The Victoria State Government today confirmed a controversial increase in probate filing fees.
Estates valued at over $7 million will be the hardest hit, with a new filing fee of $16,803 – a significant increase from the current fee of $2,318.90.
One positive change relates to small estates where the gross value of the estate is under $250,000 which will no longer incur a filling fee.
These increased fees effective from 18 November 2024.
| Gross value of the estate | Current fee | New fee |
| $250,000 or less | $66.80 | NO FEE |
| $250,000 but less than $500,000 | $66.80 | $514.40 |
| $500,000 but less than $ 1 million | $357.80 | $1,028.80 |
| $1 million but less than $2 million | $667.80 | $2,400.50 |
| $2 million but less than $3 million | $1,463.80 | $4,801.00 |
| $3 million but less than $5 million | $2,257.80 | $7,185.20 |
| $5 million but less than $7 million | $2,257.80 | $12,002.60 |
| More than $7 million | $2,257.80 | $16,803.60 |
Impact on Estate Administration
The increase in probate fees will have several implications for executors and administrators when administering a deceased estate
Increased financial burden
We executors in the first instance personally responsible for probate filing fees, this may dissuade executors from fulling their role, which gives rise to access to justice issues and may create complexities for the administration of deceased estates.
Potential legal repercussions
With higher fees, there may be increased scrutiny on the probate process. Executors and administrators will need to ensure compliance with all legal requirements to avoid costly disputes.
Impact on estate planning
For those planning their estates or making new Wills, the new fees may lead to reconsiderations of how assets are structured. Many may seek to reduce the overall value of their estates to avoid higher fees. This may inadvertently create scenarios not originally intended, potentially leading to the Willmakers intentions not being correctly carried out or costly disputes.
Conclusion
The increase in probate filing fees in Victoria represents a significant shift in how estates will be managed and processed in the coming years. While the rationale for the fee increase is rooted in enhancing the efficiency of the probate system, it also places a heavier financial burden on individuals and families navigating this complex process.
As these changes take effect, it is essential for individuals involved in estate planning and administration to stay informed and seek professional advice.
Our Wills and Estates Team understand the implications of these fee increases and can help ensure that estates are handled smoothly and in accordance with the deceased’s wishes.