The end of bank fees on estates is in sight

Crédit Mutuel Alliance Fédérale is waiving estate-related bank fees for all accounts with balances under 10,000 euros. The mutual bank is anticipating a proposed law aimed at better regulating bank fees in the event of an estate settlement.
 

As part of an update to its retail banking fees, Crédit Mutuel Alliance Fédérale has announced the implementation of a solidarity-based fee structure for estate settlement transactions. Effective March 1, 2024, Crédit Mutuel branches¹ and CIC branches will waive estate settlement fees for estates valued at less than 10,000 euros—which accounts for more than half of all estate settlement cases.
 

Bank fees related to an estate represent compensation for the many complex and recurring services provided by bank advisors and estate planning teams. Even for estates that appear to be the simplest, there are numerous procedures involved: receiving the death certificate, freezing the account, taking inventory of the funds, managing account transactions with the notary’s authorization, unfreezing the account and then disbursing the funds to the heirs, and even requesting and receiving the various documents needed to prepare the Single Tax Form for the tax authorities and for each of the heirs, etc.
 

While estate-related bank fees help partially offset the costs incurred by the bank in managing these transactions, Crédit Mutuel Alliance Fédérale has decided to further pool the costs of its pricing model.
 

Effective March 1, 2024, Crédit Mutuel branches and CIC branches will waive all probate-related bank fees—including administrative fees, asset liquidation fees, and annual management fees—for accounts with assets totaling less than 10,000 euros. This decision extends the policy, in effect since February 1, 2023, of waiving estate administration fees for accounts with assets of less than 2,000 euros.
 

Similarly, the mutual insurance group has decided not to charge asset liquidation fees or annual management fees for any estate settlements. For cases involving amounts exceeding 10,000 euros, only a 1% processing fee will now be charged, up to a maximum of 1,000 euros.
 

The mutual bank is anticipating a proposed law aimed at better regulating bank fees in the event of an estate settlement. The goal is to reduce these fees when there are limited funds in the deceased’s account. Unanimously approved on Wednesday, February 14, by the Finance Committee, the bill will be debated on February 29 in the Chamber. 
 

This proposal aims to eliminate bank fees for accounts held by the deceased with balances not exceeding 5,000 euros. It was unanimously approved. It now remains to be ratified by the National Assembly on February 29. The 5,000-euro cap could also be discussed, particularly during negotiations with banking institutions. 
 

According to UFC Que-Choisir, bank fees related to probate average 233 euros per family. “Sometimes the fees reach 200 euros even though there’s only 500 euros in the deceased’s account!” says an exasperated Christine Pires Beaune. 
 

The bill addresses the “closure of the deceased’s deposit accounts and savings accounts and the disbursement of the funds held in them,” according to a proposed amendment. Furthermore, the bill provides that no fees shall be charged if the deceased was a minor at the time of death.