Calculating the amount of interest payable on a Legacy in accordance with a Will
Section 84A(1) of the Probate and Administration Act 1898 (NSW) provides “where interest is payable on any legacy or on any arrears of an annuity in accordance with the will or instrument pursuant to which the legacy or annuity is payable …that interest shall, unless the will or instrument otherwise provides, or the Court otherwise orders, be payable at the relevant rate”.
Subsection 3 provides the “relevant rate” of interest means the rate that lies 2% above the cash rate last published by the Reserve Bank of Australia before 1 January in the calendar year in which interest begins to accrue (go to www.rba.gov.au for the current cash rate).