Definition and significance of funeral benefit
Das Funeral benefit is a monetary benefit designed to ease the financial burden on individuals or survivors faced with funeral expenses. Historically, funeral benefit was mainly granted by statutory social insurance providers, particularly statutory health insurance (GKV). With the creation of the Social Code (SGB), legal provisions concerning funeral benefit were gradually changed and partially abolished. Today, funeral services and any possible reimbursement claims must be viewed in a differentiated manner; in addition, there are supplementary regulations in funeral, social, and inheritance law.
Legal basis and current regulations
Abolition of the statutory funeral benefit
Until December 31, 2003, § 58 SGB V stipulated that statutory health insurance funds pay a funeral benefit to survivors upon the death of an insured person. The legislator repealed this entitlement as of January 1, 2004, with the GKV Modernization Act. Since then, there is no entitlement to funeral benefit under statutory health insurance.
Special regulations in social law
Social assistance (SGB XII)
After the abolition of funeral benefit in statutory health insurance, § 74 of Book Twelve of the Social Code (SGB XII) applies in cases of social hardship: Within the framework of social assistance, relatives or other persons responsible for the funeral may apply for coverage of the funeral costs if it is unreasonable for them to bear the costs.
Legal situation according to § 74 SGB XII:
- Persons who are legally obliged to provide maintenance or subject to a public law obligation to arrange the funeral are eligible to claim.
- The granting of the benefit depends on the absence of reasonable means to cover the costs from one’s own resources.
- Assistance covers only the necessary costs of a simple, customary local funeral.
Funeral benefit in accident insurance (SGB VII)
Different provisions apply in statutory accident insurance (§ 64 Book Seven of the Social Code – SGB VII):
- In the event of a work accident or an occupational disease leading to the death of an insured person, the accident insurance pays a funeral benefit to the person obliged to bear the costs.
- The amount is up to a fixed maximum limit, which is adjusted regularly.
Pension law benefits and pension funds
Special regulations apply to civil servants and recipients of pension benefits. According to § 18 of the Civil Service Pensions Act (BeamtVG), survivors receive a death grant, which usually amounts to twice the official or pensionable salary and is intended to cover funeral costs.
Funeral benefit through private insurance
Beyond the statutory framework, funeral benefit may be paid by private insurers, in particular so-called funeral expense insurance. Policyholders take out appropriate contracts to provide financial relief for their survivors in the event of death.
Obligation to arrange a funeral and assumption of costs
Public obligation to arrange a funeral
According to the funeral laws of the federal states, the obligation to organize and finance a funeral is regulated under public law. Generally, spouses, civil partners, children, or other relatives are required by law, in a specific order, to fulfill the funeral obligation and bear the resulting costs.
Inheritance law context
Upon death, estate liabilities, pursuant to § 1968 of the German Civil Code (BGB), pass to the heirs, including the costs of an appropriate funeral. Liability is limited to the estate; if the heir disclaims the inheritance, a subsidiary liability of other responsible parties for costs may become relevant.
Tax law aspects
In principle, funeral benefit is considered tax-free income provided it is based on statutory or contractual provisions (§ 3 No. 11 Income Tax Act, EStG). Funeral expenses may under certain circumstances be tax deductible as extraordinary expenses (§ 33 EStG), provided they are not covered by the estate or insurance benefits.
Amount and scope of the funeral benefit
Statutory accident insurance
- The funeral benefit according to § 64 SGB VII is currently up to 5,520 euros (as of 2024), but is based on the actually necessary costs.
Social assistance
- Within the scope of social assistance, only reasonable and necessary expenses are covered. The exact amount depends on regional and local circumstances.
Private funeral expense insurance
- The benefit amount depends on the individual policy taken out and generally ranges from 3,000 to 10,000 euros.
Conclusion
Today, funeral benefit in Germany is primarily relevant in statutory accident insurance, as well as within the context of civil service regulations and private insurance. After the abolition of statutory funeral benefit from statutory health insurance, supplementary social benefits and civil cost-bearing obligations play a decisive role in financing funeral expenses.
Literature
- Palandt, German Civil Code (Bürgerliches Gesetzbuch)
- Hauck/Noftz, SGB Commentaries
- Böttcher, The Law of Burial (Das Recht der Bestattung)
- LSG North Rhine-Westphalia, Decision of 07.02.2013 – L 20 SO 116/12 B ER
Web links
- <a href="https://www.gesetze-im-internet.de/sgb_12/74.html”>§ 74 SGB XII – Funeral costs (gesetze-im-internet.de)
- <a href="https://www.gesetze-im-internet.de/sgb_7/64.html”>§ 64 SGB VII – Funeral costs accident insurance
- § 1968 BGB – Funeral costs (gesetze-im-internet.de)
This article provides a comprehensive description of the funeral benefit with special consideration of the current legal situation in Germany and explains the key statutory provisions as well as related civil and social law aspects.
