Executor Fees and Duties Victoria: What You're Expected to Do (and What You Can Charge)

Being named as executor in someone's will is a responsibility, not a windfall. But the role can consume hundreds of hours over months or years — and Victoria law does allow executors to charge for their time under specific conditions.

The problem is that most executors don't know where the boundaries are: what they're legally required to do, what they can delegate, and whether they can be compensated.

What the Executor Must Actually Do

Victorian executors have a fiduciary duty to administer the estate honestly and competently. The core duties include:

Locating and securing the will. The original document must be physically lodged with the Supreme Court. If the will is held by a solicitor or State Trustees, you'll need to request its release. Don't remove staples or paperclips from the original — the court inspects for marks that might indicate missing pages.

Arranging the funeral. Unless the will specifies otherwise, the executor has the legal authority (and obligation) to arrange the burial or cremation. This means you're responsible for paying the funeral director, even if that means advancing personal funds and claiming reimbursement from the estate later.

Obtaining the death certificate. Order the "cause of death" version ($57.50 from BDM Victoria) — you'll need it for insurance companies, WorkSafe, and the TAC. Order at least five certified copies.

Notifying institutions. Banks, super funds, insurance companies, Centrelink, the ATO, utility companies, subscription services. Each has its own deceased estates process and document requirements.

Applying for probate. If the estate holds assets in the deceased's sole name that exceed institutional thresholds, you'll need a Grant of Probate via the Supreme Court's RedCrest-Probate system. For simple estates under $133,090, the Small Estates Optional Service costs $314.40 total. For larger estates, filing fees are tiered: nil for estates under $250,000, scaling up to $16,803.60 for estates over $7 million.

Collecting assets, paying debts, distributing to beneficiaries. This includes lodging form LTX-Trust-18 with the SRO within one month of the grant (to avoid land tax surcharges), filing the deceased's final tax return with the ATO, and ensuring all creditors are paid before distributing to beneficiaries.

Can You Charge a Fee?

Under Victorian law, an executor is not automatically entitled to remuneration. However, there are three ways an executor can be compensated:

The will authorises it. Some wills include a "charging clause" that explicitly allows the executor to charge a reasonable fee. Professional executors (solicitors, accountants) typically include this in wills they draft. If your will has one, you can charge at the rate specified.

All beneficiaries agree. If every beneficiary (and they must be adults with capacity) consents in writing, the executor can charge a fee. This works best when the estate is straightforward and the fee is clearly proportional to the work involved.

Court order. The executor can apply to the Supreme Court of Victoria for a commission under Section 65 of the Administration and Probate Act 1958. The court considers the work performed, the complexity of the estate, and the result achieved. Typical commissions range from 1% to 5% of the corpus (capital) and 2% to 6% of income earned by the estate.

For context, State Trustees charges a 5.5% capital commission on the first $500,000 plus scaled percentages above that, alongside hourly rates from $216 for simple administration to $563 per hour for senior legal work. A private executor seeking a court-ordered commission would typically receive significantly less than these institutional rates.

Common Mistakes That Create Personal Liability

Executors in Victoria face personal liability for breaching their fiduciary duties. The most common mistakes:

Paying debts in the wrong order. If the estate is insolvent, the executor must follow the strict statutory priority of creditors under the Bankruptcy Act 1966. Paying a credit card bill before a secured mortgage or ATO debt can make the executor personally liable to reimburse the shortfall.

Distributing too early. If you distribute the estate to beneficiaries and a creditor or family provision claimant emerges later, you're personally on the hook. The safest approach is to wait at least six months after the grant of probate before final distribution, and to publish a notice to creditors in the Victoria Government Gazette.

Missing the SRO land tax deadline. The executor must lodge form LTX-Trust-18 with the State Revenue Office within one month of receiving the grant of probate. Missing this triggers trust surcharge rates on estate property, which can add thousands to the estate's tax bill — and the executor bears responsibility for the oversight.

Failing to lodge the deceased's tax returns. The ATO holds the executor personally liable for outstanding tax obligations. Lodge the date-of-death return and any prior-year returns before distributing estate assets.

When to Consider Renouncing

You are not obligated to accept the role. If the estate is insolvent, the family dynamics are hostile, or the complexity exceeds your capacity, you can renounce executorship before you "intermeddle" (take any step in administering the estate). Once you've intermeddled — even something as simple as paying a bill from the estate's account — renouncing becomes much harder.

Renunciation is filed with the Supreme Court and is permanent. The role then passes to any substitute executor named in the will, or the beneficiaries can apply for letters of administration.

Executor vs State Trustees: The Cost Comparison

Many Victorian families default to appointing State Trustees as executor, assuming it's the safest option. State Trustees charges a 5.5% capital commission on the first $500,000, plus scaled fees above that. For a $500,000 estate, that's $27,500 in fees alone — before hourly charges of $216-$563 per hour.

A private executor who applies for a court-ordered commission under Section 65 of the Administration and Probate Act 1958 typically receives 1-5% of capital. And a family member who handles the administration themselves — using the Small Estates Optional Service for estates under $133,090, or navigating RedCrest-Probate for larger estates — pays only the court filing fees.

The trade-off is time and complexity. State Trustees handles everything. A private executor does the work themselves. The Victoria Survivor Benefits Navigator bridges this gap — it gives private executors the compliance timeline, form references, and step-by-step instructions that make self-administration manageable without the five-figure fee.

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