In a move that has sent shockwaves through the community, the Victorian government has announced sweeping changes to probate fees, with hikes of up to an astonishing 650%. The shift from a fixed rate to a tiered system based on the value of the deceased’s estate has left many bereaved families reeling, wondering how they’ll bear the burden during an already difficult time.
A Tiered System of Sorrow
Under the new structure, set to take effect on November 18th, families dealing with estates valued between $250,000 and $500,000 will see their probate fees soar from $68.60 to a staggering $514.40 – a heart-wrenching 650% increase. Those with estates in the $500,000 to $1 million range face a 180% hike, from $367.40 to $1,028.80, while the $1-2 million bracket will be slapped with a 250% increase, from $685.90 to $2,400.50.
But it’s the estates valued at $2-3 million that will feel the sharpest sting, with fees skyrocketing from $1,502.40 to an eye-watering $4,801 – a burden many are struggling to comprehend. And for those dealing with multimillion-dollar estates, the government has introduced three new tiers of pain: $7,185.20 for $3-5 million, $12,002.60 for $5-7 million, and a heart-stopping $16,803.60 for estates worth $7 million or more. With fees previously capped at $2,318.90, these changes represent increases of up to a staggering 625%.
Justifying the Unjustifiable?
The government has attempted to justify these hikes by pointing to the complexity and time-consuming nature of disputes over larger estates, which often involve questions of will validity, unclear property rights, or perceived inequities among beneficiaries. Acting Attorney General Enver Erdogan argued that current fees are insufficient to cover the costs associated with these lengthy battles.
It’s why we’re making the system fairer by abolishing probate fees for small estates and keeping medium-sized estate fees cheaper than New South Wales and South Australia’s fees.
Acting Attorney General Enver Erdogan
Erdogan also emphasized that even with the increases, the maximum an estate will pay in probate fees is 0.24% of its total value, claiming this keeps the system “fair for everyone.” But for many struggling families, these words ring hollow, offering little comfort in the face of such astronomical costs.
Opposition Outrage: A “Death Tax” by Another Name
The opposition has wasted no time in condemning the changes, with Shadow Attorney General Michael O’Brien labeling the hikes a “death tax by stealth.” He slammed the government for announcing the increases on the eve of a public holiday, when scrutiny would be minimal.
This is effectively the imposition of a death tax by stealth. To have massive increases in the amount of money that grieving families have to pay when a loved one dies to get probate can’t be justified.
Shadow Attorney General Michael O’Brien
O’Brien also pointed out that under the new system, the probate office will now collect more in fees than it costs to operate, raising questions about the government’s true motivations.
A Review Shrouded in Secrecy
The controversial changes come on the heels of a review of the probate office by the Department of Justice and Community Safety (DJCS). While the review was subject to community consultation, participation was notably low, with only 124 people surveyed. Of those, a resounding 94% expressed opposition to any increase in probate fees, citing concerns about affordability, cost of living pressures, limited access to justice, and cost recovery.
Even Victoria’s peak legal body, the Law Institute of Victoria, voiced its criticism during the consultation process. However, their objections, along with those of the broader community, appear to have fallen on deaf ears, as the government pushes ahead with its plans.
Burdening the Bereaved: Loans, Credit Cards, and Delayed Justice
In its statement of reasons, published online on the same day as the announced changes, the DJCS acknowledged the potential “challenges” executors and beneficiaries may face in paying the new fees, particularly those with limited personal wealth despite the significant assets of the estate they’re managing. The department’s proposed solutions – taking out loans, using credit cards, or finding a law firm willing to cover the costs and recoup them from the estate later – have provided little reassurance to those already navigating the complexities of loss and succession.
The department also addressed concerns about the potential for elder abuse, conceding that while pressuring someone to transfer assets prior to death in order to avoid the new probate fees would be “illogical in most instances,” it remains a risk that cannot be ignored. This admission has only added to the unease and frustration felt by many in the face of the looming changes.
A Bitter Pill for Grieving Families
As the November 18th implementation date draws near, Victorian families are left grappling with the impending reality of these soaring probate fees. For many, the hikes represent not just a financial burden, but an emotional one as well, compounding the grief and stress of losing a loved one with the added weight of substantial, and in some cases unaffordable, costs.
The government’s insistence that the new system is fairer and more equitable has done little to quell the outrage and despair felt by those who will be most impacted by the changes. As the opposition continues to voice its condemnation and affected families struggle to come to terms with this new reality, the question remains: Is this really about creating a more just and balanced probate process, or is it simply a callous cash grab targeting the bereaved at their most vulnerable?
Only time will tell how these changes will play out in practice, but one thing is certain – for grieving families across Victoria, the road ahead just became a whole lot steeper, both financially and emotionally. As they navigate the complexities of loss, estates, and the legal system, they’ll also be forced to bear the weight of a government decision that many feel is as unjustifiable as it is unaffordable.
