Victoria Probate Guide vs State Trustees Victoria: An Honest Comparison

For most Victorian estates, appointing State Trustees is not the best financial decision — and the information State Trustees publish about estate administration is specifically designed to prevent you from realising this. State Trustees Victoria is a legitimate, comprehensive service. It is also expensive: their capital commission starts at 5.5% of the gross asset value of the estate. On a A$600,000 estate, that is A$33,000 in administration fees — money that comes directly out of what beneficiaries receive. For a self-represented executor following a complete, Victoria-specific probate guide, the same grant of probate costs the court filing fee and nothing more.

This comparison covers what State Trustees actually do, where their fees go, and the specific situations where their involvement is genuinely justified versus where it simply transfers beneficiary inheritance to a corporate trustee.

Side-by-Side Comparison

What State Trustees Victoria Actually Does

State Trustees is a Victorian Government-owned corporation that administers deceased estates. When appointed, they take on the role of executor or administrator: they locate the assets, obtain the Grant of Probate through the Supreme Court, manage financial institutions, pay debts, handle property transfers, and distribute to beneficiaries.

Their service is comprehensive. They are accountable, they carry professional indemnity, and they handle genuinely complex situations — contested wills, multi-state assets, family disputes over property — that would be difficult for an unrepresented executor to navigate.

But for a standard estate, State Trustees do the same things a self-represented executor would do — they navigate the same RedCrest portal, mail the same Originating Motion to the Melbourne Probate Office, contact the same banks, complete the same Land Use Victoria forms. The process is identical. The difference is who performs it and who charges for it.

State Trustees' Fee Structure: The Real Numbers

State Trustees' published fee structure is not always easy to find in their marketing materials. Here is what they actually charge for estate administration:

Capital commission:

• 5.5% on the first A$500,000 of gross estate value
• A lower percentage on amounts above A$750,000 (the schedule reduces for very large estates)

Additional charges:

• A$216 per hour for administration time beyond standard scope
• Separate charges for income collection, property management, and legal advice referred to external solicitors

For a standard estate worth A$600,000 in Victorian assets, the capital commission calculation is approximately: A$27,500 in commissions (5.5% on the first A$500,000 plus commission on the remaining A$100,000).

For an estate worth A$800,000, the calculation produces approximately A$37,125 in fees, per their own published schedule.

These fees are charged against the estate — which means they are paid from the assets before distribution to beneficiaries. If the estate is worth A$800,000 and State Trustees charge A$37,125, beneficiaries receive A$762,875 instead of the amount after the A$1,028 Supreme Court filing fee a self-represented executor would pay.

The difference in inheritance for beneficiaries is approximately A$36,000 on an A$800,000 estate.

Why Families Still Choose State Trustees

Understanding why families use State Trustees despite the cost helps identify the situations where it genuinely makes sense:

No family member can or will act as executor. If the named executor has died, is overseas, is incapacitated, or declines the role, someone must administer the estate. State Trustees are the default appointment in many such cases.

The estate is genuinely contested or complex. Contested wills, Part IV family provision claims, insolvent estates, or significant multi-jurisdictional assets require professional management that goes beyond what a guide provides.

Executor conflict with beneficiaries. Where the executor is also a major beneficiary and other beneficiaries dispute the fairness of administration, an independent trustee removes the conflict.

The family has no administrative capacity. For a grieving spouse who cannot engage with legal and administrative processes, outsourcing the entire process has genuine value — even at cost.

These are legitimate reasons. They do not apply to most standard estates.

What State Trustees' Own Guides Are Designed to Do

State Trustees publish extensive free guides to estate administration. These guides are informative and often well-written. They are also specifically structured to obscure how achievable self-administration is.

A typical State Trustees guide will explain the general probate process, correctly describe the Supreme Court requirements, and emphasise the complexity and risk of making errors. It will then position State Trustees as the safe, professional alternative — without disclosing the 5.5% commission clearly in the same document.

The commercial motive is transparent: State Trustees' revenue comes from the commissions they charge against estates. The more estates they administer, and the larger those estates are, the more revenue they generate. Their public-facing information is designed to make the process seem complex enough that families self-select into paying the commission.

