Securing financing

The largest items on the nursing homes' bill are:

1 - Care: This money is used to finance care professionals and other care services. These costs are covered by the care insurance fund up to a maximum amount, depending on the level of care:

Care level 1: 125 euros

Care level 2: 770 euros

Care level 3: 1262 euros

Care level 4: 1775 euros

Care level 5: 2005,- Euro

2 - Accommodation and meals: The financing of these costs is part of the personal contribution that insured persons must pay themselves. In addition to full board and accommodation, this also includes, for example, cleaning and laundry.

3 - Investment costs: These include construction or acquisition costs, maintenance costs and rental and lease payments.

Tip: You do not always have to pay all the investment costs - ask whether your care home is publicly subsidized.

The personal contribution varies depending on the home. "According to the Association of Substitute Health Insurance Funds, people in need of care had to pay an average of €1,830 themselves in 2018," says Finanztip. Residents have to use their pension for this - up to a maximum of 116.64 euros in pocket money.

If your pension and savings are not enough, you may also be considering selling your parents' home. Not an easy step, but one that you can avoid: If the property is occupied by your spouse, then it is part of your protected assets, provided it is considered reasonable. And if you act in good time and the property was transferred to the relatives at least ten years before the need for care arises, you can save the house from being sold.

Is there no other option than to sell the property? Then you should deal with this at an early stage to prevent a hasty, spontaneous or forced sale. But how much is the house or apartment worth anyway? Are you unfamiliar with details such as technical features, weak points or increases in value due to extensive renovations? Then have the property value assessed by an estate agent, preferably with additional training as an expert, without obligation and, if the effort is too great for you, leave the sale in their hands.

Does your relative not have any property or sufficient savings available? This is where the needs-based social benefit "Care assistance" can help. It pays the remaining costs if the person in need of care only has cash assets of up to 5,000 euros in addition to low income. The competent authority will first check whether the children of the relatives requiring care are dependent. As a result of the Relatives Relief Act, since January 2020 they are only liable if their annual gross income exceeds 100,000 euros. If there are several children, only the child who earns more than this amount may be asked to pay. Not only the salary (gross, after deduction of income-related expenses) and the profit from self-employment are then taken into account, but also capital income and income from letting and leasing. The income of children-in-law is not taken into account. "The exception to this is the so-called protected assets for parental maintenance. If the assets are demonstrably used to provide for your own retirement, they remain untouched," says Dr. Britta Beate Schön from Finanztip. Tip: If you are liable to pay maintenance, you can deduct the expenses for a retirement or nursing home from your taxes as extraordinary expenses, as well as the costs of moving into the nursing home.