Frequently asked questions
Who is entitled to funeral benefit in a legal context?
Entitlement to funeral benefit generally exists for persons who, according to the applicable provisions, are considered eligible. In the context of statutory accident insurance (Social Code VII), survivors are entitled to a one-time funeral benefit if the death of the insured person is due to a work accident or occupational disease. Usually, spouses, children, or other relatives who cover the funeral costs are eligible. It does not matter whether the person with the duty to arrange the funeral was named in the will; what matters is the actual payment of the funeral expenses. Special rules also apply to funeral benefit entitlement within civil service and other public benefits systems, based on the relevant law. Private insurance or company agreements can provide additional entitlements, but these are subject to contractual terms, not public law.
How is the funeral benefit calculated and what is reimbursed?
Funeral benefit is not a flat amount but is usually based on the actual, necessary costs incurred for the funeral. However, the relevant legal regulations often set maximum limits up to which costs are covered. In statutory accident insurance, funeral benefit pursuant to § 64 SGB VII is capped at twice the standard benefit rate under SGB II (Bürgergeld) at the time of death. For civil servants and similar persons, individual state pension laws prescribe specific rules on the amount. Funeral benefit regularly includes the costs of funeral services, burial plot, and transfer expenses, but not other mourning or subsequent costs. Proof (e.g., invoices) is required for reimbursement, and expenses must be customary and reasonable. If the funeral benefit is less than the actual costs, the difference remains with the recipient.
What are the legal requirements for applying for funeral benefit?
To claim funeral benefit, all statutory requirements must be met. There must be a relevant insured event, for example, death as a result of a work accident, occupational disease, or a special pension law situation. The applicant must prove that he or she is the person responsible for or liable for the funeral, which must be documented by invoices, payment receipts, and if applicable, the death certificate. The deadlines for application are set by law, usually several months from knowledge of the insured event (e.g., 12 months, see relevant legislation for precise deadlines). There must also be no grounds for exclusion (e.g., own culpable conduct in the case of death by accident). If no timely application is submitted, the entitlement lapses.
What role do succession and the duty to arrange a funeral play in the legal context of funeral benefit?
Legally, funeral benefit does not necessarily follow inheritance law provisions but depends instead on the actual or statutory duty to arrange the funeral. This duty arises from the relevant state burial law and usually assigns responsibility for organizing and financing the funeral to certain relatives (e.g., spouse, children, parents, depending on the regulation). Thus, a relative not entitled to inherit may also have a claim to funeral benefit if he or she has borne the costs. Succession is relevant only to the extent that the estate may be used to cover funeral expenses or existing insurance benefits may pass to the heirs.
What are the legal grounds for exclusion from receiving funeral benefit?
Funeral benefit is denied within the legal framework if essential eligibility requirements are not met. Exclusion grounds exist, in particular, if the death was not due to a covered incident (such as a work accident), if the required evidence is not provided, or if the application is filed too late. In cases of gross negligence or intentional conduct by the insured person, the entitlement may also lapse depending on the legal basis. In certain benefit systems, additional exclusion grounds (such as overlap with other benefits or conduct contrary to insurance terms) are specified in the legal texts.
What deadlines must be observed in connection with funeral benefit?
The deadline for applying for funeral benefit is legally fixed and varies by legal area. In statutory accident insurance, the application must be submitted within one year of the death of the insured person or upon becoming aware of the event giving rise to entitlement. For civil service or other public pension systems, deadlines differ, often ranging from six months to one year after death. If the entitled person misses these deadlines, the entitlement lapses; after expiry, a delayed benefit is possible only in very limited and expressly legally regulated circumstances (so-called reinstatement in the previous state in cases of omission without fault).
How does funeral benefit relate to other benefits and social assistance claims?
Funeral benefit takes precedence over other social benefits. If funeral benefit is paid pursuant to SGB VII or comparable legal provisions, it reduces any subsequent claim to social assistance, such as the assistance with funeral costs regulated in § 74 SGB XII. Double benefits are legally excluded. If there is an entitlement to funeral benefit and, for example, social assistance was also granted, the recipient is obliged to report and notify this to avoid recovery claims and criminal consequences. Other overlaps (such as private term life insurance) do not generally affect the entitlement to statutory funeral benefit.
