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A substantial increase in the Supreme Court of Victoria’s probate office fees could make it the most expensive state in Australia for estates worth over $2.5 million, according to the Law Institute.
While the Victorian government’s plan to overhaul probate fees was mostly welcomed, its intention for fees could mean anyone hoping to settle an estate worth $250,000 or more is facing a “massive financial increase”, Law Institute of Victoria’s (LIV) CEO Adam Awty said.
“Those increased fees would add extra stress and financial hardship on families who are already suffering,” Awty said.
“They can’t access the bank account of their deceased loved one, so they need to find the money for filing fees somewhere else.”
For estates under $250,000, the filing fee increased from $68.60 to $261.30, representing a 281 per cent increase.
For estates worth between $250,000 and $500,000, the fee could increase by 650 per cent from $68.60 to $514.
There is also a proposed increase of 378.3 per cent for estates valued between $2.5 million and $5 million and a 564.4 per cent increase for estates valued above $5 million.
While the review of the probate fees is warranted and there was a removal of a fee for small estates under $125,000, the LIV is concerned the increase for higher-valued properties could discourage Victorians from agreeing to become executors.
Awty said this could slow down the administration of estates and tie up assets for longer.
It could also be a disadvantage for regional and rural law firms, which may be unable to cover probate fees for clients.
“These fees are too high,” Awty said.
“For estates worth more than $2.5 million, they are almost double the fees in NSW.
“We will work with government and advise of the impact of the proposed changes.”
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Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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