State Trustees Victoria Fees: What They Charge and When You Need Them

Many Victorians believe they are legally required to use State Trustees when someone dies — particularly if there's no will, if family dynamics are complicated, or if the estate is large. This belief is not accurate, and it costs families significant money. State Trustees is a government-backed body that provides valuable services in genuinely complex situations, but their fee structure is not transparent, and their use is discretionary in most circumstances.

This article explains exactly what State Trustees charges, when their involvement is mandatory versus optional, and what alternatives exist for families who want to administer an estate without paying percentage-based commissions.

What State Trustees Actually Charges

State Trustees Victoria operates on a fee model that combines percentage-based capital commissions with time-based hourly rates. The combination means costs can escalate quickly for medium to large estates.

Capital Commission: State Trustees charges a capital commission of 5.5% on the first $500,000 of an estate's gross value. On a $500,000 estate, that's $27,500 in commission alone — before any hourly fees for administration work.

For estates above $500,000, the commission rate scales down on the additional value, but the cumulative cost remains substantial. On a $1 million estate, the total capital commission typically falls in the range of $35,000 to $45,000 depending on asset mix.

Hourly Rates: In addition to commission, State Trustees charges hourly rates for estate administration work:

• Informal estate administration: approximately $216 per hour
• Complex matters handled by senior lawyers (particularly intestate estates): up to approximately $563 per hour

For a moderately complex estate requiring several days of administrative work, these hourly charges can add another $5,000 to $20,000 on top of the capital commission.

Small Estates: For estates under $100,000 where the deceased died intestate and no family member is willing or able to administer, State Trustees can file an "election to administer" for a reduced fee structure. This is the one scenario where State Trustees represents a genuinely low-cost option — it effectively outsources a difficult problem to a professional administrator without commission exposure on a large estate.

When Is State Trustees Mandatory?

State Trustees is rarely mandatory. They are legally empowered to act in specific circumstances where no other suitable administrator exists:

• When the deceased died intestate (without a will) and no eligible family member applies to be administrator within the prescribed period
• When all named executors have predeceased the testator or renounce their appointment
• When an executor lacks mental capacity
• When the court appoints State Trustees to resolve a dispute between competing administrators

Outside these circumstances, family members who are willing to act as executor or administrator can do so without involving State Trustees.

State Trustees vs Private Executor: The Real Decision

The decision most families face is whether to engage State Trustees voluntarily (when they could administer the estate themselves) versus hiring a private fixed-fee probate service or administering the estate independently.

Arguments for State Trustees:

• Professional expertise in complex estates with multiple asset types
• Reduced personal liability for the executor
• Useful when all family members are interstate or overseas
• Appropriate for genuinely contested estates where a neutral administrator is needed

Arguments against State Trustees (and for alternatives):

• The 5.5% capital commission is substantially higher than fixed-fee probate services offered by modern legal providers
• For straightforward estates, family members can administer independently using the Supreme Court's RedCrest-Probate system
• Fixed-fee probate services from specialist law firms typically charge $1,500 to $3,000 for a standard estate — a fraction of State Trustees' commission on the same estate value
• State Trustees' primary obligation is to the estate, not to maximising returns to beneficiaries

How to Avoid State Trustees If You Want To

If you've been appointed executor in the will, you have the right to decline (renounce) that appointment if you don't want the responsibility. A different beneficiary or family member can then apply to be administrator. What you cannot do is "intermingle" — begin dealing with estate assets and then try to step back. Once you've started, the court treats you as having accepted the role.

If you want to administer the estate yourself:

1. Obtain the grant of representation through the Supreme Court's RedCrest-Probate system. For estates under $133,090 (the 2025/26 small estates threshold), the Probate Office's Small Estates Optional Service allows an unrepresented applicant to receive professional assistance from the Registrar for a flat fee of $314.40.

2. Use the informal release pathway where possible. Banks will often release funds without requiring a formal grant if the amounts fall below their internal thresholds. Commonwealth Bank's informal release threshold, for example, is reportedly as high as $152,899 — meaning many smaller estates can be wound up entirely without court involvement.

3. Handle property transfers directly. If the property was held in joint tenancy, a survivorship application through Land Use Victoria bypasses probate entirely. The filing fee is approximately $108 to $132. This is the most common situation for surviving spouses in Victoria.

When State Trustees Makes Sense

Despite the cost, State Trustees serves a genuine purpose in situations where:

• The estate is genuinely complex (multiple real properties, business interests, overseas assets)
• There's active family conflict that requires a neutral third party
• The deceased died intestate and no family member can identify all the assets
• The executor is elderly, ill, or otherwise unable to manage the administrative burden

In these cases, the professional indemnity, expertise, and legal authority that State Trustees brings to the role can prevent costly mistakes that a lay executor might make.

The Hidden Cost of State Trustees: Time

Beyond the direct fees, engaging State Trustees introduces delays. As a professional service handling many estates simultaneously, their timelines are driven by their own workload. A private executor who is personally motivated to finalise the estate quickly will almost always resolve it faster than an institutional administrator with competing caseloads.

For surviving spouses who need estate proceeds to resolve housing arrangements, fund retirement, or manage ongoing living costs, these delays have real financial consequences that don't appear in any fee schedule.

Getting the Full Picture

State Trustees is one option among several for Victorian estate administration — not the default or the only choice. The decision of whether to use them, engage a fixed-fee solicitor, or administer independently should be made with a clear understanding of the fee implications and the complexity of the estate.

The Victoria Survivor Benefits Navigator includes a detailed comparison of the State Trustees fee structure against private probate options, a decision framework for choosing the right administration pathway, and step-by-step instructions for self-administered estates that qualify for the small estates optional service. It covers the renunciation process, the executor's personal liability rules, and the specific circumstances where professional administration is genuinely worth the cost.

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