Last week, the Victorian Government announced changes to probate fees that will take effect from 18 November 2024.
These changes will see fees increase on a sliding scale based on the value of the deceased estate. Victorians claiming estates worth up to $250,000 will have their probate fees waived, but those handling assets of more than $2 million are set to pay thousands of dollars extra under changes announced by the Allan government.
Under the probate fee changes, some Victorian families will see significant increases based on estate values:
- $250,000 – $500,000: Fee increases from $68.60 to $514.40 (650% increase).
- $500,000 – $1 million: Fee increases from $367.40 to $1,028.80 (180% increase).
- $1 million – $2 million: Fee increases from $685.90 to $2,400.50 (250% increase).
- $2 million – $3 million: Fee rises to $4,801 from $1,502.40.
Three new tiers for estates above $3 million have been introduced:
- $3 million – $5 million: $7,185.20
- $5 million – $7 million: $12,002.60
- $7 million+: $16,803.60
With previous fees capped at $2,318.90, the highest tier now represents up to a 625% increase.
The revision aims to align probate fees more closely with the administrative work involved in managing estates of varying sizes, potentially offering financial relief for families with smaller estates. It’s important to note, many assets do not directly form part of an estate, such as assets held in superannuation.
It is also important to note that these fees are required to be paid in order to get Probate therefore need to be funded outside the Estate assets (although they will be able to be reimbursed) so understanding and having some cash reserves available is important as part of your Estate plans.
Reference: https://www.supremecourt.vic.gov.au/news/victorian-government-changes-to-probate-office-fees
Estate Planning & Investment Experts
If you’re involved in managing an estate or planning for one, it’s important to be aware of this change, as it could affect the costs associated with probate applications from 18 November onward.
If you’d like to discuss how your assets and estate goals can be linked together, please get in touch with the TAG Financial Services team.
If you have questions or need any assistance, please do not hesitate to contact us on 9886 0800 or via email.
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2024. Please do not reproduce without the expressed written consent of the author.