Selling a property in a care case — Dresden

Do I have to sell the house to pay for care?

Not immediately, and often not at all. First come the pension, care insurance and current income. An owner-occupied house is protected as long as the spouse lives in it. Only when the property stands empty and the home's costs permanently exceed the available means does a sale become an issue — and then a planned sale is almost always better than the welfare office stepping in.

Who pays for care — and in what order?

The costs are covered in a fixed order. Assets come only at the very end.

1. Care insurance

First come the care insurance benefits by care level — a fixed subsidy, but one that rarely suffices.

2. Pension & income

Then the pension and current income of the person in need of care cover the personal contribution.

3. Own assets

If that is not enough, their own assets are next — and that includes an empty property.

4. Social assistance

Only at the end does social assistance step in and check what realisable assets exist.

What does a home place in Dresden cost?

The personal contribution almost always exceeds the pension — this is the gap that has to be covered.

€2,300–2,900 / month

typical personal contribution in a nursing home in Saxony — despite care insurance benefits

An average pension rarely covers this alone. The difference comes from assets. Whether the property is used depends on who still lives in it.

When is the house protected?

The point many do not know: an owner-occupied, appropriate house stays protected as long as a protected person lives in it.

Situation	Your property
Spouse continues to live in the house	protected — the welfare office requires no sale
Only one partner moves into a home	protected as long as the other stays in the house
The house stands empty permanently	realisable assets — a sale becomes an issue

As long as the protection rules apply, nothing happens. It only becomes critical when the property stands empty permanently and no protected person lives in it any more.

The mistake: selling too early

In Dresden I repeatedly see families who sell before it is necessary — worried the office will otherwise take everything. Two facts remove the basis for that fear. As long as the protection rules apply, nothing happens. And since 2020 children are only called upon for parental support from €100,000 annual gross income — assessed individually.

Gifting to the child is no safe way out either: the welfare office can reclaim gifts from the last ten years. Anyone transferring shortly before a care case often brings in exactly the problem they wanted to avoid.

Without a power of attorney, no one may simply sell

If the owner is no longer legally competent, only an authorised person with an express power of attorney for property can act. If it is missing, the guardianship court must appoint a guardian and approve the sale (§ 1850 BGB) — which costs weeks to months. Arrange the notarised power of attorney while everyone can still decide clearly.

From my practice: I first clarify whether a sale is needed at all — often together with the tax advisor and the family. If so, the sale runs with regard for the situation: a clear valuation, orderly documents, the power of attorney checked.

What your property is worth today is shown by the property value calculator. If it is not yet about care but about accessibility, read selling in later life.

Tax note: Non-binding guidance, without warranty – not a substitute for tax advice.

Note: This information is no substitute for legal or tax advice.

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Frequently asked questions

Does the owner-occupied house count as protected assets?

As long as the person in need of care or their spouse lives in it, an appropriate owner-occupied house is protected — the welfare office will not require a sale. If the person in need of care moves permanently into a home and the property stands empty, this protection usually lapses unless another protected person still lives there.

Do children have to pay for their parents' care?

Since the 2020 Angehörigen-Entlastungsgesetz, children are only called upon for parental support from an annual gross income above €100,000 — assessed individually per child. Most families are not affected. The parents' own assets, however, continue to be taken into account, and that includes the empty property.

May I sell my parents' house with a power of attorney?

With a valid precautionary power of attorney that expressly covers property sales, yes. If it is missing and the owner is no longer legally competent, the guardianship court must appoint a guardian and approve the sale (§ 1850 BGB). That takes time and is why a notarised power of attorney is so important — ideally long before the emergency.

What does a nursing home place in Dresden cost per month?

The personal contribution in a nursing home in Saxony is currently often around €2,300 to €2,900 per month — despite care insurance benefits. If that permanently exceeds the pension and income, the difference has to come from assets. This is exactly where the property becomes relevant.

Can I gift the house to the children beforehand?

A gift does not reliably protect the property: the welfare office can reclaim gifts from the last ten years (§ 528 BGB, reclaim due to impoverishment). Anyone transferring shortly before a care case risks exactly the recourse they wanted to avoid. Have it checked legally before any transfer.

Managing Director & Property Adviser

Robert Kramer

Solution-finder with many years of experience as a management consultant and managing director