Interest: no obligation to find the best rate possible

Q. I have been acting for an executor, who is also the sole residuary bene-ficiary, in the admini-stration of an estate. The deceased’s tax affairs were quite complex and have taken some time to resolve, as a result of which we have held a reasonable sum of money in a separate designated client account at our bank.

However, the client is now complaining about the amount of interest earned and has suggested that we failed to act in his best interests by shopping around to obtain the best possible rate. Should we have done so?

A. There is no requirement to obtain the best rate of interest. However, rule 25(1) of the Solicitors’ Accounts Rules 1998 states that you must aim to get a reasonable rate of interest on monies held in a separate designated client account and it is not acceptable to look only at the lowest rate of interest obtainable.


Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog

18 July 2018

What do the whiplash reforms mean for children?

An element of the reforms contained in the Civil Liability Bill which seems to be flying mostly under the radar is the effect this will have on children.

Read More