The Polish government is advancing legislation to prevent the exploitation of elderly citizens’ estates and subsequent placement in state-funded care facilities.
Background of the Issue
On March 26, 2026, a draft law amending the Social Assistance Act and related legislation was published in the legislative work schedule of the Council of Ministers. The Ministry of Family, Labor and Social Policy authored the bill, aiming to address a deeply unethical legal loophole.
The proposed changes concern the payment rules for seniors residing in social welfare homes (DPS). Specifically, the legislation would add individuals who received property from a senior in exchange for care – such as through a life annuity agreement – to the list of those obligated to pay for DPS costs.
Current DPS Cost Determination
The cost of a senior’s stay in a DPS is currently determined according to Article 60 of the Social Assistance Act of March 12, 2004. The monthly cost is generally set at the so-called average monthly maintenance cost per resident.
This average monthly maintenance cost is calculated as follows: the total annual operating costs of the DPS (excluding investment costs and renovation expenses), increased by the projected average annual consumer price index adopted in the budget act for the calendar year, divided by the number of beds, determined as the sum of the actual number of DPS residents in each month of the previous year.
Who Currently Pays for DPS Costs?
According to Article 61 of the Social Assistance Act of March 12, 2004, the following individuals are obligated to pay for a senior’s stay in a DPS, in order of priority: spouse, descendants, and ascendants. However, these individuals are exempt if they independently cover the full cost.
Other individuals may voluntarily contribute to the costs. If relatives refuse to enter into an agreement regarding payment, the municipality unilaterally determines the amount owed. If relatives fail to meet their obligations, the municipality covers the costs and then seeks reimbursement from the relatives through administrative enforcement proceedings.
The Legal Loophole and Proposed Solution
Currently, individuals receiving property through life annuity agreements can deplete a senior’s assets and then place them in a DPS, with the municipality ultimately bearing the cost. The Association of Communes and Powiats of Greater Poland has raised concerns about this unethical practice.
The Ministry of Family, Labor and Social Policy is considering amending the law to require individuals who receive property in exchange for care to be responsible for the DPS costs. This would address the loophole and protect vulnerable seniors.
New Legislation Details
The draft law, published on March 26, 2026 (legislative number UD315), expands the list of individuals responsible for DPS costs to include those who received property from the senior in exchange for care, such as through a life annuity. This aims to reduce the financial burden on the social assistance system and strengthen the protection of vulnerable seniors.
The proposed legislation also addresses the issue of municipal responsibility, suggesting that the municipality responsible for the senior’s care should be the one where the senior resides, rather than the municipality of their registered address.
Additional Protection for Seniors – Poselski Project
A parliamentary bill was introduced on May 15, 2025, by the Left party, proposing additional protection for seniors against fraudulent property transfers. This bill would allow municipalities to buy back apartments from seniors, offering a lifetime lease in the same property.
The proposed legislation aims to provide seniors with a secure financial cushion and prevent them from losing their homes to unscrupulous individuals. The bill also proposes state funding to support municipal buybacks.