Guide
Who pays probate costs in Victoria?
Proper costs of obtaining a grant and administering an estate are ordinarily paid from the estate. Because estate funds are often frozen until a grant is made, the executor or a family member may pay some costs first and be reimbursed. This guide explains who pays, what is reimbursable and how the categories of cost differ. The dated Court fee figures are on the probate costs page.
Reviewed by Jim Parke, Lawyer and Chartered Accountant.
Published: Last reviewed:
General information about Victorian law only. It is not legal advice and does not consider your circumstances.
The short answer
The estate bears the proper costs of its own administration. That includes the Court's fees for the grant, the cost of the notice of intention, reasonable legal costs of obtaining the grant and administering the estate, and expenses such as valuations and property costs. Those amounts reduce what is available for the residuary beneficiaries. The current figures for the Court's fees are set out, with their effective date, on the probate costs page.
Who pays upfront
Timing is the practical problem. The Court's filing fee and the notice fee are payable when those steps are taken in RedCrest-Probate, which is before the grant. Many estate accounts cannot be accessed until the grant is produced. So an executor, family member or lawyer often pays the early costs.
- The executor may pay personally and be reimbursed from the estate once funds are available.
- Some institutions may release funds from the deceased's account to pay a funeral account or other specific expense on production of an invoice; each institution decides its own practice.
- A lawyer engaged by the executor may pay some disbursements and bill for them, or ask for them to be paid in advance, depending on the costs agreement.
- Where the estate has an accessible account, costs can be paid from it by the person with authority.
Court fees, legal fees and disbursements
| Category | What it is | Examples |
|---|---|---|
| Court fees | Charges fixed by the Court for its processes | Grant filing fee; notice of intention; republished notice; amended originating motion |
| Legal fees | Charges for a lawyer's professional work, if one is engaged | Advice, preparing the application, answering requisitions, administration work |
| Disbursements | Third-party costs incurred in the administration | Certificates, title searches, valuations, land registry fees |
| Administration expenses | Costs of managing estate assets | Insurance, rates, repairs, agent's commission on sale |
| Tax and accounting | Costs of meeting the deceased's and estate's tax obligations | Final return preparation, estate trust returns, tax advice |
Keeping these categories separate matters. A quote for legal work that includes Court fees and disbursements in a single figure can make comparison difficult and can hide which items are fixed and which depend on the time taken.
What counts as a proper expense
A proper expense is one reasonably incurred in administering the estate in accordance with the will and the law. The test is not whether the executor chose to spend the money, but whether the expense was reasonable for the estate's purposes.
| Usually an estate expense | Usually not an estate expense |
|---|---|
| Reasonable funeral expenses | A beneficiary's own legal advice about their entitlement |
| Court fees for the grant | Travel undertaken for personal reasons |
| Reasonable legal costs of the grant and administration | Costs caused by the executor's own breach or unreasonable conduct |
| Insurance, rates and essential maintenance of estate property | Improvements that benefit a particular person rather than the estate |
| Valuations and tax preparation | Payment to the executor for time, unless authorised |
The executor's own time is a separate issue. Executors are not automatically paid for their work. Commission or remuneration may be authorised by the will, by consent where legally effective, or by the Court under sections 65 to 65E of the Administration and Probate Act 1958 (Vic). The executor advice guide explains this.
Which beneficiaries bear the cost
Administration costs are ordinarily paid from the residue of the estate, which reduces the residuary beneficiaries' shares rather than specific gifts. A will can direct otherwise. Where the residue is insufficient, the burden can fall on other gifts according to the will and the law. Where an estate cannot pay its debts in full, rules about the order of payment apply and advice is needed.
Assets that pass outside the estate, such as jointly held property passing by survivorship, are generally not used to pay the estate's administration costs.
Legal costs: disclosure and scope
Where a law practice is engaged, it has costs disclosure obligations under the Legal Profession Uniform Law, administered in Victoria by the Victorian Legal Services Board and Commissioner. The client should receive information about how costs will be calculated and an estimate. Ask for the scope to be written down: what is included, what is excluded and what would change the estimate.
This website does not publish legal fees. Any legal cost depends on the agreed scope and the estate's circumstances.
Costs in disputes
Costs in litigation about an estate, such as a family provision claim or a challenge to a will, are governed by separate rules and the Court's orders. The general principle that administration costs come from the estate does not mean every party's litigation costs will be paid by the estate. An executor who defends a claim should obtain advice about costs at the outset.
How to claim reimbursement
- 1Record the paymentKeep the invoice and proof of payment, and enter it in the estate ledger.
- 2Confirm it is a proper expenseCheck that it was reasonably incurred for the estate's purposes.
- 3Reimburse from estate fundsOnce funds are available, the executor reimburses the payer and records the transaction.
- 4Show it in the accountsInclude the reimbursement in the estate accounts provided to beneficiaries.
Where a beneficiary or family member paid a cost, reimbursement follows the same approach. Where the payer is also the executor, transparency is especially important; the ledger and accounts should make the reimbursement clear.
Questions to ask before engaging help
- What work is included, and what is excluded?
- Is the arrangement a fixed amount for defined work, an estimate, or time-based?
- Which Court fees and disbursements are expected, and are they included in the figure?
- What would change the estimate, and how will changes be communicated?
- When will accounts be rendered, and can they be paid from estate funds once available?
How we can help
We can explain which costs are likely in a particular estate, separate Court fees, legal fees and disbursements in writing, and advise on reimbursement of expenses already paid. Our costs disclosure is provided before work starts.
Frequently asked questions
Does the executor have to pay probate costs personally?
Not ultimately. Proper costs of the grant and administration are ordinarily borne by the estate. An executor may need to pay some costs first and be reimbursed for proper expenses reasonably incurred.
Who pays the Court filing fee before the estate funds are available?
Someone must pay it when the application is filed, often the executor, a family member or the executor's lawyer. The amount is ordinarily reimbursed from the estate later.
Can a bank pay the funeral from the deceased's account?
Some institutions may release funds to pay a funeral account on production of an invoice, but each institution sets its own practice. Ask the institution directly.
Are legal fees paid from the estate?
Reasonable legal costs of obtaining the grant and administering the estate are ordinarily paid from the estate. A beneficiary's own legal advice about their entitlement is generally their own cost.
What is the difference between a Court fee and a disbursement?
A Court fee is a charge fixed by the Court for its processes, such as the grant filing fee. A disbursement is a third-party cost incurred in the administration, such as a valuation or title search.
Can the executor charge for their time?
Not automatically. Commission or remuneration requires authority from the will, legally effective consent or the Court under sections 65 to 65E of the Administration and Probate Act 1958 (Vic).
Which beneficiaries' shares are reduced by the costs?
Ordinarily the residue bears administration costs, reducing the residuary beneficiaries' shares. A will can direct otherwise, and the position differs where the residue is insufficient.
Does the estate pay the costs of a will dispute?
Not necessarily. Litigation costs are governed by separate rules and the Court's orders. Obtain advice about costs at the start of any dispute.
Primary sources
Need to understand who pays in this estate?
Tell us what costs have been paid and what stage the estate has reached.