Parents' savings books: When the Jobcenter is not allowed to count them as assets
A savings book held in your name is not automatically your asset. This was the ruling of the Berlin-Brandenburg State Social Court in a case involving a total of 450,000 euros – case reference L 18 AS 447/23, judgment from November 2024. A father and grandfather had set up three savings books: for his adult son and for his grandchildren. The Jobcenter viewed these as usable assets, revoked the approval of benefits, and demanded the repayment of benefits already paid.
The court did not agree. The deciding factor is not whose name is on the savings book, but who can actually dispose of the money. The son and grandchildren had never held the savings books, were unaware of the balances, and were unable to make any withdrawals. However, assets within the meaning of Section 12 of the German Social Code Book II (SGB II) are only those that can be used to secure one's livelihood. Fictitious assets do not count. The revocation and repayment notices were overturned.
This case law is not new; it has been confirmed. If a close relative opens a savings book in the name of a child or grandchild and keeps it in their own custody, it is to be assumed, according to established case law of the Federal Court of Justice, that they intended to reserve the right to dispose of the funds. The Federal Social Court has followed this line of reasoning for years. The flip side is important: Anyone who deliberately hides or transfers their own money in order to receive benefits is committing a criminal offense. Only those who truly have no access are protected.
What you can do if the Jobcenter counts a savings book that you cannot access: File an objection within one month and explain in writing why you cannot get to the money. It is useful to provide specific details regarding who keeps the savings book, who made the deposits, whether you have ever withdrawn anything, and whether you have a card, online access, or a right of termination. Request access to your files so that you can see what the Jobcenter is basing its decision on. Free advice is available from social associations and counseling centers for the unemployed; in the case of ongoing repayment demands, an application for suspensive effect may also be useful.