The Victorian government has recently announced a significant increase in probate fees, described by some as a “death tax by stealth.” Bereaved families in Victoria will now face probate fees that have increased by up to 650% to process wills. This change has raised concerns among many, and at Hill Legal, we want to ensure you are fully informed about what this means for you and your loved ones.
What Are the New Fees?
Under the changes, which came into effect on 18th November 2024, families of deceased estates with a value of between $250,000 and $500,000 will have to pay a probate fee of $514.40, up from $68.60 – a 650% increase.
Probate fees for estates valued between $500,000 and $1m would increase 180%, from $367.40 to $1,028.80, while estates between $1m and $2m would increase 250%, from $685.90 to $2,400.50.
Estates valued between $2m and $3m would have a new $4,801 fee imposed, up from $1,502.40.
Three new tiers for multimillion-dollar estates would also be introduced: $7,185.20 for those valued at $3m to $5m, $12,002.60 for $5m to $7m and $16,803.60 for $7m or more. With probate fees previously capped at $2,318.90, it represents up to a 625% increase in fees.
What is counted ?
The new fees are based upon the value of the estate at the time of death. This will include the value of all property, cash, shares and superannuation death benefits paid to the estate.
Why the Increase?
The government has stated that the increase in fees is necessary to raise revenue. However, this move has been met with criticism, as it places a significant financial burden on grieving families. Critics argue that this is an unfair way to generate revenue, especially during such a difficult time.
These increases can significantly affect the financial situation of bereaved families, adding to their stress during an already challenging time.
How Hill Legal Can Help
At Hill Legal, we understand that navigating the probate process can be challenging, especially with these new fee increases. Our experienced team is here to help you understand the implications of these changes and guide you through the probate process with ease. We are committed to providing compassionate and professional support to ensure that your loved one’s estate is handled efficiently and with care.
We can help you better plan the assets of your estate, not only to reduce the impact of the new probate fees but also income tax and stamp duty.
If you have any questions about the new probate fees or need assistance with the probate process, please do not hesitate to contact us on 03 5976 6500 or send us a message at here. Our team at Hill Legal is here to provide you with the information and support you need during this time. Reach out to us today to learn more about how we can assist you.
