Refund Notice After Inheritance: When the Jobcenter May Lawfully Collect

An inheritance should be good news. For Bürgergeld recipients, however, it quickly turns into a letter from the Jobcenter with a refund claim. And anyone who suddenly inherits a refund notice as a relative — without ever having received Bürgergeld — is often even more bewildered. The law sets clear limits in both cases — and many notices exceed them.

The Essentials in 30 Seconds

• A Jobcenter refund notice based on inheritance (Erstattungsbescheid Erbschaft Jobcenter) can arise in two constellations: you inherit during benefit receipt yourself, or you inherit from a deceased Bürgergeld recipient.
• Constellation 1: The inheritance counts as one-off income in the inflow month (§ 11 Abs. 3 SGB II) — if it exceeds the asset allowance, it is distributed over up to 12 months.
• Constellation 2: Heirs are liable under § 1922 BGB and § 35 SGB II for outstanding refund claims, but only up to the amount of the estate (Nachlass) — not with private assets.
• The plea of insufficient estate (Dürftigkeitseinrede, § 1990 BGB) protects you if the estate is too small to cover the claim.
• The appeal deadline in both cases is one month from service.

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Why Does This Happen?

Constellation 1 — you inherit during receipt. Frau Z. has received Bürgergeld for two years. Her aunt dies and leaves her 18,000 € in a bank account. Frau Z. does not report this immediately because she wants to "wait first". Three months later the inheritance comes to light during the data match with the probate court. The Jobcenter issues a revocation and refund notice for 4,200 €.

Constellation 2 — a relative dies. Herr W. buries his brother who had received Bürgergeld. Two months after the funeral a refund notice arrives: the Jobcenter is reclaiming 6,800 € that the deceased brother allegedly received unlawfully. Herr W. has never received Bürgergeld and wonders why he should suddenly pay.

Both situations are cleanly regulated legally — and both notices are often open to challenge because the Jobcenter skips important steps.

Your Rights in Concrete Terms

1. Inheritance as One-Off Income (Constellation 1)

Under § 11 Abs. 3 SGB II an inheritance is not assets in the classical sense but initially one-off income in the inflow month. The Federal Social Court has consolidated this inflow principle (Zuflussgrundsatz): decisive is the month in which the money actually arrives in the account — not the date of the testator's death [URTEIL-REFERENZ].

If the inheritance exceeds the ongoing need, it is distributed under § 11 Abs. 3 Satz 3 SGB II over up to 12 months. That means: not the entire inheritance leads to immediate loss of entitlement, but only the calculated monthly share.

2. Asset Allowance and Grace Period

Since the Bürgergeld Act an increased asset allowance (Vermögensfreigrenze) applies: in the grace period (Karenzzeit) (first 12 months of receipt), assets up to 40,000 € are permitted for the first person in the needs community (Bedarfsgemeinschaft) (§ 12 Abs. 4 SGB II), and 15,000 € for each additional person. After the grace period, the standard allowance of 15,000 € per person applies, with up to 30,000 € for a joint household of two persons.

Calculation example (Frau Z., after the grace period, single):

• Inheritance: 18,000 €
• Asset allowance: 15,000 €
• Countable surplus: 3,000 €
• Distribution over 12 months: 250 € per month

Only these 250 € may be counted as income — not the full inheritance. In many cases the Bürgergeld does not fall away completely but is merely reduced.

3. Duty to Report — But No General Suspicion

§ 60 SGB I obliges you to report changes in your circumstances without delay. An inheritance falls under this. But: "without delay" does not mean "within 5 minutes". As a rule, a report within a few weeks of becoming aware of the actual amount is sufficient — and not every late report is automatically grossly negligent.

In practice it is enough to notify the Jobcenter in writing as soon as you can roughly foresee what will accrue. An exact final settlement is often only possible months later, once the notary has wound up the community of heirs. Keep the postal date of your notification — it protects you against the accusation of grossly negligent omission.

4. Universal Succession and Heir Liability (Constellation 2)

If a Bürgergeld recipient dies, § 1922 BGB applies: assets — and thus also debts — pass as a whole to the heirs (universal succession (Gesamtrechtsnachfolge)). § 35 SGB II clarifies that ongoing benefit entitlements expire on death, but outstanding refund claims (Erstattungsforderungen) may be pursued against the heirs.

Important: liability is limited to the estate if you make use of this protection. Your own money, your car, your wages are protected — provided you take the right steps.

5. Plea of Insufficient Estate and Estate Administration

If the estate is not enough to cover the claim, the plea of insufficient estate (Dürftigkeitseinrede) under § 1990 BGB applies. You declare to the Jobcenter: "The estate is exhausted." After that, the Jobcenter may no longer enforce against your private assets.

