Toward the Elimination of the "Death Tax" on Bank Accounts?
A bill introduced this week by Socialist lawmakers aims to regulate these fees, which are charged when a deceased person's bank account is closed and are often criticized by the beneficiaries.
The text highlights the current lack of regulations or a framework governing bank fees related to estate settlements, leaving banks with complete discretion in setting these fees. In practice, this situation leads to significant variations from one institution to another, as the text notes. The proposed bill envisages an amendment to the Monetary and Financial Code to establish a fee structure that reflects the actual cost of the banking transactions performed. The calculation methods would be defined by decree, based on the opinion of the Financial Sector Advisory Committee (CCSF). Consumer groups frequently criticize fees they deem disproportionate, pointing out that many transactions are automated. The bill also suggests a total exemption from fees when the balance in the deceased’s account is less than 5,000 euros.
According to a study by the financial news site MoneyVox examining the fees charged by 128 banks for a 15,000-euro inheritance, the average cost of these fees was 204.90 euros in 2023. The report’s author, Christine Pirès Beaune, a Socialist member of the National Assembly representing Puy-de-Dôme and a member of the National Assembly’s Finance Committee, described these fees as “mind-boggling,” highlighting the disparity with the fees charged when closing an account during one’s lifetime, when no fees are generally charged.
The French Banking Federation (FBF) argues, however, that these fees are not limited to simply closing an account, explaining that the banking process for settling an estate takes an average of 7 months due to external constraints imposed on banks. The FBF adds that specialized teams have been set up to manage these transactions, in collaboration with notaries. According to the federation, estate-related fees are also detailed in the banks’ fee schedules, available in all formats. Nevertheless, Christine Pirès Beaune laments that these documents are often difficult to read, noting that this factor is generally not taken into account when choosing a bank.
Previously, centrist Senator Hervé Maurey had attempted to introduce a cap on these fees through an amendment to a bill aimed at protecting savers. However, the bill is currently on hold because it has not been placed on the National Assembly’s agenda. It also proposed eliminating fees for accounts not exceeding 5,000 euros, with a cap of 1% of the account balance for amounts above that threshold. The Ministry of Economy and Finance had expressed reservations about including such a measure in the law, arguing that legislative measures regarding fee caps are not always effective in achieving their intended objectives.
