When parents reach an age where they require care, the costs of care often rise faster than their pension, long-term care insurance, or savings can cover. Many families then ask themselves: "When do children have to pay?", "How much parental support is reasonable?", and "What does exempt assets mean in terms of parental support?"
This magazin step by step all the important regulations relating to parental support, the role of exempt assets, income limits under the Dependent Relief Act, and shows which assets are protected. The aim is to provide guidance and relief for all those who are currently dealing with a care case in their family.
What does parental maintenance mean?
Parental support means that adult children must provide financial support to their parents in need if they are no longer able to cover their living expenses or care costs from their own resources. The term originates from maintenance law (Section 1601 of the German Civil Code (BGB)) and describes a legal obligation that only actually applies in certain cases.
In practice, parental support mainly becomes relevant when a parent in need of care moves into a nursing home or requires extensive care services that exceed their pension, assets, and long-term care insurance benefits. If the parent's financial resources are insufficient, the social welfare office initially covers part of the costs. Only then does it check whether the children are financially capable and must contribute to the uncovered expenses.
Basic principle: Children support their parents in need
Parental support is part of German social law and means that adult children must provide financial support for their parents if they are no longer able to cover their own living expenses or care costs.
When do children have to pay parental support?
A maintenance obligation only arises if
- the parent is in need,
- your own income, pension, assets, and long-term care insurance benefits are insufficient,
- the social welfare agency (e.g., the social welfare office) covers benefits such as nursing care assistance
- and the child is capable.
Only when these conditions are met does the social welfare office check whether a child has to pay parental support.
The Family Caregiver Relief Act: The EUR 100,000 limit
Since 2020, a clear rule has been in place: as a general rule, children only have to pay parental support if their gross annual income exceeds EUR 100,000. This has relieved the burden on many relatives who were previously required to pay even with significantly lower incomes.
What exactly does gross annual income mean?
Gross annual income includes all income, for example:
- Salary (gross)
- Bonuses, vacation pay, and Christmas bonus
- Income from rentals
- Income from self-employment
- investment income
If the total gross annual income is below the income threshold of EUR 100,000, the maintenance obligation is waived entirely.
sample calculation
- Child's income: €72,000 gross/year → no maintenance obligation
- Child's income: €118,000 gross/year → Child is generally taken into account, but only after consideration of exempt assets and deductibles.
What happens if your income exceeds EUR 100,000?
If a child's income exceeds EUR 100,000, this does not mean that they automatically have to pay a high amount of maintenance.
Instead, a detailed examination follows:
- What is the adjusted income?
- What costs (e.g., loans, childcare, medical expenses) can be deducted?
- How high is the deductible?
- How much exempt assets is the child entitled to?
The deductible
The deductible serves to secure the child's own standard of living. It currently amounts to around EUR 2,000 to 2,200 per month, including housing costs. For married couples, the family deductible is correspondingly higher.
Spouses and joint income
If the child who is entitled to maintenance lives in a marriage, the spouse's income is taken into account to a certain extent, but only very moderately. No one should have to jeopardize the financial foundation of their own family.
Why exempt assets are so important
The exempt assets refer to the portion of assets that a child is allowed to retain despite maintenance obligations without having to use them to finance their parents.
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Existing assets protect the child's future
It is intended to prevent children from
- their retirement provisions,
- your residential property,
- specific reserves,
- or their financial existence
have to give up in order to support a parent in a nursing home or during a stay in a home.
Which assets are protected?
home ownership
Protected assets generally include the owner-occupied house or condominium. Children do not have to sell their residential property to finance their parents' care.
retirement planning
These items belong to exempt assets:
- Riester and Rürup pensions
- Company pension scheme
- Private pension insurance
- life insurance policies
- Capital-forming benefits
- Reserves for your own pension gap
Courts regularly recognize 5% of gross income per working year as adequate retirement provision.
Reserves for emergencies
A nest egg is also protected, often between EUR 10,000 and EUR 25,000, depending on your life situation.
prohibitions on forced liquidation
Assets that could only be sold at a loss or with disproportionate effort (e.g., business assets) also remain unaffected.
Wealth vs. income: What's the difference?
Assets and income are clearly distinguished from each other in the context of parental support, and this distinction is decisive in determining whether children can be required to pay at all. While income refers to the regular funds a person receives on a monthly or annual basis, such as wages, rental income, or profits from self-employment, assets describe everything that has already been saved or is already available: bank balances, real estate, reserves, or securities.
For the assessment of parental support, this means:
Income plays a key role in determining whether a child is financially capable, particularly with regard to the €100,000 income limit set out in the Family Caregiver Relief Act. Assets, on the other hand, are only taken into account under certain conditions and are largely protected by what is known as exempt assets. Many important assets, including retirement provisions and owner-occupied homes, may not be taken into account.
income
This includes all regular income:
- salary
- rental income
- corporate profits
- investment income
assets
The assets consist of available funds, e.g.:
- bank deposits
- real estate
- securities
- vehicles
- reserves
The social welfare office checks income and assets separately. The exempt assets only apply to assets, not to current income. Find out more about "Aging in Place – Growing old in your own home" now!
How does the social welfare office calculate parental support?
The social welfare office calculates parental support according to a clearly structured procedure, but for many of those affected, it is difficult to understand at first glance. If a parent in need of care can no longer afford the high costs of care or a nursing home on their own, the social welfare agency initially covers part of the expenses.
Only then does the office check whether a child is financially capable and must contribute. This is not a blanket requirement, but rather an individual, careful analysis of needs, income, deductions, deductibles, and exempt assets.
Who has to pay for parents in need of care? Step-by-step review
Parents' needs
How much does care cost?
