Fitzroy Legal Service Logo

COSTS

Stewart F McNab, Barrister

The different sources of expense involved in the administration of estates are as follows.

  1. Executor's commission can be charged by executors and trustees, if appointed as executor under the will of the deceased (s.65 A&P Act); commission is also payable to trustee companies (see: "Trustee companies", below).
  2. Legal fees may be charged (see: "Legal fees", below).

Legal fees

The recommended charges for solicitors proving the will depend on the gross value of the estate. Additional charges will be made where a solicitor also acts as an executor or where conveyancing or other work is involved (e.g. where a joint tenancy is converted to a single tenancy). The following charges are therefore a basic minimum for obtaining the grant of probate or administration only. See Order 9.01 of the A&P Rules.

Gross value of estate Legal charges
Up to $50,000 $499
Up to $70,000 $572
Up to $80,000 $608
Up to $90,000 $644
Up to $100,000 $680
+ for every $50,000 over $100,000
of the gross value of the estate
$ 35

State Trustees

State Trustees charges up to 5.5% of the total value of the estate, and 6.6% per annum on gross income received by the estate.

Trustee companies

For administering an estate a private trustee company may charge up to 5.5% of the capital value of the estate and up to 7% on income received by the estate (s.21 Trustee Companies Act 1984 (Vic)). The State Trustee and other trustee companies will give particulars of their exact charges upon request.

Private executor

A person appointed executor/trustee or granted letters of administration is entitled to apply to the Supreme Court of Victoria for a commission or percentage not exceeding 5% of the deceased's gross assets (s.65 A&P Act). The usual rate of capital commission that is allowed by the court is between 2% and 3% of the gross assets of the estate, depending on the amount of time and trouble the executor incurs in winding up the estate. An executor may also be granted commission on income of an estate during the time the estate is administered by the executor. No specific rate is fixed by legislation, but percentages of up to 5% are usual, depending on the difficulty of administration.

It is unusual for the full amount of commission of 5% to be granted unless the estate is very complex or the circumstances are very unusual. The commission will be reduced or refused if the court is satisfied that the executor, administrator or trustee was guilty of misconduct or incompetence in relation to carrying out their duties to the estate.

It is possible to avoid an application to the court if:

  • a specific rate is set out in the will; or
  • all beneficiaries are legally capable and agree on a rate (under 5%) with the executor.

COSTS :: Last updated: Thu Jul 1st 2010