in good order with multiple bank accounts and investments all well detailed. We provided this to his solicitor in full.  We felt that the process of handling the estate was slow but we were of course aware of the impact of Covid. In autumn we were informed the solicitor we were dealing with had left and a paralegal was assigned, the paralegal almost had to start again and she shared information that some figures had to be reworked as the had either go so out of date or were wrong.

By Christmas last year we complained to the practice as we felt there was a real lack of communication from them, we understand these things take time but there was almost no communication.

The estate is still not settled, we're told it's in the final stages so 3-4 weeks. My question is, does an estate accrue interest whilst it's being settled? We are in Scotland.

Thanks

The estate is due any money earned net of tax during the administration period so any interest, dividends, capital growth on the estate assets. But it is usual for money to be gathered in from existing accounts during the administration period in order to be ready to distribute it to beneficiaries and pay any debts and expenses. Accounts suitable for that purpose often pay no, or next to no, interest at the moment.

That does sound a long time to administer a simple estate even allowing for Covid. 

Thank you. We are quite frustrated but more so at their lack of communication, it's always us (my sister and I) asking for updates.  We also had a shocking lack of empathy at our initial meeting which we wrote off at the time - we included it in the complaint at Christmas time which went to the senior partner, but the reply was not worth reading.  My dad was old fashioned and used this firm for all his dealings for many years so it's really quite disappointing.  Hoepfully it will be complete soon and i'll look into the interest. 

Poor communcation is always very annoying.  I am guessing the solicitor was named executor in the will. If not, it doesn't really matter now since you are near the end of the process anyway.

One other thing, it is quite possible the investments your late father held may have fallen in value over the administration period.