Financial support for parents in need of care is a sensitive and often emotionally stressful issue that affects many families. In Germany, children are obliged to pay for their parents' maintenance under certain conditions. But when does this obligation apply and what aspects need to be considered?
In just a few minutes, this article explains the legal basis of parental maintenance and highlights the importance of the 100,000 euro limit, which protects children with lower incomes. It also discusses important factors such as adjusted net income, personal maintenance obligations and protected assets. Finally, you will receive valuable tips on how targeted asset accumulation can offer you and your family financial security.
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December 02, 2024
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Legal basis of parental maintenance
In Germany, maintenance obligations within the family are clearly regulated. These obligations can become particularly relevant if parents become in need of care in old age and their own resources are not sufficient to cover the costs incurred.
In such cases, the children may be called upon to provide financial support and asked to pay. It is therefore important to deal with issues such as investing for children at an early stage in order to be prepared for all eventualities.
Legal regulations in the German Civil Code (BGB)
According to Section 1601 of the German Civil Code, there is a reciprocal maintenance obligation for relatives and descendants in a direct line. This means that not only parents can be liable to pay maintenance for their children, but also children for their parents.
With this regulation, the state aims to ensure financial support within the family if a member falls into need or has to claim a place in a nursing home. The obligation arises when parents are in need and children are capable enough to make maintenance payments.
The aim of the law is to strengthen the family as a community of financial solidarity by ensuring that no parent is left alone. This regulation is particularly important in care cases, where the costs of one parent can be considerable. Nevertheless, there are clear limits to ensure that those liable for maintenance do not experience an unreasonable burden themselves.
Conditions under which a maintenance obligation exists
The entitlement to parental maintenance applies under the following conditions:
- Parents in need: The parents are unable to cover their living expenses or the costs of care and nursing from their own resources. This often occurs in the event of a need for care if the parents' pension or savings are not sufficient to cover the costs of the home or care. Even if the parents claim social benefits, the social welfare office or the responsible social welfare provider can fall back on the children.
- The children's ability to pay: The children have enough money to pay maintenance without getting into financial difficulties themselves. Both the income and the extent of the children's assets are examined here, but taking into account protected limits such as the deductible or protected assets.
Parental maintenance is intended in particular to cover the parents' home and care costs. However, children are not obliged to pay maintenance if they themselves are in need, have income of less than 100,000 euros gross or have to fulfill other primary maintenance obligations, for example to their own children or spouses. These regulations serve to avoid overburdening children in society and to ensure that their own livelihood remains secure.
The 100,000 euro limit - income as a decisive factor
Parental maintenance is linked to an income limit. Children are only obliged to support their parents if their gross income exceeds 100,000 euros. This regulation was introduced in 2019 with the Relatives Relief Act to protect children with lower incomes from financial burdens.
The child's income relevant under maintenance law is referred to as the adjusted net income. This is calculated by deducting certain expenses from the actual net income. Deductible expenses include, among others:
- Work-related expenses: Travel costs, work equipment or training costs incurred as a result of practicing your profession.
- Private pension expenses: Contributions to old-age provision, insofar as they are appropriate and serve to secure the standard of living.
- Debts: Obligations that were entered into before the maintenance obligation arose, such as existing loans.
- Housing costs: Reasonable rental or credit costs for owner-occupied residential property to ensure a basic standard of living.
- Health and long-term care insurance premiums: Necessary costs for statutory or private health and long-term care insurance that serve to safeguard health.
- Care costs: Expenses for the care of children or relatives in need of care, such as daycare fees, childminders or care assistants.
- Educational expenses: Costs for further training, tuition fees or other professionally relevant qualifications that can contribute to improving career opportunities.
These deductions are used to determine the adjusted net income. It forms the basis for calculating parental maintenance and ensures that only financial resources that are actually available are used. This ensures that children are not unduly burdened and run the risk of slipping into social welfare.
Income, assets and protected limits
The question of the extent to which children's income and assets are taken into account when calculating parental maintenance is complex. However, there are certain allowances and protected assets that are intended to ensure that the children's gross annual income is not excessively burdened. In this context, a free expert consultation can help to clarify individual questions and find optimal solutions.
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How children's income and assets are taken into account
When calculating parental maintenance, the children's income is taken into account first. The income of any life partners is not taken into account. As already explained, the adjusted net income is also determined.
It is also checked whether there are any assets that can be used for maintenance. However, clear limits apply here. There are so-called allowances and protected assets that may not be touched.
These include, for example, reserves for old-age provision or an appropriate amount for owner-occupied residential property. These regulations ensure that children are not disproportionately burdened and that their financial security is maintained.
Deductible - definition and amount
The deductible is the amount that the dependent child must retain to secure their own living expenses. This amount is taken into account when calculating parental maintenance and is currently at least 2,000 euros per month. The deductible includes basic expenses such as housing, living costs and reasonable pension costs.
