Changes to Victorian Probate Fees
29 November 2024Understanding Recent Changes to Victorian Probate Fees: A Guide for Executors and Beneficiaries
Navigating the probate process is an integral part of estate administration, but recent changes to Victorian probate fees may complicate the landscape for executors and beneficiaries. In this article, we’ll break down the updates, explore their implications, and offer guidance on how Hentys Lawyers can assist you in understanding and managing these changes.
What Are Probate Fees?
Probate fees are charges imposed by the Supreme Court of Victoria when an executor applies for a Grant of Probate or Letters of Administration. These grants are necessary for administering a deceased estate, allowing the executor or administrator to access and distribute assets by the will or laws of intestacy.
Overview of the Recent Changes
Effective 18 November 2024, the Victorian Government introduced a new tiered fee structure for probate applications. The changes aim to generate additional revenue for the state while reflecting the complexity and administrative resources required to process applications. Below are the key changes:
- Fee Increases: Probate application costs have increased, particularly for larger estates. The new structure aligns fees with the estate’s value, replacing the previous flat-fee model.
- Tiered Structure: Under the updated system, estates of higher value incur greater fees. Smaller estates benefit from no fees or relatively low costs, while executors of high-value estates face significantly higher charges.
- Fee Application Thresholds: The new fees are based on the gross value of Victorian assets within an estate. A detailed table of the changes is included below.
The Victorian Government has offered a statement of reasons for the significant fee increases.
New Probate Fee Structure
Below is a comparison of the previous and updated probate fees:
| Gross Value of Estate | Previous Fee | Less than $250,000 |
| Less than $250,000 | $68.60 | $0 |
| $250,000 to less than $500,000 | $68.60 | $514.40 |
| $500,000 to less than $1,000,000 | $367.40 | $1,028.80 |
| $1,000,000 to less than $2,000,000 | $685.90 | $2,400.50 |
| $2,000,000 to less than $3,000,000 | $1,502.40 | $4,801.00 |
| $3,000,000 to less than $5,000,000 | $2,318.90 | $7,185.20 |
| $5,000,000 to less than $7,000,000 | $2,318.90 | $12,002.60 |
| $7,000,000 or more | $2,318.90 | $16,803.60 |
This revised structure represents significant increases, particularly for estates valued over $250,000, with some fees rising by more than 600%. However, estates under $250,000 are now exempt from probate fees, providing some financial relief for smaller estates.
Implications of the Probate Fee Changes
For executors, beneficiaries, and legal practitioners, the updated probate fees present several implications:
- Increased Administrative Costs: Executors of high-value estates may need to budget for significantly higher fees, impacting the net distribution to beneficiaries.
- Impact on Smaller Estates: While smaller estates remain largely unaffected, even moderate estates might experience a financial strain depending on their value.
- Pre-Planning Considerations: Estate planning may require adjustments for higher probate costs. Minimising probate assets or leveraging alternative asset structures might be necessary.
- Delays in Administration: Higher fees may discourage executors from promptly applying for probate, potentially delaying estate distribution and increasing disputes among beneficiaries.
How Do These Changes Compare to Other States?
Victoria’s updated probate fees place it among the higher-cost jurisdictions in Australia, particularly for large estates. States such as New South Wales and Queensland have retained flat or more moderate fee structures, creating discrepancies in the cost of estate administration across the country.
Practical Steps for Executors
Navigating probate fee changes can be challenging, but careful planning and professional guidance can help mitigate their impact. Executors can take the following steps:
- Understand the Estate’s Value: Conduct a thorough valuation of all assets to determine which tier the estate falls under.
- Budget for Fees: Prepare for the application fee as part of the overall estate administration budget. Executors may need to advance the fees and later reimburse themselves from the estate.
- Seek Legal Advice: Consulting an experienced probate and wills lawyer can help executors navigate the new fee structure, avoid common pitfalls, and explore strategies to minimise costs.
- Streamline the Probate Process: To prevent unnecessary delays, ensure that all documents are accurately completed and submitted to the Supreme Court.
How Hentys Probate Lawyers Can Help
At Hentys Lawyers, we specialise in probate and estate administration, offering comprehensive support to executors and beneficiaries. Here’s how we can assist:
- Expert Guidance on Probate Applications: Our team will ensure your application meets all legal requirements, reducing the likelihood of delays or rejections.
- Fee Management and Planning: We’ll help you understand the new fee structure and budget for costs and explore potential fee reduction strategies.
- Dispute Resolution: Should the updated fees lead to disagreements among beneficiaries, our team can mediate disputes to ensure a fair and timely resolution.
- Hardship Applications: If you believe the estate qualifies for a fee waiver or reduction, we’ll guide you through the application process and represent you in interactions with the Supreme Court.
Contact Henty Lawyers Today!
The recent changes to Victorian probate fees underscore the importance of informed estate planning and efficient estate administration. Whether you’re an executor managing a deceased estate or an individual planning for the future, understanding the new fee structure is crucial to minimising costs and ensuring a smooth probate process.
Hentys Lawyers is here to guide you through every step, offering expert advice tailored to your needs. Contact us today to learn more about how we can assist with probate applications, contesting a will, challenging a will, family provision claims and inheritance law.