Inheritance in France: New rules reduce fees for accounts after death.

France has now introduced a new law.

Anyone who has had to close an account after a death will recognise the pattern: forms, supporting documents, lengthy delays - and then a bank bill that is often shockingly high. In France, one particularly stark case a few years ago caused widespread outrage. That backlash has now led to a reform designed to put clear limits on what bereaved families can be charged.

What has actually changed in France under the new law on estate fees

Since the beginning of May 2025, France has applied new rules on charges linked to estate accounts. In defined situations, banks must either charge nothing at all or are only allowed to charge tightly limited amounts when relatives ask to close the accounts of someone who has died.

"The reform aims to ease the financial burden on families during bereavement and strengthen trust in the banking system."

The trigger was a 2021 case: after their eight-year-old child died, parents needed to close the child’s savings account. The bank billed 138 euros - a figure many people in France viewed as cynical and inappropriate, because it was demanded at an extremely vulnerable time.

Public anger at the time turned into a draft law, brought to Parliament by the Socialist MP Christine Pirès-Beaune. After extended negotiations, the government has now enacted the proposal.

When banks are no longer allowed to charge estate fees

The new rule sets out two main scenarios in which bereaved relatives are exempt from estate fees when closing an account.

1. If a minor child dies

First, the reform covers parents who lose a minor child. Where they need to close a savings account or any other deposit account held by the deceased child, the bank is no longer permitted to levy special estate fees.

• No flat “processing charges” for closing the account
• No additional “administration fees” simply because it is an estate case
• Applies regardless of the exact product name, as long as the account belongs to the minor child

In the political debate, this point carried strong symbolic weight: the burden that was seen as especially cynical for grieving parents is intended to be a thing of the past.

2. For “simple” estates up to 5.910 euros

Second, a ban on fees applies to so‑called simple estates with low balances. If the total amount held across the relevant accounts is below a fixed threshold, banks are also barred from charging special estate fees.

The newly set threshold is 5.910 euros. If the estate stays within this amount and the situation is straightforward - for example, one or two accounts and no complicated loan structures - relatives should be able to withdraw the money and close the account without an extra charge.

"For simple cases with manageable balances up to 5.910 euros, special estate fees are now prohibited."

With this, French policymakers primarily want to protect smaller inheritances, where flat fees previously consumed an unreasonably large share of the assets.

When banks may still charge fees

While the reform tightens the rules significantly, it still leaves banks room to charge in more complex cases. The reasoning is that the administrative workload can be materially higher in those situations.

Complex estates that involve more administrative work

Authorities and banks refer to cases as “complex” when multiple asset types, liabilities and parties are involved. Examples include:

• The deceased had an active mortgage.
• Alongside personal accounts, there are business accounts or accounts of a sole trader.
• There are several heirs with different rights, potentially including legacies or disputes.
• Documentation relating to loan collateral, guarantees or shareholdings must be reviewed.

In such setups, banks face numerous checks, legal clarifications and coordination with heirs. Fees may still be charged for that work - but no longer without a cap.

New cost cap: no more than 1 percent of the balance

The centrepiece of the new law is a clear limit on costs in these more complicated estates. According to the Secretary of State responsible for the social and solidarity economy, families should face charges that are predictable and restrained.

"Estate fees may be no more than 1 percent of the administered balance, and an absolute cap also applies via decree."

In practice, this means:

• The bank calculates how much the deceased held in the relevant accounts.
• It may charge no more than 1 percent of that amount as an estate fee.
• If that calculation exceeds a maximum amount set by decree, the absolute cap applies instead.

The aim is to stop arbitrarily high flat charges. The law seeks a new balance between legitimate administrative effort and protecting bereaved families.

What this means for families in day-to-day terms

For relatives, the biggest change is the financial outlook during an already difficult period. Anyone who needs to close an account after the death of a family member can now gauge far more clearly what to expect.

Three practical effects stand out:

• Predictability: The maximum cost can be roughly estimated in advance because the account balance is known and the 1 percent rule applies.
• Protection for smaller inheritances: For estates with limited assets up to 5.910 euros, no special estate fees are charged.
• A clear message: The reform underlines that bereavement should not become a revenue stream through excessive fees.

For banks, the reform also creates pressure to adjust. They must revise their fee schedules, change internal processes and, in many cases, give up profitable flat charges. This was a central point of contention in the political debate, but consumer protection ultimately prevailed.

Relevance for German-speaking countries

Although the new rule applies only in France for now, it is likely to fuel discussion in Germany, Austria and Switzerland. In those countries too, heirs repeatedly complain about opaque estate fees - for example, charges for handling death certificates, closing accounts or transferring securities portfolios.

Consumer advocates in German-speaking markets typically watch closely which models neighbouring countries adopt. A legal cap like the French approach could become a topic there as well - especially if the new French rules prove to work smoothly in practice.

Key terms explained: estate fees and types of estate

The legal and financial vocabulary around inheritances confuses many relatives. Three terms come up repeatedly:

Term	Meaning
Estate fee	A bank charge for handling accounts after the account holder’s death, such as checking documents and paying out to heirs.
Simple inheritance	A straightforward estate without high-value assets, without complex debt structures, and with a clear set of heirs.
Complex inheritance	An estate with multiple asset types, loans, business activities or a disputed succession, requiring more administration.

A practical tip: anyone who holds assets in France - for example, a holiday home with an associated bank account - should ask their bank to confirm the new rules in writing. That provides clarity in an emergency and helps avoid disputes with the institution.

How relatives can protect themselves from high costs

Whether in France or in German-speaking countries: planning ahead during one’s lifetime reduces not only emotional strain for those left behind, but often financial risk as well. Useful steps include:

• Keep clear records of accounts and investment holdings, and store an overview where it can be found.
• Set up powers of attorney for trusted persons that can remain valid after death, where national law allows.
• Ask your main bank what fees apply on death and whether there are cheaper account options.
• For larger assets, speak early with a notary about structure and succession.

France’s new rules show that political pressure can significantly reduce fees in the sensitive area of estate administration. For consumers elsewhere, it is worth looking closely at what banks charge during bereavement - and, if necessary, not shying away from a dispute.