INVESTING IN A LIFE ESTATE - RIGHTS AND DUTIES OF THE LIFE TENANT

Investing in a life estate can be highly advantageous. The right of usufruct promotes a balance between the interests of the owner and the life tenant. It offers a flexible solution for various scenarios, from succession planning to efficient property management.

The right of usufruct thus implies rights and duties for the beneficiary. Get to know them.

Rights

• Lease the property. When the right of usufruct is granted, the owner cannot oppose this lease. However, the lease agreement expires as soon as the landlord dies. Under the law, the death of the life tenant extinguishes the right of usufruct. Consequently, the lease agreement ceases to be valid. The owner can demand the return of the property 6 months after the death of the life tenant.

• Continue to reside in the property, even if it is sold. The buyer cannot occupy the house or “evict” the life tenant. Although this may be a difficult deal to conclude, since the buyer cannot live in or generate income from the property, this possibility exists in the law.

• Property usufruct can be a form of inheritance, even for those who are not legal heirs. The owner of the property can choose who will have the right to use the property and, eventually, have full and definitive possession of it.

• Ease in executing a property usufruct contract.

Duties

• Manage and care for the property as if it were your own. The property must be well maintained and, upon the end of the usufruct, it must not present damages that were not caused by normal use.

• Pay expenses such as IMI and other charges.

• Make necessary repairs for the maintenance and preservation of the property. Major repairs and improvements are the responsibility of the owner.

The life tenant enjoys the benefits of the property, while the owner retains ownership. Primarily, the right of usufruct demonstrates its adaptability to contemporary challenges.