How Much Does It Cost to Administer a Deceased Estate in Australia?
Key Takeaways:
- Cost of Administering a Deceased Estate: Administration costs are typically covered by the estate itself.
- What Goes into the Cost?: Legal expense costs include solicitor fees for obtaining a grant of probate and for ongoing estate administration. Solicitors may charge fixed fees. More complex administration may mean variable time-based fees.
- What are Disbursements?: Disbursements are out-of-pocket expenses from solicitors. They cover notices, searches, registrations and other costs.
- Why are Probate Costs Important?: Executors should anticipate probate fees to avoid being caught off guard and plan for potential costs like grants, tax obligations, and responding to creditor demands.
- How Does Our Funding Work?: JustFund offers a straightforward application process to secure funding for estate administration costs. Funds advance as needed for smoother estate management.
- Are There Any Additional Charges?: Further charges may include court fees for grant applications, account-keeping fees for administrative services, and taxation fees for advice and returns.
When you’re the executor of an estate, you’ll most likely engage many people. You’ll need solicitors to act for you to administer the estate and obtain the grant of probate. You will also need to work with a stockbroker to transfer or sell the deceased’s shareholdings. An estate agent can assist you with selling the deceased’s property. With all these transactions, you may then need to hire an accountant to lodge and prepare all of the necessary income tax returns.
What goes into the cost?
All the deceased estate administration costs will usually be entirely paid by the estate, as long as you have wholly followed the advice of the professionals you’ve engaged. The legal expenses you’ll be using the estate to pay for break down into two main parts.
The first is solicitors’ fees for executing a will in Australia. Your probate lawyer will most likely charge a fixed fee in the region of $800 to $2,000. You may pay more if there are complex assets like trusts, companies, or overseas property.
For asset investigation or document collation, you’ll pay $250 to $1,500 depending on how complex the assets are.
Getting the actual grant of probate or letters of administration can cost from $2,500 to $30,000. Be prepared to pay more for litigation on top of this.
Other solicitors’ fees for executing a will in Australia include the attendances that need to be done in administering the deceased’s estate. This is after receiving the grant of probate. These fees are more difficult to predict. Your solicitor is likely to charge these fees on a time basis.
What are disbursements?
Disbursements are out-of-pocket solicitor expenses. Disbursements typically go towards things like publishing the notices, obtaining Land Title Office searches, law stationer’s fees, ASIC searches, Land Title Office registration fees, and other similar expenses.
As the executor, the first legal bill you’ll receive is the one immediately after the court makes the grant of probate. From then on, the estate solicitors will issue bills at the end of each month during the administration of the estate.
Your total for administrative bills will depend on several factors. These factors include the number of bank accounts in the estate, the number of separate shareholdings, and whether the shares were issuer-sponsored, broker-sponsored, or held on CHESS. The number of beneficiaries and properties is also a factor.
As the executor, you should instruct solicitors who are experienced in estate matters. With JustFund, we can provide the financial freedom you need to make the right choice of solicitors with funding in the form of a line of credit. We can even help you cover immediate estate costs, such as property maintenance, valuations, and insurance and can also reimburse you with funeral expenses incurred. This means you can go ahead and sort out the necessary renovations, repairs, and marketing you need to enhance the estate’s value and make that sale.
Why are probate costs important?
As the executor, probate fees and other related charges add up quickly and can easily catch you off guard if you haven’t planned for them well in advance. Sure, these costs are usually reimbursed by the estate rather than your personal funds. But it’s still important for you to know which expenses are likely to crop up, as well as how large they’re likely to be.
If you’re applying for any grants, we can also help you fund the pre-grant work, including your legal, filing, and counsel fees, as well as professional disbursements such as mediators, valuers, and financial advisors. This means you can proceed with the grants that will help you develop your estate to close the sale sooner, or simply enjoy your estate.
If you need to respond to the urgent demands or debts owing from the Australian Tax Office, overseas repatriation, or other estate creditors, a loan from JustFund may also be able to give you the funds to cover these debts upfront – with repayment of the loan upon settlement.
How does our funding work?
So, how can our flexible and fast estate administration funding help you with administering a deceased estate?
- First, you or your lawyer will complete a simple online application form and provide supporting materials.
- We’ll then assess the estate’s solvency based on this information. You should expect a response within a fortnight of us receiving the information.
- We’ll then provide a contract for the administrator/executor to sign. The approved funds will then be advanced as required. Alternatively, beneficiaries can request early release of their portion of the inheritance.
- Your loan with us will then be repaid from the estate before your lawyer distributes the balance to beneficiaries.
- We can help support beneficiaries. By releasing the deceased’s inheritance early, we can help you avoid the need for short-term funding.
- If more complex litigation is needed, for example, for larger estates with family provision claims, we can also provide this support on request.
Are there any additional charges?
We’ve covered most of the things that go into deceased estate administration costs. However, there are additional factors that could affect the cost. What are they?
- First up is court fees. These are fees for applying for a grant of probate or letters of administration. These fees are necessary costs payable to the court.
- Then there are account-keeping fees. If you use an administrative service, the service may charge an annual fee for managing the estate’s account.
- Taxation fees also factor in. If you need tax advice or returns from specialist accountants, you can expect an additional hourly fee for this service.
How can I estimate my deceased estate administration costs?
What’s the best way to anticipate your deceased estate administration costs?
To get a detailed estimate, you should contact a solicitor. Law firms provide a detailed written estimate. After an initial consultation, they are required to provide a cost agreement.
One of the best things you can do is to be as transparent as possible about the complexity of the estate. The more information you can give your administration team about the estate’s liabilities and assets, the more accurate the estimate you’ll get.
Your legal fees will be $3,000 to $8,000 for simple estates, with more complex estates at $10,000 to $30,000. With real estate agent fees, overseas asset repatriation, accountant or tax agent final returns, and executor commission added on, you can expect to pay $8,000 to $60,000 in total.
For more information about applying for funding, and to explore your options, fill out our form or contact us directly at enquiries@justfund.com.au or 1300 644 980. We encourage you to reach out if you’re currently considering your options in administering a deceased person’s estate. We’re here to help you understand and manage the financial aspects of your separation.
