Claiming inheritance from a wealthy relative is about to get more expensive in Victoria.
Bereaved families managing smaller estates in Victoria will no longer be slugged with a government death tax, but fees for those with larger fortunes will triple, with the opposition slamming the move as a death tax by stealth.
Fees for the processing of wills and distribution of a dead person's estate have been under review as the government tries to claw back the cost of the Supreme Court services.
The Department of Justice and Community Safety previously proposed three options for price changes and took those to public consultation.
But the department only received 124 survey responses and eight submissions.
Most of those were opposed to the increase of fees, citing financial distress.
As a result, the government announced on Monday probate would be free for "small estates", valued at less than $250,000.
Estates valued between $250,000 and $2 million will have filing fees increased to between $514.40 and $2400.50, which accounts for 90 per cent of cases probated in Victoria.
Under the changes, those with estates of $3 million will have fees tripled, rising from $2318.90 to $7185.20
For large estates of more than $5 million but below $7 million, executors will be charged $12,002.
If an estate exceeds $7 million, the fee will be $16,803.
The maximum fees anyone will pay is 0.24 per cent of an estate.
The increase was necessary to cover Supreme Court costs, Acting Attorney-General Enver Erdogan said.
He said Victoria's probate fees were "considerably lower" than other states, including NSW and South Australia.
Figures provided by the government show it is cheaper to seek probate in Victoria for estates valued less than $2 million.
But the increase means Victorians will be charged considerably more, in some cases thousands of dollars extra, than their interstate counterparts for estates worth more than $2 million.
An estate valued between $3 million and $5 million will cost Victorians about $7000 to seek probate, while the highest fee in NSW is $6652 and covers all estates worth $3 million.
The highest probate fee in South Australia is $3826 and covers all estates over $1 million.
"For the very small percentage of Victorians dealing with multimillion-dollar estates, the fees will be lifted to cover the level of administration and dispute resolution these complex applications often require in court," Mr Erdogan said on Monday.
Economist Saul Eslake said while price hikes that doubled or even tripled fees could be alarming, the figures still placed Victoria significantly lower than other states.
"Making it free for estates of less than $250,000 is not an unreasonable thing - but if you want to do that, it's got to be paid for somehow," Mr Eslake told AAP.
"Frankly, out of a $3 million estate, a fee of $5000 is not very much."
Victoria's opposition leader John Pesutto accused the government of introducing the increased "death tax by stealth".
Shadow Attorney-General Michael O'Brien described the move as financially and morally "bankrupt", raiding the pockets of those grieving the deaths of loved ones unnecessarily.
"This is not about cost recovery, because we know that the probate office will take in about 1000 per cent more fees than it costs to run," Mr O'Brien told reporters on Monday.
He would not commit to reversing the cost increase if the opposition won government.
Individuals facing financial hardship who are unable to pay probate fees before an estate is settled may be eligible for fee waivers from courts or support from their bank.
The changes will come into effect on November 18.
WHAT THE NEW VICTORIAN PROBATE FEES WILL COST:
* Estates with a gross value less than $250,000: free
* $250,000 - $500,000: $514.40
* $500,000 - $1 million: $1028.80
* $1 million - $2 million: $2400.50
* $2 million - $3 million: $4801
* $3 million - $5 million: $7185.20
* $5 million - $7 million $12,002.60
* $7 million or more: $16,803.60
Source: Victorian government
