Who pays for a German care home, and in which order
Care fund, pension, savings, welfare office and only at the very end perhaps the children: the order German law sets, with a worked example.
Checked by Radif Partners · Editorial policy · How we calculate
Do children have to pay for a parent’s care home?
Recourse by the welfare office
excluded
| Threshold per child | €100,000 |
| Distance to threshold | €15,000 |
Each child’s own income counts, not a spouse’s (section 94(1a) SGB XII).
German care home costs are paid by several parties in turn. First the long-term care fund (Pflegekasse) pays a fixed amount per care grade and the supplement that grows with the length of stay, directly to the home. The remaining co-payment, on average €3,364 a month in the first year, is paid by the resident from pension and other income. If that is not enough, savings are used until a protected amount of €10,000 remains (section 90 of Book XII of the Social Code and its implementing regulation). Only then does the welfare office (Sozialamt) cover the gap as social assistance for care (Hilfe zur Pflege). A spouse’s income and assets are taken into account. Children only have to reimburse the welfare office if their own annual income exceeds €100,000 (section 94(1a) SGB XII); a son- or daughter-in-law’s income does not count. Gifts made in the last ten years can be reclaimed (sections 528 and 529 Civil Code). Example: a father in Hesse with a €1,600 pension and €45,000 of savings has a monthly gap of €1,831 and needs social assistance after about 21 months.
The order
| Step | Who pays | What | Legal basis |
|---|---|---|---|
| 1 | Care fund | fixed amount by grade (€805 to €2,096) and 15 to 75% supplement | ss. 43, 43c SGB XI |
| 2 | Resident | pension, rental income, interest | s. 61 SGB XII |
| 3 | Resident | savings down to €10,000 | s. 90 SGB XII |
| 4 | Spouse | income and assets, with allowances | ss. 61, 85 SGB XII |
| 5 | State (where provided) | help with investment costs, e.g. Pflegewohngeld in NRW | state law |
| 6 | Welfare office | social assistance for care for the rest | ss. 61 ff. SGB XII |
| 7 | Children | only with annual income above €100,000 | s. 94(1a) SGB XII |
What is missing from the list matters too: children are not contacted automatically, and a child on an average income pays nothing. Since the Relatives Relief Act the limit is €100,000 per child, and the office presumes it is not exceeded (section 94(1a) SGB XII). The mini calculator above checks the threshold.
The worked example
A father with care grade 3 moves into a home in Hesse. The first-year co-payment there averages €3,431, his pension is €1,600, so €1,831 is missing each month. Of his €45,000 savings, €10,000 may be kept; the rest covers the gap for about 21 months, helped by the supplement rising from month 13. The family then applies for social assistance for care. His daughter earns €70,000 a year and is not asked to pay, whereas his son, earning €110,000, could expect a request for information and a maintenance claim.
How long do savings last in a care home?
Savings last
20 months
| Gap in month 1 | €2,170.55 |
| Protected amount kept | €10,000 |
After that the social welfare office can pay Hilfe zur Pflege.
How the application to the welfare office works
The responsible office is usually the welfare office where the home is, or a regional authority depending on the state. A short written request is enough to apply; the office then sends forms about income, assets, housing and relatives with maintenance obligations. Typically needed are pension statements, recent bank statements, proof of savings, life and funeral insurance policies, the care home contract with current fees and the care fund’s grade decision. Children are not asked to fill in income forms unless there are indications that they earn more than €100,000; usually only names and addresses are requested.
Until the decision arrives, the home’s bills keep coming. Many homes defer the gap once an application has demonstrably been made. Timing matters: the welfare office helps from the day it learns of the need. Applying a few weeks before savings reach the protected amount avoids gaps, and a relative abroad can do this by post or email with a power of attorney.
What is protected
Reasonable household goods, items needed for work or training, family heirlooms whose sale would be a hardship, a reasonable owner-occupied house while relatives live in it, and small cash amounts need not be used (section 90(2) SGB XII). The small cash amount is €10,000 per adult (section 1 of the implementing regulation). Reasonable funeral provision is usually protected in practice; confirm with the welfare office.
Gifts and transfers
If the person in care gave away money or property in the last ten years and can now no longer meet their needs, they can reclaim the gift, and that claim passes to the welfare office (section 528 Civil Code). After ten years reclaiming is excluded (section 529 Civil Code). Families planning to transfer a house to the children should know this deadline and take advice first.
What the family can do early
- Compare the chosen home’s co-payment with the pension before signing the contract.
- Check state help such as the Pflegewohngeld in North Rhine-Westphalia.
- Apply for social assistance for care before savings reach the protected amount; the welfare office does not pay for periods before it knew of the need.
- Sort out powers of attorney so a child, wherever they live, may act towards the home, fund and welfare office.
- Keep all decisions, invoices and bank statements in one place; the welfare office usually asks for the last three to six months.