Knut Fleckenstein, the Federal Chairman of the Workers’ Samaritan Federation (ASB), is pushing for greater utilization of personal wealth, particularly real estate, to fund long-term care insurance. Fleckenstein told Funke-Mediengruppe that “long-term care insurance is not a program to protect inheritances.”
He suggested adjusting current legislation that allows real estate to be transferred to children tax-free. The ASB chief noted that many families use their homes as a form of long-term savings, stating that it is “difficult” when this property is transferred to children tax-free while the social welfare office is forced to step in.
Fleckenstein argues that considering the inclusion of assets is a legitimate policy direction. However, he maintains that the existing limit-which requires children to contribute to their parents’ care costs only if their gross annual income exceeds €100,000-is useful. He finds it challenging to argue for mandating contributions from children based on their parents’ assets before that threshold is met.
Furthermore, the ASB Chairman is advocating for caps on the personal contributions required in nursing homes. According to Fleckenstein, individuals who have dedicated their lives to working, raising families, and contributing to their communities should not be left financially destitute while in a nursing home.
To ensure the solvency of the care insurance, Fleckenstein called for the state to repay the outstanding €5 billion in Corona aid funds. Additionally, he demanded that the contribution assessment ceilings be significantly raised and argued that everyone should, in principle, contribute to the care insurance.
On a positive note, Fleckenstein emphasized that, contrary to initial plans, caregiving family members can still receive pension points for their caregiving contributions. The Federal Chairman concluded that since preventative measures are being restricted, the overall cost of the care system will inevitably rise. He stressed that “if one doesn’t know how expensive residential care is, they must do everything to ensure that ambulant care functions properly.”
