Heirs will be protected from high costs: France is capping bank fees for bereavement cases.

When a relative dies, heirs can find themselves caught by banks’ inheritance-case bank fees - but a new law in France is now taking a tough line.

Grief, paperwork, trips to public offices: losing someone close is hard enough. Until now, families in France often faced another burden on top - sometimes hefty bank fees simply to close the deceased person’s accounts and complete the estate administration. Following fierce criticism and one particularly high-profile case, lawmakers have stepped in and rewritten the rules from the ground up.

What is changing about bank fees in an inheritance case under the new French law

Up to now, French banks have largely been able to set their own prices for dealing with an estate. That meant even modest balances could be hit by flat charges that were wildly out of proportion. One case in particular dominated the headlines: after the death of their eight-year-old child, parents had to pay 138 euros just to close the child’s savings passbook - a demand widely condemned as morally indefensible.

After months of parliamentary discussions, a new framework is now coming into force. The key shift is straightforward: in certain inheritance cases, banks are no longer allowed to charge any special estate fees at all; in every other situation, strict caps apply.

"The new requirement is intended to protect grieving families from excessive bank fees and to strengthen trust in the financial system."

Fee-free: protection for parents and straightforward estates

The law removes fees entirely in two clearly defined scenarios:

• If a minor child dies, banks may not charge any estate fees for closing the child’s accounts and savings passbooks.
• Straightforward inheritance cases with small assets must also be handled free of charge - at least as long as the estate does not exceed the legally defined threshold of 5.910 euros.

This is aimed at the situations where the bank’s administrative work simply did not justify the sums demanded. For families, the practical effect is clear: if there are only small balances to settle, the bank’s bill can often be avoided altogether.

When banks may still charge estate fees

Banks will not be expected to do everything for nothing in every circumstance. The new rules accept that complicated estates can require significantly more time, staff involvement and co-ordination. In those cases, banks retain the right to levy estate fees - but only within tightly defined limits.

Complex inheritance cases remain chargeable

For these purposes, an inheritance is treated as complex when additional agreements, security interests or business relationships are involved. Common examples include:

• The deceased had an ongoing property loan (mortgage) linked to accounts or collateral.
• There are company accounts or professional accounts, for example for freelance professionals, self-employed people or small businesses.
• Multiple accounts exist at the same bank, but under different legal conditions.

In these scenarios, staff may need to review contracts, reconcile claims and securities, liaise with heirs and a notary, and ensure that any release of funds is legally correct. Banks are still permitted to charge for that extra work - but the scope to do so is now heavily constrained.

How high may estate fees be in future?

The main relief comes from a clear ceiling. Even where an estate does not qualify for the fee-free exemptions, the bank’s freedom to set prices stops at a defined maximum:

"The fee for administering an estate may be no more than 1 per cent of the total balance - in addition, an absolute maximum amount will be set by regulation."

In practical terms:

Estate value	Maximum estate fee (1 %)	Special point
3.000 euros	30 euros	Can be fee-free if it is a “straightforward estate”
10.000 euros	100 euros	Permitted at all only in complex inheritance cases
50.000 euros	Maximum 500 euros	Only up to the cap set by regulation

The crucial point is that banks can no longer impose made-up prices that bear no relation to the size of the estate or the real work involved. Even for larger sums, the statutory maximum amount is designed to block excessive demands.

Why the reform is politically sensitive

How banks behave in bereavement cases regularly triggers outrage in many countries. People who have lost a loved one report confusing fee structures, opaque forms and weeks of silence. In France, the case involving the deceased child became the spark for a much wider debate.

The reform now passed pursues two aims. First, it is meant to reduce the financial strain on families in exceptional circumstances. Second, it is intended to improve the reputation of the banking sector, which is often perceived by the public as detached and lacking empathy.

Impact beyond France

Rules on estate fees exist in many countries, but they are often left to banks’ internal policies. France’s approach - setting caps and exemptions in law - could become a model, particularly in Europe, where consumer groups have demanded clearer transparency on account fees for years.

International banking groups may also feel added pressure: if they accept strict requirements in one country, it becomes harder to justify much higher charges elsewhere without having awkward questions to answer.

What heirs should do in practice

Even with stronger protections, a death still has financial consequences. Anyone inheriting should keep a few practical points in mind to avoid unnecessary costs and to stay in control of the process.

Gather documents before approaching the bank

The better organised the paperwork, the smoother the administration is likely to be. Useful documents include:

• Death certificate and, where relevant, probate documentation (or a notarial will)
• Recent account statements for the deceased
• Agreements relating to mortgages or other loans
• Any indication of company accounts or business activity

Providing the bank with as complete a picture as possible from the outset reduces follow-up questions and delays - and therefore also reduces extra work that could, in theory, be used to justify fees.

Challenge fee items - and ask for them in writing

Heirs should insist on a detailed breakdown of any estate fee being demanded, including:

• What exactly is the relevant estate amount?
• Does the case fall within the fee-free exemptions?
• On what basis is the estate being classified as “complex”?
• How is the specific fee calculated, and which cap is being applied?

Having everything in writing makes it easier to complain later or to involve a consumer organisation if the charge appears questionable.

Terms that often cause confusion

Inheritance matters come with plenty of technical language, which can feel even more unsettling in an emotional situation. Two brief clarifications:

• Estate fees are the bank’s charges for handling an inheritance case - for example, freezing accounts, verifying heirs’ documentation, or transferring balances.
• Inheritance tax is a tax payable to the state, which may arise depending on the relationship to the deceased and the value inherited - regardless of what the bank charges.

These two are often lumped together even though they are legally separate. Understanding the difference makes it much easier to deal confidently with both the bank and the tax authority.

Why this is relevant from a German perspective

In Germany, consumers also repeatedly complain about bank fees linked to inheritances - for instance, when investment accounts are re-registered or old savings accounts are closed. The French reform shows how forcefully legislators can intervene: with clear percentage limits, absolute caps, and sensitive exemptions for especially distressing situations.

Whether politicians in Germany or Austria build similar pressure will depend in no small part on public attention. The more cases emerge in which grieving families are charged heavily for simple steps, the more realistic a debate becomes along French lines - including the question of how much administering an estate is allowed to cost without becoming an added burden in an already difficult phase of life.