Frequently asked questions (FAQs)

What is changing about how State Trustees calculates capital commission?

We have simplified how State Trustees calculates the capital commission charged for the administration of deceased estates.

For estates committed to our administration on or after 1 January 2022, the following changes apply:

1. We have removed the four-tiered Service Fee Component and replaced it with a single Estate Service Component.
2. The capital commission will be the total of:

• Asset Based Component:
  •  a 1. 65% of the value of the principal residence owned by the deceased.
  •  a 3. 85% of the value of all other assets.

AND

• Estate Service Component: $11,000.00.

The total capital commission will not exceed 5.5% of the gross value of the estate assets.

Examples:

1. Estate comprising principal residence of $400,000 and other assets of $200,000 ($600,000 total assets) will be charged capital commission of:

• Asset Based Component:
  •  a 1. 65% x $400,000 = $6,600
    plus
  •  a 3. 85% x $200,000 = $7,700.

Asset Based Component (total) = $14,300

• Estate Service Component = $11,000.
• Total: $25,300 (4.22% of the total value of estate assets).

2. Estate comprising principal residence of $1,000,000 and other assets of $20,000 ($1,020,000 total assets) will be charged capital commission of:

• Asset Based Component:
  •  a 1. 65% x $1,000,000 = $16,500
    plus
  •  a 3. 85% x $20,000 = $770

Asset Based Component (total) = $17,270

• Estate Service Component = $11,000.
• Total: $28,270 (2.77% of the total value of estate assets).

3. Estate comprising assets of $100,000 and no principal residence will be charged capital commission of:

• Asset Based Component: 3.85% x $100,000 = $3,850.
• Estate Service Component = $11,000.
• Total exceeds 5.5% of the value of estate assets.
• Capital commission is capped at $5,500 (5.5% of the total value of estate assets).

What else is changing?

For estates committed to our administration on or after 1 January 2022:

• no fee will be charged for the preparation and lodgement of the application for Probate, or Letters of Administration, by our Probate clerks; and
• some tax fees will change, in particular for instalment activity statement (IAS) returns, capital gains reconstruction, and the taxation preliminary advice service.

If State Trustees’ administration commenced before — but had not been finalised by — 1 January 2022, which scale will be applied?

State Trustees will charge whichever is the lower of:
(a) the total, under the old scale, of the capital commission plus the fee for the grant application preparation by our probate clerks; and
(b) the capital commission under the new scale.

What isn’t changing?

The income commission of 6.6% on gross income received by the estate during the administration will still apply (for example, if $100 of interest is earned and credited to the estate account during the administration, we will charge a $6.60 income commission).

There are other charges for services that may apply depending on the circumstances of the estate, such as:

• investment fund management fees
• Conveyancing of property (for example, on sale or transfer)
• legal services (for example, if a claim/challenge to the estate occurs)
• taxation services (for preparation and lodgement of the final taxation return for the individual and the estate’s tax returns)
• genealogy to find or identify beneficiaries

As noted above, some of the fee rates for these services have changed in relation to taxation services. They are charged at the rate applicable when the relevant service was provided: that is, if the service was provided on or after 1 January 2022, the new scale of charges will apply.

An estate will also incur costs or disbursements where required, such as:

• payment of any bills or creditors of the deceased or costs of maintaining their property such as gardening, cleaning, costs of sale
• advertising of the Notice of Intention to Apply and the Notice to Creditors
• costs for certificates (such as birth or death certificates) or searches (such as property title searches)
• Court costs charged by the Court for lodgement of the application
• any taxes payable in relation to the income of the deceased or their estate

When will I know the cost (fees, liabilities and disbursements) to the estate?

For estates committed to our administration on or after 1 January 2022, capital commission can be calculated as soon as the full value of estate assets is known. Note: sometimes the final value of an asset is not certain until later in the administration of an estate (for example, when a property is sold, or where there is capital growth on investments during the administration, such as where there is a longer-term trust).

The total of other fees, costs and disbursements won’t be known until the administration is completed.

If any adjustments to fees are required, they are calculated at the finalisation of the estate administration. Finalisation can only occur after the following tasks have been completed:

• Confirmation of all income, assets and liabilities or debts of the deceased
• Protecting assets on behalf of the estate (by locking bank accounts, inspecting and securing property, collecting valuables, etc.)
• Identifying and locating all beneficiaries
• Applying for a Grant of Probate or Letters of Administration via the Supreme Court
• Bringing together all estate funds and assets under the estate administration account
• Payment of all liabilities of the deceased from estate funds
• Observing the legislative Testator Family Maintenance period of 6 months following the grant being received from the court (during this period, creditors or persons seeking greater provision from the estate may raise their claims)
• Finalisation of the deceased’s tax affairs and any tax obligations or returns of the estate itself, including capital gains tax calculations, where required.
• Arranging for assets to be transferred or sold as required by the will and/or the requirements of the beneficiaries