Donations and their consequences
August 25, 2016 | 30,00 EUR | answered by Jan Wilking
Hello,
Let's say a person A receives a gift from their parents, for example 15,000.00 euros.
Since A has not owned a car for years, he takes the opportunity to buy a new vehicle. Although he has a few thousand euros in savings, he never wanted to touch them in case he needed money urgently for repairs, etc. So without the gift, he would not have bought a car.
A also owns a condominium, on which there is still a manageable amount of debt (20,000 euros) remaining. This debt should be paid off within the next 5 years.
Now, within 10 years, the parents become in need of care and their money is no longer enough, so they apply for social assistance.
Does A have any chance of not having to repay the gift?
Dear seeker of advice,
Thank you for your inquiry.
In your case, it is likely that the social security agency will assert a claim for reimbursement due to the impoverishment of the donor.
Only in exceptional cases can the recipient then invoke enrichment defense according to § 818 paragraph 3 of the German Civil Code and thus counter the claim for reimbursement.
Enrichment defense has been acknowledged by case law, for example, when the gifted money was spent on luxury expenses such as expensive trips, seminars, clothing, etc., and it can be proven that such expenses would not have been made without the gift (Federal Court of Justice, judgment of 09-11-1994 - IV ZR 66/94).
Since in your case the car would not have been purchased without the gifted money, this could be considered. Another requirement, however, is that the gift was completely used up without any savings elsewhere. If the car is still in your possession, you have received a benefit in your assets. Therefore, at least the current value of the vehicle could still be challenged.
However, this area is legally controversial and various opinions are held. If the social security agency does indeed approach you with a claim for reimbursement, you should have the matter specifically reviewed by a local attorney.
Best regards
