German Court Rules Inheritance Ends Welfare Benefits for Teenager

A 17‑year‑old receiving SGB II benefits inherited more than €108,000 from her deceased father, including gold, cash, cooperatives, stocks and insurance payouts. The Berlin‑Brandenburg Social Court held that because the inheritance occurred after the beneficiary’s initial benefit application, it must first be treated as income and allocated over a six‑month period beginning August 2018. Once the allocated amounts were exhausted, the remaining assets exceeded the child’s exemption threshold of €3,850, resulting in the termination of her benefits.

The court rejected the mother’s claim that a family‑court order removing her custodial authority over the estate prevented access to the funds. It affirmed that the inherited assets were indeed available to the daughter and therefore subject to the SGB II asset limits. The judgment clarifies the legal distinction between income and assets under §§ 1922 BGB, 11 SGB II and 12 SGB II, and confirms that inherited wealth can jeopardize entitlement to unemployment‑related benefits when it surpasses statutory thresholds.