kalanamak Posted August 7, 2008 Share Posted August 7, 2008 I'm so mortified I don't know the answer to this, I refuse to ask my sibs. I intend to pay the IL who has been acting as a personal representative (executor) for a will. I don't have to, but I am going to (4% is the rate I find on the internet for this small amount). However, this was a really terrible PR, and the foot dragging and not getting around to things means she, IMO, owes us some interest. (To say nothing of the slander, insults, sarcasm, gross breach of fiduciary duty etc). Do I do simple interest or compound interest? The compound calculators all require a year. This was a delay of about 4 months, although we are still waiting.... I'm not asking if I should pay her a fee, or if I should charge interest. Just what kind of interest and how to calculate it. Thanks. And really, you don't want to hear the story. It is too disgusting. Quote Link to comment Share on other sites More sharing options...
fosterisacoolcat Posted August 7, 2008 Share Posted August 7, 2008 (ummm...I sort of want to know :D ) Best of luck! Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted August 7, 2008 Share Posted August 7, 2008 I think I would pay her for the actual work she did, period. I wouldn't do compound interest since that would reward her for her dawdling etc. So, if you want to do it based on interest - I would make it simple interest. Quote Link to comment Share on other sites More sharing options...
kalanamak Posted August 7, 2008 Author Share Posted August 7, 2008 I think I would pay her for the actual work she did, period. I wouldn't do compound interest since that would reward her for her dawdling etc. So, if you want to do it based on interest - I would make it simple interest. No, no, I was going to give her 4% but deduct from it the interest on the money we'd have gotten months ago if she'd provided the attny with the contact info for everyone in the will at a reasonable time. (Since the money was from her...she was "buying out" hubby's share, she dawdled after fixing a price until I got an attorney myself, as the longer she didn't pay, the longer she had that capital. This would have gone on for years (we are 9 years already) if I hadn't gotten stuffy about it.) Compounding would make it more I was holding back. So, for example, is the interest you pay on a loan simple or compounded? This is why I'm mortified. I really should know this! Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted August 7, 2008 Share Posted August 7, 2008 The interest you pay on a loan is compounded. Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted August 7, 2008 Share Posted August 7, 2008 More. . . I would compound it monthly. Ie. if the loan was $1000 (to make it an easy number to work with) - 4% of the loan would be $40. Then the next month it would be $1040 x 4%. Somebody correct me if I'm wrong but that's how I remember doing it! Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted August 7, 2008 Share Posted August 7, 2008 More. . . I would compound it monthly. Ie. if the loan was $1000 (to make it an easy number to work with) - 4% of the loan would be $40. Then the next month it would be $1040 x 4%. Somebody correct me if I'm wrong but that's how I remember doing it! When you calculate it monthly like that, the interest would be $1,000 x 4% / 12, to adjust the annual rate to a monthly rate. Otherwise you end up with an annual rate of 48% rather than 4%. Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted August 7, 2008 Share Posted August 7, 2008 Thanks, LizzyBee - I knew I was missing a step! Quote Link to comment Share on other sites More sharing options...
kalanamak Posted August 8, 2008 Author Share Posted August 8, 2008 Thanks you two. We got a call today, and the paperwork is ready!! Hubby's dad died in 1999! Thy Will, Be Executed! However, we were told escrow. Now it isn't escrow, it is a "trust" set up by an attorney we didn't select. He has been licensed in 3 states for over 20 years, has malpractice insurance, and no investigations against him that I could find (and my attorney told me where to look). We are hoping the check is good :) Quote Link to comment Share on other sites More sharing options...
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