German social welfare offices may reclaim gifted assets

In Germany, social welfare offices may demand the return of previously gifted assets, such as money, vehicles, or real estate, if the donor becomes unable to support themselves due to circumstances like high nursing home costs.

Under Section 528 of the BGB, a donor can generally reclaim a gift if they fall into poverty, but the social welfare office can claim this right through a written notice to secure maintenance costs under Section 93 SGB XII. A recent ruling by the Federal Court of Justice (BGH) highlights the importance of specific limitation periods. While a ten-year period determines whether a claim for reclamation due to impoverishment can arise, the office must prove the necessity of the return to cover specific social assistance expenses rather than making blanket demands.