Victorian estates valued over $5 million are facing probate fees exceeding $15,000 under a new plan that could see fees rise by up to 650 percent. Currently, probate applications, which typically take around 30 minutes to process, have a flat fee of $2318.90 for estates over $5 million. The proposed fee structure will implement a sliding scale, with estates worth $5 million or more incurring fees of $15,407, a 564 percent increase.

Estate specialists criticise this as a “stealth death tax” imposed by the financially struggling Victorian state government. The government announced the potential fee increases in June and is seeking feedback. Legal experts warn this could financially burden executors who are responsible for settling estates, including paying bills before probate is granted.
This policy shift is expected to encourage will makers to explore strategies to circumvent the fees, such as placing assets in trusts or owning assets jointly.

Probate involves applying to the Supreme Court of Victoria to confirm a will’s validity, enabling executors to manage the estate, pay debts, and distribute assets according to the deceased’s wishes. In 2022-2023, probate applications involved approximately $30 billion in assets from about 26,700 estates, with an increasing volume due to an ageing population.
The new fees will range from $514 for estates valued between $250,000 and $500,000 (a 650 percent increase) to $15,407.40 for estates over $5 million.
The higher higher fees might deter law firms from paying these probate fees, and getting paid once probate has been granted, making it harder for will makers to find willing executors. This means executors will be liable for these costs and may have to borrow money or explore avenues to afford these higher probate fees, until the Estate is paid out.

The increased costs are disproportionate to the administrative work involved, raising concerns about access to justice and the potential complexity in estate administration.
The Victorian government justifies the fee increase by pointing out that current fees are significantly lower than those in other states and territories. For instance, probate fees for estates over $5 million are approximately $6700 in NSW and about $2000 in Tasmania.

To avoid the higher fees, we recommend strategies such as using non-estate assets like superannuation and family trusts, holding assets jointly, nominating beneficiaries for life insurance and superannuation funds, gifting assets during one’s lifetime, and ensuring the estate’s value stays below the $129,850 threshold for probate fees in Victoria.

A government spokesperson indicated that the increased fees are likely to be implemented this year. Victorian shadow attorney-general, Michael O’Brien, criticized the fee hike, describing it as a covert reintroduction of death duties by the Labor government.

Cadre Capital Partners specialises in asset protection and can establish an asset structure to safeguard you and your family from unwanted costs, while also protecting your Estate from potential disputes. Contact Cadre Capital Partners for assistance with your Estate Planning needs.