Major Changes to Victorian Probate Fees: What Families Need to Know

By Morgan Collens

Starting November 18, Victorian families dealing with probate – the legal process of validating a deceased person’s Will – will face significant fee changes, with increases impacting estates valued at more than $250,000.00. The State Government, citing the need to cover rising Supreme Court costs, has increased the tiered fee system for probate. Critics argue the fee hikes are akin to “death tax by stealth”, imposing additional financial burdens on grieving families.

What are the Changes?

Under the new system, estates below $250,000 will now have their probate fees waived, providing some relief to smaller estates. However, for those with assets between $250,000 and $500,000, fees will jump from $68.60 to $514.40, marking an increase of 645%. Estates valued between $500,000 and $1 million will see a 180% increase, while fees for estates between $1 million and $2 million will rise by 250%.

New fee tiers have also been introduced for multimillion-dollar estates. For example;

• Estates between $2 million and $3 million will pay $4,801.00
• Estates valued between $3 million and $5 million will be charged $7,185.00
• Estates exceeding $7 million will incur a maximum probate fee of $16,803.00

The Government emphasizes that for most Victorians, whose estates are valued under $2 million, probate fees will remain lower than in comparable states like New South Wales and South Australia.

Government’s Justification

The State Government argues that these fee increases are essential to covering the cost of managing larger and often more complex estates, which can consume extensive court resources due to disputes over will validity, property rights, or disputes among beneficiaries. Acting Attorney-General Enver Erdogan pointed out that fees will now be capped at 0.24% of an estate’s value.

Erdogan also noted that less than 6% of Victorian estates are valued at more than $3 million, but these often require substantial court time and resources. “We’re making the system fairer by keeping probate fees for small to medium-sized estates lower than those in NSW and South Australia,” he said.

Concerns and Opposition

The opposition, however, strongly criticizes the timing and scale of these changes. Shadow Attorney-General Michael O’Brien contends that these fee hikes will place an unjust burden on grieving families, accusing the government of using a “death tax by stealth” to generate revenue. The increase, announced just before the Melbourne Cup public holiday, has also drawn scrutiny over limited public consultation and transparency.

Public feedback gathered by the Department of Justice and Community Safety showed widespread opposition to the changes, with 94% of respondents expressing concerns. Key worries included the affordability of probate, potential barriers to accessing the justice system, and the possibility that higher costs could open doors to elder financial abuse.

What This Means for Families

For families handling estates in the higher brackets, there could be unexpected expenses. Although the Department of Justice suggests options like securing loans or using law firms to temporarily cover probate fees, critics argue this is unrealistic and adds strain during an already difficult time.

Ultimately, these fee changes bring Victorian probate costs closer to those in other states, with officials maintaining that they are essential for sustaining the court system. Still, questions remain on whether these increases will truly improve access to justice or merely shift financial burdens onto families when they’re most vulnerable.

As the new probate fees come into effect, families navigating the probate process should review estate values carefully, consult with legal advisors, and consider any additional administrative costs involved.

Table of Updated Fees

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.