France - Bank charges on estates: Banks have 6 months to be ready

Law no. 2025-415 of 13 May 2025 introduces a significant reform in the area of bank charges applied during inheritance proceedings. These new regulations, which will come into force in November 2025, are designed to strictly control the fees that banks are authorised to charge when closing a deceased person's account.

In France, inheritance-related bank charges are estimated to total at least €125 million a year, with high estimates reaching up to €200 million, or around 1% of total bank charges levied by institutions.

Several studies have been carried out on the fees charged, notably by 'UFC-Que Choisir', published in 2023, and by the Financial Sector Advisory Committee (CCSF) in 2024. They have highlighted significant disparities in charges between establishments for similar services. It therefore seemed imperative to establish a harmonised regulatory framework for specific inheritance fees.

Fundamental principle: three categories of inheritance are completely free of charge

The new law introduces a strict framework for bank charges applicable in the event of inheritance, with an innovative principle: total exemption in three categories of inheritance:

1. Simple estates: "Simple" estates are those where the heir can prove their status by a deed of notoriety or a specific certificate, and where the estate does not involve any particular complexity, such as the absence of an outstanding mortgage, a non-professional account, or the absence of heirs who are difficult to determine.
2. Small estates: Where the total bank assets are less than €5,910 (defined by decree), no charges may be levied. The aim of this measure is to preserve the integrity of small estates and prevent fees from absorbing a disproportionate share of the inheritance in modest estates.
3. Inheritance of minors: In the particularly sensitive case of the death of a minor child, the law provides for a total absence of charges for transactions on the child's accounts.

Strict limits on charges for other situations

For estates that do not fall into these three categories, banks may continue to charge fees, but these will now be strictly limited in two ways:

• Up to 1% of the total amount of the assets concerned
• Up to a fixed amount to be specified by decree

Scope of application of the regulations

The law specifically regulates fees for inheritance transactions relating to:

• Deposit accounts (current accounts, cheque accounts) ;
• Passbook accounts (Livret A, Livret Jeune, etc.) ;
• General savings products with a specific tax regime for the deceased. Certain specific products are explicitly excluded from the scope of application, including certain financial instruments and specialised savings products such as PEAs, SME innovation accounts and climate future savings plans.

Implementation timetable and penalties

The law is due to come into force six months after its promulgation, i.e. on 13 November 2025. This deadline, initially set at three months, was extended during the second reading in the French National Assembly, to give banks more time to comply with the new legal requirements.

Full implementation of the system requires the publication of a decree, issued after consultation with the Financial Legislation and Regulation Advisory Committee (CCLRF), to specify the conditions of application of the system and the capping of fees.

To ensure that the system is effective, the law expressly empowers officials from the Prudential Supervision and Resolution Authority (ACPR) and the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) to monitor compliance with these new rules. These new requirements are therefore incorporated into the existing sanctions regime.

Implications for banking institutions

In order to comply with these provisions, by November 2025, institutions will need to:

• Adapt their IT systems to automatically identify estates eligible for the free allowance
• Update their sales documentation
• Update the methods for calculating charges and pricing grids
• Update internal procedures
• Update internal control mechanisms to ensure compliance with these new requirements
• Train their staff in the new rules

Monitoring the effectiveness of the scheme after one year

The Government will assess the effectiveness of this reform by submitting a report to Parliament, one year after publication of the implementing decree, detailing the impact of the regulations, in particular changes in pricing practices and the number of beneficiaries of the free scheme.