‘Death tax’ bank fees now capped in France
Certain cases exempt from charges for closing a deceased individual’s account
Banks were formerly able to set their own fees for the processes
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Fees for closing the bank account of a deceased individual are now capped in France following a change in the law – and may even be waived in simple situations.
Previously, the frais bancaires de succession (fees for closing an inherited bank account) were not regulated, and banks were free to set their own costs for dealing with these accounts.
However, MPs voted to change the law in May this year, and the changes came into effect on November 13.
Charges for services linked to a deceased individual’s bank account (freezing it, inventorying funds, communicating with notaires, transferring money to heirs, and eventually closing it) are now limited to 1% of the deceased’s balances and savings products, such as assurance vie or shares accounts.
A maximum limit of €850 for services is also in place, set for annual reassessment in line with inflation.
“The pain of loss should not be compounded by excessive bank fees, which are often difficult to understand,” said Socialist MP Christine Pirès Beaune, who brought the bill forward.
Fees waived for ‘simple’ cases
In cases where the amount of the deceased's estate has a low value, fees will be completely waived.
Currently this is set at €5,910, but will also be reappraised annually.
Fees are also waived in cases where the deceased was a minor or “when the heirs present the bank with a certificate of heirship or a statement signed by all of them, and the operations related to the succession do not show any manifest complexity.”
‘Manifest complexity’ is defined in the Journal Officiel decree relating to the law, and covers cases where inheritance requires additional steps or checks.
It includes cases where:
there are no family heirs of the deceased
the deceased had an outstanding mortgage with the bank in question
the deceased had a business account with the bank
One or more of the deceased’s savings products held by the bank is subject to a legal hold by a creditor
the inheritance is subject to cross border elements, such as the account holder having been a resident abroad, one or more of their heirs living abroad, or a foreign inheritance law governing the estate
A full list can be found in the decree here.
