Bank Fees for Estate Settlements: Are Banks Prepared for the Upcoming Law?
As it does every year around All Saints' Day, MoneyVox takes a look at estate settlement fees—charges levied by banks on the assets of a deceased client before the funds are transferred to the client’s heirs.
Last May, the Senate passed, on first reading, a bill aimed at reducing and regulating bank fees on estates. The bill included several provisions, notably waiving fees for estates valued at less than €5,909, waiving fees for minors, and capping fees at 1 percent. Interrupted in June by the dissolution of the National Assembly, the legislative process for this bill is expected to resume in a few months, likely in early 2025.
Banks Not Quite Ready for the Upcoming Law
Today, few banks have taken the initiative to comply with the new rules that could take effect in the coming months.
According to MoneyVox, only 2 out of 122 financial institutions are in compliance. These are Boursorama Banque—an online bank—which charges no fees when the assets to be transferred are less than €25,000, well above the exemption threshold provided for by law, and Crédit Agricole Nord de France, the only traditional bank to comply with the potential future framework. The local bank charges no fees for assets under €6,000 and 1% for amounts above that.
Nevertheless, some banks appear to have already taken cues from potential future regulations. This is the case for the various federations of Crédit Mutuel Alliance Fédérale. In 2024, they changed their billing practices: the exemption threshold for small estates (up to €10,000) and the amount of proportional fees (1% with no minimum charge) are in line with the regulations. Finally, another bank—Crédit Mutuel de Bretagne—will be compliant as of January 1, 2025, when its new fee schedule takes effect. Next year, the exemption threshold will be raised to €6,000 (up from €2,000 currently), and the proportional fee will be set at 1% above that amount (down from 1.80%), with no minimum charge.
“Overall, the bill has dropped slightly (-7.7%): the cost of an average estate has fallen from 210 to 194 euros in one year. This decrease is due to a 50% reduction in fees at CIC and most Crédits Mutuels branches. Conversely, some institutions may raise their fees, with the CE Midi-Pyrénées taking the top spot for the largest increase—raising the fees charged in our scenario by 80% (from €125 to €225)!” notes Maxime Chipoy, president of MoneyVox.
Very slight progress on estates of minors
According to MoneyVox, 57 of the 122 banks surveyed report that they waive fees for the estates of deceased minors. This still represents progress, since last year there were only 37.
“It’s quite telling to see how reluctant most banks are to act on this issue, even though it’s certain that the fee waiver for estates of minors is coming… and that this ethical measure won’t cost them much! As is often the case with pricing issues, the banks are playing for time,” says Maxime Chipoy, president of MoneyVox.