- Nursing home: often €2,000–3,800 personal contribution
- Home care: varies depending on the care service
- Additional costs: medication, medical aids, accommodation, and meals
Deduction of all benefits
- pension
- Care allowance or care benefits in kind
- Long-term care insurance subsidies
- Health insurance benefits
- Parent's own assets
If this is not sufficient, the social welfare office will step in.
Recourse against the child
Only when the social welfare agency advances money does it check the children.
Adjustment of income
Deduction of important items:
- loans
- Childcare
- travel expenses to work
- medical expenses
- insurance
- retirement planning
Examination of exempt assets
Only then can a decision be made as to whether maintenance can be claimed at all.
What services does the social welfare office provide?
If the parent needs care and their own resources are insufficient, the social welfare office will cover part of the costs, e.g.
- home costs
- Long-term care benefits in kind
- support services
- Accommodation and meals
Does the social welfare office cover all costs?
Not completely. Often, a portion remains that is paid by the parent or social welfare office. The office can then seek recourse from the child, but only if the amount exceeds the €100,000 limit.
Which assets are not protected?
Not all assets are covered by the exempt assets, and this is precisely where uncertainties often arise in practice. Many children wonder whether they will have to use their savings, valuables, or additional real estate if the social welfare office approaches them about possible parental maintenance obligations.
While key areas such as retirement provisions and owner-occupied residential property are protected, there are certainly assets that are considered realizable and can therefore be taken into account when calculating maintenance.
luxury goods
- classic car
- second homes
- Valuable collections
These may be utilized under certain circumstances.
High liquid assets
Very high cash reserves can be taken into account on a pro rata basis – but only after deducting appropriate reserves.
Example: Calculation in practice
A person earns €140,000 gross per year. The mother lives in a nursing home, and there is a shortfall of €800 per month to cover the costs.
Calculation:
- Adjusted income after deductions: 4,000 euros
- Deductible: approx. 2,200 euros
- Capacity to pay: €1,800. The child could pay a maximum of €800, but no more.
The exempt assets (e.g., $100,000 in retirement savings + condominium) remain untouched.
Role of marriage, family, and household expenses
Spouse
The spouse does not have to pay alimony; his or her income is only taken into account to determine household expenses.
Own children
Maintenance for one's own children always takes priority.
household expenses
Rent, loans, and living expenses reduce adjusted income.
Differences between parental support, social assistance, and nursing care assistance
social assistance
Social assistance is a central element of German social law and is intended to support people who cannot cover their living expenses from their own resources. It applies regardless of age whenever income, assets, and entitlements from other benefit providers are insufficient. For older people or those with a permanent reduction in earning capacity, it also includes basic security in old age and in the event of reduced earning capacity, which guarantees a minimum subsistence level.
This includes costs for food, clothing, electricity, accommodation, and medical care. The social welfare office assesses each individual's circumstances and steps in if no other means of support are available.
Care assistance
Care assistance is a special form of social assistance and is intended exclusively for people in need of care who cannot cover their needs despite receiving benefits from long-term care insurance. Among other things, it covers:
- Costs for outpatient nursing services,
- stay in a nursing home,
- domestic help
- as well as necessary care and aids.
If your pension, care allowance, and personal assets are insufficient, the social welfare office can provide additional support. Care assistance thus ensures that people in need of care receive adequate care regardless of their financial situation.
parental support
Parental support only becomes relevant when the social welfare office provides benefits for a parent in need of care, i.e., when it steps in financially. The office then checks whether and to what extent the children are financially capable of contributing to the uncovered costs.
However, the Family Caregiver Relief Act sets a clear limit: only children with a gross annual income of more than €100,000 can be called upon to contribute. In addition, the exempt assets protect important assets such as retirement provisions and owner-occupied residential property.
Frequently asked questions – concise answers
Do children have to pay?
Only if the income exceeds EUR 100,000 gross, and even then other factors are taken into account.
Does wealth count toward parental support?
Yes, but the exempt assets are protected.
Do I have to sell my house?
No, owner-occupied residential property is protected.
Do I have to use my savings?
As a rule, only surplus funds, not retirement provisions.
Do I have to pay if my brother is below the limit?
Each person is individually liable for maintenance; siblings are not jointly liable.
Practical tips for families
Families should clarify:
- Care requests
- Parent's finances
- possible forms of care
Build up reserves in good time
Reserves are important for your own future and are protected by the state.
Check long-term care insurance
- supplementary insurance
- long-term care insurance
- Private supplementary health insurance policies
Seek support
- Care advice from long-term care insurance funds
- Municipal advice centers
- Social services in hospitals
- Legal advice for complicated cases
The most important points about exempt assets at a glance
- Children with a gross annual income of less than €100,000 do not pay parental support.
- Even if the amount exceeds €100,000, the exempt assets are protected.
- Your home, retirement savings, reserves, and basic needs remain untouched.
- The calculation is individual—many items reduce income.
- The social welfare office can only take recourse if it provides benefits itself.
Conclusion: Safety for children, support for parents
Parental support is a sensitive interface between family, social law, and the real burdens of long-term care. Many people fear having to pay for the high costs of care or nursing home care for their parents who need care. However, the Family Caregiver Relief Act and the clear rules on exempt assets ensure that the financial responsibility remains at a reasonable level.
Children do not have to jeopardize their own quality of life, retirement provisions, or home ownership in order to care for their parents. At the same time, the state ensures that people in need of care continue to be well provided for through social benefits.
This magazin the most important information, regulations, and tips to give families guidance and security. If you have any further questions, it is worth seeking individual advice, as each case is unique.
