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Transfer the house to the children in the event of a need for care – pensioners must take this into account 

2023-03-26T09:35:51.060Z


If pensioners have to go to a nursing home, their own house may be used for financing. However, the property can be protected from the social welfare office.


If pensioners have to go to a nursing home, their own house may be used for financing.

However, the property can be protected from the social welfare office.

Hamburg – When pensioners, who can benefit from discounts, have to go to a nursing home, the question of financing often arises.

The long-term care insurance pays part.

The pension is then used for the monthly nursing home bill.

However, if this is not sufficient, financial reserves, assets, shares or other valuables that a retiree has – including their own real estate or land – are used.

The children of those affected can avoid this.

One possibility is that the pensioners sign the house over to their children before the need for care arises.

If children receive a property in the form of a gift or anticipated inheritance, it becomes their property and is therefore protected from being sold by the social welfare office.

When transferring assets during lifetime, i.e. when giving gifts to children, there are a few things to consider.

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If the pension is not enough: transfer the house to the children if you need care

The property must be donated ten years ago, otherwise the social welfare office can demand that the property be transferred back to the parents, which can lead to a forced sale to cover the care costs.

A transfer should therefore take place at an early stage if the assets are to be protected in this way.

In addition, the donation must be unconditional, gratuitous and certified by a notary.

"In order to avoid social welfare recourse in cases of care, in particular to ward off claims by the social welfare office for the return of donations from the last ten years, donations - i.e. donations without consideration - should be avoided as far as possible when transferring property," writes the consumer protection association Verband Wohneigentum in a report.

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Elderly care can create financial problems.

Children can protect their parents' property, such as real estate, from the social welfare office.

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© Patrick Pleul/dpa

Transfer the house to the children if you need care: Parents should reserve the right to live

In the contract between parents and children, expenses incurred by the child receiving the gift – such as work, construction work or care provided – should be taken into account.

If the child to whom the property is transferred waives any entitlement to reimbursement of his or her previous services, the "donation value" of the immovable property transfer will be reduced by the amount of the value of those services rendered.

In addition, the parents should reserve their own right of use in the form of housing rights.

According to the consumer protection association, the gift value is also reduced by the capital value of this right of use.

Incidentally, this also applies to other reserved services such as home care or payment of the funeral and grave care costs.  

In the case of real estate belonging to pensioners who do not reserve any rights, the gift value that the social welfare office would use as a basis for a later social welfare recourse in the event of a need for care would correspond to the full, unabridged market value of the real estate at the time of the transfer.

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List of rubrics: © Patrick Pleul/dpa

Source: merkur

All life articles on 2023-03-26

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