What is a fair interest rate for this debt I owe?
January 10, 2014 11:50 AM Subscribe
I was the executor of my mother's estate after she died in February of 2006. The estate was discharged in March of 2007, and the assets distributed to my brother, my nephews, and me according to the terms of the will. All the assets, that is, except for $6,000 that I left in the estate's checking account as a hedge against unforeseen developments. There have been no further developments, and the money has sat in the checking account all these years. The account is non-interest-bearing. I've been remiss in waiting so long to disburse the funds, and in not obtaining any interest for them in the meantime. I want to make this right. How can I do so?
posted by saywhat to Work & Money (14 answers total)
What occurs to me is to determine what kind of account would have been appropriate for the funds, and then to figure out how much interest would have accumulated over the term. I would then pay my brother and nephews their respective shares of that interest, in addition to their shares of the $6,000 principal. Can you tell me what would have been the appropriate type of account and how to calculate the interest?
Beyond the question of a fair interest rate, I'm thinking that I owe something more as an acknowledgment that I should have disbursed the funds sooner. Is that right? If so, how would I arrive at a number?