Living allowance and assets: What allowances are there when applying for living allowance?
Many people on low incomes ask themselves: Do my assets exclude my entitlement to living allowance? The good news is that in most cases this is not the case! In most cases, living allowances are available despite existing assets, as long as the exemption limits are not exceeded. High asset exemption limits apply - but there are exceptions. If you want to be on the safe side, you should know the rules. There are clear exemption limits for existing assets relating to living allowances, which are generous in most cases.
Living allowance is a state social benefit to help with housing costs.
It is not based on total needs like citizens allowance, but is a targeted subsidy.
In most cases, living allowance means that the entitlement is not cancelled despite existing assets as long as the exemption limits are met.
Living allowance is available as rent support for tenants or as charge support for owners.
The allowance for assets is €60,000 for the first household member and a further €30,000 for each additional member.
Your home does not count as an asset if you are applying for charge support as an owner.
If your assets are too high, this can lead to a rejection.
With us, you can submit your application conveniently.
Start application!Whether a cash receipt counts as income or assets depends on the timing:
Assets are money or possessions that you already had before the application. It only counts if it is above a certain limit.
Income is money that you only receive while you are receiving living allowance - for example, a pension, salary or interest. Income is included in the living allowance calculation and is decisive for the amount.
This distinction is important because income directly influences the entitlement to living allowance - for example, through the maximum income limit or the minimum income required. The distinction between income and assets therefore has a direct impact on the calculation of the living allowance. While assets that were available before the period of entitlement are generally not included in the calculation of the entitlement, any form of income that occurs during the period of entitlement can reduce the amount or even completely withdraw the entitlement. Particularly in special circumstances, a one-off receipt of money during the entitlement period may reduce or end living allowance.
It is therefore important that applicants keep a close eye on their financial situation and provide all relevant information. This includes not only salaries or wages, but also other types of income such as pensions, social benefits such as BAföG or basic income support.
In addition, changes in the financial situation, such as a salary increase or the receipt of an inheritance, must be reported to the relevant authority immediately. Otherwise, applicants risk receiving too much living allowance and, in the worst case, having to repay it.
The Living Allowance Act (WoGG) does not specify a fixed asset allowance, but it does specify a so-called exemption limit. It can be found in § 21 No. 3 WoGG and the associated administrative regulations. The living allowance administrative regulation specifies the subject of asset limits.
The exemption limits are as follows:
60,000 euros for the first household member to be taken into account
30,000 euros for each additional household member to be taken into account
Important: If this limit is exceeded, there is no living allowance - regardless of your other income. This is a hard limit, not a graduated allowance. These high exemption limits were deliberately set very high by the legislator in order to give as many households as possible access to living allowance.
Example: Asset limit for families
A family with two adults and one child (i.e. a total of three household members) would have an exemption limit of:
€60,000 (first household member to be taken into account)
+ €30,000 (second household member)
+ €30,000 (third household member)
= €120,000
If the assets are even one euro higher, the application can be rejected.
Yes, courts have made it clear in the past that the administrative regulations are only rough guidelines:
In 2012, the Higher Administrative Court of Berlin-Brandenburg ruled in favor of a higher limit of 80,000 euros.
In 2013, the Federal Administrative Court confirmed that a rigid application of the old asset limit (from the time of wealth tax) is not always appropriate.
The administrative regulation also states that “substantial assets (...) are generally (...)” within these limits. In individual cases, there may therefore be a claim to living allowance even with higher assets - especially if the assets are difficult to realize or only available to a limited extent. Particularly in certain circumstances, such as old age and reduced earning capacity, assets are assessed less strictly.
Among other things, realizable assets include:
Cash, savings, fixed-term deposits, call money
Securities, shares, company shares
Real estate, land (provided it is not used for residential purposes)
Jewelry, works of art, collections
Receivables (e.g. from loans you have taken out)
Rights such as usufruct or copyrights can also be considered assets if they have a measurable monetary value. The value of the monetary claims is taken into account when assessing the living allowance entitlement.
Note: If you own your own house or apartment and live there, you can apply for an encumbrance allowance if your income is insufficient. This subsidy helps owners with the costs of interest and repayments. In this case, the house or apartment is not taken into account as an asset.
Not everything is taken into account. Among other things, the following are excluded:
Owner-occupied property for which living allowance is claimed
Appropriate household effects and one car per adult
Pension provision (e.g. Riester pension, Rürup pension), if contractually not realizable prematurely or company pensions
Items necessary for work, e.g. tools, instruments, computers
For young people in vocational training or gainful employment, existing assets are also valued more generously. People who receive basic income support in old age or social assistance generally have to use their assets much more quickly. In the case of living allowances, on the other hand, there are more generous regulations, so that greater protection of assets is possible. For example, anyone who has reached at least 33 years of basic pension periods is additionally protected with regard to their assets.
