Navigating the Probate process can be complex, especially when there are changes to the costs involved. Recently, the Supreme Court of Victoria has made some updates to the Probate costs, which are important for anyone dealing with estate administration to understand. These changes come into place on 18 November 2024.
Here’s a simple breakdown of what these changes mean for you.
What is Probate?
Probate is the legal process of validating a deceased person's Will and distributing their assets according to their wishes. If there is no Will, the process involves distributing the estate according to the laws of intestacy and the application (if required) is called ‘Letters of Administration’.
Recent Changes to Probate Costs
The Supreme Court of Victoria has updated the costs associated with applying for Probate. Here’s what you need to know:
Application Fees: The fees for applying for Probate or Letters of Administration have been adjusted. This means that the cost you pay will depend on the value of the estate. Higher value estates will incur higher fees.
Associated costs are detailed on the Supreme Court website, however, here is a snapshot.
Estate Value | Previous Fee | New Fee |
$0 - $249,999.99 | $68.60 | $0.00 |
$250,000 - $499,999.99 | $68.60 | $514.40 |
$500,000 - $999,999.99 | $367.40 | $1,028.80 |
$1,000,000 - $1,999,999.99 | $685.90 | $2,400.50 |
$2,000,000 - $2,999,999.99 | $1,502.40 | $4,801.00 |
$3,000,000 - $4,999,999.99 | $2,318.90 | $7,185.20 |
$5,000,000 - $6,999,999.99 | $2,318.90 | $12,002.60 |
$7,000,000 + | $2,318.90 | $16,803.60 |
Some of these price changes involve increases of 645 per cent and is often far more expensive than other states such as South Australia and New South Wales (in some cases - Victorian applications are paying almost double).
How These Changes Affect You
Budgeting for Probate Costs
Anticipating Expenses: With the updated fee structure, knowing the costs associated with Probate applications helps you prepare financially. This preparation ensures that there are no unexpected financial burdens during the estate administration process.
Executor or Administrator Responsibilities: As the Executor or Administrator, you are responsible for managing the estate's affairs, including covering the costs of Probate. It's important to note that estate funds cannot be accessed for these costs until Probate is granted. The only exception is the payment of the funeral account, which can be settled from the estate funds before Probate.
Upfront Costs: Given that estate funds are generally inaccessible until Probate is granted, Executors or Administrators may need to cover the Probate application fees and other related costs out of their own pocket initially. This requirement underscores the importance of budgeting and having a financial plan in place to manage these upfront expenses.
Reimbursement: Once Probate is granted and the estate funds become accessible, Executors or Administrators can be reimbursed for any personal funds used to cover Probate-related expenses. It’s important to keep detailed records and receipts of all expenses incurred to ensure a smooth reimbursement process.
Financial Planning: Effective financial planning involves setting aside funds to cover these initial costs. Executors or Administrators should consider consulting with a financial advisor or legal professional to develop a comprehensive plan that accounts for all potential expenses during the estate administration process.
For these reasons, it is important to think carefully about your estate planning. Is there a way you could be streamlining and simplifying your succession planning? It may be changing the holding on a property or changing the ownership of a bank account.
What You Can Do
Consult a Professional: If you’re unsure about how these changes affect your situation, it’s a good idea to consult with a lawyer. They can provide guidance tailored to your specific circumstances.
Understanding these changes is crucial for anyone involved in the administration of an estate in Victoria. By being aware of the updated costs and processes, you can ensure a smoother and more efficient Probate experience.
This article is general in nature. It does not constitute legal advice and should not be taken as such
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