NSW Trustee and Guardian Fees: What They Charge and How to Avoid Them

NSW Trustee and Guardian is the state's public trustee — a government agency that can administer deceased estates. For families in difficult circumstances, it sounds like a safe, neutral option. But their fee structure means that for many estates, a significant portion of what the deceased spent decades accumulating gets consumed by administration charges before beneficiaries see a cent.

This is not a minor issue. For a mid-sized estate, the fees can run to tens of thousands of dollars. The ABC has conducted investigative reporting on the agency's fee practices. Understanding what is charged — and when NSW Trustee and Guardian actually gets involved — is worth knowing before you find yourself in a situation where you cannot easily change course.

The Fee Structure

NSW Trustee and Guardian charges across three separate fee categories.

Capital Commission (Executor Fee)

This is the main fee charged for administering the estate. It is calculated on the gross value of estate assets, not the net value after debts.

This is a sliding scale, not a flat rate. The commission applies to each tier separately.

Income Commission

If the estate generates income while it is being administered — rental income, dividends, interest — NSW Trustee and Guardian also charges:

• 5.775% of gross income received
• 2.75% if a rental property is managed by a paid real estate agent (who is also charging their own management fees)

Account Keeping Fee

An ongoing fee of $132 per year while the estate is under administration.

What This Costs on a Real Estate

Take a relatively ordinary NSW estate worth $500,000 — a modest home plus some savings. No unusual complications.

Capital commission calculation:

• 4.4% on first $300,000 = $13,200
• 3.85% on remaining $200,000 = $7,700
• Total capital commission: $20,900

Add income commission if the estate held rental property or income-generating investments during administration, plus the annual account keeping fee, and the total can easily exceed $22,000 to $25,000 on a $500,000 estate depending on how long administration takes.

For context: that is more than the full filing and court fees for a DIY probate application. It is money that would otherwise go to the deceased's family.

If you want to administer the estate yourself rather than appointing NSW Trustee and Guardian, the Estate Settlement Guide for New South Wales gives you the complete process from death certificate to final distribution.

When NSW Trustee and Guardian Gets Involved

NSW Trustee and Guardian does not automatically administer every estate. They become involved when:

There is no executor willing or able to act. If the person named as executor in the will has died, is incapacitated, or formally renounces the role, someone must take over. If no suitable private individual can be found, NSW Trustee and Guardian may be appointed.

The deceased died intestate with no suitable administrator. When someone dies without a will and the family cannot agree on who should administer the estate, or no eligible family member is willing to take it on, the Public Trustee may step in.

The estate is contested or complicated. If there is significant litigation risk or a family provision claim, a neutral professional administrator is sometimes preferred. Courts can also appoint NSW Trustee and Guardian in contested situations.

A beneficiary is under a legal disability. If the estate must be held for a minor or a person with a disability who cannot receive assets directly, NSW Trustee and Guardian can act as trustee of the ongoing trust.

In some cases, a testator deliberately appoints NSW Trustee and Guardian in their will — either because they lack a trusted private individual to act, or because they want professional administration. This is a legitimate choice, but it should be made with full knowledge of the fee consequences.

The ABC Reporting and What It Found

Over the past several years, the ABC has conducted investigative reporting into NSW Trustee and Guardian's practices. The reporting documented cases where fee accumulation over multi-year administration periods substantially depleted estates, leaving beneficiaries — often older, vulnerable family members — with significantly less than they expected.

Common themes in the reporting included:

• Estates remaining under administration far longer than necessary, generating ongoing income commission and account keeping fees
• Fee structures that were not clearly explained to families at the outset
• Difficulty for beneficiaries in getting information about where the estate stood

NSW Trustee and Guardian's fees are lawful and publicly disclosed. But the combination of capital commission, income commission, and ongoing account keeping fees can compound over time in a way that families do not fully understand when they first engage the agency.

Fee Waiver and Hardship Relief

If you are applying for probate through the Supreme Court (not using NSW Trustee and Guardian), the court's own filing fees — not NSW Trustee and Guardian's fees — are what apply. And for those filing fees, a waiver or reduction is available.

If you hold a Healthcare Card or Pensioner Concession Card, you can apply for a waiver of the Supreme Court probate filing fee through the NSW Online Registry portal. The waiver application is straightforward and must be lodged before paying the filing fee.

This is a separate matter from NSW Trustee and Guardian fees — the court waiver applies to court fees only, not to any professional trustee company or NSW Trustee and Guardian charges.

How to Avoid NSW Trustee and Guardian Fees

The simplest way to avoid NSW Trustee and Guardian fees is to administer the estate yourself — or to appoint a private executor who is willing and capable of doing so.

Option 1: Act as executor yourself. If you are named as executor in the will, you have the right to apply for probate and administer the estate directly. An executor is entitled to be reimbursed for out-of-pocket expenses (court fees, postage, valuation costs) but does not typically charge a commission for their time when acting for a family member.

Option 2: Use a private trustee company. Private trustee companies (such as Perpetual, State Trustees, or others) also charge fees, but their structures vary and may be negotiable depending on the estate's size and complexity.

Option 3: Appoint a solicitor as executor. Solicitors acting as executors typically charge by the hour rather than as a percentage of estate value. For straightforward estates, this can work out cheaper than percentage-based fees.

Option 4: Have the conversation before death. The simplest and cheapest outcome is a will that names a capable, willing private executor — a family member or trusted friend who understands what is involved and is prepared to do it. This keeps the estate out of the hands of professional fee-charging administrators entirely.

If you are the executor or are considering taking on the role, the Estate Settlement Guide for New South Wales covers what the job actually involves — step by step, from the first week after death through to final distribution — so you can make an informed decision about whether to proceed or appoint someone else.

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