Even if assets are often irrelevant, they must be stated in full in the living allowance application. This is because capital gains or rental income also count as income and may very well affect your entitlement.
A check with the Federal Central Tax Office will quickly reveal any discrepancies. Anyone who deliberately conceals assets risks reclaims or even criminal proceedings for social fraud. This can have considerable consequences, especially if you receive basic benefits under the Asylum Seekers Act or BAföG at the same time.
For better orientation, we show an example of the asset test here:
Example household: Married couple with one child → Exemption limit:
€60,000 (1st person) + €30,000 (2nd person) + €30,000 (3rd person) = €120,000
Existing assets:
Parents' savings account: € 75,000
Building society savings contract: €20,000
Child's call money account: €10,000
Custody account (equity fund): €15,000
→ Total assets: € 120,000
Result: As the total assets do not exceed the exemption limit, there is a basic entitlement to living allowance.
Please note: If it were €125,000, for example, the amount would be above the exemption limit → application would probably be rejected, unless some of the assets cannot be utilized (e.g. tied pension provision).
Property with several apartments (e.g. a two-family house): If you live in an apartment yourself and you own the property, you can receive living allowance in the form of charge support for your own share of the flat.
Rented units within the property (e.g. granny apartment, attic): These do not affect your own entitlement as long as the rental income is correctly declared as income.
Important: The owner-occupied unit must be structurally separate and independently usable (own kitchen, bathroom, etc.).
You live in your own property (house or apartment).
The property is not primarily rented out - your own living share is in the foreground.
You bear the running costs for the property (e.g. loan interest, heating costs, maintenance).
Your income is below the living allowance threshold - regardless of the value of the property.
Important: Even if you are the owner, your property is not automatically counted as a realizable asset as long as you live in it yourself. It is generally excluded from living allowance protection. Only in the case of non-owner-occupied properties is it checked whether a sale or rental would be possible.
If it is determined during the examination of a living allowance application that the existing assets exceed the permissible exemption limits, this usually leads to the application being rejected. A rejection notice is issued regardless of how high the income is or how urgently the subsidy is needed. The exemption limits - currently 60,000 euros for the first person considered and 30,000 euros for each additional person - are binding. If the realizable assets are even slightly higher than this, the entitlement to living allowance no longer applies. However, applicants have the option of lodging an objection, especially if they can prove that some of the assets are difficult to realize or are currently not available. Exceeding the amount of assets can therefore only be tolerated under special circumstances. Early advice can help to clarify such situations and, if necessary, make use of hardship regulations.
Citizens who do not yet receive living allowance can call the information hotline of the respective city for quick and competent help with questions about living allowance, the application process or the calculation. It is particularly worth calling if you are unsure about income, assets or regional particularities in order to avoid errors in the application and to receive individual advice. Interested parties can also obtain information on who is responsible via the Federal Ministry of Housing, Urban Development and Building.
The living allowance is usually paid monthly to the household member who submitted the application. It is advisable to involve all household members in the application at an early stage in order to avoid errors or disadvantages.
Particular caution is required if parallel benefits such as BAföG or payments due to reduced earning capacity are received: These can have an impact on living allowance entitlement and must be stated in the application. Special offsetting rules must be observed for citizens' allowance or BAföG, for example.
Income includes all income during the approval period, such as wages, pensions or social benefits. Assets, on the other hand, are existing assets such as savings, real estate or securities prior to the start of living allowance receipt. Income has a direct influence on the amount of living allowance - assets only if they exceed certain exemption limits.
The amount of living allowance is calculated on the basis of total income, the number of household members and the amount of rent or charges to be taken into account. The table values in the Living Allowance Act (WoGG) are decisive here. As a rule, the lower the income and the higher the recognized housing costs, the higher the living allowance.
The income limits for living allowances depend on the size of the household and the local rent level. As a rough guide: singles can often claim up to around 1,400 to 1,600 euros net, families correspondingly more. The calculation is very complex, which is why a living allowance calculator is recommended.
Before you can apply for living allowance, it is advisable to use a living allowance calculator in advance. With the LeistungsLotse living allowance calculator, you can find out in just a few minutes whether and how much living allowance you can receive.
With us, you can submit your application conveniently.
Start application!The exemption limits for living allowances are set so high that the vast majority of households have no problems. However, anyone who owns larger sums should check whether they remain below the exemption limit or whether a case-by-case decision in favor of the applicant is possible. Living allowances are only regularly excluded in the case of very high assets.
Most importantly, all information in the application must be complete and correct - otherwise even a justified living allowance claim may be lost.
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