Pecuniary Legacy Interest Calculator
Calculate statutory interest on delayed pecuniary legacies in UK wills and estates
Calculate Statutory Interest
Important Notice
This calculator applies to pecuniary legacies in England and Wales only. Statutory interest becomes payable after the “Executor’s Year” (12 months from the date of death) under Section 44 of the Administration of Estates Act 1925. Interest rates are set by the Court Funds Office and change periodically based on Bank of England base rate movements.
What Are Pecuniary Legacies?
A pecuniary legacy is a gift of a specific sum of money left to a beneficiary in a will. Unlike other types of legacy, pecuniary legacies attract statutory interest if they remain unpaid after the executor’s year (the 12-month period following the testator’s death).
Example of a Pecuniary Legacy
“I give £5,000 to my nephew, John Smith” or “I bequeath the sum of £10,000 to Cancer Research UK”
When Is Interest Payable?
Personal representatives (executors or administrators) are given one year to administer an estate, known as the “Executor’s Year.” If pecuniary legacies cannot be paid within this period, statutory interest becomes payable from the first anniversary of death until the legacy is actually paid.
Key Points About Statutory Interest
- Interest starts exactly one year after the date of death
- Interest continues until the legacy is paid in full
- The rate is set by the Court Funds Office and changes periodically
- Interest is calculated on a compound basis
- Only pecuniary legacies attract statutory interest (not specific or residuary gifts)
Current Interest Rates
The statutory interest rate for pecuniary legacies changes based on Court Funds Office rates. As of September 2025, the current rate is 3.19% per annum. Historical rates show significant fluctuations, particularly during periods of economic uncertainty.
Multiple Rate Periods
If a legacy remains unpaid for an extended period, different interest rates may apply to different portions of the delay period. This calculator automatically handles these rate changes to provide accurate calculations.
Legal Implications
Failure to pay pecuniary legacies promptly can have serious consequences for personal representatives:
Personal Liability
Personal representatives may face personal liability for losses caused to the estate through unreasonable delays in paying legacies. This is known as a “devastavit” claim, where beneficiaries can hold executors personally accountable for wasting estate assets.
Time Limits for Claims
Beneficiary Claims
Beneficiaries have 6 years from when interest became due to claim unpaid statutory interest under the Limitation Act 1980.
Residuary Beneficiary Claims
Residuary beneficiaries have 12 years to bring claims against personal representatives for losses caused by delayed distributions.
Practical Considerations
Estate Planning
Testators should be aware that pecuniary legacies may become expensive if the estate lacks sufficient liquid assets. Large cash legacies in property-rich estates may require asset sales, potentially delaying distribution and triggering interest liability.
Administration Strategy
Personal representatives should prioritise paying pecuniary legacies within the executor’s year wherever possible. If delays are unavoidable due to legitimate estate administration issues (such as disputed claims or complex asset realisations), proper documentation of the reasons for delay is essential.
Frequently Asked Questions
No, only pecuniary legacies (specific monetary gifts) attract statutory interest. Specific legacies (such as “my car to my son”) and residuary gifts do not carry interest entitlements.
The law provides little discretion – interest generally becomes payable automatically after the executor’s year. However, beneficiaries may choose not to claim interest, and courts may consider exceptional circumstances in disputes.
Interest is calculated for each period at the rate applicable during that period. If rates change multiple times, the calculation must account for each rate period separately.
Yes, testators can specify different interest rates or terms in their wills. However, without such provisions, the statutory rate applies automatically.
Interest is not part of the legacy itself but a separate administration expense. This means legacies cannot be reduced to cover interest costs, potentially creating personal liability for executors.
Yes, charitable legacies are treated the same as other pecuniary legacies for interest purposes. Many charities actively claim statutory interest on delayed payments.