Under German social law, the Sozialamt (Social Welfare Office) can require a person to sell or mortgage their home to pay for nursing care if their income and liquid assets are insufficient. According to the SGB XII (Social Code Book XII), “Help for Care” (Hilfe zur Pflege) is a secondary benefit, meaning the individual must exhaust their own assets before the state provides full funding.
The Principle of Subsidiarity in SGB XII
The German social system operates on the principle of subsidiarity. This means the state only steps in when all other financial resources are gone. According to SGB XII, a person must use their pension, care insurance payouts, and general assets to cover costs before applying for social assistance.
However, the law provides for Schonvermögen (protected assets). This includes a small amount of cash—currently a four-digit sum per person—and, in specific cases, the primary residence. Whether a home is protected or must be liquidated depends on the specific circumstances of the case and the “reasonableness” of the sale.
When the Sozialamt Can Demand a House Sale
The Social Welfare Office does not sell a home unilaterally; it requires the owner to economically exploit the property. According to Utz Anhalt, a sale is typically demanded when a retiree moves permanently into a nursing home and no longer lives in the property.
The “reasonableness” of a sale is determined by several factors under § 90 Abs. 2 Nr. 8 SGB XII:
- Occupancy: If a spouse or registered partner continues to live in the home, the property is generally protected from sale.
- Size and Value: Homes of “appropriate size” are protected. If a property is deemed oversized or excessively expensive, the office may demand a sale or utilization.
- Dependents: The presence of minor children or adult children with disabilities who require care often protects the home from being liquidated.
Loan Options and the Social Welfare Mortgage
If a sale is not immediately feasible or desired, § 91 SGB XII allows the authority to provide care assistance as a loan. To secure this loan, the Social Welfare Office can enter a land charge (Grundschuld) or mortgage into the land registry.
In this scenario, the state covers the nursing home costs, but the debt grows over time. The loan is typically repaid from the estate after the person’s death or upon the eventual sale of the property. This prevents an immediate forced sale but ensures the state recovers the funds.
The 10-Year Rule for Property Gifts
Many families attempt to protect their homes by gifting them to children. However, this strategy carries significant risks under § 528 of the Bürgerliches Gesetzbuch (BGB). If the donor becomes impoverished—for example, because nursing costs exceed their means—the gift can be revoked.
The critical timeframe is ten years. If the property was gifted more than a decade before, the Sozialamt generally cannot reclaim it. If the gift occurred within the last ten years, the authority can “roll back” the transfer and demand the return of the property or its monetary value.
Anhalt warns that contracts involving Nießbrauch (usufruct) or residency rights are complex; the start of the ten-year clock depends heavily on the specific wording of the notary contract.
The €100,000 Income Limit for Children’s Support
Since January 1, 2020, the Angehörigen-Entlastungsgesetz (Relative Relief Act) has changed how children contribute to parental care. Children are only required to pay maintenance for parents in nursing care if their individual gross annual income exceeds €100,000.
Key details of this regulation include:
- The limit applies to each child individually.
- The income of the child’s spouse is not counted toward the limit.
- The Social Welfare Office cannot force the sale of a child’s home to cover a parent’s care, though they can seek monetary payments if the income threshold is exceeded.
Alternatives to Full Property Liquidation
To avoid a total sale, homeowners can explore several financial structures:
| Option | How it Works | Primary Benefit |
|---|---|---|
| Partial Sale | Selling a percentage of the home’s equity to a provider. | Immediate cash while retaining some ownership. |
| Immobilienrente | Transferring the home in exchange for a lifelong monthly pension. | Steady income stream for care costs. |
| Rental Income | Leasing the property while living in a care facility. | Directly funds the monthly cost of the home. |
| Private Care Insurance | Supplemental insurance to cover “own shares” (Eigenanteil). | Reduces the need to touch the home’s equity. |
Early planning is the most effective defense against forced liquidation. Experts suggest consulting a notary or a lawyer specializing in social law before health issues arise to ensure that transfer contracts are legally robust and the ten-year window is respected.
Keep reading