Victoria’s peak legal body warns death tax hike could spark major delays in estate proceedings

Victoria’s peak legal body has warned the state government’s decision to hike probate fees, described as a “death tax by stealth,” could lead to major delays in estate proceedings.

Victoria’s peak legal body has warned the Allan government’s decision to hike probate fees could lead to major delays in estate proceedings.

The government this week announced plans to push ahead with a “death tax by stealth” that will see some grieving families slugged thousands of dollars more to enact the wills of loved ones.

But the Law Institute of Victoria has warned the new fee regime would impose significant financial burdens on executers settling estates, potentially delaying estate administration.

Chief among the organisation’s concerns is the lack of any mechanism for application fees to be paid directly from an estate.

Instead, executers will be forced to fund hefty out-of-pocket expenses.

The Allan government’s move to hike probate fees could lead to major delays in estate proceedings. Picture: Nadir Kinani

LIV Chief Executive Adam Awty said the financial strain risked discouraging individuals from serving as executers, potentially delaying estate administration.

“One of the most pressing issues with these fee increases is the lack of a mechanism for the fees to be paid directly from the estate,” he said.

“This casts a heavier financial burden on executers, who must now secure these larger sums independently.

“It places executers in a difficult position, adding to their stress of already losing a loved one and potentially dissuading them from fulfilling this crucial role.

“Ultimately this delays estate proceedings and beneficiaries’ access to assets.”

The changes are expected to reap millions of dollars in extra revenue for the Supreme Court.

The new fee structure will see fees for lower value estates, valued between $250,000 and $500,000, increased by almost 650 per cent more than current levels.

Fees for estates valued between $1m and $2m jumping from $685.90 to $2,400.51.

Estates valued between $2m and $3m will see a new $4.801.02 fee imposed while $16,803 will be payable for estates valued at $7m or more.

Fees will be scrapped for estates valued at less than $250,000, which the government says is more than 20 per cent of cases.

In NSW, the maximum probate fee is just $6652.

The changes are expected to reap millions of dollars in extra revenue for the Supreme Court.

The Allan government has conceded the changes could lead to increased cases of elder abuse.

The new structure comes into effect from November 18.