Bereaved families managing smaller estates in Victoria will no longer be slugged with a government death tax, but fees for those with larger fortunes will triple.
Fees for the processing of wills and distribution of a deceased person’s estate have been under review as the government tries to claw back the cost of the Supreme Court Services.
The Department of Justice and Community Safety previously proposed three options for price changes and took those options to public consultation.
But the department only received 124 survey responses and eight submissions.
Most of those were opposed to the increase of fees, citing financial distress.
As a result, the state government announced on Monday November 4 that probate would be completely free for “small estates”, valued at less than $250,000.
Estates in the next tier, valued between $250,000 and $2 million, will have filing fees increased from $68.60 to $514 – this accounts for 90 per cent of estates probated in Victoria.
Under the changes, those with estates of $3 million will have fees tripled, rising from $2300 to $7200.
For large estates of more than $5 million, executors will be charged $12,002, and $16,803 for estates valued over $7 million.
The maximum fees anyone will pay is 0.24 per cent of an estate. The change are expected to raise as much as $33 million in revenue for the government.
Acting Attorney-General Enver Erdogan said despite the price hike, Victoria’s probate fees were “considerably lower” than other states, including NSW and South Australia.
“For the very small percentage of Victorians dealing with multimillion-dollar estates, the fees will be lifted to cover the level of administration and dispute resolution these complex applications often require in court,” Mr Erdogan said.
Individuals facing financial hardship who are unable to pay probate fees before an estate is settled may be eligible for fee waivers from the courts or support from their bank.
– AAP