For larger estates with an unclear financial position, estate administration (Nachlassverwaltung) under § 1975 BGB can be requested — a court appoints an administrator who orders claims and fully separates your private assets from the estate.

6. Disclaiming the Inheritance as a Last Brake

Whoever recognises that an estate is over-indebted may disclaim (ausschlagen) it within six weeks of becoming aware of the inheritance (§ 1944 BGB). The deadline is short — and mistakes cost real money. The disclaimer must be notarised or declared at the probate court for the record. An informal email is not enough. Caution: anyone who removes things from the estate — uses the deceased's car, throws away furniture, closes accounts — may have tacitly accepted the inheritance and can no longer disclaim.

Current Case Law

The Federal Social Court has ruled several times on the inflow principle with inheritances: decisive is not the date of death but the day on which the money is actually available — e.g. with the payout by the notary or the bank [URTEIL-REFERENZ]. On the distribution of one-off income over a longer benefit period, settled case law secures the benefit recipient the protection of an ongoing residual entitlement [URTEIL-REFERENZ]. For the liability of heirs, case law has confirmed that the limitation to the estate under § 1990 BGB also applies vis-à-vis social benefit providers [URTEIL-REFERENZ] — the Jobcenter may not treat heirs like debtors from their own benefit relationship.

How to Proceed Now

1. Note the deadline. One month from service — and that means from the day the notice was in the mailbox, not from your return from holiday.
2. Clarify the constellation. Is it your own inheritance during receipt, or a death case in which the deceased received Bürgergeld? The legal consequences are completely different.
3. Value the estate. Draw up a written list: assets (account, real estate, car, cash) and liabilities (funeral costs, open invoices, rent arrears, refund claim). This is the basis for any later plea of insufficient estate.
4. File an appeal. In writing, signed, with date. Reasoning may follow. Important: in the appeal expressly point to the limitation of liability to the estate.
5. Apply for access to the file (Akteneinsicht) (§ 25 SGB X). Check when the Jobcenter became aware of the inheritance, what calculation underlies the notice and whether estate liabilities have been deducted.
6. In case of over-indebtedness: consider disclaiming. The 6-week deadline under § 1944 BGB is short. Anyone uncertain should seek legal advice early — once it lapses, only the plea of insufficient estate remains.

Typical Mistakes to Avoid

• Mixing up income and assets. Some notices treat the entire inheritance as assets and refuse Bürgergeld completely — although correctly a distribution as income over 12 months should take place.
• No deduction of estate liabilities. Funeral costs, rent arrears, pre-arrangement contracts, open medical bills — all reduce the estate and thus the liability mass. Many notices ignore this.
• Personal payment instead of liability limitation. Whoever pays as an heir from their own money without raising the plea of insufficient estate can hardly recover it later. Never transfer out of fear.
• Sleeping through the disclaimer deadline. Six weeks after becoming aware are quickly over. Whoever waits too long may unintentionally become liable.

Frequently Asked Questions

Do I have to report even a small inheritance?

Yes. § 60 SGB I requires reporting all changes in circumstances — regardless of the amount. Whether the inheritance is ultimately counted or falls under the asset allowance is decided by the Jobcenter, not you. Failure to report can establish gross negligence and exclude protection of legitimate expectations (Vertrauensschutz).

What happens if the estate contains real estate?

A self-occupied house of appropriate size is privileged under § 12 Abs. 1 SGB II and does not count towards the chargeable assets. For inherited, non-self-occupied real estate, the market value is taken — but only after deduction of charges such as land charges and rights of residence. Quick liquidation is often not reasonable.

Can the Jobcenter access the deceased's account directly after death?

No. With death the account becomes part of the estate. The Jobcenter must enforce its claim against the heirs. Automatic direct debits or reversals by the Jobcenter on the deceased's account are inadmissible after the date of death — with the exception of accidentally overpaid ongoing benefits for the month after death (§ 118 SGB VI by analogy).

I am a co-heir — am I solely liable for the full sum?

In principle co-heirs are liable as joint and several debtors (Gesamtschuldner) (§ 2058 BGB). The Jobcenter may therefore pick one heir. Internally, the co-heirs must then balance out. Whoever is held solely liable has a recourse claim against the other heirs in line with their inheritance shares.

What if the deceased had filed an appeal during their lifetime?

A pending appeal does not end automatically with death. The heirs also enter procedurally into the legal position and can continue the proceedings. The refund claim is in this case not yet final — a strong argument before you pay anything.

Have Your Decision Reviewed Now

We review your decision within 5 minutes. Free and non-binding.

Whether you have inherited yourself or been surprised after a relative's death — send us the notice. We will tell you whether the inheritance is correctly classified as income or assets, whether the estate is valued cleanly and whether a limitation of liability applies.