Claims for repayment by the social assistance provider against recipients of gifts in the context of nursing home costs
The financing of nursing home costs for people in need of care whose own assets are insufficient often involves the social assistance providers. Complex recovery mechanisms can become relevant in particular when asset transfers—often in the form of gifts to the children of the person in need—take place shortly before the necessity of moving into a nursing home arises. A judgment by the Regional Court of Coburg (Case No.: 13 O 3407) provides a practical insight into the legal situation regarding such recourse options.
Legal basis for claims under social law and civil law
Recourse by the social assistance provider regarding received benefits is based fundamentally on statutory provisions of the Social Code Book (SGB) XII in conjunction with civil law regulations of the German Civil Code (BGB). If the provider grants state support for living expenses in a nursing home, even though the person in need has previously reduced their assets—for example, through gifts to children—a recovery of the transferred assets is in principle possible.
Gifts may become particularly relevant when they occur in close temporal proximity to the onset of neediness. The law protects the interests of the community by enabling the provider to take recourse against such transfers under what is known as the right of recovery. Central to this is Section 528 BGB, which grants a so-called supplementary compulsory share claim.
Requirements for the claim for repayment
A conclusive requirement is the existence of a gift in the legal sense; that is, a gratuitous transfer to another person. In addition, the donor must have become in need, resulting in the receipt of social benefits in the context of care. An important aspect is the temporal component: As long as the donor made a gift within the ten-year period before claiming benefits, the social assistance provider can generally assert claims for reimbursement.
It is noteworthy that these rights of recovery apply without restriction even within the family sphere—especially in the case of gifts to one’s own children. Those affected must expect to reimburse the benefits they received in proportion to the nursing home costs.
Practical implementation and judicial enforcement
In the specific case decided by the Regional Court of Coburg, the social assistance provider had already covered nursing home costs for the defendant’s mother and subsequently demanded repayment of the value of the gifts transferred to the children. It was decisive that their mother’s neediness had been causally connected with the transfer of assets. The decision underscores that the family relationship between donor and recipient does not constitute an exception to the statutory right of repayment.
The court examined both the prerequisites for the claim and the extent of the recipients’ liability. It concluded that the plaintiff was entitled to demand repayment of the nursing home costs in the amount of the asset transfer from the children of the person in need. According to the chamber, the children could not invoke impoverishment or a lapse of the basis of the transaction, unless there were atypical circumstances—such as a complete consumption of the funds for their own necessary subsistence.
Implications for asset transfers within the family
This case law means that gifts made within the relevant period must be carefully evaluated. The acceptance of a gift is by no means associated with comprehensive legal protection against claims from public benefit providers. Substantial repayment claims may arise for benefit recipients, which, where appropriate, are legitimized by a balancing process between family ties and principles of social solidarity.
The development of case law should continue to be observed, as a multitude of related scenarios are pending both in and out of court. Handling such matters may in particular be influenced by individual circumstances in each case.
For readers dealing with comparable issues—such as in connection with repayment claims by public authorities following gifts or other transfers—an individual assessment and further discussion may be of significant interest. The lawyers at MTR Legal are happy to assist you in classifying all aspects of the legal situation and providing sound assessments.