Only income that exceeds this amount can be used to support the parents - and only if the 100,000 euro limit is exceeded. This rule protects the child from being overburdened financially and guarantees their independence.
Protected assets and their significance for retirement provision
The law defines the so-called protective assets in § 90 SGB XII. This includes a protected amount of 10,000 euros per person. For spouses or life partners, a protected amount of this amount also applies, so that assets totaling 20,000 euros are not taken into account. In addition, an appropriate amount that has been earmarked for the person's own funeral and grave care as part of a funeral care contract is also considered a protected asset.
These protected assets are particularly important for old-age provision or in the event of reduced earning capacity, as they ensure that certain reserves cannot be used for parental maintenance.
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Children's own maintenance obligations
In addition to the maintenance obligation towards the parents, the children's own maintenance obligations also play an important role. Obligations to spouses, own children or other persons entitled to maintenance reduce the financial capacity.
These maintenance obligations are taken into account when calculating parental maintenance and can significantly reduce or even eliminate the amount to be paid.
Priority for the care of spouses and children
Children are not obliged to pay parental maintenance if they themselves need help with care or if their parents have committed serious misconduct towards them, such as neglect or abuse. In addition, other maintenance obligations take precedence, such as financial responsibility towards one's own children or spouse.
In such cases, the maintenance obligation is reviewed individually and can be adjusted accordingly or waived completely. Children do not have to pay for their parents even if they are in financial difficulties themselves, for example due to unemployment or high levels of debt.
Effects of these obligations on the amount of parental maintenance
The more personal obligations a child has, the lower the adjusted net income that can be used for the maintenance claim.
Obligations such as maintenance payments to one's own children, spouse or other financial burdens, such as loans or pension expenses, are taken into account. These deductions reduce the reasonable burden and ensure that the child can continue to meet its own obligations.
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Calculation of parental maintenance
The calculation of maintenance claims is based on the child's adjusted net income. Half of this income is taken into account for parental maintenance after deduction of the deductible. All relevant deductions such as work-related expenses, private provisions and other charges are taken into account to determine the real disposable income.
Sample calculation:
- Monthly adjusted net income: 5,500 euros
- Deductions (work-related expenses, pension provision): 1000 euros
- Deductible: 2,000 euros
- Disposable income: 2,500 euros
- Parental maintenance: 1250 Euro
This regulation ensures that the child retains an appropriate portion of their income to finance their own living expenses.
Legal advice and support in disputes
In the event of disputes about the amount or the obligation to pay parental maintenance, it is advisable to seek legal advice. An experienced lawyer in your area can help you navigate the complex regulations of maintenance law and work out individual solutions.
A lawyer can help to clarify misunderstandings and effectively protect your rights when it comes to maintenance costs, particularly if there are uncertainties regarding income calculations, protected assets or other legal aspects. Even if several children are involved, a lawyer can intervene to settle disputes. In this way, stressful conflicts can often be resolved amicably.
Think about building up your own wealth early on
In order to protect yourself and your family from financial bottlenecks, targeted asset accumulation is essential. Different forms of investment offer advantages and disadvantages, depending on individual goals and possibilities:
- Savings books and call money accounts: Safe and easily accessible, but with very low returns. Ideal for short-term savings, but unsuitable for long-term wealth creation.
- Life insurance: Often inflexible and expensive, as high fees and long terms make them less attractive. Suitable for those who are looking to save capital and protect themselves at the same time.
- Real estate: Offers a potential increase in value and regular income through renting, but requires high entry costs and is not affordable for everyone. There are also maintenance costs and rent losses can occur.
- ETF savings plans: Flexible and cost-efficient, but associated with market risks that generally lead to losses. A good option for long-term wealth accumulation, especially for investors with basic knowledge of financial markets.
- ETF pension insurance: The combination of security, flexibility and potential returns makes ETF annuity insurance the ideal form of investment for family pensions. Tax advantages and predictable payouts make it even more attractive.
- Equities: High potential returns, but with high risk. Suitable for risk-tolerant investors who are prepared to sit out fluctuations.
- Commodities: Investments in gold, silver or oil offer protection against inflation, but are speculative and difficult to calculate.
Choosing the right strategy depends on the risk appetite, investment horizon and financial goals of the people concerned. A balanced mix of various forms of investment offers the best security.
Conclusion: Parental maintenance under the Relatives Relief Act
Children only have to pay parental maintenance if their annual income exceeds 100,000 euros. For many, this is a relief as it offers protection against financial overload. Nevertheless, it is advisable to consider the topic of asset accumulation at an early stage in order to ensure long-term financial security for yourself and your family.
ETF pension insurance is a proven model for this. It combines security with attractive potential returns and offers tax advantages that are particularly beneficial for retirement provision. By making regular payments, stable reserves can be built up that not only protect against unexpected financial burdens, but also enable a carefree life in old age.
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