My Children
Are Family Benefits (Kindergeld) Income-Dependent in Germany?
No. Kindergeld is paid to one parent regardless of taxable income, for each dependent child under 25 years old. The amount is the same for everyone and is re-evaluated annually.
Does My Child Studying Abroad Remain Covered by My German Health Insurance?
Yes, up to 25 years old if they are still a student and fiscally attached to the household. However, coverage depends on the country of study and the local system. International supplementary health insurance may be necessary (contact us for a quote).
Can I Receive Kindergeld if My Child Studies outside Germany?
Yes, as long as they are enrolled in a recognized course of study and remain your dependent. In case of study interruption (gap year, non-academic internship, etc.), the right to Kindergeld is suspended.
Can I Receive Elterngeld if I Have just Arrived in Germany?
The amount is calculated based on German income from the year preceding the birth. In the absence of income in Germany, you will receive the minimum amount of €300 per month.
What are the Essential Insurance Policies for My Children?
Only health insurance is mandatory. However, liability insurance covering children is highly recommended, as well as disability or accident insurance for children. These policies guarantee a lump sum or an annuity in case of disability, often taken out before adolescence for more favorable medical conditions.
Is it Possible to Open a Life Insurance Policy in My Child’s Name in Germany?
Yes. A child’s life insurance policy allows for long-term savings, to be used later for their studies, a personal project, or a down payment on property. The contract can be funded monthly by parents or grandparents and benefit from the advantageous taxation of long-term products.
Are there Subsidized Savings Solutions for Children?
Riester contracts and the German PEL (Plan d’Épargne Logement) are only accessible from the age of 16. Before this age, it is possible to build up savings from birth via a fund or ETF investment plan for children or a capital-forming life insurance policy. These solutions allow for regular investments, deferred taxation benefits, and flexible access to capital at any time.
Is there a Dedicated Savings Account for My Children?
The Kinderkonto can be opened from birth, allows for regular savings, and interest is generally tax-exempt up to the legal allowance. Funds are available at any time.
Can I Invest in Stocks for My Children in Germany and Benefit from Tax Advantages?
Stock savings plans allow for long-term investment with regular contributions. The potential return is higher than traditional savings accounts, and risk can be mitigated through diversification. Financial income can benefit from a tax allowance via a Freistellungsauftrag.
Is it Possible to Prepare for My Children’s Future through Real Estate?
Real estate funds (Immobilienfonds), or SCPI/SCI in France, allow for indirect investment in real estate with stable returns and moderate risk. Some funds are liquid, while others require the investment to be held for several years.
What Investments are Available for My Children in Case of Inheritance or Donation in Germany?
To transfer capital to your children, you can use:
- Child life insurance: guaranteed capital and advantageous taxation upon withdrawal.
- Fund or ETF investment plan: regular contributions, deferred taxation.
- Child savings account (Kinderkonto): secure and interest tax-exempt up to the legal allowance.
- Indirect real estate investments (Immobilienfonds / SCPI / SCI): long-term capital, stable returns.
The tax allowance for children is €400,000 every 10 years, to be included in your wealth planning.