This is not a criticism of their service — it is an accurate description of their business model. Understanding it helps executors make an informed choice.

Who Should Use State Trustees Victoria

• No capable executor is available or willing to act — State Trustees are the appropriate default
• Contested will or active Part IV claim — their professional accountability and legal resources are appropriate for adversarial situations
• Insolvent estate — creditor priority and executor liability require professional management
• Executor with significant cognitive or health limitations — where the administrative burden genuinely cannot be managed
• Multi-jurisdictional or highly complex assets — overseas property, business interests, significant trust structures

Who Should NOT Use State Trustees Victoria

• Standard estates with a capable executor — the 5.5% commission is a voluntary and substantial reduction of beneficiary inheritance
• Surviving spouses who want to keep the family home — most property transfer questions for joint tenancy are handled through Land Use Victoria with no Supreme Court involvement
• Executors of small estates — the Small Estates Optional Service at A$314.40 is vastly cheaper for qualifying estates under A$133,090
• Adult children managing a parent's estate — these are the most common Victorian probate situations, and the majority are fully self-manageable with the right information
• Budget-conscious families where every dollar in administration fees directly reduces inheritance

The Actual Cost Comparison for Common Estate Sizes

These are approximate figures based on State Trustees' published commission schedule. The "difference" column is the additional inheritance beneficiaries receive when an executor self-represents rather than appointing State Trustees.

Frequently Asked Questions

Can I remove State Trustees as administrator after they have been appointed?

In limited circumstances, yes — a court can remove a trustee if there is genuine cause. But this is a legal proceeding, not a simple administrative step. The better approach is making the decision correctly before appointment.

Do State Trustees have to be appointed by a court?

In some situations (where there is no named executor) the Supreme Court may appoint State Trustees. In other situations, a family may voluntarily retain them. The decision to use State Trustees is typically made before the probate application is filed.

Are State Trustees faster than a self-represented executor?

No. The Supreme Court processes applications in the same queue regardless of who filed. The mandatory 15-day Notice of Intention period and Court processing time are identical. Professional administration does not expedite the court's timeline.

Is the State Trustees commission tax-deductible?

Generally, estate administration expenses are deductible from the estate for income tax purposes to the extent they relate to income-producing activities. This does not eliminate the commission — it may reduce the effective tax cost of paying it. An accountant handling the estate's final tax return would advise on this.

What happens if I'm the executor and I use State Trustees for part of the estate?

You can engage State Trustees for specific services — such as property management or investment oversight — without appointing them as full administrator. However, their fee structure for partial services involves hourly rates rather than commission, and the scope of partial engagement should be clarified before engagement.

Will beneficiaries know if I use State Trustees and how much was charged?

Yes. As executor, you have a fiduciary duty to provide beneficiaries with an accounting of the estate's assets, income, and expenses — including administration fees. State Trustees' commission will appear in the estate accounts. Beneficiaries can compare what they received against what the estate was worth.

A Practical Decision Framework

Ask these three questions before deciding:

Is there a capable and willing executor available? If yes, self-representation is the default position. State Trustees are the fallback.

Is the estate genuinely complex? Contested will, insolvent estate, significant overseas assets, active legal dispute — if yes, professional administration has genuine value. If the complexity is procedural (navigating RedCrest, understanding bank thresholds), a guide covers it.

What is the commission in dollars? Calculate 5.5% of the gross estate value. That number is the cost of convenience. Compare it to the court filing fee and the cost of a guide. The decision is rarely difficult once the comparison is explicit.

The Victoria Probate Process Guide

The Victoria Probate Process Guide is a 15-chapter RedCrest-Ready Roadmap for self-represented Victorian executors. It covers every step from the first 48 hours — with explicit warnings about the staple trap and document handling — through the complete RedCrest portal sequence, the physical mailing requirement, the current Supreme Court fee tiers (including July 2026 increases), Land Use Victoria survivorship and transmission applications, bank-by-bank threshold data, and post-grant distribution.

For a standard Victorian estate, it gives the executor everything needed to obtain the same Grant of Probate that State Trustees would obtain — at the cost of the court filing fee instead of 5.5% of the estate's gross value.

See more Victoria guides →